What are the eight key components of an effective business model?

Answer 1

Identify the key components of e-commerce business models.

A successful business model effectively addresses eight key elements:

●Value proposition - how a company's product or service fulfills the needs of customers. Typical e-commerce value propositions include personalization, customization, convenience, and reduction of product search and price delivery costs.

●Revenue model -- how the company plans to make money from its operations. Major e-commerce revenue models include the advertising model, subscription model, transaction fee model, sales model, and affiliate model.

●Market opportunity -- the revenue potential within a company's intended marketspace.

●Competitive environment-the direct and indirect competitors doing business in the same marketspace, including how many there are and how profitable they are.

●Competitive advantage - the factors that differentiate the business from its competition, enabling it to provide a superior product at a lower cost.

●Market strategy -- the plan a company develops that outlines how it will enter a market and attract customers.

●Organizational development - the process of defining all the functions within a business and the skills necessary to perform each job, as well as the process of recruiting and hiring strong employees.

●Management team - the group of individuals retained to guide the company's growth and expansion.