E-Business Design Analysis

Essay by RichmondUniversity, Master'sA, July 2004

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Assessment Task 3 -

eBusiness Model Design

Noteworthy quotations in context of assignment:

"The greatest challenge in e-business is linking emerging technology to a company's new business design" (Kalakota & Robinson 2001)

"In the future all companies will be internet companies or no companies" (Andy Grove - Former CEO of Intel Feb 2003)

Executive Summary

Imagine you are a company with a supreme global brand image, a leader in your industry in both product innovation and sales, and arguably the best range of products on offer in the market. Will this sustain a competitive advantage for Mercedes-Benz with the evolution of e-business?

This report will evaluate and compare three selected websites from an e-business model design perspective. From research, I have defined an e-business model as the development and implementation of business strategies to sustain long-term profit growth, utilising the benefits of the internet to promote strategic advantages in such areas as customer value and business process.

To help with classification I have used Afuah and Tucci's 'Value Networks' model.

The three selected websites are:

Mercedes-Benz Australia Home Page - www.mercedes-benz.com.au

A website designed to supplement traditional bricks and mortar dealer network by predominantly providing on-line infomediary services, with the direct on-line sales of finance and insurance packages.

Mercedes-Benz Australia Dealer Extranet Portal - www.dclink.daimlerchrysler.com.au

A website originally designed to automate existing processes to improve efficiency, accuracy, and the cost of data transfer.

Autobytel Home Page - www.Auto-by-tel.com

This website tries to service the total life cycle of vehicle ownership by creating a virtual market where businesses and customers can interact on many levels within the automotive industry. They have created an innovative value chain between dealers and customers where customers can buy, rent, lease, service, accessorise, and even sell their own cars from a single website.