1-Describe the features of each of these business models giving
an example of each.
· Brokerage:
A brokerage is a financial institution
that facilitates the buying and selling of financial securities between a buyer
and a seller.
Features
Ø Brokerage firms trade public stocks and
other securities, usually through the firm's agent stockbrokers.
Ø The staff brokerage researches the markets
to provide appropriate recommendations and direct the actions of pension fund
managers and portfolio managers.
Ø These firms also offer margin loans for
certain approved clients to purchase investments on credit, subject to agreed
terms and conditions.
Ø Traditional brokerage firms have also
become a source of up-to-date stock prices and quotes.
Examples:
Different
Brokerage models vise examples are given below as outlined by Michal Rappa in
his digital enterprise resources.
Model Examples
·
Marketplace
Exchange Orbitz, ChemConnect
·
Buy/Sell
Fulfillment CarsDirect, Respond.com
·
Demand
Collection System Priceline.com
·
Auction
Broker -- eBay
·
Transaction
Broke PayPal, Escrow.com
·
Virtual
Marketplace zShops and Merchant
Services at Amazon.com
· Advertising:
Features
Advertising is a form of marketing communication used to encourage,
persuade, or manipulate an audience (viewers, readers or listeners; sometimes a
specific group) to take or continue to take some action. Sites that rely on
advertising, sell advertisements against their traffic. In basic terms: the
more traffic you have, the more you can charge for ads. A web site, provides content (usually,
but not necessarily, for free) and services (like email, IM, blogs) mixed with
advertising messages in the form of banner ads. The banner ads may be the major
or sole source of revenue for the broadcaster.
Examples:
Examples of advertisement
business model include paid placements done by sites like Google, Yahoo etc.
Other examples includes placement of search links within various kinds of
websites, portals ,classifieds, user registrations, intromercials and
ultramercials
· Infomediary:
The term infomediary is a contraction of "information intermediary. An infomediary works as a personal agent on behalf of consumers to help them take control over information gathered about them for use by marketers and advertisers.
Features
Ø The most
important characteristic of the infomediary model is the capture and sharing of
information
Ø Infomediaries operate on the assumption
that personal information is the property of the individual described, not
necessarily the property of the one who gathers it.
Ø Infomediary seeks to act as a trusted
agent, providing the opportunity and means for clients to monetize and profit
from their own information profiles
Examples:
One of the first focused implementations of the infomediary concept was an online advertising company called AllAdvantage launched in 1999. While that company did not survive, in more recent years there has been renewed interest in the infomediary concept, with entrepreneurs and investors building companies to identify and leverage the market value of consumers' information.
Michal Rappa determined examples of Infomediaries which are as given below,
Advertising
Networks example DoubleClick
Audience
Measurement Services example
Nielsen//Netratings
Incentive Marketing example
Coolsavings
Metamediary example
Edmunds
· Merchant:
The Merchant business model is used by
retailers and wholesalers. In simple words merchants buy goods, and sell them
with profit.in web based business models this model will include merchants
selling digital products like iTunes. Types of merchant model along with their
examples as outlined by Michal Rappa are as stated below,
Model
|
Description
|
Example
|
Virtual Merchant
|
Retail merchant that operates solely over the web
|
Amazon.com
|
Catalog Merchant
|
Mail-order business with a web-based catalog
|
Lands' End
|
Click and Mortar
|
Traditional brick-and-mortar retail establishment with web storefront
|
Barnes & Noble
|
Bit Vendor
|
Deals strictly in digital products and services and, in its purest
form
|
Apple iTunes Music Store
|
· Manufacturer (Direct):
Features
Manufacturer
direct model operates on the bases that by eliminating third party
intermediaries like distributors and wholesalers, consumers are supposed to
benefit with lower prices and increased satisfaction of the consumers in
dealing directly with manufacturers. This model characterizes efficiency,
improved customer service, and a better understanding of customer preferences.
Examples:
Dell Computer is the example other examples
include Example is flowerbud.com the company which sold flowers directly online.
· Affiliate:
Affiliate is Electronic
commerce business model that enables a firm to generate revenue
streams on hundreds (even thousands) of items without carrying inventories,
managing orders, processing payments, or handling packaging and shipping. In
this arrangement, a website concentrates on a relationship with a very specific
group of individuals as its core. It develops and continuously upgrades content
and services to attract and retain the patronage of this group. Once it has a
sizable number of regular visitors, it can generate revenue by carrying ads or
links to merchants with products that its visitors seek or are interested in.
Examples:
Many software
vendors operate affiliate marketing schemes, eg. online backup vendors Mozy and
Carbonite. Amazon also operates an extensive affiliate program, allowing
website owners to earn commission for referrals on books and other products.
There are a
number of affiliate portals, such as Clickbank, Commission Junction and Kolimbo
which exist to create links between vendors and potential affiliates.
http://www.sqa.org.uk/e-learning/ECIntro01CD/page_14.html
· Community:
Features
In community
model an online presence is developed and several individuals or groups are
encouraged to join and participate in ongoing interaction designed around a
common purpose. This model is based on consumer loyalty revenue is generated by
selling ancillary products and services or voluntary contributions.
Examples:
Public broadcasting (Google, Wikipedia) and
social networking services (Facebook, Flicker) are the examples of community
model.
· Subscription:
This is the
model in which users are charged a periodic, daily, monthly or annual, fee to
subscribe to a service. Subscription fees are incurred irrespective of actual
usage rates. Subscription and advertising models are frequently combined.
Examples:
Examples include different magazines and
newspapers subscribing to send periodic newsletters etc. American online, class
mates etc.
· Utility.
Features:
The utility model is a
"pay-as-you-go" service provider that charges based upon metered
usage. It takes its name from the utility services, such as water and
electricity, which have traditionally used this metered charge style. In some
countries, ISPs are still billed as a metered service, with rates varying as
usage increases or decreases. In a slight variation, some Internet businesses,
among them Slashdot, operate as subscription utilities. In this utility
variation, subscribers are charged a fee based upon number of website content
pages viewed.
Examples:
Internet service providers are the example of utility model.
Other examples include metered subscription like charges per page view.
2-Study Global Technology report and answer the following:
1) What is the Mobile phone use
/100 population - compare Australia, USA, China, India, Your Country
Comparison is as shown below,
Country
|
Mobile Phone use/100
Population,
|
Rank/142
|
Australia
|
108.3/100
|
67
|
USA
|
92.7/100
|
95
|
China
|
73.2/100
|
115
|
India
|
72/100
|
117
|
2) Internet use / 100 population- compare Australia, USA, China, India, Your Country
Country
|
Internet use,%
|
Rank/142
|
Australia
|
79
|
18
|
USA
|
77.9
|
20
|
China
|
38.3
|
74
|
India
|
10.1
|
119
|
3) Compare main strengths and weaknesses of Australia or your home country in the survey
Strengths
of Australia:
·
Australia has effective law making
bodies it ranks 18 among 144 nations and score of its effectiveness of law
making bodies is 4.9 which is above median.
·
Australia has good business and
innovation environment to support ICT as it ranks 19 in availability of latest
technologies quality of management schools is also good.
·
Australia has secure internet servers
·
Australia ranks well among 144 nations
in 5th pillar of skills it ranks 1st in secondary
education gross enrollment rate.
·
Australia has availability of knowledge
intensive jobs(rank 12 /144)
·
Australia’s Government services are also
available online.(rank 9/144)
·
E-participation index
·
99% adult literacy rate
Weaknesses
of Australia:
·
Affordability, 4th pillar, high tariffs
·
High software piracy rate
4) What does the survey suggest to you about the Information Technology readiness of Australian business compared to Australian consumers?
Australia is well developed country according to Networked readiness index
detail firm level technology absorption rate is of near best level business to
business and business to consumer internet usage index is also well staff is
also trained well as its index is 4.6 which is also above median. On the other
hand individuals are also free to use internet personal computers and
households also have access of internet. Individuals also use virtual social
network frequently.
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