In: Economics
Discuss the main business directions and operations related to networked e-business
Ans....
Throughout the reading this week it became apparent that the
business drivers discussed were tightly linked to the business
direction.
At first glance it looks to be the opposite of what should be
expected, since the drivers operationalize to link to the business
direction. It took some time to wrap my mind around this, but it
clicked that the link isn’t necessarily the order.
Much like a driver getting into a car, they may be driving, but
where arethey going. This led to my understanding that this should
be thought of in the reverse order, with the direction pushing the
driver.
Let us start with the direction of the business being on time and online, the business understands that they mean that they want timely availability and accessibility for the customer or party from the classification of the e-business .
B2C
The business-to-consumer, or B2C, model of e-business sells
products directly to retail consumers online. Amazon.com is an
example of a B2C model. The e-business has only an online identity
through which it offers a range of products to customers. Other B2C
enterprises include bestbookbuys.com and gartner.com. Most B2C
models generate revenue from direct sales and processing fees. B2C
also is known as electronic retail or e-tail.
B2B
The business-to-business, or B2B, model involves companies using
the Internet to conduct transactions with one other. B2B e-business
accounts for more than 90 percent of all electronic commerce,
according to the U.S. Census Bureau. The main reason for this is
the complexity of B2B transactions. Unlike B2C transactions that
involve sellers offering products and services and buyers
purchasing them, B2B transactions are multifaceted and often
involve multiple transactions at each step of the supply chain. B2B
businesses generate revenue from direct sales.
C2B
Consumer-to-business, or C2B, is a unique e-business model in which
consumers create value and demand for products. Reverse auctions
are a common characteristic of C2B models, in which consumers drive
transactions and offer their own prices for products. The airline
ticket website Priceline.com is an example of a C2B e-business
model. The website allows customers to bid for tickets and offer
their own prices. Shopping sites such as cheap.com, gilt.com and
ruelala.com also are C2B.
C2C
Consumer-to-consumer, or C2C, e-business models enable consumers to
behave as buyers and sellers in third-party-facilitated online
marketplaces. Craigslist is an example of a third-party
marketplace. The company brings together disparate buyers and
sellers to conduct business. Other examples of C2C websites include
eBay and PayPal. A C2C model generates revenues in several ways,
including personal ad fees, membership or subscription fees, sales
commissions and transaction fees.