today we discussed the Business Model and its functions which are:
Functions of Business model:
Articulates Value proposition: the value created for users by the offering based on technology
Identify target market segments: the users to whom the technology is usefull and for what purpose
Define Structure of value chain within the firm required to create and distribute the offering
Define cost structure and profit potential of producing the offering, given the value proposition and value chain structure chosen
Explain position in value networks
Set forth competitive strategy
its spells outhow a company makes money by specifying where it is positioned on the value chain
We then met in our group and did a little presentation for nintendo
How have Internet revenue models evolved from the original content/advertising/ monetization model? In your opinion, which model(s) offer the best opportunities for sustainable long-run profitability? Why?
The monetization model is when the firm develops a value proposition, they must then understand how it can obtain revenue form it.(first creating a content rich website and then being able to sell advertising to support it….there are many ways earn revenue through websites, they include, membershipor subscription revenue(you pay to have access to site), transaction revenue by selling products, donations for not for profit and sponsorship.
if your company has many click through than many companies would want to advertise on your site, ex. myspace.
The text implies that multichannel retailers are more likely to experience long-term success in the Internet economy than are pure-play Internet retailers. Do you agree with this statement? Why or why not?
yes because they can reach cunsumers in different ways, pureplay internet retailers can be forgotten, unless the send out a lot of emails to keep customers up to date