Unit 2

Business - to - Business (B2B)

A website that uses the business model of business to business trades its items to a
middleman, who resells them to the final consumer.
For instance, a wholesaler orders from a business website, and upon receiving the
consignment, sells the finished product to the client who visits one of the business's retail
locations. For instance, GoMechanic, DeHaat, Indiamart, and Ninjacart

Business - to - Consumer
A website that uses the business model B2C sells its goods to customers directly. Viewers of
the website are able to see the merchandise.
The client is able to select a product and place an order for it. The firm will then receive an
email message from the website, and then ship the product or goods to the customer. such
as Shopclues, Myntra, Flipkart, and Amazon

Consumer - to - Consumer
By posting their information online, users of a website with a C2C business model can rent
out a room or sell assets such as vehicles, motorcycles, and residential real estate.
The website's services may or may not be charged to the user. After seeing the post or
advertisement on the website, another client can decide to purchase the initial customer's
merchandise. For instance, OLX and eBay

Consumer - to - Business
• In this paradigm, a customer visits a website that lists several companies offering a specific
service.
The customer indicates how much they would like to pay on a specific service. Consider
using websites to compare the interest rates on personal and auto loans offered by different
institutions.
A company that approaches a customer and offers its services, meeting the customer's
needs within the allocated budget. The employment portals such as Monster.com,
TimesJobs.com, and Naukri.com are the best illustrations of this concept.

Business - to - Government
A variation of the B2B paradigm is the B2G model. Governments utilise these websites to
trade and exchange information with different corporate organisations.
These websites, which are approved by the government, give companies a way to send
application forms to the authorities. A database creation company, for example, can design a
system for tax offices that enables companies to locate the tax forms required for real estate
transactions, investment income, and equipment depreciation.

Government - to - Business
Governments contact business organisations through websites that follow the B2G
paradigm.
These websites facilitate the submission of applications, auctions, and tenders. For example,
the Government's MSME Registration Portal, the Goods and Services Tax Portal, etc.
Government - to - Citizen
G2C model websites are used by governments to engage with citizens in general. These
kinds of websites facilitate car, machinery, and other material auctions.
Additionally, this website offers services such certificate registration for birth, marriage, or
death.
Reducing the average time it takes to respond to public requests for various government
services is the primary goal of G2C websites. For instance, Aadhaar. services pertaining to
employment.
portal for reporting cybercrimes. National Voter Service Portal. Services for Electronic
Citizens.

Brokerage Business Model

A broker who links a selling and a buyer, facilitates the transaction, and collects a fee for the
service is known as a broker. The broker builds a bridge to connect the seller and the buyer,
as opposed to the seller fighting to find a buyer in the market. The brokers then bill one or
both parties a commission or fee for the task.
The broker may receive payment from the buyer. Sellers may factor in the broker's fee in
their prices. Therefore, there is no additional brokerage fee for buyers.
Online markets like Amazon, Flipkart, Meesho, etc. are excellent examples of brokers.

Aggregator Model
A networking E-commerce business model called an aggregator model is one in which a
company called an aggregator gathers (or aggregates) information about products and/or
services provided by multiple rival websites or application software (apps) and presents it on
its own website or application software.
An aggregator typically doesn't have any manufacturing or warehousing capabilities; instead,
it depends on its ability to design a website where users can easily compare product and/or
service characteristics and costs.
This type of service is common among financial lenders and insurance companies.

Community Model
A community business model monetizes the transformative power of human relationships
into revenue, sometimes without any physical or digital products.
The online community business model is similar to a membership business model, which has
been around for centuries. Traditional membership business models rely on a regular
recurring cost for access, and in the past, communities like professional associations worked
similar to online community businesses; you’d pay a regular membership fee and get the
rights that come with access. Eg. Facebook, Twitter and MySpace

Value Chain Model

• A value chain is a model that helps companies determine their competitive advantage and
refine their business practices to operate with maximum efficiency and the largest possible
profit margins.
• The value chain is a business model used to examine all company activities involved in
taking a product or service from idea to sellable item.
• Ideally, companies can use the value chain model to strengthen their point of view and
widen their profit margin—more efficiency and fewer costs.

Porter’s Value
• Porter breaks value chain analysis (VCA) into Chain five primary activities and four
secondary activities that together create value greater than the cost of performing those
activities individually.

UNIT III
Information and Strategy - The Virtual Value Chain
In the current digital era, information technology and information systems are crucial to an
organization's success.
Information technology has made conducting business more difficult.
• Businesses are always under pressure to deliver more superior and competitive content.
To produce better content, organisations spend in R&D or buy out or combine with other
businesses.
Increasing the customer base and offering customised solutions should be the organization's
strategy.
Organization strategy can be devised using Porter’s Five Force model

Porter’s Five Force model

• Porter's Five Forces Framework is a method of analysing the operating environment of a
competition of a business
• The five forces identified by Porter that influence corporate strategy are

Virtual Value Chain

• A physical value chain consist procurement of raw materials, operations, delivery, sales
and marketing and service.
• Information technology has introduced concept of virtual value chain
. • The components of a virtual value chain are as follows:
• Gather: Information age has helped digitization of information. Proliferation of information
is higher than ever before. The internet provides data and information about markets,
economies, government policies, etc. Companies gather information relevant to them as a
first stage in the virtual value chain.
• Organizing: Information gathered in the first stage of the virtual value chain is in form of
text, data tables, video, etc. The challenge in the second stage is to organize the gathered
information in a way to retrieve easily for further analysis. …contd
• Selection: In the third stage of virtual value chain, organizations analyze captured
information to add value to customers. Organizations develop better ways of dealing with
customers, product delivery, etc. using information.
• Synthesization: In the fourth stage of virtual value chain, organizations synthesize the
available data. The data reaches the end user in the desired format.
• Distribution: The last stage of the virtual value chain is delivery of information to the end
user. In a physical value chain, products are delivered to customers, in the virtual value chain
this is replaced by a digital product. For example, digital movie streaming of movies
compared to mail delivery of DVD. Therefore, today’s businesses are also known as
information business.

7 Dimensions of E-Commerce Strategy

Value Chain and E-Strategy

• All companies undertake series of activities in order to deliver a product to the customers.
• These series of activities like procurement of raw material, storage, production,
distribution, etc. are referred as value chain activities.
• The function of value chain activities is to add value to product at every stage before it is
delivered to the customers.
• There are two components, which make value chain –
• The primary activities : The primary activities are directly associated with the
manufacturing of products like supply management, plant operations, etc.
• The secondary activities : The secondary activities are referred to as support functions
such as finance, HR, information technology, etc. …contd
• Every activity within a physical value chain has an inherent information component.
• The amount of information that is present in activities determines, company’s orientation
towards e-commerce.
• It has been observed that companies with high information presence will adopt e-
commerce faster rather than companies with lower information presence.
• For example, a laptop manufacturer like Lenovo, Acer etc has high information presence,
i.e. they can provide a great deal of product information through their website. Consumers
also have flexibility to determine the product configuration using the website. Such
companies with comparative business model are also likely to adopt e-commerce faster.

Understanding Information Presence

• There are two ways to assess information presence. The first way is by looking at the
industry, and second way is by looking at the product. In an industry with high information
presence, it has been observed that:
• Industry will have large number customer base.
• Production process is complex.
• Order turnaround cycle is long. For a product with high information presence following is
observed:
• Product is simple to manufacture.
• Product has multiple functionalities.
• Product requires in dept end user training. Industry and product which satisfy above
conditions are likely to adapt e-commerce.

Strategies for Website Development

• Past couple of decades has only reinforced the importance of having a strong digital
presence for any business. It means that on should make it easy for customers to connect
with you virtually.
• Creating a solid digital operating plan for a business is something that requires multiple
steps, but the absolute most important component of that process is your website and one
needs to do to develop a website strategy to help your business run just as smoothly
digitally as it does physically.
• Focus on Your User - While many things in the world of web design and digital marketing
seem to change overnight, this is one that stands the test of time. Before you put anything
online, it needs to be vetted through the lens of your ideal customer
Build Out a Keyword Strategy - A user needs to be your primary focus, followed closely by a
focus upon the keywords and phrases your ideal customer uses when searching for your
business. A tool like SEMRush or Google Keyword Planner can help you identify a specific set
of keywords and phrases to include throughout your website, as well as where to place them
so that you have the greatest search results.
• Create a Site that is Adaptable - Once you’ve identified what it takes to make your site as
user-friendly as possible and well poised to rank highly for keywords, you’ve got to focus on
what you need to make your website design personally adaptable.
• Be Personal - Focusing on your digital presence doesn’t mean you forget that you’re still
interacting with people.
• Create Digital Options (for Everything) - Whether it’s a signup form , a free offer to
subscribers, or shopping options for your hiking store, make sure you have a digital solution
for every aspect of your work.

Website Development Goals and Objectives

• Defining your website goals will depend mainly on the type of business you operate. For
example, a retail business with an eCommerce website will have different goals than a law
firm will have for its website. Getting more traffic to your website is a goal that every
website should have. However, once users are attracted to your website, you need to ensure
that your web design is aligned with your business goals and the objectives you want to
achieve.
• Broadly, there are four major website goals you could have, and they are:
• Increase sales/conversions
• Become a subject matter expert
• Improve customer interactions
• Build a brand image/reputation

Increase Sales/Conversions
• Generating more online sales or conversions is the goal of many websites.
• If you sell products on your website, this is a business goal you will likely want to focus on
during website development.
• Many businesses sell themselves or their services and focus on website conversions. A
conversion could be a phone call, a submitted form, a chatbot interaction, etc. Conversions
don’t always lead to final sales, but they give your business a better chance at making a sale.

Become a Subject Matter Expert

• Another common goal for many businesses with their website is to establish themselves as
subject matter experts. Becoming an authority in users’ eyes has several benefits, including
increasing sales and conversions, generating more web traffic, and developing a respected
brand image.
Improve Customer Interactions
• Many businesses invest in website redesign and development to improve their interactions
with existing customers. Websites and mobile apps have given businesses unparalleled
access to their customers.

Build a Brand Image/Reputation

•Often businesses will create a website or digital presence just to increase awareness
around products, service offerings, or the brand. Digital marketing is one of the most
effective marketing channels because almost everyone is online in some fashion. The
business goal behind increasing brand awareness and reputation is about attracting more
customers.

Unit 4