E-BUSINESS

E-Business Start-Up

STARTING AN E-BUSINESS

Introduction

In the essential sense, a business model can be defined as a method of performing business through which a company can generate funds i.e. revenue for itself. The business model helps the company generate funds by defining the activities that the company has to perform to run its business.

Introduction of the business

The business I am planning to start is the online supply of laptops, IT solutions gadgets, computers etc. I will provide my products and services directly to different

Business model

When we are running the business through the Internet, there are a number of business models available, which can help us in running our business. However, the business model, which would be suitable for our business, would be the Business-to-Business (B2B) model because we are aiming to serve the corporate customers out there in the market, and in this case, the B2B model would be the ideal business model. During transactions in the B2B business models, the transactions are made between the customer, i.e. the corporate customer with whom we are having our business, and the business through the internet without any involvement of any other party. This model provides us the chance to sell our products directly to customers through utilizing the electronic channels. (Hagel & Singer 1999)

The Revenue model

When we run an e-business, we cannot make the conventional transaction like a normal business; therefore, we need to have a unique e-business revenue model that would help us in collecting revenue from our customers. The revenue models, which we have chosen for our business are, transaction model, Pay Per Click revenue model, subscription model, web catalogue model, advertising model and affiliate revenue model.

Transaction model

The transaction based revenue model is quite simple, because it will allow us to charge fee for providing the services to our corporate customers like IT services, software's, etc. (Gulati, Nohria & Zaheer 2000)

Subscription business model

The subscription revenue model is a type of revenue model in which a customer has to pay a subscription fee to obtain access to the product or the services that are being offered by the customer. By utilizing this model, we can make the customer subscribe for our services for a limited period of time and save them from the hassle of subscribing every time for the products that we are offering. This would ensure that we have a continuous stream of revenues throughout the year even when we are not making enough sales. (Grant 1995)

Web Catalogue Revenue Model

The web catalogue revenue model is one of the commonly used revenue generation models for any e-business. This model uses the technology of providing customers with an e-catalogue and a shopping cart, which facilitates the customer in selecting the things they are buying. (Gordijn, Akkermans & Vliet 2000)

Advertising Revenue Model

In this revenue model, our website will provide other website to advertise their products and services over our webpage, and will charge fees for this. (Huang 2008) This would help us generate revenues for our business through the mode ...