E business modles

Key Ingredients of a Business Model

Value Proposition
 Defines how a company’s product or service fulfills the
needs of customers
 Questions to ask:
 Why will customers choose to do business with your
firm instead of another?
 What will your firm provide that others do not or cannot?
 Examples of successful value propositions include:
 Personalization/customization
 Reduction of product search costs
 Reduction of price discover costs
 Facilitation of transactions by managing product delivery
Advertising Revenue Model
 Web site that offers content, services and/or
products also provides a forum for
advertisements and receives fees from
advertisers
 Example: Yahoo.com
Advertising Revenue Model
Subscription Revenue Model
 Web site that offers users content or services
charges a subscription fee for access to
some or all of its offerings
 Examples:
 Consumer Reports Online
 Yahoo! Platinum
Yahoo Uses a Subscription
Business Model for Yahoo Platinum
Transaction Fee Revenue Model
 Company that receives a fee for enabling or
executing a transaction
 Examples:
 eBay.com
 E-Trade.com
Yahoo e-trade
Sales Revenue Model
 Company derives revenue by selling goods,
information, or services to customers
 Examples:
 Amazon.com
 LLBean.com
 Gap.com
Yahoo shopping
Affiliate Revenue Model
 Sites that steer business to an “affiliate”
receive a referral fee or percentage of the
revenue from any resulting sales
Yahoo affiliate program
Market Opportunity
 Refers to a company’s intended marketspace
and the overall potential financial
opportunities available to the firm in that
marketspace
 Marketspace – the area of actual or potential
commercial value in which a company intends
to operate
 Realistic market opportunity is defined by
revenue potential in each of market niches in
which company hopes to compete
Competitive Environment
 Refers to the other companies selling similar
products and operating in the same
marketspace
 Influenced by:
 how many competitors are active
 how large their operations are
 what market share for each competitor is
 how profitable these firms are
 how they price their products
Market share of yahoo
Competitive Advantage
 Achieved when firm can produce a superior
product and/or bring product to market at a
lower price than most, or all, of competitors
 Firms achieve competitive advantage when
they are able to obtain differential access to
the factors of production that are denied to
competitors
 Asymmetry – when one participant in a
market has more resources than others
Yahoo competitive advantage
 In the last year, Yahoo Labs has bolstered its ranks of
social scientists, adding highly credentialed cognitive
psychologists, economists and ethnographers from top
universities around the world. At approximately 25
people, it’s still the smallest group within the research
division, but one of the fastest growing.
 The recruitment effort reflects a growing realization at
Yahoo, the second most popular U.S. online site and
search engine, that computer science alone can’t
answer all the questions of the modern Web business.
As the novelty of the Internet gives way, Yahoo and
other 21st century media businesses are discovering
they must understand what motivates
  humans to click and stick on certain features,
ads and applications – and dismiss others out
of hand.
 Yahoo Labs is taking a scientific approach to
these questions, leveraging its massive
window onto user behavior to set up a series
of controlled experiments (identifying
information is always masked) and employing
classic ethnography techniques like
participant observation and interviews.
Yahoo vs. Google
Initial page
Yahoo has very well organized structure. It is more than just
stock markets. You have all aspects of finance world structured
in top scroll down menu. Market summary even for major
European and Asian indices. Top stories are excellently
highlighted. On the other side. It has advertisements. And no
possibility to be personalized.
Google offers nice sectors summary where the money flows.
You have possibility to see your portfolio already on initial
page. You don't see any ads. Now disadvantages. The biggest
is top stories. It really misses the way how Yahoo can pick the
most important stories and particularly highlight them. Next
con, Google is here just for US indices.
Statistics and indicators
Yahoo wins this part. Indicators, news, statistics are
better organized. And Google doesn't even offer
Analyst estimates, SEC fillings, options etc.
They just refer via link to different financial sites.

Charts
In terms of charting both are equals. I don't find many
differences.

Altogether Yahoo Finance is better. Major benefits are

better news structure, international exposure (localized
Finance sites in different countries), better indicators
and statistics for quotes.
Market Strategy
 A plan that details how a company intends to
enter a new market and attract customers
 Best business concepts will fail if not properly
marketed to potential customers
Yahoo new strategy
 Yahoo on Wednesday will announce a global
partnership with Twitter to integrate real-time search.
As part of Yahoo's Open Strategy to make the Web
more open, people will have the ability to update their
Twitter status and share content from Yahoo in their
Twitter stream.
 The integration follows similar moves by Google and
Microsoft Bing, as well as Yahoo's agreement with
Facebook in December. The deal allows Facebook
users to share content from Yahoo sites with friends,
such as comments on Flickr and Yahoo News.
 Integrating Facebook and Twitter into Yahoo's sites
allows anyone with a Yahoo ID to post status
updates to multiple social networks simultaneously.
Being signed into the network also lets Yahoo serve
up relevant content specific to each person as they
travel across news, sports, finance and other
properties.
 And although Yahoo's announcement Wednesday
does not mention how the content in the real-time
Twitter tweets will influence paid search or display
ads, advertising industry experts expect to see even
more changes in ad-serving tactics based on
consumer behavior and preference.
 The real-time search integration becomes
available immediately on Yahoo Search.
Other parts of the deal between Yahoo and
Twitter are expected to launch later this year,
such as the ability to share updates with
friends through Yahoo Updates. Other
features that will have to wait include updates
on Yahoo's media properties Yahoo Finance,
Yahoo News, Yahoo Mail and Yahoo Sports.
Organizational Development
 Describes how the company will organize the
work that needs to be accomplished
 Work is typically divided into functional
departments
 Move from generalists to specialists as the
company grows
Management Team
 Employees of the company responsible for making
the business model work
 Strong management team gives instant credibility to
outside investors
 A strong management team may not be able to
salvage a weak business model, but should be able
to change the model and redefine the business as it
becomes necessary
Yahoo team
 David Turner, who has been named Chief Financial
Officer, succeeding Irene Esteves, who has resigned
to pursue other interests.
 David Edmonds, who has been named to the new
position of Chief Administrative Officer. Edmonds
was previously head of Human Resources.
 Bill Wells, Chief Risk Officer.
 Tim Laney, head of Business Services.
 John Owen, head of Consumer Services.