Blog Entry: Anuj Arora: 12FN-019

Dear Sir

Please find my blog entry for the learnings up to the current class.

.......................................................................................

Learnings from Week 1 and Week 2

 

We started the course with an objective to learn from each other expectations. Some of the questions pointed out about role of start-ups, trends in E-business, short-term objectives and related models.

 

The discussion started with the prevalence of B2C segment from 1995-2000 using examples of Amazon, Napster when the focus was more on innovation and advertisement. It later shifted to ways of saving costs later in coming years from 2001-2009 producing the effect of dot-com bubble. With the advent of social media, online branding and VCs after 2009, the markets revived again.

 

We further discussed about the role of intermediary in E-commerce and also about the Porter's 5 forces of Model, which gave an overview of all forces and mainly the importance of Bargaining power of Channel having the utter-most relevance in E-Business.

 

In the following session, our discussion moved towards the E-commerce business models, which aims towards using and leveraging the unique qualities of the Internet and The World Wide Web. We first talked about the basic requirements in these business models:

·      Value Proposition (Product & Service)

·      Marketspace Offering (Competition)

·      Resource System (Assets +Partners)

·      Financial Model (Revenues + Sustainability)

 

8 key elements of an e-commerce business model are stated under:

1.     Value Proposition: It talks about the needs of customers, the deliverables of your firm with respect to other firms and how your company's product and services are defined.

2.     Revenue Model: It discusses about the ways to earn revenue through advertising model, subscription model, transaction fee model etc.

3.     Market Opportunity: It mentions the opportunities and potential in the market space company is set-up in.

4.     Competitive Environment: It refers to the company's competition mainly which are operating in the same market space.

5.     Competitive Advantage: Anything superior about the company with respect to its competitors.

6.     Market Strategy: It talks about your business plan for introducing new offerings, expansion or attracting new customers.

7.     Organizational Development: It mentions the ways in which the company does its day-to-day operations, how it organizes the work to accomplish the tasks.

8.     Management Team: A strong management team is what makes a company more robust and gives credibility to the investors.

 

 

We, finally, also discussed about few examples of companies like Webvan, phoolwala.com, groupon and snapdeal to match the concepts we read in the class with their business models.

 

 

 

Thanks & Regards

 

Anuj Arora

12FN-019

EBUS - A