Blog write-up

In the last session, Egg Model for SnapDeal was discussed.  We discussed about B2C business models such as Portal, E-Tailer, Content Provider, Market Creator, Service Provider, and Community Provider.

Portals – eg Yahoo, AOL. They are marketed as placed where consumers will want to start their web search, read emails, news, do shopping, music downloads and so on. They generate revenue by charging advertisers for ad placement, collecting referral fees for steering customers to other sites, and charging for premium services.

E-Tailer ­– E-tailers are similar to the bricks-and mortar stores, except that customers connect  to the Internet to check their inventory and place an order. Eg JCPenney, Barnes and Noble, Wal-Mart. Others, however, operate only in the virtual world such as Amazon, BlueNile.com. Barriers to entry into the Web e-tail market are low and so many e-tail shops have emerged.

Content Provider - It provides information content, such as music, video, photos, over the internet. It make money by charging a subscription fee. But some content provider sucb as CIO.com, NDTV.com, CNN.com generate revenue by advertising and partner promotions on their sites. Some content providers, however, do not own content but syndicate content produced by others.

Transaction Broker ­– It processes transactions for consumers normally handled in person, by phone or by mail. Largest industries using this are travel services, job placement services, and financial services. Value proposition is saving time and money. Transaction broker make money during transactions.

Eg Monster.com, Yatra.com

Marker Creator ­– It builds a digital environment where buyers and sellers can meet, display products, search for products, and establish a price for products. Eg PriceLine.com, eBay

 Service Provider – It offers services online such as video sharing, music sharing, blogs etc.

Eg  Google Maps, Google Docs. It uses various revenue models. Some charge a fee, or advertising.

Community Provider – Its creates a digital online environment where people with similar interests buy and sell goods, share interests, videos, communicate with people, and receive interest related information. Eg MySpace, Friendster, Facebook, Twitter and so on

Value proposition is to create a fast, convenient , one-stop site where users can focus on their most important concerns and interests, share the experience with friends, learn more about their own interests .

Then we discussed about B2B models such as E-Distributor, E-Procurement, Exchanges, Industry consortia, Private Industrial Networks

We discussed about the failure of WebVan and the success of other e-business websites. Class was divided on the opinion that online grocery stores cannot be successful and some e-commerce companies succeeded because they had different categories or diversification in their web sites.

E- Distributor is a company that supplies products and services directly to individual business. E.g. W.W Grainger for MRO.

E – Procurement create and sell access to digital electronic markets e.g. Ariba, Tata Steel

Exchange – An independent digital electronic marketplace where supplier and commercial purchasers can conduct transactions.

Industry Consortia – Industry owned vertical  marketplaces that serve specific industries.

Private Industrial Networks – To coordinate the flow of communications among firms that are in business together

 

 

An article on B2B e-commerce - http://www.marketingprofs.com/articles/2013/11888/five-tips-for-tackling-b2b-ecommerce-without-amazon

 

Regards

Rohin