E-Business Models

Essay by sorrentocat March 2005

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The incredible growth of the internet and connectivity to the Internet by individuals and businesses alike has brought many opportunities to create new industries and new efficiencies within businesses and between businesses. Research shows that the value of Internet eCommerce by the year 2002 will be US$500 billion. By the year 2004, it is expected to be $US$1.5 trillion (The Scale of Opportunity). As e-Commerce gains prominence, many companies have moved beyond trying to define e-commerce. Instead, they are now looking at how to make e-commerce work for their specific business needs.

In this paper I will be discussing three different e-business models; B2B, B2C, and C2C. The discussion will identify differences and similarities of each business model, taking into account: target audience for the web site, what the site is offering to their buyers or consumers, web site features, how they market themselves, and benefits for using or implementing the site.

Business-to business (B2B) e-business model is essentially companies buying from and selling to each other online. An example of one such company is Office Depot. They have contracted with many companies to supply all office supply needs for companies. They also offer their services to end users but often, many will walk into their stores to buy what they need.

The service that is offered on their site for companies is more than just buying and ordering products online. It's evolved to encompass supply chain management as more companies outsource parts of their supply chain to their trading partners. Many large corporations contract to have them track the levels of supplies in the office and automatically replenish items that are running low. Companies' smaller in size will also have the option to access their site and do their own ordering when supplies are low. This site is attractive...