"Quality is better than Quantity, One Home run is better than two doubles," - Steve Jobs

Tuesday, September 25, 2012

TUTORIAL FIVE

 Now look at the list of business models below and describe the features of each of these business models, on your blog page, giving an example of each.

Brokerage
Advertising
Infomediary
Merchant
Manufacturer (Direct)
Affiliate
Community
Subscription
Utility.

ANS

A Business model is "the plan implemented by a company to generate revenue and make a profit from operations. The model includes the components and functions of the business, as well as the revenues it generates and the expenses it incurs."
Source: http://www.investopedia.com/terms/b/businessmodel.asp#axzz27TlPkiXc
It is a method of doing business by which a company sustains itself.

1.) Brokerage: 

 It brings buyers and sellers together and allows transactions to be facilitated. The broker usually charges a fee for the transaction it enable. Examples of a brokerage model can be a transaction model like Paypal or an auction broker like Ebay. While many brokers are involved in connecting consumers with retailers, they also connect businesses with other businesses or consumers with other consumers. A wide variety of different scenarios or business configurations fall  under the label of Brokerage model, including, websites posting online ads and internet shopping malls to online marketplaces, online auctions, shopping bots, aggregators, etc. 




2.)Advertising : 

 It is a form of promotion where the web is used to deliver messages to attract customers. The  web provides content and services where the advertisements are placed in form of banner ads. Some examples are given below: 







 For more examples of typical web banners, click http://www.justgothere.com/web_banners/web_banners.htm
3.) Infomediary

 It is characterized by the capture and sharing of information which can occur when registration is a requirement for viewing or downloading information from websites. Data collected from this registration can capture contact details and consumption details which when analysed, can be a valuable asset for marketing purposes. A popular informediary model is the reward cards retailers and supermarkets issuing to customers that offer discounts for a certain amount of points and up to date VIP sales catalogues. A Sri Lankan example would be where Keells supermarket offers its customers Nexus cards that has many loyalty schemes and bonuses if you use the card. An example of such a promotion is given below.



4.) Merchant

 This is internet based merchanidising and the best example is Amazon.com. The merchant model of e-commerce involves the establishment of an electronic storefront on the World Wide Web. it is an information-technology infrastructure capable of receiving and processing orders, appropriate security measures to assure the safety, secrecy and authenticity of transaction information and means for procuring payments, either online or in the physical world and completing orders via shipping and delivery. 



5.)Manufacturer (Direct)

 This is when the manufacturer sells directly to the buyer. Transactions can include leases, purchases and licenses, for example as done in Dell computers. 

6.)Affiliate

 This is a website that concentrates on retaining a certain group of people by continually upgrading their services and content to meet the needs and interests of the people. Once they obtain a large number of regular visitors, they generate revenue by adding links to merchants that the users would be interested in. This enables a firm to generate revenue streams of hundreds even thousands of items without carrying any inventories as can be seen below. 


7.)Community

 This is a method of developing online presence where several individuals and groups are encouraged to join and participate in ongoing interaction for a common purpose. For example, the site CommunityCare.co. gives a place for social workers to meet and discuss issues, etc. For some examples of community models go to the links given,
http://www.communitycare.co.uk/Home/
http://www.tes.co.uk/forums.aspx?navcode=14
http://www.sk-gaming.com/
Go to http://www.feverbee.com/2010/11/15-examples-of-thriving-online-communities.html for some more community sites. 

8.)Subscription

This is when a customer has to pay a subscription price to access the service. This was pioneered by magazines and newspapers but is now a common business model for many business online as well. A good examples can be seen if you go to this link, http://www.cpaaustralia.com.au/cps/rde/xchg


9.)Utility

 This is based on the concept of metered use where people pay for the service as they use it like gas and electricity. For example, internet access or telephone service via an online network.


Spend some time looking at the Technology report, particularly the country profiles and rankings. Use some of the data analysis tools to answer the following -

1) What is the Mobile phone use /100 population - compare Australia, USA, China, India, Your Country?
ANS

Australia = 108/100
USA = 106/100
China = 73/100
India = 29.38/100
Sri Lanka = 87/100

2) Internet use / 100 population - compare Australia, USA, China, India, Your Country?
ANS


Australia = 78.9/100
USA = 78.2/100
China = 38.4/100
India = 4.38
Sri Lanka = 15.1/100


3) Compare main strengths and weaknesses of Australia or your home country in the survey?
ANS
Rank out of the 133 countries surveyed
Government usage Index= 5
Political and Regulatory Environment Index = 7
Infrastructure Environment Index = 12
 Environment Component Index = 14
Market environment index = 14
Usage component index = 17
Individual usage Index = 20
Business usage Index = 30
The weaknesses include Fixed telephone tariffs (hard data) ranked 82 Business monthly telephone subscription (hard data) ranked 97 and total tax rate (hard data) ranked 90.

The strengths of Australia would have to be our mobile phone subscriptions. While we do have a high number of mobile phone subscriptions, in comparison to the United States, our internet capabilities need major improvement. While Australia has 55.4 Mb/s, the United States has 111.2 Mb/s. Their downloading speed is almost double what Australia has. We almost have the same number of internet users per 100 people, but need to improve the speed of the internet if we want to compete with the American market in e-business. 
4) What does the survey suggest to you about the Information Technology readiness of Australian business compared to Australian consumers?
ANS

Australia’s Individual Readiness index is 31, compared to the Business Readiness index of 21 (Dutta & Mia, 2010, 184)). We can say that Australia is more business-ready than individual-ready using figures alone. From these figures it seems that the Australian consumer has pretty good access to businesses (through mobile phones and internet use) but it appears that it is easy for a business to begin in Australia (it takes two days to start a business in Australia (Dutta & Mia, 2010)) however, in terms of technology, there is still room for improvement.

Source: Dutta, S. and Mia, I. (2010). Global information technology report 2009-2010. Geneva, Switzerland: World Economic Forum and INSEAD accessed from Google 25/09/2012


SSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSS

Posted by at

No comments:

Post a Comment

Subscribe to: Post Comments (Atom)