What is the business model?
The business model is kind of tools that containing a series of elements and some relations of concept. It describes that how an organization provide the customer values and the internal structure of organization, partner network, relationship capital in order to achieve the goal of sustainable profitability (Hedman & Kalling, 2003).
Type of business models
There are four most common business models include business to business (B2B), Business to Consumer(B2C), Consumer to Business(C2B) and Consumer to Consumer(C2C) (C2C versus B2C, 2000).
Analysis the two different business and provide an example for each?
In this mini report will use the Amazon and EBay as an example to analysis the two different business. It is well know that the amazon and EBay are two popular sites for online shopping, but amazon and eBay use the different business to achieve the purpose of profit. Firstly, amazon’s business model is B2C, it was the largest online retailer in the world. The definition of amazon’s lines of business as online retail, internet services and the kindle ecosystem (Noren, 2013). Amazon transactions conducted directly between a company and consumers who are the end-users of its products or services. However, eBay’s business model is C2C, so eBay is not an online store, it is an auction site, and actually it do not sell anything. EBay is a site where people go to buy and sell their stuff (Noren, 2013).
Secondly, because of amazon is a store, so it was regulated by the law. Amazon is required to provide some level service and warranties to the customer (Noreen, 2013). For example, consumer can return the product when the customer are not satisfied with the product. Due to the different business models, eBay is not legally bound to compensate the consumer (Noren, 2013). Because the customers are basically dealing with another person, not deal with the site itself.
Thirdly, amazon as an online retail, generally they sell product are brand new, and the products carry the warranties (Noren, 2013). But the products that are being sold on eBay are usually old, or the owner likes to sell. EBay do not have the same level assurance with amazon
There are third differences between B2C and C2C. Firstly, B2C is a retail and C2C normally is a site. Secondly, B2C was regulated by the law and C2C was not. Thirdly, B2C’s products are brand new and carry the warranties and C2C’s products basically are old.
Analysis website base on 5IS
Using the 5 I S (identification, interaction, integrity, integration, individualization) to compare the website between the Amazon and EBay. According to the picture show that these two website’s homepage are very clearly and detailed. The website of Amazon and EBay has the same situation of identification, integration, individualization, but the difference between them in the interaction and integrity. The Amazon pay more attention to the organization integrity, because more than is the case with traditional marketing, the customers of a one to one relationship marketer must collaborate with the enterprise, and this means the enterprise must secure the trust of its customers (Peppers, & Rogers, 2002). So integrity is indispensable to the marketer. The EBay is more love to interact with the customer.
Difference between net. Difference Between eBay and Amazon. Retrieved from http://www.differencebetween.net/technology/internet/difference-between-ebay-and-amazon/
Hedman, J., & Kalling, T. (2003). The business model concept: theoretical underpinnings and empirical illustrations. European Journal of Information Systems, 12(1), 49-59.
Noren, E.(2013). Analysis of the Amazon Business Model: Retailer, Service Provider, and Hardware Innovator Retrieved from http://www.digitalbusinessmodelguru.com/2013/07/analysis-of-amazon-business-model.html
Peppers, D., & Rogers, M. (2002). The One to One Manager: Real-World Lessons in Customer Relationship Management. Random House LLC Retrieved from http://www.crmodyssey.com/Documentation/Documentation_PDF/The_Five%20_I_of%201-to-1_Marketing.PDF
Oh, W. (2002). C2C versus B2C: A comparison of the winner’s curse in two types of electronic auctions. International Journal of Electronic Commerce,6, 115-138.