Business model Definition | Business model Example - Business management

Business management information

Friday, 10 February 2017

Business model Definition | Business model Example

Business model

 A broad term that explains the position of a business organization in the value chain, the choice of customer, products and the cost of conducting business.

Business model

Business models

1.     Business-to-business
2.    Business-to-consumer
3.    Consumer-to-consumer

Business to business model

This model needs two or more business organization that do business with each other. It entails commercial activity among companies, through the internet as a medium. At present there are many types of e-business. The B2B e-business is of the following types:
·       Supplier oriented : in this type of B2B e-business, a supplier establish an electronic market where a number of customers or buyers transact with suppliers. Generally, it is done by a supplier who has monopoly over the products that he supplies.
·       Buyer oriented : In this type of B2B electronic commerce, big business organization with a high volume purchase capacity create an e-business marketplace for purchases and gain by establishing a website of their own.
·       Intermediary oriented : In this type of B2B e-business, a third party establish the e-business marketplace and attracts both buyers and sellers to interact with each other.

Business to consumer model

This model clearly concentrates on individual buyer and is thus known as the business to consumer model. This model enables consumers to browse, select and merchandise online from wider variety of sellers and at better prices.The B2C  business interaction is most appropriate for the following types of transaction
·       Easily transformable goods, that is, products that are easily transformable into digital format, such as videos, software packages, music, books, etc
·       Highly-rated branded items or items with return security.
·       Items sold in packets that are not possible to open in physical stores.

Consumer to consumer model

In a consumer to consumer model, consumers sell directly to other consumers via online classified advertisements and auctions or by selling personal services or expertise online. The C2C model involves the popular peer-to-peer software,that facilities the exchange of data directly between individuals over the internet.

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