For example, Dell sells a variety of goods such as desktop and notebook computers, their own brand of televisions, handhelds, printers and various other electronics and accessories. Computer equipment arrives with a large color-coded diagram showing the customer exactly how to hook up equipment. The customer can also pay to have someone come to his or her home to set up the equipment leaving the computer ready to use. Dell also markets equipment such as servers and storage solutions to small and large businesses but their main customer is the home consumer.
Dell targets audience for their website is consumers around the world. Dell has done an effective job with their website by allowing the consumer to choose which country they are from on the companies’ home page. Once selected, the website appears entirely in that country’s native language. If that country’s first language is Spanish and second language is English, the website will appear in Spanish but also give an option to display the site in English.
Another important feature Dell provides its customers is the ability to customize his or computer. The customer can build his or her computer with a variety of memory, graphics, hard drive, operating system, and ROM/RAM configuration options among others. If the customer chooses conflicting components, an error message will appear and the customer has to make corrections before continuing the ordering process. If at any time the customer is confused on which options to choose, he or she can just pick up the phone and order the computer through a sales associate.
The customer also has the ability to order additional bundled software, which reduces the cost or ordering them individually. Once the order is complete the customer sign on to the company’s website and see exactly what stage in the process is the company at in building their computer. Dell also run upgrade, discount and free shipping specials daily on their website.
However, there is a weakness in the merchant model. They do not offer their products in a traditional retail environment. Customers who are not comfortable with purchasing a computer over the Internet or via phone may choose a different vendor. Dell also offers other brand products like printers. This type of products is not customized and frequently there is not a need to get the latest model.
Subscription Model
Subscription Model makes their earning by selling a membership for a monthly fee or a yearly membership. With this membership, the users have access to a web site emails and have access to other complete services. Many e-businesses may partner with many well-known companies such as Hertz, Blockbuster, various hotels and so forth, and provide rewards to the members. Members can save money on entertainment, travel and a variety of other goods by taking advantage of the member rewards benefit.
Classmates.com, for example, is of this kind e-business model, and a user creates profile in the member directory. The user can add all the schools he or she attended to the directory going as far back as grammar school. When other users sign on to the site, he or she can search their school by the year they graduated, a succession of years, or see all the other students that attended that school regardless of graduation year. This is an easy tool to try to locate a former classmate.
The company markets themselves by using online advertising. A pop-up ad normally appears as users are surfing the Internet. The target audience also learns about this website through traditional word of mouth methods. Their school reunion committee also directs users to the site.
One of the strengths of Classmate.com is nostalgia. Many people think back and wonder what happened to a friend they lost touch with years ago. This entices the user to go to the site to see if he or she can get in touch with this person. With this strength comes a weakness to this business model. Now that the person has been able to locate and contact the old school chum, how does the company keep the users renewing his or her membership subscription? Once the user found his or her classmate, there is no need for renewal for his or her subscription.
Community Model
The Community Model such as American Red Cross markets themselves through television, brochures and relies on brand recognition. The community model is not for profit organization but is independently funded through volunteer contributions, and sale of ancillary products. The viability of the community model is based on the user loyalty. The target audiences of the website are individuals around the world who are in need of emergency services as well as individuals who volunteer their time and money with the organization.
The website has various features such as a newsletter the consumer can subscribe concerning disaster updates. The consumer can also make donations to the organization on the website. In addition, corporations can also see how they can partner with the American Red Cross. The site also offers a wealth of information concerning volunteer services and extensive youth, community, health, safety, and international services FAQ section.
Conclusion
Business models can be implemented in many ways. The business design must be constantly reevaluated to make sure it is in line with its customers’ priorities. Companies can do this by listening and evaluating the needs of its customers, establishing brand recognition and analyzing its e-business strategy.
References
American Red Cross. (2007). Volunteer Services. Retrieved from website on September 28, 2007
Rappa, M. (2007). Managing the Digital Enterprise. Retrieved from the website on September 28, 2007
Smith, P.R. & Chaffey, D. (2005). eMarketing eXcellence: at the heart of eBusiness. Butterworth-Heinemann: Oxford, UK.
Tromby, R. (2000). E-Business Models. Retrieved from website on September 29, 2007
Wilder, C. (1999). E-Business: What is the Model? Retrieved from . on September 28, 2007.
