E-BUSINESS MODELS

E-Business Models

E-Business Relationship Models

Introduction

The growth of the internet has been breathtaking. The growth of business on the internet has been nothing, short of amazing. "The Internet has evolved into potentially the most powerful business channel ever, the Internet is like a weapon sitting on a table, ready to be picked up by either you or your competitors," (Ch. 1, P. 1 of 17, Plant). The impact of the Internet on business has been dramatic. How a business utilizes the Internet can make or break a company. It is the ability to differentiate a product on the internet, new or existing, and react to those forces on the internet that is the key success factors.

Discussion

"Companies are subject to traditional rivalry factors, such as the ability to differentiate the product and pressure from competitors when large changes in capacity are augmented to the marketplace or when diversity of the market acts to segment that market. However it is the organizations' ability to react to these forces within the Internet markets that differentiates them and their potential strategic options," (Ch. 1, P. 3 of 17, Plant).

By breaking down the different relationship models and understanding the benefits and drawbacks of each model an organizations management will make better decisions. There are five different e-business models an organization on the Internet can engage in, they are; B2B, B2C, C2C, B2G, and E-Consortia. This adds another key of success to your company on the Internet.

The first e-business model is B2B, or Business to Business model. This is a venture that services the needs of other businesses. There are two types of B2B portals. The types of industries that encompass the vertical B2B portal are:

Advanced technologies

Communications

Food and packing

Food service/hospitality

Healthcare

Manufacturing

The B2B model appeals to its participants because they are like a "one stop shopping" for all services and information relating to a particular industry. An example of a vertical B2B, on the Internet is the relationship between a business' ordering system and UPS' delivery system. An organizations ordering system can be 'hooked up' with UPS' delivery system so that the two systems can talk to each other to make the ordering process easier for the consumer. When an item is ordered the companies ordering system can contact UPS' delivery system and tell them what needs to be delivered and when. Vertical B2B, businesses appeals to both participants because they offer information and services that the ...