E-BUSINESS ENGINEERING

E-Business Engineering

Scenario 2

Introduction

The music instrument is considered to be one of the biggest business segments. There is a continuous growth in the trading business of music instruments. With the passing time more and more children are taking participation in the music programs through their schools and other private music institutions.

Business Model (expansion)

The business model is mainly based on providing the leverage to the nature of the business of music. The provision of the relaxation of music enjoyment to the customers and the development of planning for the purpose of attracting the looyal customers can be very helpful in maintaining the customers. Along with this, there is a great role of location to be perfect. Thus, the leased location developed by them was comprised of a very perfect setup which has been developed for the purpose of offering the services of music which was not available in other locations. We have the strategy for introducing different services which can be helpful for the music lessons and meetings. These services are mainly the facility rental, music instrument sales and rentals and other enterainment services related to music. It is also our planning to develop a combination of our brick-and-motor business and the website which can be helpful in attracting different customers by providing them the music related services and news. We have also developed a plan to start the E-commerce setup store which will be selling the different music instruments and will also be facilitating different rental services. Their background and music passion will be very helpful for us in the community development which will facilitate the music lovers through the use of different discussion groups, news and blogs (Abrahamson 1996, 254-285).

Revenue Model

The main base of our revenue model will be on different revenue streams. For the purpose of developing the revenue model it is necessary that a perfect decision should be taken. This is the reason why we have chosen the revenue sharing agreement for the rental business by making use of the music instrument vendor XYZ. This will be helpful for use for enabbling us to minimize the working capital investment. Thus, this will also be helpful in the selection of different music instruments. In order to develop the revenue model, we have also developed an agreement with a vendor which will be helpful for us in the development of the system that could be helpful in the delivery of orders. Both the websites and phsyical stores will be used for the purpose of selling the rental of music instruments (Aaron 2009, 19).

Cost Model

In order to develop the cost model, a complete analysis of the business cost had been carried out. The business model has facilitated to make the distribution of the overhead cost with the use of different revenue segments. This was really helpful for use in the achievement of higher profit margin in comparison with the peers. The given below paragraphs are the best description of the primary cost drivers for the different revenue ...