Instructor: Men Sovannmony

(PGDM-BE)
Tel: 017 922 766
Email: [email protected] Academic year
2025
Chapter 2 e-Business Models

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2.1 Introduction

 There are many benefits of bringing a business to the

Internet.
 An e-business can offer personalization, high-quality
customer service and improved supply-chain
management—the strategic management of
distribution channels and the processes that support
them.
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 In this chapter we explore the many business models
currently being implemented on the Web Models
include:
-The Storefront Model
-The Auction Model
-The Portal Model
-The Name-Your-Price Model
-The Comparison Pricing Model
-The Demand Sensitive Pricing model
-The B2B Exchange Model
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 e-Business
– A company that has an online presence.
 E-commerce businesses allow customers to sell, trade
and barter over the Web.
 A company’s policy, operations, technology and
ideology define its business model.

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2.2 Storefront Model

 Storefront model enables merchants to sell

products on the Web:
–Transaction processing,
–security,
–online payment,
–information storage.

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 Storefront Model (cont.)

 E-commerce allows companies to conduct business 24-

by-7, all day everyday, worldwide.
 An e-commerce storefront should include:
–Online catalog of products
–Order processing
–Secure payment
–Timely order fulfillment

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a- Shopping Cart Technology
 Shopping Cart
– An order processing technology allowing customers to
accumulate lists of items they wish to buy as they
continue to shop
 Shopping cart is supported by
– Product catalog
– Merchant server
– Database technology
 Combine a number of purchasing methods to give
customers
• a wide array of options
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b- Online Shopping Malls
 Wide selection of products and services
 Offers greater convenience than shopping
at multiple online shops
 Consumers can make multiple purchases in one
transaction

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 2.3 Auction Model

 Online auction sites

– Act as forums through which Internet users can
log-on and assume the role of either bidder or seller
– Collect a commission on every successful auction
– Sellers post items they wish to sell and wait for buyers to
bid
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 Auction Model (cont.)

 Reserve price
–The minimum price a seller will accept in a given
auction.
 Reverse auctions
–Allow the buyer to set a price as sellers compete to
match or even beat it.

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Auction Model - eBay home page

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Auction Model - Placing a bid on eBay

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 2.4 Portal Model
Definition:
Portal business models provide entry to content or services on
the Internet.
Portal sites
 When most people hear the word "portal," they think of
search engines. Search engines are portal business models
that include many kinds of content and services.
 Give visitors the chance to find almost everything they are
looking for in one place.
 They often offer news, sports and weather information, as
well as the ability to search the Web.
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Horizontal portals
Portals that aggregate information on a broad range of topics
Yahoo!, Google

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Vertical portals
Portals that offer more specific information within a single area of interest
WebMD
People can learn about and discuss medical issues at a variety of Web sites
(WebMD).

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 2.5 Dynamic Pricing Models
 This section describes in depth the many ways in which
creative pricing is being used to generate business.
 Many of these methods would not be possible without the
Internet.
 Some companies enable customers to name the prices they
are willing to pay for travel, homes, automobiles and
consumer goods.
 The Web has changed the way products are priced and
purchased.
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a- Name Your Price Model

 Name your price for products and services.

 The name your price business model empowers
customers by allowing them to state the price they are
willing to pay for products and services.
 If the customer’s price is not accepted, the customer
may offer another price. If it is accepted, the customer
is obligated to make the purchase.
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b- Comparison-Pricing Model
 Web sites using shopping bot technology to find the lowest price for
a given item.
 The comparison-pricing model allows customers to poll a variety of
merchants and find a desired product or service at the lowest price
 These sites often generate revenue from partnerships with particular
merchants.
 You need to be careful when using these services, though, because
you may not necessarily be getting the best price available on the
entire Web.

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c- Demand Sensitive Pricing Model
 The Web has enabled customers to demand better,
faster service at cheaper prices.
 It also empowers buyers to shop in large groups to
obtain group discounts.
 Group buying reduces price as volume of sales
increase.

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d-Bartering Model
 Another popular method of
conducting e-business is bartering,
or offering one item in exchange
for another.
 Individuals and business trade
unneeded items for items they desire.
 Ubarter.com, isolve.com
 http://www.ubarter.com/
 http://isolve.com/Site/Welcome.html
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e- Rebate Model
 Sites offer rebates on product
at leading online retailers in
return for commission or
advertising revenues.
 eBates
 https://www.rakuten.com/

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f-Offering Free Products and Services
 Many entrepreneurs are forming their business models around
advertising-driven revenue streams.
 Television networks, radio stations, magazines and print media use
advertising to fund their operations and make a profit.
 Many of the sites also form partnerships with companies to exchange
products and services for advertising space and vice versa.
 The sites offer their products for free on the Web.
 Free products and services generate high traffic.
 Freemerchant, Start Sampling, FreeSamples.com
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 2.6 B2B E-Commerce and EDI

 B2B e-business
– B2B, the acronym for "business-to-business,“.
– The electronic business relationship between two or more
companies.
– Online or offline.
– Electronic Data Interchange (EDI) systems help
businesses manage their supply chains.
– A company’s supply chain refers to the relationship
between original equipment manufacturers, secondary
manufacturers, distributors, shipping companies,
retailers and consumers.
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B2B E-Commerce and EDI (cont.)

 Traditional EDI uses a value-added network or VAN

– A closed network that includes all members of a production
process.
 XML (eXtensible Markup Language)
– A development technology similar to HTML (Hypertext
Markup Language).
– Improves the compatibility between disparate systems,
creating new market opportunities.

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B2B E-Commerce and EDI ... (Cont.)
 B2B e-commerce and the use of exchange sites allow
businesses to reach their markets faster and more efficiently.
 Lead time
– The time it takes to receive a product from a supplier after
an order has been placed.
 Long lead times increase inventory costs, increase worker
stress levels and strain relationships between the
manufacturer and the supplier.

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B2B E-Commerce and EDI ... (Cont.)
 JIT (just-in-time) inventory management
–Supplies arrive at the exact time they are needed,
thereby limiting any unnecessary inventory
expense.
 Enterprise Application Integration (EAI)
–The process of integrating traditional EDI systems
with the Web.
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B2B E-Commerce and EDI ... (Cont.)

 Business-to-business integrators (B2Bi)

–Companies that use XML and similar technologies
to help other companies integrate their current
systems with the Web.
–www.excara.com, Webmethods.com,
commerceone.com, tibco.com, Freemarkets.com,
mercator.com
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2.7 Click-and-Mortar Businesses

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 Brick-and-mortar
-Companies that operate solely
offline with traditional business
practices.
-Brick and mortar refers to a
physical presence of an
organization or business in a
building or other structure. The
term brick-and-mortar business is
often used to refer to a company
that possesses or leases retail
shops, factory production facilities,
or warehouses for its operations.
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 Click-and-mortar

– Companies operating with

both an online and offline
presence.
 Click and mortar companies
have brand recognition, and
an established customer
base.
– Barnesandnoble.com

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 2.7 Click-and-Mortar Businesses ... (Cont.)
 Key benefits to automotive
industry
–Combined supplier base
–Connects automobile
manufacturers, dealers
and consumers in a
single marketplace
–Decreases lead time and
production costs
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2.7 Click-and-Mortar Businesses ... (Cont.)

 Key benefits to electronics industry

–Provides access to thousands of components
from hundreds of electronic suppliers
–Provides ability to search by part number, product
type or
• manufacturer
• – Increases competitive pricing
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 2.7 Click-and-Mortar Businesses ... (Cont.)
 Key benefits to energy industry
– Provides real time pricing
data on energy commodities
– Provides access to hundreds
of energy commodities
– Allows regional energy
providers to gain access to a
• worldwide market

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2.7 Click-and-Mortar Businesses ... (Cont.)
 Key benefits to food industry
–Reduced lead time preserves perishables
–Provides access to real time pricing data
–Online auction technology allows for alternative
pricing

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2.7 Click-and-Mortar Businesses ... (Cont.)
 Benefits to chemical industry
–Access to millions of chemical products from
thousands of suppliers
–Integrated supply chains provide faster, more
reliable transactions

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2.7 Click-and-Mortar Businesses ... (Cont.)
 Benefits to construction industry
–Contracting and subcontracting are made
simpler by online bidding
–Construction companies can find raw materials
from
• suppliers worldwide

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Thank you
3
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 Assignment Guide
១.ស្ថានភាពក្រុមហ៊ុន
១.១ ចរខុវិស័យ
១.២ បេសររមម
២.ផលិតផល និងបសវារមម
អំពីផលិតផល
២.១...
២.២...
ឬបសវារមម
.....
(ថតស្រសគិន)
៣.សននិដ្ឋាន

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