E-Business Models
Week 3
Şule Özmen
E-Business Models
Business-Webs (B-WEBS)
 We will discuss the
 On the basis of
following Business Models
Aggregation
Value Chain
Alliance
Distributive
Networks
Main theme and
key process
Customer role
Knowledge focus
Value proposition
E-Business Models
 Agora
Brokerage Model
 Aggregations (Portal,
Advertising Model
Infomediary)
 Alliances
 Value Chains
 Distributive Networks
Community Model
Some Example E-Business
Models
 Agora

 Aggregations 
(Portal)
(Infomediary)
 Value Chains

 Alliances

 Distributive Networks
(enabler)

estore, eBay, priceline
e-kolay, Superonline,
Ixir, Yahoo, Amozon,
Travelocity, Expedia
Cisco, Dell, Intel
AutoXchange
Compact Disc, Linux,
Java
AOL, Fedex
E-Business Models
(Participants)
B2B
B2C
C2B:
C2C:
www.cisco.com
www.autoXchange.com
www.dell.com
www.amazon.com
www.yahoo.com
www.travelocity, expedia
www.msnbc.com (Online Media)
www.priceline.com
www.eBay.com
Agora
Buyers
Sellers
Buyers
Price-Discovery
Mechanism
Buyers
Sellers
Sellers
Buyers
Sellers
AGORA
 Main theme and key
process:
 Customer role:
 Knowledge focus:
 Value proposition:
Dynamic pricing
price discovery
Market player
Timing and market
intelligence
Liquidity
E-Bay (1995)–Agora – C2C
Market Place
Thousands of categories, millions of
items for sale on the site
Traditional auction and fixed price
trading
At least twice as large as its nearest
competitors.
Half.com* is acquired by e-Bay
*Half.com is fixed price person to person e-commerce site
Priceline.com B2C Market Place
A new type of e-commerce. Electronic
demand collection system:
Product categories:
• airline tickets, hotel rooms, rental cars,
• personal finance service that offers home
mortgages
• automotive services that sells new cars
• planning to offer a “name your own price
service for long distance calling”
Aggregation
Aggregator
Producers
Customers
AGGREGATIONS – PORTAL- INFOMEDIARY
ADVERTISING MODEL
 Main theme and key
process:
 Customer role:
 Knowledge focus:
 Value proposition:
Selection and convenience
needs matching
Buyer
Market segmentation,
supplier offerings,
fulfillment
Optimization of selection,
organization, price,
convenience, matching,
fullfillment
Alliance
Prosumers
Prosumers
Prosumers
Prosumers
Value Space
ALLIANCES –COMMUNITY MODEL
 Main theme and
key process:
 Customer role:
 Knowledge focus:
 Value proposition:
Creativity – Innovation
Contributor
Creativity, community
Creative collaboration in
aid of a goal shared
accross a community of
contributors
Distributive Network
Customers
Producers
Distributive Network
Producers
Customers
DISTRIBUTIVE NETWORKS
Main theme and
key process:
Distribution – allocation
Customer role:
Sender/recipient
Knowledge focus:
Network optimization,
visibility and transparency
Facilitate the exchange and
delivery of information,
goods, services
Value proposition:
Value Chain
Integrator
Customers
Producers
VALUE CHAINS
 Main theme and keyProcess Integration –Supply
process:
Chain Management
Value driver
 Customer role:
Supply Chain Management
 Knowledge focus: Design and delivery of an
 Value proposition: integrated product or service
to a specific set of
customers
Value Chains – Cisco a winner
in e-business
Sells 80% of its products on line
(about a million dollars a month)
Reduced its operating costs
Communication among all the
participants is encouraged
order – to - delivery cycle times are
reduced.
Value Chains – Intel a winner
in e-business
Sells more than 1 billion worth of product per
month
Sales intermediaries are able to check prices,
view product road maps and buy products
through a password protected, customized
Web site
Reduction in transaction costs of products
sold
Fewer errors in order processing
Reduced order – to –delivery cycle
You can have a look on these sites
and share your knowledge with us
http://www.hepsiburada.com
http://www.arabul.com
http://www.muzayede.com
http://www.indirimim.com
http://www.deppo.com
http://shop.superonline.com
http://www.advantagetatil.com
http://www.bigglook.com/biggilan
Assignment
 Evaluate priceline offer (refer slide 9 please)
Which web sites do you visit more?
Select one or a few of them and evaluate
these sites on the basis of the following
characteristics.
a-what they offer?
b-what is their target market?
c-do you think that internet is the best
channel to offer what they offer?
d-what are the basic features on this
web site which you think interesting or
different from others?