Chapter 2 summary

Chapter 2 in our book is focused primarily on business models for ecommerce. The chapter begins by providing eight key elements of a successful business model. These elements are; value proposition, revenue model, market opportunity, competitive environment, competitive advantage, market strategy, organizational development and management team. The chapter then discusses the different business models used with business to consumer ecommerce. These models are; portal, e-tailer, content provider, transaction broker, market creator, service provider, and community provider. The major business to business models used are; e-distributor, e-procurement, exchange, industry consortium, and private industrial network. The chapter then continues to discuss business models in other areas of ecommerce. The final part of the chapter discusses the impact that the internet and web have had on business in the last decade. These aspects of the business environment that have been affected are; industry structure, industry value chains, firm value chains, and business strategy.