E commerce models

Summary

This video offers an in-depth exploration of various e-commerce models, including B2C, B2B, C2C, B2G, and G2C. It delves into the foundational elements of a business model—such as customer value proposition, profit formula, key resources, and processes—and how they drive value creation. The video also touches on emerging trends like mobile commerce and social commerce, emphasizing the importance of adapting to consumer needs and technological advancements. A must-watch for anyone seeking a comprehensive understanding of e-commerce dynamics and strategies for success.

Takeaways

• 😀 E-commerce refers to the buying and selling of goods and services over the Internet, eliminating the need for physical stores.
• 😀 A business model in e-commerce defines how a company creates value and delivers it to customers, including how profits are generated.
• 😀 The business model consists of key elements such as the Customer Value Proposition (CVP), profit formula, key resources, and key processes.
• 😀 The CVP is a crucial element that focuses on solving customer problems or fulfilling their needs in a given situation.
• 😀 The profit formula defines how the company creates value for itself and its stakeholders, including cost structure, revenue model, and resource velocity.
• 😀 Key resources include assets like technology, products, people, and channels that are necessary to deliver the value proposition.
• 😀 Key processes include operational and managerial tasks that make value creation possible, such as product development, marketing, and IT sourcing.
• 😀 There is a dynamic relationship between the business model, business processes, and information technology (ICT), and changes in one can affect the others.
• 😀 The B2C (business to consumer) model involves businesses selling products directly to individual consumers, often through online platforms, mobile apps, and brick-and-mortar stores.
• 😀 The B2B (business to business) model involves transactions between businesses, often for procurement or operational needs, and involves larger orders and longer-term contracts.
• 😀 The C2C (consumer to consumer) model involves individual consumers buying and selling products or services directly to each other, typically facilitated through online platforms like eBay or peer-to-peer marketplaces.
• 😀 The B2G (business to government) model involves businesses providing products or services to government entities, such as through public-private partnerships or government procurement processes.
• 😀 Mobile commerce enables transactions via mobile devices like smartphones, offering greater convenience for consumers and requiring businesses to optimize their websites for mobile use.
• 😀 The G2C (government to citizen) model focuses on the delivery of public services to citizens, such as through online platforms for ID registration or business permits, and aims to improve government accessibility and efficiency.

Q & A

What is the main definition of e-commerce as discussed in the transcript?

E-commerce refers to the buying and selling of goods and services over the Internet or other electronic networks. It involves conducting business transactions, including purchasing, selling, marketing, and exchanging products or services through electronic means.

How does the business model relate to business processes and ICT in e-commerce?

The business model describes how a company’s business processes fit together and outlines how value is created and delivered to customers. It is connected to business processes and ICT (Information and Communication Technology), where ICT can modify processes within a business model. A successful business model integrates all three components—business model, processes, and ICT—effectively.

What are the key elements of a business model in e-commerce?

The key elements of a business model include the Customer Value Proposition (CVP), the profit formula, key resources, and key processes. These elements help define how a business delivers value to customers and generates profit.

What is the Customer Value Proposition (CVP) in the context of an e-commerce business model?

The Customer Value Proposition (CVP) is a critical element of the business model that focuses on delivering value to the customer by addressing their needs or solving their problems in a specific context. It aims to ensure that the customer’s job gets done effectively.

What is the difference between B2B (Business to Business) and B2C (Business to Consumer) e-commerce models?

B2B refers to transactions between businesses, where one company sells products or services to another business. B2C, on the other hand, involves businesses selling directly to individual consumers for personal use. B2B transactions typically involve larger order quantities and longer-term relationships, while B2C focuses on meeting the needs of individual consumers.

How does the C2C (Consumer to Consumer) model work in e-commerce?

In the C2C model, individual consumers sell products or services directly to other consumers, typically through online platforms like classified ad websites or peer-to-peer marketplaces. There is no business intermediary involved, and transactions often rely on reviews and reputation for trust.

What role does reputation play in C2C transactions?

In C2C transactions, reputation is crucial. Buyers and sellers often rely on feedback and reviews from previous transactions to assess the trustworthiness and reliability of the other party. A positive reputation increases the likelihood of a successful transaction.

What are the key characteristics of the B2G (Business to Government) e-commerce model?

B2G involves businesses providing products or services to government entities at local, regional, or national levels. Key characteristics include complex procurement processes, long-term contracts, and the need to comply with government regulations and standards. It often involves public-private partnerships and government bidding systems.

What is mobile commerce and how has it impacted e-commerce?

Mobile commerce (or m-commerce) refers to buying and selling goods or services via mobile devices like smartphones and tablets. The rise of mobile commerce has significantly impacted e-commerce by providing consumers with the ability to make purchases and conduct transactions anywhere and anytime, driving the need for mobile-optimized websites and applications.

How does the G2C (Government to Citizen) model work in e-commerce?

In the G2C model, governments provide services directly to citizens, such as issuing licenses, processing public health information, or providing social services. This model improves accessibility and convenience for citizens, often through online platforms or mobile applications, with the goal of enhancing public service delivery.