e-Commerce and e-Business Strategies

While there are many e-commerce and e-business models which one needs to be aware of, the dynamics of business strategies change overnight with the adoption of e-commerce and m-commerce business models. The limitations of the more popular strategic frameworks like that of the Porter’s 5 forces model was realized very soon by the researchers in e-business strategy. The generic strategy framework was also somewhat limited in its applicability in pure e-business models.

In view of these changes, there began a serious contemplation of sustainable e-commerce and e-business models for business giants. What would be the mantra for success was long deliberated and various e-business and e-commerce models started getting wider acceptance.

With increased adoption of E-commerce, firms adopted Pure-Click and Brick and Click Business Models.

  • Pure-Click companies are those that have launched a website without any previous existence as a firm. Ex: AMAZON.com
  • Brick and Click companies are those existing companies that have added an online site for e-commerce but still maintains an offline business model.  Ex: futurebazaar.com

However it was noticed that many (as high as 84%) of the business models met with disastrous results and the companies blew up (bubble burst) within a couple of years of its inception. It was at this juncture that the value proposition of e-commerce models started getting scrutinized and the importance of the complete value chain for e-business models got its due importance.

It was realized that the complete value chain needs to be analyzed before a firm selects a business model for its operations.

 

e-commerce-models

The analysis of the core of a firm is crucial for success in this increasingly information age, where business models are attempting a quick fly off the sly to generate revenue and most of which are falling flat.

By the way, have you read our article on the Growth Strategies of Web Based New Generation Firms?

 

e-Commerce and e-Business Models

Electronic commerce, which is abbreviated popularly as e-commerce or eCommerce, is defined as the buying and selling of products or services over electronic media like the Internet or other Information Technology dependent networks. Sometimes e-commerce is also interchangeably used with the terminology e-business.

The amount of transactions and the volume of trade conducted via electronic commerce has grown exponentially with widespread adoption of the Internet and Internet based technologies. The use electronic commerce is done in applications related to electronic funds transfer, supply chain management, Internet marketing, online transaction processing, electronic data interchange (EDI), inventory management systems and automated data collection systems. Traditional electronic commerce used the World Wide Web or the internet and now is transcending the utilization of mobile platforms to optimize the application of ubiquitous computing. Very recently an emergent trend is foreseen that the Spoken Web will be the future media for electronic commerce.

The transaction wise representation of the various models of e-commerce or e-business is denoted by the following diagram.

e-business-modelsThe most singular uniform way the various e-business models can be viewed under is as follows:

It is crucial to note that the dynamics of business strategy is vastly affected by the application and adoption of web based technologies in the e-commerce domain.

Do read

Top B-Schools of India

The results for the top 30 B-Schools of India are out for the year 2011.
This time the study was conducted by Economic Times and ratified by a consulting major who collected a total of 253 responses across the 5 functional areas with 31 IT Heads, 38 Finance Head, 97 HR Head, 34 Production/Manufacturing Head was achieved. Finally a study that is ranking the institutes based on what the actual rank is, based on the performances of the students and not on the perceptions of MBA Wannabes, and hence a lot more accurate and relevant for MBA Wannabes.

Top-Business-Schools-of-India

Top Online Affiliate Marketing Programs

Affiliate marketing is a highly popular emergent marketing practice in which a business model rewards an affiliate marketer for each customer brought about by the affiliate’s own marketing efforts. More popular examples include rewards sites, where users are rewarded with cash or gifts, for the completion of an offer, and the referral of others to the site. The industry has four core players: the merchant (who is sometimes also known as ‘retailer’), the network (Affiliate marketers create this network), the publisher (also known as ‘the affiliate’), and the customer or consumer. The value creation is through a network where all the marketers benefits not only from his direct sales but also the sales of those affiliate marketers who joined the program under him.

Online or Internet based affiliate marketing overlaps with other Internet marketing methods to some degree, because most affiliates use regular advertising business models like CPM, CPC, CPI techniques. The techniques to gain the attention of the customer  include organic search engine optimization, paid search engine marketing, e-mail marketing, and in some sense display advertising. On the other hand, internet affiliate marketers sometimes use less orthodox techniques, such as publishing reviews of products or services offered by a partner.

While everyone is jumping the online marketing Bandwagon, it is crucial to know how to do things the proper way to optimize your success.

Some of the more popular affiliate marketing plans which an online marketer can look towards are as follows:

  1. Amazon.com offers the best kind of referral if you have a great online presence. You can potentially sell thousands of items and also selective items which suit the theme of your website and make 4% to 15% of the sales of books, electronic gadgets and what not.
  2. BBL Marketing media is another promising affiliate marketing platform which market online classified ads and take a percentage of the potential sales.
  3. Share sale is another top affiliate marketing opportunity if you like promoting technology based services.
  4. There are multiple software firms which offer a percentage cut if you can sell their product through affiliate marketing, especially which create social media software, like Twitter/Facbook marketing software like TweetAdder or FriendAdder.
  5. Many online services like website hosting services from GoDaddy are also a good opportunity for affiliate marketers. If you refer anyone to use these services, you will generate a decent cut of the sales.
  6. Last but not the least, there is the huge chain of affiliate marketing banking on Pay-per-Click and Pay-per-View on the posting of advertisements by the affiliate marketer. The most popular amongst them is  MyLikes and SponsoredTweets . In these programs you can make easy money by tweeting to our followers. Similar opportunities are also available if you post advertisements in your Facebook profiles.
  7. There are multiple opportunities to create sponsored posts in blogs and earn through that. One of the most popular website to do that is Pay-per-Post.

Hope these inputs helped you to kick-start your career as an affiliate marketer. Do let us know if you know of any more highly popular affiliate marketing programs.

By the way do you know how to create a successful viral marketing campaign using social media?

 

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