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.
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?