1> E-tailing or e-commerce is totally built upon the trust between buyers and sellers. The trust can be built upon timely delivery of quality products and timely payments. To achieve these two things there should be proper secure framework. Continuous development of online secure payment methods and introduction of quality standards for products have forged he trust between buyers and sellers very well.
2> Customization has added another dimension to the online business or e-tailing. First impressions make all the difference in the world of e-commerce. That's why it's so important to ensure that online store is as professional and high quality in appearance as possible. If a company gets it right, it can turn visitors into customers.
3> Organizations follow a particular business model which focuses on capturing, creating and delivering values to the customer. . Such a model has to be intuitive and cover all matters of interest, i.e. encompass the necessary and sufficient conditions of company operation. To make a successful business model an organization should include the following eight components:
a. Value proposition: promise of value to be delivered and a belief from the customer that value will be experienced
b. Revenue model: How to generate profit using scarce resources
c. Market opportunity: Refers to a company's intended market space and the overall potential financial opportunities available to the firm in that market space
d. Competitive Environment: other competition selling similar products and operating in the same market space
e. Market strategy: Market penetration plan or new market development plan
f. Competitive advantage: Point of differentiation or point of parity
g. Organizational development: Describes how the company will organize the work that needs to be accomplished
h. Management team: Employees of the company responsible for making the business model work
4> The ways online businesses are making money can be identified by looking at various business models present here:
a. Products: This includes such diverse items as real estate, electronics, books, music, instructional videos, computer hardware, computer software, household items, clothing, jewelers - to name a few. Portable media such as books, tapes, CD's, and videos are a natural.
b. Specialized services: Services offered by professionals like lawyers or accountants
c. Information industries: Providing information online like Wikipedia
d. Internet careers: web designers
e. Electronic publishing: Electronic magazines
f. Subscription model: Users pay to access site for its contents. May be a mixture of free and premium account
g. Virtual mall: Assortments of products online
h. Auction broker: Bringing buyers and sellers together on online auction platform
i. Personalized portal: The generic nature of a generalized portal undermines user loyalty. This has led to the creation of portals (ex: My.Yahoo!, My.Netscape) that allow customization of the interface and content.
j. Specialized portal: Here volume is less important than a well-defined user base. Such as site for arms lover.
5> Any business model can be analyzed as an Egg Model which indicates that any business is influenced by internal factors (like capabilities and partner's assets) and external factors (like government rules and regulations, market scenario). Any business model should be simply to comprehend, effective in satisfying the user's needs and consequently fill a market segment. Also, it should be possible to run the business smoothly based on the model that has been come up with.
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