E-Business Models Week 3

Şule Özmen

E-Business Models Business-Webs (B-WEBS)

We will discuss the following Business Models

AggregationValue ChainAllianceDistributive

Networks

On the basis of

Main theme and key process

Customer roleKnowledge focusValue proposition

E-Business ModelsAgora

Aggregations (Portal, Infomediary)

Alliances Value Chains Distributive

Networks

Brokerage Model

Advertising Model

Community Model

Some Example E-Business Models

Agora Aggregations (Portal)

(Infomediary)

Value Chains

Alliances

Distributive Networks (enabler)

estore, eBay, pricelinee-kolay, Superonline,

Ixir, Yahoo, Amozon, Travelocity, Expedia

Cisco, Dell, Intel AutoXchange

Compact Disc, Linux, Java

AOL, Fedex

E-Business Models (Participants)

B2B www.cisco.com www.autoXchange.com www.dell.com

B2C www.amazon.com www.yahoo.com www.travelocity, expedia www.msnbc.com (Online Media)

C2B: www.priceline.com C2C: www.eBay.com

Price-DiscoveryMechanism

Sellers

Sellers

Sellers

Sellers

Buyers

Buyers

Buyers

Buyers

Agora

AGORA Main theme and

key process:

Customer role:

Knowledge focus:

Value proposition:

Dynamic pricing price discoveryMarket player

Timing and market intelligenceLiquidity

E-Bay (1995)–Agora – C2C Market Place

Thousands of categories, millions of items for sale on the site

Traditional auction and fixed price trading

At least twice as large as its nearest competitors.

Half.com* is acquired by e-Bay*Half.com is fixed price person to

person e-commerce site

Priceline.com B2C Market Place

A new type of e-commerce. Electronic demand collection system:

Product categories:• airline tickets, hotel rooms, rental cars, • personal finance service that offers

home mortgages • automotive services that sells new

cars• planning to offer a “name your own

price service for long distance calling”

Aggregator

ProducersCustomers

Aggregation

AGGREGATIONS – PORTAL- INFOMEDIARYADVERTISING MODEL

Main theme and key process:

Customer role: Knowledge focus:

Value proposition:

Selection and convenience needs matching

BuyerMarket segmentation,

supplier offerings, fulfillment

Optimization of selection, organization, price, convenience, matching, fullfillment

Prosumers

Prosumers

Prosumers

Prosumers

Alliance

Value Space

ALLIANCES –COMMUNITY MODEL

Main theme and key process:

Customer role: Knowledge focus:

Value proposition:

Creativity – Innovation

ContributorCreativity, community

Creative collaboration in aid of a goal shared accross a community of contributors

Distributive Network

Producers Customers

Customers Producers

Distributive Network

DISTRIBUTIVE NETWORKS

Main theme and key process:

Customer role:

Knowledge focus:

Value proposition:

Distribution – allocation

Sender/recipient

Network optimization, visibility and transparency

Facilitate the exchange and delivery of information, goods, services

Integrator

ProducersCustomers

Value Chain

VALUE CHAINS Main theme and

key process:

Customer role:

Knowledge focus: Value proposition:

Process Integration –Supply Chain Management

Value driverSupply Chain ManagementDesign and delivery of an integrated product or

service to a specific set of customers

Value Chains – Cisco a winner in e-business

Sells 80% of its products on line (about a million dollars a month)

Reduced its operating costsCommunication among all the

participants is encouraged order – to - delivery cycle times are

reduced.

Value Chains – Intel a winner in e-business

Sells more than 1 billion worth of product per month

Sales intermediaries are able to check prices, view product road maps and buy products through a password protected, customized Web site

Reduction in transaction costs of products sold

Fewer errors in order processingReduced order – to –delivery cycle

You can have a look on these sites and share your knowledge

with ushttp://www.hepsiburada.com http://www.arabul.com   http://www.muzayede.com http://www.indirimim.com http://www.deppo.com http://shop.superonline.com  http://www.advantagetatil.com http://www.bigglook.com/biggilan  

Assignment Evaluate priceline offer (refer slide 9 please)Which web sites do you visit more?

Select one or a few of them and evaluate these sites on the basis of the following characteristics.

a-what they offer?b-what is their target market?c-do you think that internet is the best

channel to offer what they offer?d-what are the basic features on this web

site which you think interesting or different from others?