Two Business Models & 5Is

Two Types of E-Business Model

There are several types of business model. Thus, the world is currently focusing on the internet based business models due to the development of the technology. This progress of building business models on internet is called E-business. The concept and the models on E-business can be clarified as E-business model. Even though there are few different types of E-business models. This blog post will try to focus on two big E-business models, Business to Business (B2B) model and Bit vendor model.

To start with, Business to Business model known as B2B is the most well known business and E-business model. The term is quite straight forward, its the business transaction between one business firm and another. This form of business model can occur on both offline and on-line transactions. For example, offline transactions, is simply the business transactions like selling and buying stocks or making a contract for the future trades. In fact, for the big business firm, it needs to have face to face meeting which is the most crucial part as the quantity and the quality that they are discussing about is fairly enormous. However, medium sized or small business firms can have their business transactions happening on on-line. Not because the quality is not significantly important, but the quantity and the loads of works that they have to make can be dealt efficiently and effectively through the on-line environment. Alibaba would be the great example for the B2B E-business model. Alibaba has established by Chinese e-commerce company. It provides wide range of e-business services. They mainly serve on consumer to consumer, business to consumer, and business to business sales services through their web site. As the China has huge amount of factories, the suppliers can produce wide variety of products in a reasonable wholesale price. As a result, the business transactions between two business firms can happen with both getting benefits.

Another E-business model is called as Bit vendor model. Bit vendor model is more interesting compared to B2B model. You could see a lot of musicians or publication companies for books and movies, now transforming their production methods to the web based models. 10 years ago, before the technology was not sufficiently developed all the record firms and production companies used hard copies such as paper books, tape, record template, and video or CD disks. Thanks to the technology, they have reduce this uncomfortable steps but upload it straight away on the web. You could see a lot of amateur and professional musicians uploading their albums through iTunes or music playing web sites and mobile app such as Soundcloud, and Spotify. Bit vendor model is a merchant that directly managing digital products and services. Furthermore, it is the part of the merchant model which can be known as wholesaler and retailer on the web. Bit vendor model is definitely a progressed and evolved form of E-business model which got influenced by the development of the technology.


5is

Gumtree (http://www.gumtree.com.au)

  1. Identification: Gumtree produces identification for each applicants as it is crucial to have individual information when they have to deal with their own transactions.

Identification 1.1

2. Individualization: when logged on to the website people can adjust their information and provides the information about each individuals. It simply gives analyses about customers shopping routine and recommendation.

Individualization

3. Interaction: The main page gives the recommendation based on the automatically analysed shopping habits and gives the information about the items.

Interaction 1.1

4. Integration: Gumtree can get customers feedback and can deal with the problems by accepting customers voices.

Integration 1.1

5. Integrity: About Gumtree can give the information about the company’s basic information to customers. Thus, this is crucial for the company as they have to analyse themselves critically.

Integrity 1.1

Soundcloud (www.soundcloud.com)

  1. Identification: The basic information about each individuals allow the site to identify the customers and give them correct media sources.Individualization 1.2
  2. Individualization: Having own account can help customers to create their own list of musics they like which means they can personalize their own taste

Identification 1.2

3. Interaction: The main page gives the recommendation on the music which helps the customers to find their taste of songs faster so that they can reduce their time and interact with new songs.

Interaction 1.2

4. Integration: Soundcloud wants to get customer feedback to upgrade their website and services. It also enables the company to catch the missing out points that they could not imagined.

Integration 1.2

5.Integrity: Information about the soundcloud gives customers trust to continue using this website, and the legal terms the customers might have to worry about would be listed on the information section.

Integrity 1.2


Reference List

about alibaba.com. 2015. about alibaba.com. [ONLINE] Available at:http://activities.alibaba.com/alibaba/following-about-alibaba.php?spm=a2700.7224109.a271py.9.2Eq6tN. [Accessed 01 September 2015].

E-Commerce B2B Model. 2015. E-Commerce B2B Model. [ONLINE] Available at:http://www.tutorialspoint.com/e_commerce/e_commerce_b2b_mode.htm. [Accessed 01 September 2015].

iTunes and the Bit Vendor model. 2015. iTunes and the Bit Vendor model. [ONLINE] Available at: http://www.slideshare.net/Shehzu/itunes-and-the-bit-vendor-model. [Accessed 01 September 2015].

iTunes – Everything you need to be entertained. – Apple (AU). 2015. iTunes – Everything you need to be entertained. – Apple (AU). [ONLINE] Available at:http://www.apple.com/au/itunes/. [Accessed 01 September 2015].

Afuah, A. and Tucci, C.L. 2000, Internet Business Models and Strategies: Text and Cases, McGraw-Hill, USA

Pigneur, Y. (n.d), The E-business Model Handbook, viewed 1 September 2015 Available at: http/:inforge.unil.ch/yp/Pub/00-ebmhpdf>

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