Introduction to e-Commerce - Muhammad Haris

prudencecoatInternet και Εφαρμογές Web

18 Νοε 2013 (πριν από 3 χρόνια και 8 μήνες)

61 εμφανίσεις

Introduction to
e
-
business

Models

Introduction to e
-
Commerce:

What is a
Business Model?


A Business Model is how a business attracts customers and
makes a profit.


Successful businesses:


Create and deliver something (a product or service) that
has value.


Have a market for its products or services


Can pay their costs,
i.e

overhead


Ultimately make a profit

Introduction to e
-
Commerce:

Common Characteristics of Successful Websites


Successful websites have the following four
characteristics:


They make it easier for users to do something


They offer users something of value, often times
for free


They incorporate features & benefits that
generate repeat visits and use


They differentiate themselves from competition


Introduction to e
-
Commerce

eBay: Online Auction Business Model


eBay is an electronic marketplace for people who want
to sell things and people who want to buy.


eBay is considered by many business experts to be the
most successful e
-
commerce site ever.


In 2006, eBay’s net revenues reached $5.97 billion, a
31% increase over the year before.


eBay’s profits exceeded $1 billion for the second
straight year in 2006 ($1.13 billion
)

Introduction to e
-
Commerce


eBay: Online Auction Business Model

What does eBay make easier?



It makes it easier for people to sell.


It makes it easier for people looking to purchase to
find items for sale.


It makes it easier to buy, often times at a lower
price.


It makes it safer to do business with people you
haven't met.

Introduction to e
-
Commerce

eBay: Online Auction Business Model

What does eBay offer free to users?



It is free for buyers to submit bids on eBay.


It is free to monitor the progress of auctions on
eBay.


It is free to use eBay’s search engine to find items
for sale that you have an interest in purchasing.

Introduction to e
-
Commerce

eBay: Online Auction Business Model

How does eBay generate repeat usage?


Through the bidding process (bidders are
compelled to return to see how their bid is doing.)


Requiring sellers and bidders to register.


Website ease of use to buy and sell.


A secure user environment (makes buyers and
sellers more receptive to perform a transaction.)


A unique variety of products.


Introduction to e
-
Commerce


eBay: Online Auction Business Model

How does eBay

differentiate itself from competition?


Excitement and competition in the shopping
process.


Users don’t know the cost of a product until the
winning bid has been posted.



Product variety, ease of use, and security

Introduction to e
-
Commerce


eBay: Online Auction Business Model

How does eBay

Attract first
-
time visitors to its Web site?


Clever search engine marketing strategies


Publicity
-

Weird, clever, and unique items
auctioned on eBay have received worldwide media
coverage


Associates program that provides linking
incentives


Advertising on TV, radio, the Internet, and direct
mail

Introduction to e
-
Commerce

eBay: Online Auction Business Model

How does eBay make money?


Charges sellers a fee.


Charges for specialized services such as the
rental of electronic storefronts to sellers and
an on
-
line bill payment service.


Sells advertising space.

Introduction to e
-
Commerce

Amazon: Online Retail Business Model



Amazon is an online retailer of


books,
music, DVD/video, toys,
electronics,


software, and home products.


Amazon spent 98 cents for every $1 of
revenue it generated in 2006 while eBay
spent just 81 cents for every dollar of its
revenue. What helps make eBay’s business
model more profitable
?

Introduction to e
-
Commerce

Amazon: Online Retail Business Model

What does Amazon make easier?


It makes it easier for people to shop with features
such as one
-
click shopping.


It makes it easier for people to get information
about the products they are interested in.


It makes it easier for people to compare the
features, benefits, and prices of competitive
products.


It makes it easier to save money.


Introduction to e
-
Commerce

Amazon: Online Retail Business Model

What does Amazon offer free?


Detailed product information.


Product ratings and reviews.


Services and features (e.g. free chapters
from books, samples of songs from CDs, e
-
cards, review restaurant menus, wedding
registries, movie show times)

Introduction to e
-
Commerce

Amazon: Online Retail Business Model

How does Amazon generate repeat usage?


Purchasers must register.


Software that tracks users purchasing behavior and
generates e
-
mail messages that notify when a
similar or related item becomes available or goes
on sale.


Promotions such as the gold box.

Introduction to e
-
Commerce

Amazon: Online Retail Business Model

How does Amazon differentiate itself from
competition?


Offers its products at the lowest possible
price.


Has a large variety of products.


Has an extensive database that tracks
purchases

Introduction to e
-
Commerce

Amazon: Online Retail Business Model

How does Amazon attract first
-
time visitors?



Effective search engine marketing


An associates program that offers revenue
generation potential for third party links


Lots of advertising on TV, radio, in mail

Introduction to e
-
Commerce

NY Times: Online Newspaper Business Model


The mission of the online version of the NY
Times is to provide a high
-
quality, worldwide
online audience with trusted editorial content
from The New York Times


Launched in January 1996


Most of site’s content comes from content
already being produced for hard
-
copy edition


Site has 13.3 million registered users


Introduction to e
-
Commerce

NY Times: Online Newspaper Business Model

What does the NY Times website make easier?


It makes it easier for people to access news
information in each day’s edition.


It makes it easier for users to get access to
additional information such as video feeds, slide
shows, on
-
line chats with columnists and writers
.


Introduction to e
-
Commerce

NY Times: Online Newspaper Business Model

What does NY Times offer free to users?


Users enjoy complete access to each day’s online
version for free.

How does NY Times generate repeat usage?


Free content


Feature that allows articles to be emailed to others


E
-
newsletters on special interest topics


A
personalized news service

Introduction to e
-
Commerce

NY Times: Online Newspaper Business Model

How does NYTimes.com differentiate itself from
competition?


Content is updated several times during each day


Use of features that have enabled the hard
-
copy to
differentiate itself, such as op
-
ed writers, Sunday
Magazine supplement, and the Crossword Puzzle


It’s free!


Introduction to e
-
Commerce

NY Times: Online Newspaper Business Model

How does NYTimes.com attract first
-
time visits?



RSS Feeds that permit other sites including blogs
to abstract and link to NYTimes.com articles


By effectively using its hard
-
copy edition to
promote its online edition



Introduction to e
-
Commerce

NY Times: Online Newspaper Business Model

How does NYTimes.com make money if the
subscription is free?


Advertising


An ad that runs for about one month currently costs
approximately $70,000


Sale of Times Select subscriptions
-

access to
premium and archived content


Sale of related products/services such as software
to do the crossword puzzle, and products in the
site's on
-
line store.



MySpace.com Social Networking



Businesses like this model because content
is created by users of the site


MySpace’s mission is to create the coolest
online place a 13
-
to
-
34 year old Internet user
could possibly be


35 million visits per month


User security is an issue with this model


MySpace was sold in 2006 for over half
billion dollars


MySpace.com Social Networking


What does MySpace offer free to users?



Users can create personal Web sites, blogs, photo
galleries


Users can communicate with friends online and
meet new people who have similar interests


Users can easily post and share images, videos,
music etc.


MySpace.com Social Networking


How does MySpace generate repeat usage?



Curiosity
-

When users post something at My
Space, they check back at site frequently to see if
friends or strangers have commented or left
messages to their post.


Habit
-

MySpace.com has become a standard form
of communication among its users in much the
same way people use instant messaging, e
-
mail,
and cells.


MySpace.com Social Networking



How does MySpace differentiate itself from
competition?


Social Networking Sites are very vulnerable to
competition because the communication technology
they feature is easily replicated and enhanced
(MySpace replaced Friendster.com)


Sheer Size of MySpace’s user base (95 million
registered users) gives it advantage because primary
purpose of a social networking site is to communicate
with as many “others” as possible.


MySpace.com Social Networking



How does MySpace attract first
-
time visitors?


Viral marketing at its most effective. Since one of
the key purposes of using MySpace.com is to
communicate with friends, every user gets more
people to become users.


Owner of MySpace.com is World News Corp. one of
the biggest media companies in the world.
Company’s newspapers, TV networks, radio
stations, and magazines can be used to promote
the site at every opportunity.


MySpace.com Social Networking


MySpace should be used with caution and maturity


Don’t post anything at MySpace.com that you don’t
want everyone in the world to know about yourself.


Employers now search MySpace for profiles of job
candidates.


There have been instances where MySpace users
have been identified and victimized using
information those users have made available at the
Web site.


You don’t have to be “BIG” to be successful online


CustomInk.com

-

Started in a garage


Developed a new and creative way to sell imprinted
tee shirts that takes full advantage of the Internet’s
interactive technologies


This site’s users get to design the product they are
purchasing


This Company has become successful by
developing an online business model that makes it
fun and engaging for customers to place orders
and spend money at their Web site.

Introduction to e
-
Commerce

MTV.com: Niche Portal Business Model


Focuses on music fans in their teens and
twenties.


Is
consistently ranked the No. 1 music content
site in the teen demographic, according to
Media
Metrix


Introduction to e
-
Commerce

MTV.com: Niche Portal Business Model

What does the MTV.com website make easier?


It makes it easier to find information about music and
artists.


It makes it easier to find out when and where an artist is
performing.


It makes it easier to sample and purchase recordings.


It makes it easier to communicate with people from
around the world who share the same musical interests.



Introduction to e
-
Commerce

MTV.com: Niche Portal Business Model

What does MTV.com offer free to users?


The ability to personalize features of the site based
on musical tastes.


Downloads of free music from new and established
artists.


Product ratings and reviews.


Chats hosted by top recording artists.




Introduction to e
-
Commerce

MTV.com: Niche Portal Business Model

How does MTV.com generate repeat usage?


Requires visitors to join/register.


Software that tracks personal preferences
and purchasing behavior so that marketing
can be more targeted.


Free samples of new recordings.


Introduction to e
-
Commerce

MTV.com: Niche Portal Business Model

How does MTV.com differentiate itself from
competition?


It focuses on the teenage demographic, which is known
to spend its money on music
-
related interests.


Exclusive content that is not available anywhere else.


It
covers a wide expanse of musical related and cultural
interests.


Introduction to e
-
Commerce

Assignment


List the events happening inside your
college /
university
that would be of interest to different
segments of your community.


List ways to get people interested in what’s
going on inside your
college
/ university.


Write how you could obtain information that will
be used as content for your website.