E Commerce

5 Pages 1257 Words

E-Commerce Business Models & The Ever Changing Environment

Unbelievably, the E-Commerce Business models are probably the most discussed and least understood aspect of the Internet. In the simplest form, a business model is the method of doing business by which a company can sustain itself while generating positive revenue. Internet will give rise to new kinds of business models. The Internet business models continue to evolve on a daily basis. The models could be implemented in a variety of ways. Furthermore, a company may combine several different models as part of its overall Internet business strategy. For example, it is not uncommon for businesses to blend customer service with a marketing model. Business models have taken on greater importance recently as a form of intellectual property that can be protected with a patent. Indeed, business models have fallen increasingly within the realm of patent law. A number of business method patents relevant to e-commerce have been granted. But some of the more noteworthy patents may be challenged in the courts.
Some questions that arise are as follows: Which models will prove most effective for which kinds of businesses? How can each be pursued most effectively? What combinations of the pure models tend to be particularly effective and which tend to be in conflict? It is understood that each of the business models should be applied to a Web site under centralized management. Here are some important example of E-commerce business models:
· STOREFRONT MODEL: An organization offers products or services for sale. Many Web sites of this sort also have Customer Service Model features, and if not then probably they should have. One legal issue that might arise from this model is misrepresentation of the customer service model.
· MALL MODEL: Someone who offers products or services to consumers from a collection of distinct businesses that retain their individual identities and pay for in...