Business Models Of Popular Websites Essay

4859 words - 20 pages

Business Models Of Popular Websites Business Essay
The business model can simply be known as a working description that includes the general details about the operations of a business. Every business model consists of a number of factors. Some of these factors are expenses, revenues, operating strategies, corporate structure, and sales and marketing procedures. In general, anything that has to do with the day to day functionality of the corporation can be said to be part of the business model.
In every business model, there is a need to address internal factors that relate to the ongoing operation of the company. These factors relating to operation involve defining the departments and the ...view middle of the document...

Value Proposition
This consists of a what the customer’s problem is, the solution that addresses the problem, and the value of this solution from the customer's perspective.
  2. Market Segment
This is in regards to identifying the group to target, keeping in mind that different market segments have different needs and requirements. Sometimes the true potential of an innovation is unlocked only when a different market segment is targeted.
  3. Value Chain Structure
This is basically the firm's position and activities in the value chain and how the firm will capture part of the value that it creates as per the market value structure.
  4. Revenue Generation and Margins
This components deals with how revenue is generated (Eg:- sales, leasing, subscription, support, etc.), the cost involved and forecasting as per the cost structure, and target in regards to the profit margins.
  5. Position in the Value Network
Identification of the position of the product/ service offered by a company in the market can be done by identifying the position of the competitors, compliment-ors , and any network effects that can be utilized to deliver more value to the customer.
  6. Competitive Strategy
This is when the company will plan and develop a strategy towards sustainable growth and use it to improve the enterprise's competitive position in the market and in some cases even win the loyalty of the customer.
AMAZON.COM
Amazon was founded by Jeff Bezos, a student from Princeton University graduated in computer science and electrical engineering. After a successful career and designation as Senior Vice President at D.E.Shaw, an Investment Bank in Wall Street, Bezo decided to resign and move to Seattle. Moving from the field that he was in, Bezo didn’t know much about the internet. What he knew through available statistics was that the internet had a growth rate of 2300 % which he clearly saw as an opportunity of growth. That information alone was sufficient and convincing enough for Bezo to leap into the world of E-commerce, with out prior experience, whatsoever.
Amazon.com is a company that is closely tied with the e-commerce phenomenon. Bezo, the founder of Amazon, broke the rules of the book business and came up with an innovative strategy of using the Internet instead of conventional distribution channels.
He chose Seattle as a relocation point cause of it’s large pool of technical talent also since Rosenberg had one of the largest book wholesalers at Oregon. He initially thought of initiating the company as a bookseller. It was more logical and economical to locate itself in a smaller state due to sales tax laws for online retailers.
The company was started in a garage. Initially business meetings were held at a local Barnes and Noble store. Bezos picked the name Amazon for his company for very simple reasons such as :It started with the letter A, signified something big, and it was easy to spell. The company has grown from a book seller to a...

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