Learning in Second/Third class : E-Bus

Dear Sir,

PFA the learning in the Second/Third sessions of E-Business.

17^th October, 2013

 

We discussed four key stages of e-commerce business models:

1.      Value cluster and target group

2.      Market space offering

3.      Resources, and

4.      Financial model.

 

The Egg Model was discussed in the class in a great detail about how its core is constant with customer decision making process and the white is revolving focusing on Values, Capabilities and Resources. The core value of the model was giving the vast variety of choice and great deals. We also discussed about the wide reach to customers through onsite marketing, CRM, SEO, SEM, portals, and other ways of internet marketing.

 

After that the business model of Groupon was discussed and how they are able to do business. We analyzed their model in great detail, and saw how they offer value to the customers

 

24^th October, 2013

 

We discussed the effect of external world elements like Government Regulations which can affect business models like the PCI complied gateway for all the e-retailers or the way Indian government protected Indian companies to grow and be able to compete in online market or how these policies can affect negatively like RBI's mandate for second level verification by the use of OTP caused 40 percent decline in online transactions due to the mandate of checking of 16 digit card number.

 

We also discussed about the strategic partnership between ICICI bank and e-bay, which leads to increasing the mind space in the specific target group.

 

We were told to go through the 8 key elements of business model:

1.      Value Proposition

2.      Revenue model

3.      Market opportunity

4.      Competitive Environment

5.      Competitive Advantage

6.      Market Strategy

7.      Organizational Development

8.      Management Team

Then, we discussed the Value model, which any business model should define :

·         Value Created

·         Value Captured

·         Value Delivered

·         Value Sustained

Then, we discussed the reasons of the failure of Webvan, which was an online credit and delivery grocery business that went bankrupt in just 2 years after it was founded in 1999. The various reasons for failure were discussed in the class, but the prominent one seemed to be that there was nothing wrong in the model, just that it was ahead of its time and market was not ready for it.

Regards,

Parag Agarwal

12DM-191

E-Bus, Section-B