Documente Academic
Documente Profesional
Documente Cultură
Kenneth C. Laudon
Chapter 2
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What characteristics or benchmarks can be used to assess the business value of a company such as Twitter that does have revenue? Have you used Twitter to communicate with friends or family? What are your thoughts on this service? What are Twitters most important assets? Which of the possible methods described for monetizing Twitters assets do you feel might be most successful?
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Business plan
Describes
Web
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4.
5. 6.
7.
8.
Value proposition Revenue model Market opportunity Competitive environment Competitive advantage Market strategy Organizational development Management team
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1. Value Proposition
Why should the customer buy from you? Successful e-commerce value
propositions:
Personalization/customization
Reduction of product search, price discovery costs Facilitation of transactions by managing product delivery
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2. Revenue Model
How will the firm earn revenue, generate profits, and produce a superior return on invested capital?
Major types:
Advertising revenue model Subscription revenue model
3. Market Opportunity
What marketspace do you intend to
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4. Competitive Environment
Who else occupies your intended
marketspace?
Other companies selling similar products in the same
Influenced by:
Number and size of active competitors
5. Competitive Advantage
superior product or can bring product to market at lower price than competitors
Important concepts:
Asymmetries First-mover
advantage
6. Market Strategy
How do you plan to promote your
to enter market
and attract customers Best business concepts will fail if not properly marketed to potential customers
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7. Organizational Development
What types of organizational structures
within the firm are necessary to carry out the business plan?
Describes how firm will organize work
Typically divided into functional departments Hiring moves from generalists to specialists as company
grows
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8. Management Team
What kinds of experiences and
work
Strong management team gives instant credibility to
outside investors
Strong management team may not be able to salvage a
weak business model, but should be able to change the model and redefine the business as it becomes necessary
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Insight on Business
Why do you think Webvan failed? Why are more traditional grocery chains succeeding online today? Why would an online customer pay the same price as in the store plus a delivery charge? Whats the benefit to the customer? What are the important success factors for FreshDirect? Do you think FreshDirect would work in your town?
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E-commerce sector (B2C, B2B, C2C) Type of e-commerce technology; i.e., m-commerce
Similar business models appear in more than one sector Some companies use multiple business models; e.g., eBay
Variations:
Horizontal/General
Vertical/Specialized (Vortal) Pure Search
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Insight on Technology
How many of you use Google, Yahoo, or Microsofts Bing? Does the class differ from the overall Web population? Why do you use a particular search engine? Why is Google moving beyond search and advertising into applications? How is Bing trying to distinguish itself from Google? Do you think this strategy will work?
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Revenue models:
Subscription; pay per download (micropayment);
Variations:
Content owners Syndication Web aggregators
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Revenue model:
Transaction fees
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eBay
Value proposition
Valuable, convenient, time-saving, low-cost alternatives to
Revenue models:
Sales of services, subscription fees, advertising, sales of
marketing data
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network) where people with similar interests can transact, share content, and communicate
E.g., Facebook, MySpace, LinkedIn
Revenue models: Advertising fees, subscription fees, sales revenues, transaction fees, affiliate fees
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Exchange
Industry consortium
individual businesses
Owned by one company seeking to serve
many customers
Revenue model: Sales of goods Example: Grainger.com
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electronic markets
Includes B2B service providers, application service
providers (ASPs)
Revenue model:
Transaction fees, usage fees, annual licensing fees
Example: Ariba
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making a market
Usually serve a single vertical industry
Industry-owned vertical marketplaces that serve specific industries (e.g., automobile, chemical)
Example: Exostar
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Industry-wide networks
Often evolve out of industry associations Example: Agentrics
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Peer-to-peer (P2P)
Examples: The Pirate Bay, Cloudmark
M-commerce:
E-commerce models using wireless technologies
Technology platform continues to evolve In the United States, demand still highest for digital
Insight on Society
Where R U?
Class Discussion
Why should you care if companies track your location via cell phone?
Databases
Hosting services, etc.
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Set of activities performed by suppliers, manufacturers, transporters, distributors, and retailers that transform raw inputs into final products and services Internet reduces cost of information and other transactional costs
Leads to greater operational efficiencies, lowering cost, prices, adding value for customers
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Networked business ecosystem Uses Internet technology to coordinate the value chains of business partners
Within an industry
Coordinates a firms suppliers with its own production needs using an Internet-based supply chain management system
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Business Strategy
Plan for achieving superior long-term
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