Learn what e-Models can do for you
As any business, traditional or online business, they both need to fulfill a consumer need. On-line companies face just as many treats and opportunities like “brick and mortar” companies do. It includes new market entrants, new products and the buying power of both customers and suppliers. A strategy is how to achieve a goal, thus in strategic planning businesses must develop a fit between objectives and the market. It includes the SWOT analysis tied in with its objectives that could be: Growth, Positioning and Locations.
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So What?
A business model is how a firm differentiates and sustain itself in the long run as well as how it includes value for its customers and partners with revenue streams. For example:
e-Model = IT + traditional business model. We use technology to reach goals and to achieve a competitive advantage.
Any firm can be profitable. However, it depends on whether or not they have a business model that has been proven successful. But how do we measure success for this? We look at the revenue, a firm’s ability to generate profits, how it establishes itself in the market and the differentiating factors in its products and services. But it all comes down to its customers.
Companies are starting to bypass intermediaries such as brokers, especially travel agencies, real estate, stock and insurance dealers. This disintermediation of middlemen, have created re-intermediation, which means that these middlemen have, and are going to be replaced by electronic intermediaries to save the consumer both time and money.
So what does this mean?
You can increase your revenue by choosing the most appropriate business model. Important to remember is: what model your business uses as its primary model and how you combine various strategies together. You need to combine the primary business revenue model with your profit strategy, your commerce strategy and your pricing model. [ Contact us Now for more information ]
e-Model Examples
Brokerage
http://www.ameritrade.com/
Fixed rates for different accounts plus a fixed price that varies for which type of medium you use, Eg. Unlimited trading via Internet is $8.00 per Internet equity market order
Advertising
http://www.google.com/
Generalized and personalized portal
Selling search software and revenue from advertising
Infomediary
https://www.canada.etrade.com/
They collect information when signing up for the FREE membership, info such as interests, if you play the stock market etc.
Revenue is generated from commission and fixed margin rates when selling and buying equities etc.
Merchant
http://www.futureshop.ca
Brick and Mortar store plus a virtual merchant online.
Revenue is generated via sales online.
Manufacturer
http://www.dell.com/
Revenue via online sales.
Affiliate
http://www.pay-per-search.com/
Revenue is generated from:
1. Installing their search engine that pays
2. Install text ads that earn you money
3. Advertisers that pay for placement in searches (more they pay, the better placement)
Community
http://www.ezboard.com/
An online community service, revenue is generated via advertising at "chat" sites.
Subscription
http://www.tandf.co.uk/journals/carfax/09503110.html
Revenues are based on subscription per issue that can be purchased.
Utility
http://www.sonictelecom.com/
Revenue is generated via customers' bandwidth on a pay-by-the-byte basis for example video conferencing, voice or data transfer on ATM lines. (155 Mbps)
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