Electronic Commerce Business
Models and Concepts
Dr. Robert Chi
Chair and Professor, IS department
Chief editor, Journal of Electronic
Commerce Research
E-commerce Business Models
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Business models?
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A set of planned activities (business processes) designed to result in a
profit in a marketplace.
Key factors
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Value proposition
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Revenue model
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What market space do you intend to serve and what is its size
Competitive environment
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How the firm will earn revenue, generate profits.
Market opportunity
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How a company’s product or services fulfill the needs of customers. Why
should the customer buy from you?
What special advantages does your firm bring to the market space
Market strategy
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How do you plan to promote your products or services to attract your
target audience
Continued..
• Organizational development
– What types of organizational structures within the firm are
necessary to carry out the business plan
• Management team
– What kinds of experience and background are important
for the company’s leaders to have
Major B2C Business Models
(handout 1)
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Portal: yahoo.com
Etailer: amazon.com
Content provider: wsj.com
Transaction broker: etrade.com
Market creator: ebay.com
Service provider: mycfo.com
Community provider: about.com
Major B2B Business Models
(handout 2)
• Net Marketplaces
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E-distributor: staples.com
E-purcurement: Ariba.com
Exchanges: gepolymerland.com
Industry consortia:
• Private Industrial Networks
– Single firm networks
• Buyer, seller
– Industry-wide networks
Other Business Models
(handout 2)
• C2C: ebay.com
• P2P kazaa.com
• M-commerce:
In class exercise
• Develop an e-commerce business model
which is preferred to be unique and design
the first page of its web site
• Teamwork, 20 minutes