The Egg model framework for e-business encompasses the complete decision making process on part of the customer. The model highlights the aspects considered by the customer for the evaluation of a business, namely: search for ideas & offerings, evaluation of alternatives, purchase decision, post sale support and perk and need for recognitions. This perspective of the customer decision making lays the guideline for the overall outlook for the business model on the ecommerce platform. It is imperative for a business to consider this perspective before venturing into e-business to serve its customers. The pictorial representation of the Egg model framework is as shown below:
As this customer decision making process is taken into consideration, the business model to be developed in the e-world will have the following eight crucial elements which are supposed to go in sync with the Egg model.
Apart from these business models, some of the models traditionally existing are the B2C business models like pureplay, click and mortar and hybrid. The major proponants of a B2C business model are manufacturers, Distributers, Publishers, Direct sales firms, Entertainment firms, Information providers, Specialty retailers, Insurance firms.
Some of the anecdotes to refer to these business models for the study practical applications are:
Google Maps
The major value proposition for google maps is assistance in static navigation needs of the customers by providing all geographical and civic details of the desired location. The advanced versions include a wide range of services depening on the complexity of data needs by the intended users. Its basic version is available for free and is considered as a one stop solution for static navigation needs. Several handsets also help provide a dynamic navigation which an acceptable precision in the locations.
The targeted segments include a wide range of customers with customized services and products as per the requirements. The free version available on computers and mobiles is widely targeted for the mass customers who wish to use it for any desired purposes. The business customers for google maps include some high tech products and services which would facilitate the business in the overall decision making process. The Google Maps API for business includes services like geo-coding and geo-related computations to assist in the expansion or restructuring related decision making processes. The revenues for the company come on a high scale through advertisements and subscriptions, as well as from its business customers who choose to use its customized solutions as per the business needs.
Webvan
Webvan was seen on the corporate map in the e-business world as a well versed name for the duration from its inception in 1999 to 2001, when it filed for bankruptcy. Its main business was into online credit and delivery grocery business. The major value proposition was delivery of products to the customers within a 30 min window from their choosing. It expanded to become a widely acclaimed name in US by offering its services in almost 10 major US markets.
The company was initially funded under the purview of the dotcom bubble considering the growing industry trend. Webvan intended to capitalize on this fast paced growth trend and decided to invest on infrastructural developments for future growth. Conversely, this invested outpaced the sales growth when at a certain point in time, the company ran out of funds to even run the routine operations of the business. Moreover, the margins from the services offered were kept low at the first place to attract a wide customer base. Eventually, all these factors aggravated the financial conditions of the company which was ultimately bought by another e-business giant – Amazon, which later built its own grocery business by learning lessons from the failure of Webvan.
Few of the examples in line with the business model of webvan, which need to be dwelled into, are the batmandelivers, gopeppers and redmart. The first two are local Indian grocery delivery chains offering its services in their own respective localities and so are on lines of being termed as successful business. Redmart is based out of Singapore to offer similar service in online grocery delivery. Batmandelivers has a unique value proposition to deliver online shopping of products specially at night hours at the marked price. The company claims to provide hassle free services even at midnight with a wide range of products catering to the requirements of its loyal customers at Gurgaon. On the other hand, gopeppers concentrates its services in the Ghaziabad area of NCR for groceries and daily needs items for the household. The question here is whether being ahead of time is worthy or not as Webvan was or to wait till the penetration has increased to a substantial level?
Bhavya Agarwal
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