Friday, 26 April 2013

Week 5 - Business Models



There are nine types of business models and below are examples of each:

Brokerage


- bring buyers and sellers together

- facilitate transactions

- charges a fee for each transaction

Example: PayPal is an example of brokerage, it brings the buyer to the seller and makes for easier transactions.

Advertising

- provides visual content in the form of banner ads

- banner ads are a major source of revenue

- works better with larger volumes of traffic

Example: Gumtree it is an on line buy/swap/sell site which requires you to become a member and may charge a fee for the content that you upload.


Infomediary

- collects data on consumers and their habits and trends

- assist buyers and sellers to understand the market

- allows an advantage to buyers and sellers

Example: Pop up ads/banners that appear when you go on certain websites.

Merchant

- concerns wholesalers and retailers of their goods and services

- Sales are based on price lists or through auctions.

Example: A store that operates solely on the internet, such as the iTunes store.


Manufacturer (Direct)

- allows manufacturer to reach buyers directly

- compresses the distribution channel

- more efficient, better customer service and a better understanding of customer preference.

Example: Renting movies on line through the iTunes store, in agency with the 'Terms & Conditions".


Affiliate

- provides purchase opportunities to when ever a potential buyer is on the web

- offers financial incentives to partner sites

- It is a pay-for-performance model

Example: On line book stores that are linked with amazon.com and share a percentage of the sales.


Community
- based on user loyalty and the time they spend

- revenue can be based on voluntary contribution or based on the sales of ancillary products and services.

- more fertile area of development

Example: Wikipedia is open globally to the content and opinion of others.


Subscription

- users are charged a periodic fee to subscribe to the service

- combining free content with premium membership

- costs are irrespective of actual usage rates

Example: Magazines such as Dolly or Cleo who charge a monthly subscription to access there content on line.


Utility

- 'pay as you go' approach

- charges customers for active connection minutes

- based on actual usage rates

Example: Water rates, customers are charged by the amount they use.


http://ebusinessfundamentalsbrandon.blogspot.com.au/2013/04/topic-5-business-models.html


1) What is the Mobile phone use /100 population - compare Australia, USA, China, India, Your Country

Australia ranks 70 out of 142, America 88, China 113, India 117.

2) Internet use / 100 population - compare Australia, USA, China, India, Your Country

Australia ranks 19 out of 142, America 22, China 76, India 124.

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