Though utilized in every website design and development, business models as an aspect of the world wide web are not well understood. This paper demystifies the principle business models utilized by L’Oreal, Estee Lauder, Korres, and Apivita. In order to understand each company with greater clarity, each business’ website shall then be critically and comparatively analyzed through Rayport & Jaworski’s design principles for e-Commerce websites.
Business models have been defined and categorized in many different ways, though all four websites examined have components of advertising, merchant, and manufacturing models. The web advertising model is an extension of the traditional media broadcast model, yet in this case the web site provides content mixed with advertising messages in the form of banner ads (Berger & Nasr, 1998). On the other hand, the merchant model involves wholesale of goods, while the manufacturer model is said to be based on efficiency, improved customer service, and a better understanding of customer preference (Berger & Nasr, 1998).
Let’s consider how each website falls into one or more of the aforementioned categories, as well as entertain a particular anomaly. Bear in mind that, according to the experts, internet business models continue to evolve, as new and interesting variations can be expected in the future (Berger & Nasr, 1998). Though several are covered here, this is not a definite or exhaustive list as even among each distinguished category there are a myriad of variations.
Let’s begin with L’Oreal, for example, as the company does not sell products directly on its principle website. Though it is not a merchant website, there is brand-integrated content throughout (indicative of merchant model...
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...n that appears to change seasonally. These sections are advantageous, as they spur consumerism by including features and deals such as free shipping, discounts on multiple options, and style guides that are varied per season.
In conclusion, it is clear that each website utilizes a different variation of several business models, while prioritizing different features of the website. For illustration, while the layout of Apivita’s website is orderly and clean, their emphasis on wording and busy text impacts the user experience. Estee Lauder, on the other hand, favors exciting imagery rather than language to attract the user and encourage a deeper exploration of the website. Despite their specific techniques, it is important such businesses conduct thorough reviews of their business models and practices in order to consistently grow and improve as an organization.
Many firms pursue multiple business models at once. Nevertheless, there clearly are dominant patterns to all this variety on the Web.
We pursue strategic relationships to increase our access to online consumers, to build brand name recognition and to expand the products and services we can provide to o...
“The Cliptomania Web Store” is a case study which analyses the strategic challenges faced by the founders of www.Cliptomania.com. The Santos, Jim and Candy, developed the idea of selling clip on earrings when they discovered an underserved niche in the market place and subsequently established Cliptomania, LLC. When the Santo’s family started the company in 1999 they had little competition and managed to create a stable business with increased growth, despite the investment of little start up cost and a somewhat limited knowledge of the dot.com industry. Although recent profits have decreased significantly, Cliptomania has remained profitable and competitive in the market place.
In two distinct e-commerce business types, Business-to-business (B2B) and Business-to-Consumer (B2C), there are many differences in the way they operate. Specifically in marketing, differences include how the marketing is driven and the values of the strategies, the size of the target market and length of the sales cycle, and even the buying patterns of the target consumers. Each of these differences will be better defined and explained in the following paragraphs.
This model consists nine components in total including customer segments, value propositions, channels, customer relationships, revenue streams, key resources, key activities, key partnerships and cost structure in a conceptual priority order (Osterwalder 2012) which are belong to four main areas comprising of offerings, customers, infrastructure and financials (Rytkonen & Nenonen 2014). Although both nine are important, this essay will only concentrate to three key characteristics which are customer segments, value propositions and
An overview of the project, I was required to take an existing brand and redesign the online webpage for the body shop. The first step in this procedure was the “discover phase”. In this stage I inquired about the organization, what it resembled, the current audience, what it represented for and how it was recognized. The second stage was the “define phase”. In this stage I think up with those image features I would like the organization to symbolize. I also made a few strategies that would attract new target audience to purchase online products. Lastly, brand positioning was also the main things for the e-commerce organization. The third stage was known as the “design phase”, this is the point at which I made the new webpage design of the organization general look and feel and more. The last stage was the “develop phase”. This is where I took the old webpage design to enhance it in a better new webpage design.
Product differentiation – by offering different products, services, or product features, the company can charge higher prices, or appeal to different audiences. Use of IS have enabled new products and services, that increase the levels of convenience in using existing products and services. By acquiring PayPal, eBay greatly enhanced the ease with which customers can pay for their products. Google keeps an innovative approach towards search engines, by introducing Google Maps, Google Translate and others, which improves the ease of usage. Using online live chatting systems and social networks contributes to understanding of customers. It also adds value and improves customers’ stickiness to website (Booth, Roberts, and Sikes 2011)
Some of the strengths our company has are the cost advantages of hosting a web-based business, unique services in monthly website maintenance, and a customer-centric design. Another strength is having two business partners: one that is focused on design, and one that is focused on programming. The design structure of the company shows that both areas of website development will be superior because each part, the design and the programming, will be completed by a professional in the area. Because there are no other web development business in the area that provide monthly maintenance, more customers will be willing to pay for this service to be provided to them. The cost of possessing a web-based company, rather than a store-based one is much lower, making the company easier to start and maintain. Finally, the company has developed a customer-centric design, g...
With the connection rate of the growing over two third of the web users in china they go online by their mobile phones. This company shares the growth with 228 million customers in the year 2012 by making the group a leader in sales online of the products that are luxury. It also holds the position which is strategic in the market that combines the luxury and e-commerce much more naturally than the brick and mortar markets. Now the increasing number of consumers in china they prefer to buy the cosmetics online. Among the arguments in favor of e-commerce is the possibility of discovering the brands entire world and it was approved through the survey that 61% consumers they enjoy a lot by taking it. Now trends of the consumption they develop slowly and the reason is because of the social media which is now generalized. The trend must continue as 76% of the consumers of china they reflect that the social media is the real space for the luxury brands. L’Oréal is the well positioned a developer in the explosion of digital in china. The brands have positioned by engaging the strategies of marketing that have also won the leadership on the social networks. A symbol of this success is the rose beauty website that was launched in 2006 by Lancôme community and now it is the important community that was dedicated to the luxury beauty in china (Brandon,
Shafer, S. M., Smith, H. J., & Linder, J. C. (2005). The power of business models. Business
During the last decade, we’ve been to the top of the world—during the dot-com boom of the late 1990s—and back down again, when it all fell apart a few years later. But with the bad came the good: The Web forever changed the business world. The following small-business owners are shining examples of how Web-based technologies can be a businessperson’s best friend.
A business model could be defined as portrayal of the potential benefits for a group of stakeholders or actors; also it can be seen as architecture of how a firm generates its revenue. Over the years many firms have tried to use the Internet to create their own unique selling points, which can be seen as their business models. For instance Amazon.com’s innovation in this regards was to eliminate the traditional arrangement of supply chain (Disintermediation) and to make value out of it. Several other e-commerce sites have carried out similar transformations e.g.Ebay.com in the area of auction. Though there has been no consensus on the definition of a business model in the online context, practitioners have tried to link the term “e-commerce” to firms that can conduct all aspects of their transactions online hence some classification of the various market structures that operate in the Internet has been developed (Mahadevan, 2000).
When the buzzword of business model was very active and reactive during the internet boom, many individuals did not understand the concept of the proper business model for the proper business (Magretta, 2002). When not utilizing the right type of model for the organization, the model will be misused and distorted (Magretta, 2002). Understanding the traditional organization and learning organization, will allow an organization to determine which time of organization they desire the most.
...veral implications of the e-business model in the current business environment. The penetration of e-business model is evident from the fact that firms such as Amazon are competing with traditional brick and mortar stores. Although there are a few limitations of the e-business model, it can still be adopted by several businesses operating in the UAE. The increase in the competitiveness of business environment, in the UAE, has made it necessary that firms adopt novel and innovative business practices. The adoption of e-business model will provide companies with a competitive edge over others. Furthermore, the e-business model is also beneficial for individuals who are planning to start a new business in the UAE. It is because the model would allow them to start business with the minimal startup cost. The e-business model also allows business to save maintenance cost.
In this case study I chose to research and analyse the success and innovative practise of the retail web phenomenon Nasty Gal. I chose this company as I found it to be one of the most successful online-destinations for millennials today, and wasn’t just a company out there to make money, but to genuinely benefit their customer, and give them an experience that will make them wanting more?