ENTREPRENEURSHIP AND INNOVATION

Entrepreneurship and Innovation

Entrepreneurship and Innovation

Introduction

Setting up a new business is definitely difficult and a thoughtful process. A single bad decision can let your efforts down therefore thorough research and analysis is required before taking any step. Before starting any business a well researched business plan is formulated which serves as the guidelines throughout the whole set up process.

In the essential sense, a business model can be defined as a method of performing business through which a company can generate funds i.e. revenue for itself. The business model helps the company generate funds by defining the activities that the company has to perform to run its business.

An e-business model is can be defined as the strategy that a company undertakes ensure its presence on the internet and serve their customers through the internet. It is very much like the traditional business plan in its pure nature, because it describes the steps that a company has to take to run its operations and earn a profit (Anam, 2003).

Electronic business is a process whereby a business is run on internet or uses internet to improve profitability or productivity of a business. E-business entails a process carried out externally (e-commerce), or internal process such as production, risk management, inventory management, human resources, and knowledge management. Impact of e-business in many organizations in developing countries has made local companies have opportunity to be exposed to global market. Nevertheless, several individuals in developing countries have demonstrated a slow response to transacting a business online. This is in contrast to countries in west, which have been highly involved in e-business such as e-bay (Austin, 1990).

Introduction Of The Business

The business I am planning to start is the online buying and selling of books. The basic business would be selling books to customers through the internet.

Mission Statement

We will be the most accessible online books retailer. We educate and delight every customer we serve.

Business Model

When we are running the business through the Internet, there are a number of business models available, which can help us in running our business. However, the business model, which would be suitable for our business, would be the Business to Consumer (B2C) model because we are aiming to serve customers directly, and in this case, the B2C model would be the ideal business model. During transactions in the B2C business models, the transactions are made between the customer and the business through the internet without any involvement of any other party. This model provides us the chance to sell our products directly to customers through utilizing the electronic channels (Dewan, 2000).

The B2C model involves the concept of e-tailing or electronic retailing. The concept of E-tailing can be defined as retail sales through the internet. This technology will help us to directly approach and sell our goods to the customer, and eliminate the intermediary party i.e. the retailer. The usage of B2C model will help us run our e-business in a smooth way.

The Revenue Model

When we run an e-business, we cannot make the conventional transaction ...