E-Business Models

e-Business Models

An e-business model is an approach to conducting electronic business through which a company can generate profitable revenue growth. The business model signifies how a company plans to make money online and how it is competitively positioned in an industry. In this paper, three different business models are discussed and their differences and similarities are identified based on who is the target audience for each web site, and what each business is offering to its buyers. In addition, it is shown how each business model affects the way the company market itself, and the benefits of each site to its corresponding business is identified.

The three business models discussed here are B2B or Business to Business, B2C or Business to Consumer, and Nonprofit organization. According to Roslyn Doktor, a vice president at McConnell International LLC, a global technology policy and management consulting firm, "The greatest strength of the Internet, is its ability to bring together people, governments and businesses and facilitate the flow of information among them. That's one of the main reasons why business models for business-to-business online marketplaces are expected to succeed" (Computer world, Dec 2000).

Business to Business (B2B)

Intel is a company that conducts part of its business using B2B model. Intel's target audiences are mainly business buyers vs. consumers. Looking at the products it offers, they are mainly processors, chipsets, adapters, and desktop boards. Intel addresses both US audience and worldwide customers. In its site, Intel offers multiple resource centers such as personal computing, business/enterprise, hardware design, software development, and networking/communication. Under each resource center, the site offers products and services along with solutions for the interested customers.

The method Intel uses to reach his target audience is by having a special section to tell its audience where they can purchase any of their interested items. The site also has training and events section which is geared toward IT and technical people. At the same time under the solution services section the site offers different avenues to attract parties interested in wireless, hardware design, software development, etc.

Intel's web site is a very organized and well designed site. For a company that uses B2B model of business it is very important to have a well thought of and thorough site that can accommodate other businesses. If the customer is looking for Intel's product, they can use any search engine to find the site. At the same time, other manufacturers that use Intel products advertise for Intel in their own site.

There are several benefits about Intel's site; the foremost benefit to its visitors is the fact that any thing the company offers can be found in the site. In addition, the site advertises the global presence of the company. For anyone who is doing a research to see if they can do business with Intel or not, the "About Us" section does a tremendous job of giving an overview of the company, press room, environmental, health and safety, and many more information to its visitors. The "About Us" section starts with the following, "For 35 years, Intel Corporation has developed technology enabling the computer and Internet revolution that has changed the world.". The support and download section is another route for Intel's customers to receive the support they need. Overall, Intel's web site gives a great view of the company and its services to its customers, and it is a very useful tool for the site visitors and promoting the company.

Business to Consumer (B2C)

Nordstrom is an example of a company that uses B2C business model. Looking at Nordstrom's web site, one can see the immediate difference between it and a company such as Intel that uses a B2B model. The target audiences of Nordstrom's web site are general consumers who are looking to buy clothing and accessories; therefore, the site is designed for this group of people.

Nordstrom is offering its full line of products for men, women, and children, along with the line of accessories and home furnishing on its site. The site is designed to attract the consumer to the seasonal clothing and all the items the company has to offer. Since, majority of the store's customers are women, the main page of the site has pictures of women's fashion clothing. This is how the company entices its buyers to purchase its products.

Some one who is looking at high end fashion clothing, by looking at Nordstrom's web site can easily tell about what kind of a company Nordstrom is. The site is very flashy and it consists of everything a consumer needs as far as fashion is concerned. There are dedicated sections that cover the whole family, from women, men, juniors, children to accessories that include handbags, shoes, beauty supplies, and a section that offers ideas for gift giving. Consumers can purchase any product they wish on line, by placing their desired items into "shopping bag". Once