Chapter 5

Question 1

What are the key components of e-commerce business model?

Answer 1

1. Value proposition
2. Revenue model
3. Market opportunity
4. Competitive environment
5. Competitive advantage
6. Market strategy
7. Organizational development
8. Management team

Question 2

What are the 7 major B2C business models?

Answer 2

1. Portal - MSN, Yahoo
2. E-tailer - Amazon, Walmart
3. Content provider - WSJ, CNN, ESPN
4. Transaction broker - Expedia, Monster
5. Market creator - eBay, Uber, Airbnb
6. Service provider - VisaNow, Google, Uber, Airbnb
7. Community provider - Facebook, LinkedIn, Twitter

Question 3

What are the different types of fundings?

Answer 3

Seed capital = typically an entrepreneur’s personal funds

Incubators

Angel investors

Venture capital investors

Crowdfunding

Question 4

What are the 5 major B2B business models?

Answer 4

1. E-distributor - Amazon business
2. E-procurement - Creates and sells access to digital markets. Ariba Supplier Network, PerfectCommerce
3. Exchange - Go2Paper
4. Industry consortium - TheSeam, SupplyOn
5. Private industrial network - Walmart, Proctor & Gamble

Question 5

What are e-commerce 4 major impacts on the business environment?

Answer 5

1. Industry structure - the nature of players in an industry and their relative bargaining power by changing the basis of Porters Five Forces
2. Industry value chains - by reducing the cost of information and other transaction costs
3. Firm value chains - by increasing operational efficiency
4. Business strategy - by offering unique ways to differentiate products, obtain cost advantages and compete globally

Question 6

What are 5 business strategies and examples of them?

Answer 6

1. Differentiation = Warby Parker (vintage inspired eyeglasses)
2. Cost competition = Walmart
3. Scope = Apple iDevices
4. Focus/market niche = Bonobos (Men’s clothing)
5. Customer intimacy = Amazon, Netflix

Question 7

What is disruptive technologies?

Answer 7

When new technologies are at at the core of a change in the way business is done. If the technology involved is digital the term is digital disruption

Question 8

What are the 4 different types of E-tailors ?

Answer 8

1. Virtual merchants (amazon)
2. Omni channels - Bricks and click (Walmart)
3. Catalog merchants (Land’s Ends)
4. Manufacturer-direct merchants (Dell, Apple)