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CHAPTER 3 : E- BUSINESS REVENUE MODELS - Coggle Diagram
CHAPTER 3 : E- BUSINESS REVENUE MODELS
The types of Revenue models online business
1 . Web catalog Revenue models
Seller establish brand image .
printed information mailed to prospective buyers .
Replaces or supplement prints catalog .
order places through web sites
2 . Fee-for -content Revenue models
Embrace the Web as a highly efficient distribution mechanism
Use the digital content revenue model
Sell subscriptions for access to information they own
Example , LexisNexis: offers variety of information services for lawyers and law enforcement officials
3 . Advertising as a revenue models element
1 .Advertisers’ fees in place of users’ subscriptions
Advertising-supported revenue models
EXAMPLE ,
Used by United States broadcast network television
Provides free programming and advertising messages
Supports network operations sufficiently
4 . Fee - for Transaction Revenue Models.
1 .Electronic books
Forms of digital audio books
2 . Audible sells subscriptions
Allows monthly download of a certain number of books
3 . Amazon.com
Offers books, newspapers, magazines, and other digital format items
Fee for many , fee for a few
1 . Economics of manufacturing
For Example ,
Different for physical and digital products
Unit cost high percentage of physical products
Unit cost very small for digital products
2 . Leads to a different revenue model
Example , Offer basic product to many for free
Charge a fee to some for differentiated products
6 . fee-for service revenue model
Xdrive Technologies: offered free disk storage
Initial revenue source (1999): advertising-supported
Targeted e-mail advertising
Did not cover operating costs
CHANGING REVENUE MODELS STRATRGIES
1 . Obtain more revenue and profits
2 . Advertising - supported to
Initial revenue source
Combination of the advertising-supported model plus a fee-based information access service
Annual subscriptions to large corporate clients
3 . subcription mixed models , and adversiting -supported to subscription models
4 , Adversiting supported model
5 . Channel conflict and cannibalization
Channel conflict (cannibalization): company’s Web site sales activities interfere with existing sales outlets
6 . overstock sales strategic
Physical outlet stores being replaced with overstocks Web page sales
Reach more people than physical outlet stores
7 . luxury goods services
Difficult to sell online
Customers want to see product in person or touch
Overcome by some sites by limited online offerings
Chanel
8 . Strategic alliances