Topic 5

Business Models• Now look at the list of business models below and describe the features

of each of these business models, giving an example of each.• Brokerage

- bringing buyers and sellers together- ‘brokers’ are market-makers- facilitate the transaction- fees are incurred for the transactioneg. Real Estate agent selling a home

• AdvertisingWebsite provides:- content (usually, but not always, for free)- services (email, instant messaging, blogs)- advertising messages (banners/logos)eg. Google

Business Models

Infomediary

- collects data on consumers and their habits and trends

- assist buyers and sellers to understand the market

- allows an advantage to buyers and sellers

Example: Pop up ads/banners that appear when you go on certain websites.

Business Models

Merchant

- concerns wholesalers and retailers of their goods and services

- Sales are based on price lists or through auctions.

Example: A store that operates solely on the internet, such as the iTunes store.

Business Models

Manufacturer (Direct)

- manufacturer reachers customers directly

- compresses the distribution channel

- company that creates their own products/services

eg. Fantastic Furniture creates their own product and also provides the

delivery service to buyers

Business Models

• Affiliate

- provides purchase opportunities wherever people may be surfing

- offers financial incentives to affiliated partner sites

eg. Amazon is again the perfect example as they revenue share and use

pay-per-click

Business Models

• Community

- based on user loyalty and the time they spend

- revenue can be based on voluntary contribution or based on the sales of

ancillary products and services.

- more fertile area of development

Example: Wikipedia is open globally to the content and opinion of others.

Business Models

Subscription

- users are charged a periodic fee to subscribe to the service

- combining free content with premium membership

- costs are irrespective of actual usage rates

Example: Magazines such as Dolly or Cleo who charge a monthly subscription to access there content on line.

Business Models

• Utility

- based on metering usage, or a “pay as you go” approach

- based on usage rates

- ‘pay for what you use’

e.g.. An example of this would be electricity and gas companies which

invoice customers for amounts based on their usage

Business Models

• 1. What is the Mobile phone use/100 population – compare Australia,

USA, China, India, Your Country

Australia: 100.4% of the population

USA: 103.3% of the population

China: 81.2% of the population

India: 73.1% of the population

Business Models

• 2. What is the Internet use/100 population – compare Australia, USA,

China, India, Your Country

Australia: 79.0% of the population

USA: 77.9% of the population

China: 38.3% of the population

India: 10.1% of the population

Business Models

3. Compare the main strengths and weaknesses of Australia in the surveyThe survey shows that Australia has a 100.4 mobile phones per 100 people. Obviously this is more than one phone per person, i see this as a weakness because although mobile phones are becoming more essential to everyday life, why would somebody need more than one? Meanwhile, Australia’s internet usage of 79% of the population is MUCH higher than that of China and India. Largely due to differences in population and lifestyle. I see this as a strength for Australia as internet access should be available for everyone.

Business Models

4. What does the survey suggest to you about the Information Technology readiness of Australian business compared to Australian consumers?

Australia are ranked 17th overall in network readiness and 19th overall in total internet usage. These stats show me that the population is ready for improving technology and would hate to be left behind.

Bibliography

•  http://data.worldbank.org/indicator/IT.NET.USER.P2• http://thenextweb.com/entrepreneur/2011/05/25/the-9-types-of-online-

business-models-which-one-do-you-use/• http://ecommerce.hostip.info/pages/569/Infomediary-Model-

INFOMEDIARY-MODEL.html• http://api.ning.com/files/O1d7YEjts2c86FAbY4lGwuTV-

8Cd0EnNfZdwolcbh8O9kszKHBf3HrD9EU9bez4*BBVfFpazhwdqVqxMFljTrQQWEEzlNGmQ/ebusiness282x300.jpg