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Different types of businesses

Different types of businesses B2C – Business to consumer B2B – business to business Infomediary – broker who facilitates transaction by providing information. B2I2C - Business – Infomediary - Customer B2I2B – Business – Infomediary - Business C2I2B – Customer – Infomediary - Business

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Different types of businesses

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  1. Different types of businesses • B2C – Business to consumer • B2B – business to business • Infomediary – broker who facilitates transaction by providing information. • B2I2C - Business – Infomediary - Customer • B2I2B – Business – Infomediary - Business • C2I2B – Customer – Infomediary - Business • C2I2C – Customer – Infomediary - Customer

  2. The Rise of Infomediaries • Has become useful with the “unbundling of the value chain” in many industries • Control the choke points of information • Typically, built around: (1) user activities (2) life events (3) demographic segment (4) special interests

  3. Hypermediation At Play* • Bob wants to know more about a Harry Potter book • Netscape -- GoTo.com -- Nancy’s Harry Potter Page -- Etoys -- buy book at $8.97; • Who made money from the clickstream? - Netscape (from GoTo.com) -- 2 cents; - GoTo.com (from Nancy) -- 2 cents; - Nancy (from Etoys) -- 7.5% - Etoys, distributor, Visa company, UPS - Others? Inktomi, BeFree * Source: Nicholas G. Carr (2000, HBR)

  4. Rise of Vertical and Horizontal Market Hubs* • Vertical examples: Biotech • Vertical communities are: industry-specific, members only, neutral • They provide: directories, new kind of content, and links to commerce • Horizontal market hubs are cross-category and often country-focused *The material on this page is sourced from The Forrester Report, Nov. 1996

  5. The Case of • UBid buys excess capacity brands with major labels like AT&T, Panasonic, Callaway, 3M, and Calvin Klein • These products are auctioned on the web • They also let suppliers place their products directly for auction • Ubid takes a cut from every auction on its site

  6. Web Benefits – Ward Hanson • Improvement based • Internal savings – cost savings • Increase marketing effectiveness – better image • Understanding customers - loyalty • Revenue based

  7. Improvement based • Enhancement • Brand building - Disney • Category building - Intel • Improving Online Quality - • Efficiency • Cost reduction • Catalogs • Customer service • Free trial • Effectiveness • Dealer support – GM BuyPower • Supplier support – GE and its trading process network • Information collection

  8. Revenue based • Provider pays • Sponsorship • Retail alliances • Valuable locations • Exclusive deals • Banner Ads • Prospect fees • Sales commissions – affiliate programs • Data and market research

  9. Revenue based (continued) • User pays • Product sales • Pay per use • Subscription • Complementary goods sales

  10. Paul Timmer’s Classification • E-shop • Promotion, cost reduction, additional outlet • (seeking demand) • E-procurement • Additional inlet (seeking suppliers) • E-auction • E-mall – collection of e-shops • Third party market place • Common marketing front end and transaction support to multiple businesses

  11. Virtual Communities – focus on communication between members • Value chain service provider – support part of value chain e.g. logistics, payments • Value chain integrator – Added value by integrating multiple steps of the value chain • Collaboration platforms • Information Brokers – trust providers, business information, consulting

  12. Value chain integrator Functional integration E-mall E-procurement E-auctions E-shop Degree of innovation

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