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Revenue Models for e-Business onThe
Web
UpekhaVandebona
upe.vand@gmail.com
 Can sell at lower prices
 Build to customer order
 Receive payment earlier
 Speed up new product release cycles and
faster delivery of goods
 Use customer data to provide customized
value added service
 Proactive decision making
 Information flow across the supply chain
 All parties have a strong electronic bond and
backend systems
 Some companies do/don’t own any part of
the value chain
 They have access to information about all
from suppler/manufacturer to the customer
 This enables very effective order processing,
product tracking and fast resolution of SCM
issues.
 Has to know a lot about the customer
 Provides own products or services bundled with
third party products or services.
 Commission from third party products
 Can charge customers a service fee
 Offers a wide range of products/services to the
customer at a reasonable or lower price
 Offers different channels
 Internet, face-to-face, phone, etc.
 This is a very effective strategy to achieve
economies of scale in delivery/distribution,
channel usage and promotion
 Strong B2B partnerships and collaborations
between nodes in the supply chain
 The industry competitors willingness to
work together
 Trust relationships among the competitors in
an industry
 A strong force against foreign competition
 The sellers get together through a Portal
 They Market/ Promote products collectively to a
larger market segment
 Sellers can work on larger projects/orders as
they work collectively
 Pose as a larger company with a wider product
range/capacity to get larger projects
 Collective bulk orders with suppliers
 Reduce bargaining power of suppliers
 Resources as well as profits are shared among
companies Uses the synergy of a collection of SMEs to get
the competitive advantage.
eAuctioneer
(Intermediary)
Seller 2 Buyer 1
Buyer 2Seller 1
eBay
 Intermediary does not take responsibility for
the sale or the payment and the eAuctioneer
owns the valuable customer relationship and
data but not the transaction.
2014, 2013, 2012, 2011 , 2009 –
(30 Marks)

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Revenue Models for e-Business on The Web

  • 1. Revenue Models for e-Business onThe Web UpekhaVandebona upe.vand@gmail.com
  • 2.
  • 3.
  • 4.  Can sell at lower prices  Build to customer order  Receive payment earlier  Speed up new product release cycles and faster delivery of goods  Use customer data to provide customized value added service  Proactive decision making
  • 5.
  • 6.  Information flow across the supply chain  All parties have a strong electronic bond and backend systems  Some companies do/don’t own any part of the value chain  They have access to information about all from suppler/manufacturer to the customer  This enables very effective order processing, product tracking and fast resolution of SCM issues.
  • 7.
  • 8.  Has to know a lot about the customer  Provides own products or services bundled with third party products or services.  Commission from third party products  Can charge customers a service fee  Offers a wide range of products/services to the customer at a reasonable or lower price  Offers different channels  Internet, face-to-face, phone, etc.  This is a very effective strategy to achieve economies of scale in delivery/distribution, channel usage and promotion
  • 9.
  • 10.  Strong B2B partnerships and collaborations between nodes in the supply chain  The industry competitors willingness to work together  Trust relationships among the competitors in an industry  A strong force against foreign competition
  • 11.
  • 12.  The sellers get together through a Portal  They Market/ Promote products collectively to a larger market segment  Sellers can work on larger projects/orders as they work collectively  Pose as a larger company with a wider product range/capacity to get larger projects  Collective bulk orders with suppliers  Reduce bargaining power of suppliers  Resources as well as profits are shared among companies Uses the synergy of a collection of SMEs to get the competitive advantage.
  • 14.  Intermediary does not take responsibility for the sale or the payment and the eAuctioneer owns the valuable customer relationship and data but not the transaction.
  • 15. 2014, 2013, 2012, 2011 , 2009 – (30 Marks)

Editor's Notes

  1. This model which bypasses certain nodes in the supply chain
  2. Can sell at lower prices by reducing intermediaries
  3. This model creates a virtual value chain and an information flows across the supply chain.
  4. This is a very effective portal where the manufacturer sells their own products or services bundled with third party products or services.
  5. eRegion local
  6. The eHub or the ePortal is the front-end for a collection of SMEs in the same industry using the portal to either market/promote each other’s products collectively. the collective synergy is a much greater strength for the SMEs involved than trying to market or buy separately.