Internet-Economy.ppt
- 1. NEW BUSINESS MODELS AND STRATEGIES FOR THE INTERNET ECONOMY
- 2. Internet economy It is also called as digital economy based on digital computing technology The main infrastructure required for such market is internet Internet and e-commerce is the basic tool for the formulation of strategy, implementation of strategy and control of the strategy in the modern business environment
- 3. “If you are going to be in E-commerce, you have to build a business that destroys the old brick-and-mortar model.” John B. McCoy © 2001 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin Copyright
- 4. Business Model A business model describes what a firm will do, and how to build and capture wealth for shareholders Effective business models operationalize good strategies – turning position and fit into wealth.
- 5. • Internet is composed of – Integrated network of users’ connected computers – Banks of servers and high-speed computers – Digital switches and routers – Telecommunications equipment and lines
- 6. Impact of the Internet and E-Commerce • Impact on external industry environment – Changes character of the market and competitive environment – Creates new driving forces and key success factors – Breeds formation of new strategic groups • Impact on internal company environment – Having, or not having, e-commerce capabilities tilts the scales toward valuable resource strengths or threatening weaknesses – Creatively reconfiguring the value chain will affect a firm’s competitiveness vis-à-vis rivals
- 7. Supply Side of the Internet Economy • Major groups of Internet and e-commerce firms comprising the supply side include – Makers of specialized communications components and equipment – Providers of communications services – Suppliers of computer components and hardware – Developers of specialized software – E-commerce enterprises • Business-to-business merchants • Business-to-consumer merchants • Media companies • Content providers
- 8. Overview of E-Commerce Business Models and Strategies • Provide new opportunities to put a globally-connected Internet infrastructure in place – Build out telecommunications system – Install millions of servers – Provide high-speed Internet connections to billions of businesses and households – Develop software and networks to create a wired global economy • Offer potential to exploit business opportunities in a globally wired e-commerce environment – Business-to-business sales – E-procurement – Business-to-consumer sales – E-retailing – Provide content – Provide services to users
- 9. Internet Business Strategies Advertising Promoting product Brokerage Information Sales Service sales Manufacturer (Direct) Merchandising Affiliate community Subscription Utility
- 10. Economic potential of Internet economy •Reduction of cost •Managing supply chain more effectively •Easy communication •Increasing competition •Making price more transparent •Broadening markets for buyers and sellers •Increasing the effectiveness of marketing and pricing •Increasing consumer choices, convenience, satisfaction in a variety of ways
- 11. How do the following companies make money? EBAY SKYPE & PAYPAL OLX and Quikr Flipkart FB INSTAGRAM GOOGLE (Advertising)
- 12. EBAY Business operates in three segments Communication Skype credit Monthly subscription Payments Market places
- 13. OLX and Quikr Adsense Premium and Featured posting
- 15. FB Mobile Advertising Print and Web Advertising Other payments and fees
- 16. How Google does makes money from Android ( Ad, Royalties ) DOCS ( Subscribers, Freemium ) Gmail (Advertising) You tube (Advertising) Chrome App (Advertising , Royalties ) Twitter (Freemium)
- 17. Business model includes any one of the following Advertising Subscribers Lead Gen/ Affiliate Selling data Freemium Royalties
- 18. India’s Top 10 Online stores Amazon. in Flipkart.com Snapdeal.com PayTmMail.com ebay.in Jabong.com Myntra.com Shopclues.com Pepperfry.com Homeshop18.com