E-Business Models

Surendhranatha Reddy
Surendhranatha ReddyAssociate Professor, Head, Department of Management à KRISTU JAYANTI COLLEGE
E-BUSINESS MODELS
UNIT 2
E-BUSINESS MODEL
• It refers to the way in which a business is conducted and the
existence of relationship between buyer and seller.
• An e-business model is simply the approach a company takes
to become a profitable business on the Internet.
• There are many buzzwords that define aspects of electronic
business, and there are subgroups as well, such as content
providers, auction sites and pure-play Internet retailers in
the business-to-consumer space.
Business-to-Business (B2B)
Business-to- Consumer (B2C)
Consumer-to-Consumer (C2C)
Business-to-Government (B2G)
Government-to-Business (G2B)
Government-to-Citizen (G2C)
Consumer-to-Business (C2B)
Peer to Peer (P2P)
E-Business Models
• Business-to-business (B2B) – applies to businesses buying
form and selling to each other over the Internet
• B2B companies are supportive enterprises that offer the things
other businesses need to operate and grow.
• B2B companies have an entirely different target audience:
They offer the raw materials, finished parts, services or
consultations that other businesses need to operate, grow and
profit.
Industrial Marketing System
Supplier Manufacturing
Manufacturing
Consumer Products
Industrial Products
MRF Tyre
Supplier Manufacturing tyre
Manufacturing car
using tyre
Tyre
Consumr product
Car
TYPES OF B2B MODELS
• Buyer model (few buyers,
many sellers)
• Marketplace model (many
buyers, many sellers)
• Longer term relationship
model (few buyers, few
sellers)
• Seller model (few sellers,
many buyers)
Buyer Model
In this model, there are few buyers and many suppliers. The
buyer has his/her own online marketplace. It then invites
suppliers and manufacturers to display their products. Buyers
search in electronic stores in malls and markets for similar
service providing products and compare them.
e.g. : GE’s electronic bidding
E-Business Models
Market Place
• In this type of model, there are many buyers and many
suppliers. An intermediary company runs a marketplace where
business buyers and sellers meet and do business with each
other.
• E.g.: Alibaba.
E-Business Models
Long term relationship
• In this type of model, there are few buyers and few suppliers.
An intermediary company runs a marketplace where business
buyers and sellers meet and do business with each other.
e.g.: Airbus
E-Business Models
Seller Model
In this type of model, there are many buyers and few suppliers.
The supplier provides a common marketplace. This market is
used by both individual customers as well as businesses. For the
success of this model, goodwill in the market and a group of loyal
customers is very important.
e.g.: Cisco
E-Business Models
BUSINESS TO CONSUMER (B2C)
As the name suggests, it is the model involving business and consumers. In this
model, online business sell to individual customers. Business to customer
covers those e-commerce websites and transactions trough which organization
sell goods to customer over the internet. B2C is also known as internet retailing
or E-tailing.
Business/organization
Customer
B2C
• B2C refers to a business communicating with or selling to an individual rather
than a company
Major Business-to-Consumer (B2C)
Business Models
2. E-Tailer /Storefront
1. Portal
3. Content Provider
4. Transaction Broker
5. Service Provider
6. Market Creator
7. Community provider
1. Portal
• A portal is a web-based platform that collects
information from different sources into a single user
interface.
• Portals personalize content based on a balance of
audience and function. In other words, they need to
know who is using the portal and what those users need
to get done.
• Two types a) Horizontal portal b) Vertical portal
1. Portal
a) Horizontal/General: Offers an integrated package of services
and content such as search, e-mail, chat etc. Seeks to be a
user’s home base. e.g: yahoo.com, msn.com
b) Vertical/ Specialized: Offers services and products to
specialized marketplace. A gateway or portal to information
related to a particular industry, such as human resources,
health care, insurance, automobiles, or food manufacturing.
Portals are also seen as likely business-to-business
communities. e.g.: www.constructionplus.com
Portal Services
➢An integrated package of
content like
»News
»weather forecasts
»currency rates
»stock quotes
»phone and map
information
➢Services like
»Entertainment
»Chat
»Game
»Downloads
»Shopping-auction
»E-card
»Sms service
»search
2. E-tailer
• An e-tailer is a retailer that primarily uses the Internet as a
medium for customers to shop for goods and/or services
provided.
• There are different types of e-tailer based on the nature of
performing business activities.
2. E-tailer
a) Virtual merchant: Online version of retail store where customers can
shop 24/7 with comfort. E.g.: Amazon.com
b) Click and mortar: Online distributor channel for company that also has
physical stores. e.g.: Walmart.com
Catalog merchant: Online version of direct catalog. The catalog merchant
has generally lower prices than other retailers and lower overhead
expenses due to the smaller size of store and lack of large showroom
space. E.g.: LandsEnd.com, pepperfry.com
d) Online mall: Online version of mall. E.g.: Fashionmall.com
e) Manufacturer direct: Online sales made directly by manufacturers. E.g.:
Dell.com,
2. E-tailer
d) Online mall: Online version of mall. E.g.: Fashionmall.com
e) Manufacturer direct: Online sales made directly by
manufacturers. E.g.: Dell.com,
3. Transaction Broker
• Processors of online sales transactions, such as stock brokers
and travel agents that increase customer `s productivity by
helping them do things faster. It assists buyers, sellers, or both
during transaction and acts as an agent for larger markets.
• Furthermore, they sell others products rather than their own
product. Transaction brokers receive commissions for every
transaction that had been successfully concluded in order to
sustain their business.
• E.g.: Indiainfoline.com, Monster.com
4. Content provider
➢Information and entertainment providers like newspapers,
sports sites or other online sources offering up-to-date
information (news, special interest , photos, video, artwork etc.)
to customers.
➢Electronic intermediaries that control information flow in
cyberspace, often aggregating information and selling it to
others. They do not own the content but aggregate and
distribute the content produced by others
• E.g.: Sportsline.com, CNN.com, espncricinfo.com
E-Business Models
5. Service Provider
➢ Companies that make money by selling users a service, rather
than a product. Offers services online, like consultancy, trade
knowledge, expertise etc.
➢Eg. Window updates offered by Microsoft, Incometax.gov.in,
Paytm.com
6. Market Creator
• Web-based businesses that use internet technology to create
markets that bring buyers and sellers together. Auctions and
other forms of Dynamic Pricing
• The success factors are:
➢Attracting sufficient critical number of sellers and buyers to the
marketplace.
➢Speed, ability to become operational quickly
• E.g.: eBay.com, Priceline.com, upperbid.com
7. Community Provider
➢Sites where individuals with particular interests, hobbies and
common experience can come together and compare.
➢Communities utilize electronic tools such as forums, chat
rooms, e-mail lists, message boards, and other interactive
Internet mechanisms, which are usually tailored to the particular
community.
e.g.: Mouthsut.com, Team-bhp.com
Players in B2C Business Model
1) Consumer: One who buys products or services online.
2) Seller: One who sells products to end customer online.
3) Intermediary: Any company which facilitates
transactions between consumers.
Consumer Shopping Procedure in B2C
1. Basic requirement determination.
2. Search for available items that can meet the requirement.
3. Compare the candidate items with multiple perspectives
4. Place an Order.
5. Pay the Bill.
6. Receive the delivered items and inspect them.
7. Contact the vendor to get after-service and support, or to
return if disappointed.
B2C e-commerce transactions
VISA
Order form
Order placed
by user Shopping cart
credit card is
charged
Order is
competed
E-mail is sent to customer to merchant
Sent to warehouse
Shipping carrier picks up
shipment
B2C Distribution
Challenges to B2C
• Consumer traffic
• Payment processing
• Client support
• Product findability
Recent Trends in B2C
• Voice Search
• Augmented Reality (AR)
• Try before buy
• Social Platforms
• Artificial Intelligence
B2B Vs. B2C
Parameters B2B B2C
1 Definition
The selling of goods and
services between two business
entities is known as Business
to Business / B2B.
The selling of goods and services
to a consumer is known as
Business to Consumer / B2C.
2 Customer Company Customer(End User)
3 Need to focus on Relationship Benefits of the product
4 Chain
Supplier to Manufacturer
Manufacturer to Wholesaler
Wholesaler to Retailer
Retailer to Consumer
5 Chain horizon Lengthy Short
6 Buying & Selling cycle Lengthy Short
7 Decision Making Long process Simple
8 Brand Value
Depends upon trust & mutual
relationship
Aggressive advertising &
promotion
• Consumer-to-business (C2B) – applies to any consumer that sells a
product or service to a business over the Internet
• C2B facilitates the following:
– Social interaction
– Personal finance management
– Purchasing products and information
E-Business Models
Players in C2B Business Model
1) Consumer: A consumer in the C2B business model can be any
individual who has something to offer either a service or a
good. The individual is paid for the work provided to the
companies. Depending on the model, the "consumer" can be:
• A webmaster/ blogger offering advertising service
(through Google Adsense program for example or
amazon.com affiliation program)
• A photographer or a designer offering stock images to
companies by selling his artwork
through Fotolia or istockphoto for example
• Any individual answering a poll through a survey site
• Any individual with connections offering job hiring service by
referring someone through referral hiring
sites like jobster.com or h3.com
2) Business: Business in the C2B business model
represents any companies buying goods or services
to individual trough intermediaries. Here are some
examples of potential companies which can be such
clients:
• Any company which wants to fill a job
(through referral hiring sites)
• Any company needing to advertise online
(through Google Adwords program for example)
• Any advertising agency which needs to buy a
stock photo (through microstock sites)
3) Intermediary: The Intermediary is the crucial element
since it creates the connection between business which
needs a service or a good and a mass of individuals.
Intermediary is usually a portal both for buyers
(businesses) and seller (individuals).
The intermediary plays two roles:
• It promotes goods and services offered by individuals
by proposing a distribution channel. It offers what
individuals can't do themselves : large promotion,
logistic and financial support, technical expertise
• It offers buyers a contact to a mass of individuals and
takes care of money transactions and legal aspects
• C2C, or customer-to-customer, or consumer-to-consumer, is a business
model that facilitates the transaction of products or services between
customers.
• C2C communities thriving on the Internet:
– Communities of interest
– Communities of relations
– Communities of fantasy
Players in C2C Business Model
1) Consumer: One who buys or sells products or
services online with help of intermediary.
2) Intermediary: Any company which facilitates
transactions between consumers.
e.g.: e-Bay.com, olx.com, craigslist.com
Benefits of C2C
• There are minimal costs involved with the lack of retailers and
wholesalers, keeping the margins higher for sellers and prices lower for
buyers.
• There is also the convenience factor – instead of trying to sell items in
person at a brick-and-mortar store, consumers can simply list their
products online and wait for buyers to come to them.
• Buyers don't need to drive around and search through stores for an item
they want – they just search for it on a C2C site.
Challenges
• Credit card payments can be difficult, as the platforms are not
necessarily secure and able to process such payments.
• There is a lack of quality control – since the sellers are consumers
themselves, there is little recourse for poorly made or misrepresented
products.
• On the flip side, because the buyers are consumers themselves, the
payment guarantees can be hard to enforce.
Types of C2C
• Online Auctions
• Online Classifieds
• Online Selling
Citizen to Government (C2G)
• It constitutes the areas where a consumer (or citizen)
interacts with the government
• C2G applications usually include tax payment,
issuance of certificates or other documents, etc.
• C2G applications are under the scope of transactions
that are done and handled more efficiently and
effectively with e-Commerce systems and
technologies.
• E.g: incometax.gov.in, irctc.gov.in etc.
Business to Government (B2G)
• B2G e-commerce means business-to-government e-
commerce, a concept where government agencies and
businesses can use the Internet to transact business.
• A typical B2G e-commerce website offers an efficient system
for business information exchange as well as facilitation of
business transactions over the Internet.
• E.g.: www.gs1india.org
Business to Government (B2G)
• Business-to-government (B2G) is a business model that refers to businesses selling
products, services or information to governments or government agencies.
B2G networks or models provide a way for businesses to bid on government
projects or products that governments might purchase or need for their
organizations. This can encompass public sector organizations that propose the bids.
B2G activities are increasingly being conducted via the Internet through real-time
bidding.
Government to Business (G2B)
• G2B concept is used for expressing the relationship between public administration
and enterprises. The relationship may refer the demand for information from the
enterprises in any life situation or a transfer of an official document to the statutory
body.
• The abbreviation is usually used to refer to the ICT solution that converts such
communication to the electronic form or to describe a solution that simplifies the
communication between public administration and enterprises
• E.g.: tenders.gov.in
• G2B (Government to Business) is a term that refers to the relationships
between organizations (subjects) of public administration and enterprises
(businesses). The designation can be used for any relationship between the
subject of public administration and the enterprises as one of the basic e-
Government models.
• In G2B model the initiative comes from a government organization and
businesses are the target group. Some sources distinguish also B2G
(Business to Government) where the initiative comes from businesses,
while other sources consider both G2B and B2G as equal without important
no significant difference, ie. with the same meaning.
• The model covers an electronic exchange of any information between businesses
and the government, usually using internet so the cooperation or communication
is more efficient than is usually off the internet. In G2B, government agencies and
business use websites, procurement marketplaces, applications, web services.
• Examples of G2B / B2G services are:
• government procurement
• electronic procurement marketplaces
• electronic auctions
• e-learning
• electronic incorporation forms
• updating corporate information
• sending filled-out electronic forms (eg tax forms, social insurance forms)
• sending electronic payments
• sending / receiving answers electronically
• on-line meetings
• project management cooperation
Government to Government (G2G)
• Government to government (G2G) is the electronic sharing of
data and/or information systems between government
agencies, departments or organizations.
• The goal of G2G is to support e-government initiatives by
improving communication, data access and data sharing.
Peer to Peer Model
• Peer-to-peer (P2P) is a decentralized communications model in which
each party has the same capabilities and either party can initiate a
communication session.
• Unlike the client/server model, in which the client makes a service
request and the server fulfills the request, the P2P network model
allows each node to function as both a client and server.
• e.g.: Airbnb, Aristotle Circle, eBay, Match.com, and Zopa
Mobile Commerce
M-Commerce
• M-commerce (mobile commerce) is the buying and selling of
goods and services through wireless handheld devices such as
cellular telephone and personal digital assistants (PDAs).
Known as next-generation e-commerce, m-commerce enables
users to access the Internet without needing to find a place to
plug in.
Mobile Commerce Infrastructure
• Cellular (mobile) phones
• PDAs
• Interactive pagers
• E-Readers
• Tablet
• Laptops
• Smart Watches
• Handheld Game Consoles
1. Hardware
Mobile Commerce Infrastructure
• Unseen infrastructure requirements
–Suitably configured wireline or wireless WAN modem
–Web server with wireless support
–Application or database server
–Large enterprise application server
–GPS locator
Mobile Commerce Infrastructure
2. Software
–Micro browser
–Mobile client operating system (OS)
–Bluetooth
–Mobile application user interface
–Back-end legacy application software
–Application middleware
–Wireless middleware
Mobile Commerce Infrastructure
• Networks
• Wireless transmission media
• Microwave
• Satellites
• Radio
• Infrared
• Cellular radio technology
–Wireless systems
Mobile Service Scenarios
• Financial Services.
• Entertainment.
• Shopping.
• Information Services.
• Payment.
• Advertising.
And more ...
Early content and applications have all been geared around information delivery but as time moves on
the accent will be on revenue generation.
M- commerce
Entertainment
• Music
• Games
• Graphics
• Video
Communications
• Short Messaging
• Multimedia Messaging
• Unified Messaging
• e-mail
• Chatrooms
• Video - conferencing
Transactions
• Banking
• Broking
• Shopping
• Auctions
• Betting
• Booking & reservations
• Mobile wallet
• Mobile purse
Information
• News
• City guides
• Directory Services
• Maps
• Traffic and weather
• Corporate information
• Market data
Mobile Payment for M-Commerce
• Mobile Payment can be offered as a stand-alone
service.
• Mobile Payment could also be an important enabling
service for other m-commerce services (e.g. mobile
ticketing, shopping, )
Mobile Payment
• the consumer must be informed of:
–what is being bought, and
–how much to pay
–options to pay;
• the payment must be made
• payments must be traceable.
Advantages of M-Commerce
– Mobility—users carry cell phones or other mobile devices
– Broad reach—people can be reached at any time
– Ubiquity—easier information access in real-time
– Convenience—devices that store data and have Internet, intranet,
extranet connections
– Instant connectivity—easy and quick connection to Internet, intranets,
other mobile devices, databases
– Personalization—preparation of information for individual consumers
– Localization of products and services—knowing where the user is located
at any given time and match service to them
Limitations of M-Commerce
• Usability Problem
• small size of mobile devices (screens, keyboards, etc)
• limited storage capacity of devices
• hard to browse sites
• Technical Limitations
• lack of a standardized security protocol
• insufficient bandwidth
Limitations of M-Commerce
• Technical Limitations…
• transmission and power consumption limitations
–poor reception in tunnels and certain buildings
–multipath interference, weather, and terrain problems and
distance-limited connections
• WAP Limitations
• Speed
• Cost
• Accessibility
E-Business Models Comparison
Parameter B2B B2C C2C C2B
Nature
Players
Scope
Types
Questions
Section A
1. What is e-business model?
2. What is B2C model?
3. What is a portal?
4. What is M-Commerce?
5. Who is a e-tailer?
6. What is G2G model?
7. Mention any four services of M-commerce.
8. What is C2B model?
9. Give two examples for C2C model.
10. What is P2P model?
Section B
1. What are the types of B2B model?
2. Write a brief note on C2G model.
3. Discuss about the advantages and disadvantages of M-
Commerce
4. Who are the players in C2B model?
5. How P2P model is different from C2C model?
6. Explain the process of purchasing products in B2C model.
Section C
1. Elaborate the different types of B2C model.
2. Explain about the infrastructure of M-Commerce
1 sur 71

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E-Business Models

  • 2. E-BUSINESS MODEL • It refers to the way in which a business is conducted and the existence of relationship between buyer and seller. • An e-business model is simply the approach a company takes to become a profitable business on the Internet. • There are many buzzwords that define aspects of electronic business, and there are subgroups as well, such as content providers, auction sites and pure-play Internet retailers in the business-to-consumer space.
  • 3. Business-to-Business (B2B) Business-to- Consumer (B2C) Consumer-to-Consumer (C2C) Business-to-Government (B2G) Government-to-Business (G2B) Government-to-Citizen (G2C) Consumer-to-Business (C2B) Peer to Peer (P2P)
  • 5. • Business-to-business (B2B) – applies to businesses buying form and selling to each other over the Internet • B2B companies are supportive enterprises that offer the things other businesses need to operate and grow. • B2B companies have an entirely different target audience: They offer the raw materials, finished parts, services or consultations that other businesses need to operate, grow and profit.
  • 6. Industrial Marketing System Supplier Manufacturing Manufacturing Consumer Products Industrial Products
  • 7. MRF Tyre Supplier Manufacturing tyre Manufacturing car using tyre Tyre Consumr product Car
  • 8. TYPES OF B2B MODELS • Buyer model (few buyers, many sellers) • Marketplace model (many buyers, many sellers) • Longer term relationship model (few buyers, few sellers) • Seller model (few sellers, many buyers)
  • 9. Buyer Model In this model, there are few buyers and many suppliers. The buyer has his/her own online marketplace. It then invites suppliers and manufacturers to display their products. Buyers search in electronic stores in malls and markets for similar service providing products and compare them. e.g. : GE’s electronic bidding
  • 11. Market Place • In this type of model, there are many buyers and many suppliers. An intermediary company runs a marketplace where business buyers and sellers meet and do business with each other. • E.g.: Alibaba.
  • 13. Long term relationship • In this type of model, there are few buyers and few suppliers. An intermediary company runs a marketplace where business buyers and sellers meet and do business with each other. e.g.: Airbus
  • 15. Seller Model In this type of model, there are many buyers and few suppliers. The supplier provides a common marketplace. This market is used by both individual customers as well as businesses. For the success of this model, goodwill in the market and a group of loyal customers is very important. e.g.: Cisco
  • 17. BUSINESS TO CONSUMER (B2C) As the name suggests, it is the model involving business and consumers. In this model, online business sell to individual customers. Business to customer covers those e-commerce websites and transactions trough which organization sell goods to customer over the internet. B2C is also known as internet retailing or E-tailing. Business/organization Customer B2C • B2C refers to a business communicating with or selling to an individual rather than a company
  • 18. Major Business-to-Consumer (B2C) Business Models 2. E-Tailer /Storefront 1. Portal 3. Content Provider 4. Transaction Broker 5. Service Provider 6. Market Creator 7. Community provider
  • 19. 1. Portal • A portal is a web-based platform that collects information from different sources into a single user interface. • Portals personalize content based on a balance of audience and function. In other words, they need to know who is using the portal and what those users need to get done. • Two types a) Horizontal portal b) Vertical portal
  • 20. 1. Portal a) Horizontal/General: Offers an integrated package of services and content such as search, e-mail, chat etc. Seeks to be a user’s home base. e.g: yahoo.com, msn.com b) Vertical/ Specialized: Offers services and products to specialized marketplace. A gateway or portal to information related to a particular industry, such as human resources, health care, insurance, automobiles, or food manufacturing. Portals are also seen as likely business-to-business communities. e.g.: www.constructionplus.com
  • 21. Portal Services ➢An integrated package of content like »News »weather forecasts »currency rates »stock quotes »phone and map information ➢Services like »Entertainment »Chat »Game »Downloads »Shopping-auction »E-card »Sms service »search
  • 22. 2. E-tailer • An e-tailer is a retailer that primarily uses the Internet as a medium for customers to shop for goods and/or services provided. • There are different types of e-tailer based on the nature of performing business activities.
  • 23. 2. E-tailer a) Virtual merchant: Online version of retail store where customers can shop 24/7 with comfort. E.g.: Amazon.com b) Click and mortar: Online distributor channel for company that also has physical stores. e.g.: Walmart.com Catalog merchant: Online version of direct catalog. The catalog merchant has generally lower prices than other retailers and lower overhead expenses due to the smaller size of store and lack of large showroom space. E.g.: LandsEnd.com, pepperfry.com d) Online mall: Online version of mall. E.g.: Fashionmall.com e) Manufacturer direct: Online sales made directly by manufacturers. E.g.: Dell.com,
  • 24. 2. E-tailer d) Online mall: Online version of mall. E.g.: Fashionmall.com e) Manufacturer direct: Online sales made directly by manufacturers. E.g.: Dell.com,
  • 25. 3. Transaction Broker • Processors of online sales transactions, such as stock brokers and travel agents that increase customer `s productivity by helping them do things faster. It assists buyers, sellers, or both during transaction and acts as an agent for larger markets. • Furthermore, they sell others products rather than their own product. Transaction brokers receive commissions for every transaction that had been successfully concluded in order to sustain their business. • E.g.: Indiainfoline.com, Monster.com
  • 26. 4. Content provider ➢Information and entertainment providers like newspapers, sports sites or other online sources offering up-to-date information (news, special interest , photos, video, artwork etc.) to customers. ➢Electronic intermediaries that control information flow in cyberspace, often aggregating information and selling it to others. They do not own the content but aggregate and distribute the content produced by others • E.g.: Sportsline.com, CNN.com, espncricinfo.com
  • 28. 5. Service Provider ➢ Companies that make money by selling users a service, rather than a product. Offers services online, like consultancy, trade knowledge, expertise etc. ➢Eg. Window updates offered by Microsoft, Incometax.gov.in, Paytm.com
  • 29. 6. Market Creator • Web-based businesses that use internet technology to create markets that bring buyers and sellers together. Auctions and other forms of Dynamic Pricing • The success factors are: ➢Attracting sufficient critical number of sellers and buyers to the marketplace. ➢Speed, ability to become operational quickly • E.g.: eBay.com, Priceline.com, upperbid.com
  • 30. 7. Community Provider ➢Sites where individuals with particular interests, hobbies and common experience can come together and compare. ➢Communities utilize electronic tools such as forums, chat rooms, e-mail lists, message boards, and other interactive Internet mechanisms, which are usually tailored to the particular community. e.g.: Mouthsut.com, Team-bhp.com
  • 31. Players in B2C Business Model 1) Consumer: One who buys products or services online. 2) Seller: One who sells products to end customer online. 3) Intermediary: Any company which facilitates transactions between consumers.
  • 32. Consumer Shopping Procedure in B2C 1. Basic requirement determination. 2. Search for available items that can meet the requirement. 3. Compare the candidate items with multiple perspectives 4. Place an Order. 5. Pay the Bill. 6. Receive the delivered items and inspect them. 7. Contact the vendor to get after-service and support, or to return if disappointed.
  • 33. B2C e-commerce transactions VISA Order form Order placed by user Shopping cart credit card is charged Order is competed E-mail is sent to customer to merchant Sent to warehouse Shipping carrier picks up shipment
  • 35. Challenges to B2C • Consumer traffic • Payment processing • Client support • Product findability
  • 36. Recent Trends in B2C • Voice Search • Augmented Reality (AR) • Try before buy • Social Platforms • Artificial Intelligence
  • 37. B2B Vs. B2C Parameters B2B B2C 1 Definition The selling of goods and services between two business entities is known as Business to Business / B2B. The selling of goods and services to a consumer is known as Business to Consumer / B2C. 2 Customer Company Customer(End User) 3 Need to focus on Relationship Benefits of the product 4 Chain Supplier to Manufacturer Manufacturer to Wholesaler Wholesaler to Retailer Retailer to Consumer 5 Chain horizon Lengthy Short 6 Buying & Selling cycle Lengthy Short 7 Decision Making Long process Simple 8 Brand Value Depends upon trust & mutual relationship Aggressive advertising & promotion
  • 38. • Consumer-to-business (C2B) – applies to any consumer that sells a product or service to a business over the Internet • C2B facilitates the following: – Social interaction – Personal finance management – Purchasing products and information
  • 40. Players in C2B Business Model 1) Consumer: A consumer in the C2B business model can be any individual who has something to offer either a service or a good. The individual is paid for the work provided to the companies. Depending on the model, the "consumer" can be: • A webmaster/ blogger offering advertising service (through Google Adsense program for example or amazon.com affiliation program) • A photographer or a designer offering stock images to companies by selling his artwork through Fotolia or istockphoto for example • Any individual answering a poll through a survey site • Any individual with connections offering job hiring service by referring someone through referral hiring sites like jobster.com or h3.com
  • 41. 2) Business: Business in the C2B business model represents any companies buying goods or services to individual trough intermediaries. Here are some examples of potential companies which can be such clients: • Any company which wants to fill a job (through referral hiring sites) • Any company needing to advertise online (through Google Adwords program for example) • Any advertising agency which needs to buy a stock photo (through microstock sites)
  • 42. 3) Intermediary: The Intermediary is the crucial element since it creates the connection between business which needs a service or a good and a mass of individuals. Intermediary is usually a portal both for buyers (businesses) and seller (individuals). The intermediary plays two roles: • It promotes goods and services offered by individuals by proposing a distribution channel. It offers what individuals can't do themselves : large promotion, logistic and financial support, technical expertise • It offers buyers a contact to a mass of individuals and takes care of money transactions and legal aspects
  • 43. • C2C, or customer-to-customer, or consumer-to-consumer, is a business model that facilitates the transaction of products or services between customers. • C2C communities thriving on the Internet: – Communities of interest – Communities of relations – Communities of fantasy
  • 44. Players in C2C Business Model 1) Consumer: One who buys or sells products or services online with help of intermediary. 2) Intermediary: Any company which facilitates transactions between consumers. e.g.: e-Bay.com, olx.com, craigslist.com
  • 45. Benefits of C2C • There are minimal costs involved with the lack of retailers and wholesalers, keeping the margins higher for sellers and prices lower for buyers. • There is also the convenience factor – instead of trying to sell items in person at a brick-and-mortar store, consumers can simply list their products online and wait for buyers to come to them. • Buyers don't need to drive around and search through stores for an item they want – they just search for it on a C2C site.
  • 46. Challenges • Credit card payments can be difficult, as the platforms are not necessarily secure and able to process such payments. • There is a lack of quality control – since the sellers are consumers themselves, there is little recourse for poorly made or misrepresented products. • On the flip side, because the buyers are consumers themselves, the payment guarantees can be hard to enforce.
  • 47. Types of C2C • Online Auctions • Online Classifieds • Online Selling
  • 48. Citizen to Government (C2G) • It constitutes the areas where a consumer (or citizen) interacts with the government • C2G applications usually include tax payment, issuance of certificates or other documents, etc. • C2G applications are under the scope of transactions that are done and handled more efficiently and effectively with e-Commerce systems and technologies. • E.g: incometax.gov.in, irctc.gov.in etc.
  • 49. Business to Government (B2G) • B2G e-commerce means business-to-government e- commerce, a concept where government agencies and businesses can use the Internet to transact business. • A typical B2G e-commerce website offers an efficient system for business information exchange as well as facilitation of business transactions over the Internet. • E.g.: www.gs1india.org
  • 50. Business to Government (B2G) • Business-to-government (B2G) is a business model that refers to businesses selling products, services or information to governments or government agencies. B2G networks or models provide a way for businesses to bid on government projects or products that governments might purchase or need for their organizations. This can encompass public sector organizations that propose the bids. B2G activities are increasingly being conducted via the Internet through real-time bidding.
  • 51. Government to Business (G2B) • G2B concept is used for expressing the relationship between public administration and enterprises. The relationship may refer the demand for information from the enterprises in any life situation or a transfer of an official document to the statutory body. • The abbreviation is usually used to refer to the ICT solution that converts such communication to the electronic form or to describe a solution that simplifies the communication between public administration and enterprises • E.g.: tenders.gov.in
  • 52. • G2B (Government to Business) is a term that refers to the relationships between organizations (subjects) of public administration and enterprises (businesses). The designation can be used for any relationship between the subject of public administration and the enterprises as one of the basic e- Government models. • In G2B model the initiative comes from a government organization and businesses are the target group. Some sources distinguish also B2G (Business to Government) where the initiative comes from businesses, while other sources consider both G2B and B2G as equal without important no significant difference, ie. with the same meaning.
  • 53. • The model covers an electronic exchange of any information between businesses and the government, usually using internet so the cooperation or communication is more efficient than is usually off the internet. In G2B, government agencies and business use websites, procurement marketplaces, applications, web services. • Examples of G2B / B2G services are: • government procurement • electronic procurement marketplaces • electronic auctions • e-learning • electronic incorporation forms • updating corporate information • sending filled-out electronic forms (eg tax forms, social insurance forms) • sending electronic payments • sending / receiving answers electronically • on-line meetings • project management cooperation
  • 54. Government to Government (G2G) • Government to government (G2G) is the electronic sharing of data and/or information systems between government agencies, departments or organizations. • The goal of G2G is to support e-government initiatives by improving communication, data access and data sharing.
  • 55. Peer to Peer Model • Peer-to-peer (P2P) is a decentralized communications model in which each party has the same capabilities and either party can initiate a communication session. • Unlike the client/server model, in which the client makes a service request and the server fulfills the request, the P2P network model allows each node to function as both a client and server. • e.g.: Airbnb, Aristotle Circle, eBay, Match.com, and Zopa
  • 57. M-Commerce • M-commerce (mobile commerce) is the buying and selling of goods and services through wireless handheld devices such as cellular telephone and personal digital assistants (PDAs). Known as next-generation e-commerce, m-commerce enables users to access the Internet without needing to find a place to plug in.
  • 58. Mobile Commerce Infrastructure • Cellular (mobile) phones • PDAs • Interactive pagers • E-Readers • Tablet • Laptops • Smart Watches • Handheld Game Consoles 1. Hardware
  • 59. Mobile Commerce Infrastructure • Unseen infrastructure requirements –Suitably configured wireline or wireless WAN modem –Web server with wireless support –Application or database server –Large enterprise application server –GPS locator
  • 60. Mobile Commerce Infrastructure 2. Software –Micro browser –Mobile client operating system (OS) –Bluetooth –Mobile application user interface –Back-end legacy application software –Application middleware –Wireless middleware
  • 61. Mobile Commerce Infrastructure • Networks • Wireless transmission media • Microwave • Satellites • Radio • Infrared • Cellular radio technology –Wireless systems
  • 62. Mobile Service Scenarios • Financial Services. • Entertainment. • Shopping. • Information Services. • Payment. • Advertising. And more ...
  • 63. Early content and applications have all been geared around information delivery but as time moves on the accent will be on revenue generation. M- commerce Entertainment • Music • Games • Graphics • Video Communications • Short Messaging • Multimedia Messaging • Unified Messaging • e-mail • Chatrooms • Video - conferencing Transactions • Banking • Broking • Shopping • Auctions • Betting • Booking & reservations • Mobile wallet • Mobile purse Information • News • City guides • Directory Services • Maps • Traffic and weather • Corporate information • Market data
  • 64. Mobile Payment for M-Commerce • Mobile Payment can be offered as a stand-alone service. • Mobile Payment could also be an important enabling service for other m-commerce services (e.g. mobile ticketing, shopping, )
  • 65. Mobile Payment • the consumer must be informed of: –what is being bought, and –how much to pay –options to pay; • the payment must be made • payments must be traceable.
  • 66. Advantages of M-Commerce – Mobility—users carry cell phones or other mobile devices – Broad reach—people can be reached at any time – Ubiquity—easier information access in real-time – Convenience—devices that store data and have Internet, intranet, extranet connections – Instant connectivity—easy and quick connection to Internet, intranets, other mobile devices, databases – Personalization—preparation of information for individual consumers – Localization of products and services—knowing where the user is located at any given time and match service to them
  • 67. Limitations of M-Commerce • Usability Problem • small size of mobile devices (screens, keyboards, etc) • limited storage capacity of devices • hard to browse sites • Technical Limitations • lack of a standardized security protocol • insufficient bandwidth
  • 68. Limitations of M-Commerce • Technical Limitations… • transmission and power consumption limitations –poor reception in tunnels and certain buildings –multipath interference, weather, and terrain problems and distance-limited connections • WAP Limitations • Speed • Cost • Accessibility
  • 69. E-Business Models Comparison Parameter B2B B2C C2C C2B Nature Players Scope Types
  • 70. Questions Section A 1. What is e-business model? 2. What is B2C model? 3. What is a portal? 4. What is M-Commerce? 5. Who is a e-tailer? 6. What is G2G model? 7. Mention any four services of M-commerce. 8. What is C2B model? 9. Give two examples for C2C model. 10. What is P2P model?
  • 71. Section B 1. What are the types of B2B model? 2. Write a brief note on C2G model. 3. Discuss about the advantages and disadvantages of M- Commerce 4. Who are the players in C2B model? 5. How P2P model is different from C2C model? 6. Explain the process of purchasing products in B2C model. Section C 1. Elaborate the different types of B2C model. 2. Explain about the infrastructure of M-Commerce