Week 2 submission for blog

Dear Sir,

Please find below my Week 2 submission for blog:

The 8 Key elements of an e-commerce Model are:

1.       Value Proposition

2.       Revenue Model

3.       Market opportunity

4.       Competitive environment

5.       Competitive advantage

6.       Market Strategy

7.       Organizational Development

8.       Management Team

 

Target Market

We discussed how e-bay described its target market:

 

 

 

Value offering
Positioning	Fun Marketplace
Target	18-45 years; males
Benefits	Fun, feel successful, thrill of winning
Personality	Fun loving, vibrant, innovative, confident

 

The thrill of winning and other characteristics are built into the model. Thus, an e-business model is extremely important. However, Webvan with its innovative model failed spectacularly. This could probably be attributed to the fact that they expanded too fast and that too without piloting the model before implementing in other cities. Further, webvan failed at correctly segmenting its target market. Thus, emphasizing the importance of each of the aforementioned elements of the e-business model.

However, go peppers.com is doing well despite its remarkable similarity to webvan. Well one can only take a guess and suggest that the changed customer lifestyle is responsible for its success. May be webvan was too early and too forward for its time.

Another way of evaluating an e- business model could be :

1.       Value created

2.       Value captured/differentiated

3.       Value delivered

4.       Value sustained