This report is going to explain two different types of business models. These are online revenue model and Intermediary models, and I will give the example for both of them.
What is business model?
A business model provides conceptual structure which can support the viability of a business, such as its purpose, its goals and its ongoing plans for achieving them. A business model can clear point out its customer and customer value, and explain how do you deliver value at an appropriate cost?
The e-Business model is similar to any business model, which describes how a company functions; how it offers a service or product, how it gets revenue, and how it will create and adapt to new markets and technologies. It also describes the business’s rationale, its goals and vision, and products or offerings from which it will earn revenue.
Online revenue model
An online revenue model is the method which can help people gain profits from their online business. It is a subset of the business model, which is the plan to gain customers and run a successful business (Ron Kurtus, 2011). There are many different ways to make money through online revenue model, such as direct online sales, gaining commissions from sales referrals, selling subscriptions, selling online advertising space and online subscriptions for newspapers and magazines (Ron Kurtus, 2011).
The example for online revenue model is JB HI-Fi, which is one of the biggest Australian retailers of consumer electronics, and it offers both of Physical sales. JB HI-FI’s website has meticulous navigation, so consumer can easily find every electronic product which is provide by JB HI-FI on the internet, and they also can view the describe of the product, which means consumers can easily to compare the price, models and brands. When consumer pay for the product, JB HI-FI will sent the product to the consumer from the warehouse, this is very convenient for both of consumer and JB HI-FI.
Intermediary model is a firm or individual which can links producers to consumers or other intermediaries, and it can improve a firm to promote, sell and make-available a good or service through contractual arrangements or purchase and resale of the item. Usually, the intermediary receives the item at a low pricing point and moves it to the next higher pricing point until the item reaches the final buyer (business dictionary, 2014). For the e-business, the website is a platform for the company to sell the product or offer the service on the internet, so let consumers to know its website is very important. So the search engine plays an important role for this website.
The example for the intermediary models is google and baidu, google is one of the biggest search engine in the world, it offers many different languages for people. Baidu is the biggest search engine in China, it main offers Chinese and English for people. Both of these two search engine are free, and provide fast and accurate search service for people to find the products.
Business Dictionary (2014). What is marketing intermediary model?, http://www.businessdictionary.com/definition/marketing-intermediary.html#ixzz3ByAFXAPX
SCHOOL FOR CHAMPIONS (2014), eCommerce Revenue Models, http://www.school-for-champions.com/ecommerce/revenue_models.htm#.VAMWE42BRxB
WhatIS (2014), business model, http://whatis.techtarget.com/definition/business-model
- James E. Burke (2008), THE E-BUSINESS MODEL, http://www.prudens.com/patens/ebusiness/busmodel.html