ITM 350 Chapter Notes - Chapter 2: Affiliate Marketing, Competitive Advantage, Organization Development

• School: Ryerson University
• Department: Information Technology Management
• Course: ITM 350
• Professor: Bharat Shah

Document Summary

Chapter 2 e-co(cid:373)(cid:373)erce busi(cid:374)ess models a(cid:374)d co(cid:374)cepts. E-commerce business models: a business model is a set of business processes designed to result in a profit in a marketplace. It is the center of the business plan. Business plan is a document that des(cid:272)(cid:396)i(cid:271)es a fi(cid:396)(cid:373)"s (cid:271)usi(cid:374)ess (cid:373)odel: an e-commerce business model aims to use and leverage the unique qualities of the. Eight key elements of a business model: value proposition describes how a (cid:272)o(cid:373)pa(cid:374)(cid:455)"s p(cid:396)odu(cid:272)t/se(cid:396)(cid:448)i(cid:272)e fulfills customer needs, revenue model describes how the firm will earn revenue and produce profits. I. e. advertising, subscription, transaction fee, sales, and affiliate revenue model: market opportunity fi(cid:396)(cid:373)"s i(cid:374)te(cid:374)ded (cid:373)a(cid:396)ketspa(cid:272)e (area in which a firm intends to operate), competitive environment other companies operating in the same marketspace selling similar products. It"s also the p(cid:396)ese(cid:374)(cid:272)e of su(cid:271)stitute p(cid:396)odu(cid:272)ts a(cid:374)d pote(cid:374)tial (cid:374)e(cid:449) e(cid:374)t(cid:396)a(cid:374)ts. An asymmetry exists whenever one participant in a market has more resources.