The E-Commerce Business Models Essay

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Will Thomas BSM 358 Kevin Fecteau CHAPTERS 5&6 05 Nov 2012 THE E-COMMERCE BUSINESS MODELS The e-commerce business model I felt was the most interesting part of chapters five and six. There are nine major e-commerce business models. Business to Business(B2B), Consumer to Business(C2B), Government to Business(G2B), Business to Consumer(B2C), Consumer to Consumer(C2C), Government to Consumer(G2C), Business to Government(B2G), Consumer to Government(C2G), and Government to Government(G2G). These models explain how a company establishes, distribute and obtain its monetary worth. Business model are utilized in a number of conventional and non-conventional ways. This includes operational process and policies, trading practices and organizational structure just to name a few. Whenever a company is started, it eithers inherently or specifically chooses a business model that best fits their organizational structure. For example; a company whose primary customer base is the consumer would not benefit selling directly to a manufacture or another larger company, because his profit to sell ratio might drop or not be as high if he/she would sell directly to the consumer. As in the case of Sam’s Club who mainly sales items in bulk but its main customer base are the consumer themselves. This would be considered B2C or Business to Consumer. But since they also sell to other smaller businesses who sell to consumer they also can be consider B2B or Business to Business. It is very interesting how chapter five illustrates and explains how each model applies to us, the consumer. Consumer to Consumer or C2C takes place when goods and serviced are passed between two individuals. The example of this would be a barber or hair stylists. The barber/hair stylist performs a service for the individual and in turn charges that individual a fee for his or her services. As far
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