Tuesday, 29 May 2012


TYPE OF E-BUSINESS MODELS


E-Business models means to the methods that a company employs to grow into a profitable web-based business.  The component of an e-business model concerns the overall principle behind the company's formation.  It also describes how an organization operates and provides types of products or services to the customers, strategies for generating revenue plans for market penetration and plans for technology development.  It also demonstrates how the company makes profit.  In addition, E-business models include business activities, resources and core capabilities.

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However, there are different types of e-business modes which are discussed in the below
include:

               
Brokerage Model

Brokerage Model means to bring buyers and sellers together and facilitate transactions.  Here, brokers plays a frequent role in consumer to consumer, consumer to business, or business to business markets.  This model earns money by charging a fee or commission for use.  Some examples of such sites including Ebay, Etsy And Amazon.

Infomediary Model

Infomediary Model deals with capturing and sharing information.  Data about consumers and their consumption habits are valuable, and their products.  Independently collected data about producers and their products are useful to consumers when considering a purchase.  Some companies may have website user to register to gain access to the information on website.  However, this is a common technique.  This model also provides consumers incentive, such as, coupons or points to patronize certain businesses and who collects data to sell for target advertising campaigns.

Advertising Model

The advertising e-business models is an extension of traditional media broadcast model.  This model provides a combination of content and ads.  This business may offer free or paid services, such as email, blogs or instant messaging.  Generally, this model has banner or text ads.  The advertising model only works when the volume of viewer traffic is large or highly specialized.

Affiliate Model

Whenever people surf on the web, this model provides purchase opportunities.  The affiliate provides purchase-point dick-through to the merchant.  The affiliate receives a commission when a surfer clicks on the link and buy through which companies get benefit because of reducing customer acquisition costs.               

References:
Type of eBusiness Models | eHow.com. 2012. Type of eBusiness Models | eHow.com. [ONLINE] Available at: http://www.ehow.com/info_8229765_type-ebusiness-models.html. [Accessed 30 May 2012].

2 comments:

  1. Good summary, can be improved with again in text referencing and in depth research.

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  2. E-business models include HostGenics B2B, B2C, C2C, and C2B, each representing different ways businesses and consumers interact online.


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