BUS 2202-E-Commerce - Written Assignment Unit 2 PDF

Preview

Summary

BUS 2202 Written Assignment Unit 2.docx...

Description

Business Models used in E-Commerce

Written Assignment Unit 2: Business Models used in E-Commerce University of the People BUS 2202 E-Commerce David Stong, Instructor November 25, 2020

1

Business Models used in E-Commerce

2

We need understanding, first, of what a business model is. A business model defines the consistency in the strategic choices which typically promote the management of processes and relationships that build value both at the organizational, tactical, and strategic level of the company, according to Nielson & Lund (2013). Therefore, the business model is a network that links money, processes and the key provision of a service that satisfactory results in the longterm profitability of the organization (p. 13). Business-to - Business (B2B) applies to all the firms committed to business. This typically indicates that between companies the product or service is meant to be traded (Kutz, 2016, p. 86). In this way, the company/potential buyer is not the end customer. In fact, B2C is the standard model for which a business typically sells its products and/or services to the final customer or the user. Due to certain distinctive features, the two models vary. As seen before, the key is about the intent. B2B is intended to be between businesses, business parties typically agree to collaborate by a possible deal, for this reason, the attention of both businesses is on partnerships, to work together effectively, there must be reciprocal confidence and professionalism. In reality, trust, reciprocal partnerships, and customer satisfaction are created to satisfactorily establish brand awareness. A huge number of goods or services are typically handled, and over a comparatively long period of time, anyway (Cohn, 2015) They presumably agree to run their business cycle over a long relationship. Ultimately, each decision is planned, it naturally follows an extreme rational sequence depending on the wishes of the customer. The price is originally agreed and the payment will be resolved on a payment base of maturity (Kutz, 2016, p. 89).

Business Models used in E-Commerce

3

For standard B2C models that are end-user driven, it’s a different thing. The primary emphasis is strategically placed on the good or service, which must be enticing, beneficial, and captures the interest of the customer, so that the customer set their preference for that particular offering. The quantity of exchanged offers is minimal, and sales are practically instantaneous in the short term (Cohn, 2015). On the opposite, sales typically exist for emotional travel, the urge to own the commodity or to seek that service. Nothing is expected. This is manipulated by businesses/retailers who, in general, adapt their promotional strategies, discounts, and marketing to best suit their consumers' desires and preferences. Transactions and fees are usually only once, with the retailer mutually agreeing on prices and an immediate charge (Kutz, 2016, p.89). In every model, the business is traditionally supposed to be revenue- and profit-oriented. The point is to sell and to make a profit, no matter who the buyer is. Electronic methods (like, but not just, SRM and CRM) set the intended target of progressively increasing the operational efficiency of customer-supplier relationships. For example, customer satisfaction progressively improves across the CRM framework, and it potentially increases the loyalty. All this attempts to keep the client as profitable as possible to get the business the best possible benefit. To maintain a profitable experience, the whole structure must touch on all the key elements. External interfaces, marketing, sales, utilities, and internal interfaces are protected by their desired functionalities (Kutz, 2016). Purchasing governance, sourcing, contract administration, joint procurement, supplier partnership, and supply base management are the functionalities typically offered. In both business models, connected SRM-CRM systems can also be used. This causes a win-win scenario in which both consumers and key vendors have profitability like a larger sales base, lower customer care prices, better customer satisfaction, and business importance. (Dayal, 2017, p. 2-3)

Business Models used in E-Commerce Both organizational schemes modified partnerships for the best, combining both and other tolls. The opposite effect could be the restricted use of these methods, which suggests too big or too loose promotion. It is doubtful that the adequate introduction of electronic instruments within an organization (both B2B and B2C) will lead to an unfortunate or deteriorating experience for buyers and sellers.

Word Count: 661

4

Business Models used in E-Commerce

5

References

Cohn, C. (2015). Differences in selling B2B vs. B2C. Forbes. https://www.forbes.com/sites/chuckcohn/2015/06/16/differences-in-selling-b2b-vs-b2c/? sh=6ae1b9ab4fb2

Dayal, S. (2017). CRM-SRM Integration Promises Transformational Growth. TATA Consultancy Services. https://www.tcs.com/content/dam/tcs/pdf/Services/CES/CRMSRM-Integration-Promises-Transformation-Growth.pdf

Kutz, M. (2016). Introduction to Electronic Commerce: Combining Business and Information Technology. Bookboon.com. https://my.uopeople.edu/pluginfile.php/512059/mod_page/content/38/introduction-toecommerce%20-%20business%20and%20strategy.pdf

Nielson, C. & Lund, M. (2013). The Basics of Business Models. Bookboon. https://my.uopeople.edu/pluginfile.php/512059/mod_page/content/38/BasicsOfBusiness Models.pdf...