1. E-Commerce Business Models and Concepts
CHAPTER 2
E-commerce
business. technology. society.
Second Edition
E-Commerce Business Models and Concepts
Kenneth C. Laudon
Carol Guercio Traver
Created by, David Zolzer, Northwestern State University—Louisiana
Copyright © 2002 Pearson Education, Inc.

2. Learning Objectives
Identify the key components of e-commerce business models.
Describe the major B2C business models.
Describe the major B2B business models.
Recognize business models in other emerging areas of e-commerce.
List major e-commerce enablers
Understand how e-commerce affects key business concepts and strategies
Copyright © 2002 Pearson Education, Inc.

3. E-Commerce Business Models
a set of planned activities designed to result in a profit in a marketplace
Business plan
a document that describes a firm’s business model
E-commerce business model
a business model that aims to use and leverage the unique qualities of the Internet and the World Wide Web.
Copyright © 2002 Pearson Education, Inc.

4. Eight Key Ingredients of a Business Model
Page 62, Table 2.1
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5. Five Primary Revenue Models
Page 66, Table 2.2
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6. Major Business-to-Consumer (B2C) Business Models
Page 72, Table 2.3
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7. Major Business-to-Consumer (B2C) Business Models
Page 72, Table 2.3 continued
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8. Major Business-to-Business (B2B) Business Models
Page 82, Table 2.4
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9. Business Models in Other Emerging Areas of E-Commerce
Page 88, Table 2.5
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10. E-commerce Enablers Page 91, Table 2.6
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11. E-Commerce and Industry Structure
Page 96, Figure 2.2
Industry Structure: the nature of players in an industry and their relative bargaining power
Internet & Web Affect: changes competition, bargaining power of suppliers and buyers, barriers to entry, and substitute products
Copyright © 2002 Pearson Education, Inc.

12. E-Commerce and Industry Value Chains
Page 98, Figure 2.3
Industry Value Chains: set of activities performed in an industry by suppliers, manufacturers, transporters, distributors, and retailers that transform raw inputs into final products and services
Internet & Web Affect: reducing the cost of information and other transactional costs
Copyright © 2002 Pearson Education, Inc.

13. E-Commerce and Firm Value Chains
Page 99, Figure 2.4
Firm Value Chains: set of activities performed within an individual firm to create final products from raw inputs
Internet & Web Affect: increasing operational efficiency
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14. Internet-Enabled Value Web
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15. E-Commerce and Business Strategy
set of plans for achieving superior long-term returns on the capital invested in a firm
Internet & Web offers unique ways to:
differentiate products
obtain cost advantages
compete globally
compete in a narrow market or product segment
Copyright © 2002 Pearson Education, Inc.