TJT V12 E-business models Wednesday 25 April 2001 Group 7 Minna Karhu, Jarmo Huttunen.

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TJT V12 E-business models Wednesday 25 April 2001 Group 7 Minna Karhu, Jarmo Huttunen

FreeMarkets.com FreeMarkets doesn’t have inventory control, because it only offers the marketplace for the sellers and the buyers The price is set online using auctions The products are sold online by matching the suppliers’ bids with auctions Physical products and services are sold at auctions Likely revenues: FreeMarkets collects fees from arranging auctions Likely costs: research & development, sales & marketing, general & administrative, stock-based expense, non-cash acquisition-related costs

E-loan.com Control inventory: E-loan must know the funds they can loan Sell online: The loans are only admitted via Internet Price set online: rates are fixed by loan period, customer can’t affect the rate There are no physical products/services Likely revenues: rates are only income Likely costs: IT infrastructure, brand-building, Internet development and marketing

InsWeb.com Control inventory: There is no need, InsWeb is a gateway to several insurance companies Sell online: The site is for the information exchange about insurances Price set online: Customer can order an customized insurance offers from many firms There are no physical products/services Likely revenues: transactions fees, development and maintenance fees Likely costs: product development, sales and marketing, general and administrative