This week we will focus more on the business side of the equation, more importantly on how the market has evolved since the launch on the World Wide Web. I found this interesting website that argues that everything old is being recycled in the web. The Internet has created new business models but some of them are just digital versions of oldies but goodies. For example, the Brokerage Model which include popular companies such as Priceline.com with the feature "name your price" and Ebay. Brokers are market-makers and this model focuses on bringing together buyers and sellers facilitating transactions. Brokers play a frequent role in business-to-business (B2B), business-to-consumer (B2C), or consumer-to-consumer (C2C) markets. Usually a broker charges a fee or commission for each transaction it enables. Another business model is the Advertising model found in YAHOO! and Monster.com. These sites offer free features like email or search engines but charges its clients to post ad banners. This model is an extension of the traditional media broadcast model.
So after all, it is not about the "new business models" but adapting already existing concepts into the new technology era.
Have a great e-week!
Great post Samanta!
ReplyDeleteI like how you were able to identify and compare the different business models of those companies. I think it was smart of them to adapt conventional ways of doing business into the e-commerce world.
You have a very good point identifying those traditional strategies implemented on this new online era. I think the key points for companies is realize that they need to evolve and adapt to nowadays technologies and they can be successful doing so if they adapt the right business model to the online business.
ReplyDeleteI like your point on old, but still good business models. The strategy of companies putting ads on your site is known as "feeding your need." It's a great way to offer free services to those who are most important, the consumer, while still receiving revenue.
ReplyDeleteTotally agreed! The fact that business models that have been applied for many years on regular business are now being applied on online business is just a reflection on how effective they are and how everything works on a cycle basis. There are almost no creation, but always a new way to use the same things in different ways.
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