Good Morning CR Posting the link to download Word Doc.
Also will post entire doc inline here.
There is a chart image file regarding the P2P question that I will upload here as well.
Questions, let me know. I will be available early afternoon.
Running Head: A BUSINESS DISCUSSION
A Business Discussion
A business model is a revenue generating partnership of the business and its customers. The business model activates the business plan. There are several questions that formulate the business model.
- What is our relationship with our customer? What are they offering the business?
- Will this customer be in relationship for the short term or long term?
- Is there one customer that controls our business?
- What marketing or other strategies guarantee new long-term customers?
- How do we increase the return on investment from each customer with repeat business?
A business plan is a living document that presents the strategies that will drive the business toward the future and sustain it in the present. The plan lays out the mission, and the following strategies marketing, advertising, sales, and most importantly the financial health of the business. It communicates the roles, responsibilities, and goals of leadership to navigate the business into profitable territory and avoid any threats to the success of the business (Star, 2008).
What are the eight key components of an effective business model?
- Customers--- There has to be a ready consumer. Willing to purchase your product or service.
2. Resources and Capabilities-Access to capital, expertise in the field, suppliers, supply chain, and delivery chain These are necessary to support the business, provide innovative products and services, get the product to market quickly, and supply the product at the best possible price.
3. Value Proposition-This is a proposition that attempts to provide the benefits for a consumer explaining why they should purchase a product or service.
4. Marketing Plan---is a living document that explains the goals and objectives for a company to reach its targets in profits, customers, and fulfilling its mission statement.
5. Competitive Advantage---having a specific benefit within your business that others cannot duplicate. A stance of dominance a company has versus its competitors.
6. Marketing Niche-ability to develop a unique product or service with little or no competition, that has a customer base of returning customers who refer others
7. Revenue strategy-The revenue capability expected from the business market
8. Competitive environment-"the direct and indirect competitors doing business in the same marketspace, including how many there are and how profitable they are" (Nott, 2008).
9. Organizational development - Developing an organization of people skilled in
performing the tasks necessary for the most productivity in the workplace. Upholding the company mission, goals and objectives.
10. Management team - a team of experts each focused on specific goals and objectives to bring the company to profitability and growth.
What are Amazons primary customer value propositions?
Amazon.com's primary customer value propositions are focused around referrals and returning customers. Over 50% of the customers on Amazon are return shoppers. The site is designed to keep customer attention and meet every need from fast delivery to keeping track of every visit to creating a shopping list. Amazon.com takes customer friendly to the extreme recognizing your name before you give it, and even letting you know what specials in your areas of interest exist for the day (Alsop, 2001).
Describe the five primary revenue models used by e-commerce firms.
A company provides a forum for
advertisements and receives fees from
advertisers (i.e Google, MSN)
|A company offers it users content or |
services and charges a subscription fee
for access to some or all of it offerings
(ie. Wall Street
Transaction fee model
A company receives a fee for enabling or
executing a transaction (ie. eBay or E-Trade)
A company derives revenue by selling goods,
information, or services (ie. Amazon)
A company steers business to an affiliate and
receives a referral fee or percentage of the
revenue from any resulting sales (ie. MyPoints)
Why is targeting a market niche generally smarter for a community provider than targeting a large market segment?
How a business is perceived by its customers is the key to niche marketing. When you are recognized as the leader or most proficient supplier of a product or service, customers will come looking for you. If your business is known in the community as the one place to get the best coney dog, the best hair cut, the coolest designer jewelry or accessories. Whatever your niche is, your customers will be your advertisers. Referrals will pour in as well as repeat business. It is amazing to see how specialization through niche marketing goes viral in attracting more customers. An analogy being when you are seeking an eye doctor for Lasik surgery, would you go to the least expensive, little known physician or the office that has the most experience, the most success and the best physicians.
Besides music, what other forms of information could be shared through peer-to-peer sites?
Distributing data to employees working together that share workplans or designing projects are an excellent use of P2P sites. Time sensitive information that needs to be collaborated in a project has "many different forms which can be stored digitally and processed electronically using all types of digital devices" (XXXXX, XXXXX, & Smalov, 2007). With P2P the possibilities of collaboration allow transmittal of data via various digital hardware and software tools and equipment such as "mobile phones, PDA's, networked computers, and other communicable devices" (XXXXX, XXXXX, & Smalov, 2007). In this way data can seamlessly be shared among project teams.
Zopa.com and Prosper.com allow people who would like to earn interest on their idle money lend it to other people. There is no middleman. The P2P platform provides those in need of money legitimate options other than banks for getting loans (May, 2005).
Are there legitimate commercial uses for P2P commerce?
The fact that there are multiple users requesting the use of shared media cause many to believe there are. View the chart below from Les Ottolenghi, of the president of INTENT Media Works(2008).
Would you say that Amazon and eBay are direct or indirect competitors?
Amazon and Ebay are direct competitors as they share many similar services such as online auctions. Selling of the same product categories. Books, Music, Collectibles, etc.
An indirect competitor would be other online or offline retailers of refurbished or new merchandise. For example classified advertising, Flea Markets, Thrift Shops, Discount and regular department stores.
What are some of the specific ways that a company can obtain a competitive advantage?
There were studies done to highlight the key advantages of "investment in capabilities, inter-firm collaboration, organization structure, flexibility, geography, market visibility, and reputation, these can help a company in establishing competitive advantage" (Knowledge@Emory, 2004).
These studies show cross training and sharing of information across an organization result in discovery of competitive advantages. Ways that a business can provide proprietary advantages over the competition.
Besides advertising and product sampling, what are some other market strategies a company might pursue?
Innovations of existing or new products requiring leading edge technology. Offering cordless headphones free with your Ipod for example. Surveys are an excellent way to measure the market for a product or service. Another example is interviewing prospective customers through polling. A unique strategy in use today online is writing content rich articles or blogs that have links to your product or service embedded or attached.
What elements of FreshDirects business model may be faulty?
The element of attracting and retaining customers. The business model assumes a market for fresh groceries. It also assumes a customer will shop online for groceries rather than go to a brick and mortar store for convenience sake. However, at times it may be more convenient to pick up your own groceries or have a friend or neighbor deliver them versus taking the time to go online, shop for the items, then wait for them to arrive. There is a great deal of competition offline in this category. There are also local grocers that deliver. They can most likely provide faster, more personal service.
This may be the fault in FreshDirects business model.
Does the business scale up to a regional or national size?
I would say this model is best as a local niche market. In this way a relationship with the customer which is crucial to repeat business in this market is better achieved.
Alsop, S.(2001). I'm betting on Amazon.com. Fortune Magazine, New York, vol.143,
no.9; pg. 48, 1 pgs,
CustomerThink.com (2008). Research Library. Customer Centric Business Strategy.
Knowledg@Emory (2004). The Science of Competitive Advantage. Retrieved September 26, 2008 from http://knowledge.emory.edu/article.cfm?articleid=777
Lawrence, K. (2004). Power of Niche Marketing. CNET Networks Inc.
May, Rob (2005). Peer to Peer Banking and Distributed Business. Retrieved September 26, 2008 from http://www.businesspundit.com/peer-to-peer-banking-and-distributed-business/
Nott, C.S. (2008). Introduction to e-Commerce. Retrieved September 26, 2008 from http://www.cs.nott.ac.uk/~exo/courses/s2008/G53DDB/docs/08ddb_ecommerce.pdf
Ottolenghi, Les (2008). The Future of Peer to Peer Technology. President, INTENT MediaWorks, LLC
Star, H. (2008). Types of Business Models. Retrieved September 26, 2008 from http://www.master-your-business-model.com/types.html
XXXXX, XXXXX, & Smalov. (2007). Sharing Design Information Using Peer-to-Peer
Computing. Coventry University, Coventry, West Midlands, England,
Wharton School (2004). The Science of Competitive Advantage. Retrieved September 26, 2008 from http://knowledge.emory.edu/article.cfm?articleid=777