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Topic 2

B2C Business Models
E-tailer (online retailer, sales)

Community Provider (social networks)

Content Provider (News, music, video, text)

Portal (Search plus an integrated package of content and services)

Transaction Broker (transaction fees)

Market creator (where buyers and sellers can meet and transact- ebay, uber)

Service Provider (ex Google- Gmail, Gmaps)

8 key elements in a business model
Value proposition (why should customer buy from you)
Revenue model
Market opportunity (market size)
Market strategy (promote)
Management team
Competitive environment (who else does this)
Competitive advantage (what about your product is superior than your competitor)
Organizational development
The existence of a large number of competitors in any one market segment may indicate:
That the market is saturated
A perfect market is one in which:
There are no competition because firms have equal access to factors of production
The business model of e-tailers is quite similar to that of:
Horizontal or general portals primarily generate revenue in all of the following ways except:
A) charging advertisers for ad placement.
B) collecting transaction fees.
C) sales of goods.
D) charging subscription fees.
Which of the following is not a variation of the e-tailer business model?
A) bricks-and-clicks
B) virtual merchant
C) market creator
D) manufacturer-direct
Monster.com is an example of a:
A) community provider.
B) transaction broker.
C) market creator.
D) service provider.
B. Transaction broker
All of the following are examples of Business-to-Business (B2B) business model except:
A) e-distributors.
B) e-procurement.
C) private industrial networks.
D) market creators.
What is the primary revenue model for an e-distributor?
One of the competitive advantages of a B2B service provider is that it can spread the cost of an expensive software system over many users, achieving efficiencies referred to as:
Scale Economies
A ________ business model provides a way for consumers to sell to each other with the help of an online business
The key technologies for m-commerce are:
Cell phone-based 3G, Wi-Fi and Bluetooth
Which of the following features of e-commerce technology changes industry structure by lowering barriers to entry, but greatly expands the market at the same time?
A) global reach
B) richness
C) interactivity
D) personalization
Which of the following features of e-commerce technology changes industry structure by weakening powerful sales channels, shifting bargaining power to consumers?
A) ubiquity
B) information density
C) universal standards
D) global reach
A(n) ________ is a set of planned activities designed to result in a profit in marketplace.
Business Model
Today, the ________ business model offers users content as well as Web search tools in order to act as a destination site.
The financial services, travel services, and job placement services industries use the ________ business model.
Transaction Broker
In a(n) ________ business model, Web-based businesses build a digital environment in which buyers and sellers can meet, display products, search for products, and establish prices.
Market Creator
A(n) ________ provider is a company that offers access to Internet-based software applications to other companies.
Application service

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