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Strategy and Models for the Virtual World

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Presentation on theme: "Strategy and Models for the Virtual World"— Presentation transcript:

1 Strategy and Models for the Virtual World
Gay, Charlesworth & Esen Chapter 2

2 Internet Relationships
Private Businesses – B2B, B2C Public Administration – PA2PA, PA2C Consumers and Citizens – C2C

3 Some reasons for Dotcom failures
Overestimating demand Underestimating promotional costs No clear strategy or vision Poor fulfilment strategies and implementation Too few revenue streams Obsession with technology NOT customer focus.

4 Online Growth Vector Matrix
Existing and New Products Provision of Online Customer Support B2B Marketplaces Online selling CRM Applications Products New and Existing Markets

5 Levels of Web Presence Level 0 No site of web presence
Level 1 Minimal presence domain only Level 2 Basic presence with company & product information Level 3 Basic interaction ( ) Level 4 Site developed to handle sales transactions Level 5 Fully interactive with all stages of the buying process integrated Chaffey et al Stage 1 Publish - static information Stage 2 Interact enable community interaction Stage 3 Transact – provide user friendly self-service capability Stage 4 Integrate automate entire business Stage 5 Transform integrate entire business processes with customers and partners First Consulting Group

6 Online Business Models (Timmers, P 1999) (1)
e-Shops – e.g. Amazon e-Malls – e.g. e-procurement – e.g. Covisint e-Auctions e.g. eBay Virtual Communities e.g. Collaborative Platforms – e.g. Sun Microsystems, Third Party Marketplaces – e.g. CommerceOne

7 Online Business Models (Timmers, P 1999) (2)
Value Chain Integrators e.g. Defence diversification Value Chain Service providers e.g. PayPal Information Brokerage e.g. Trust and other services e.g. Verisign,

8 Principal Online Revenue Streams
Sales Advertising Subscriptions Commission (Affiliate Marketing)

9 Online Business Categories
Bricks and Mortar Clicks and Mortar Pure Players Clicks and Content

10 Physical and Virtual Worlds (Rayport & Jaworski)
Location and Hosting Marketing and Presentation Payment Security Fulfilment


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