BTM 387 Class 2 – Recorded Lectures: E-Commerce Business Models Study Guide

BTM 387 Class 2 – Recorded Lectures: E-Commerce Business Models
Study Guide


What are the 8 components of an online business model? - ANS ✔✔1) Value proposition

2) Revenue model

3) Market opportunity

4) Competitive environment

5) Competitive advantage

6) Market strategy

7) Organizational development

8) Management team



What is value proposition? What are some examples of successful e-commerce value
propositions? - ANS ✔✔What value your firm offers customers; e.g. personalization (Apple
laptops), simple product search (Amazon), facilitating information exchanges (Facebook)



What is a revenue model? What are 5 different models? - ANS ✔✔How a business will charge
customers for a product or service to generate revenue.

1) Advertising (YouTube)

2) Subscription (Spotify)

3) Transaction Fee (Airbnb)

4) Sales (iTunes)

5) Affiliate - based on commissions (Google AdSense)



What is the market opportunity? - ANS ✔✔A situation in which a product, service, etc. that is
potentially wanted or needed by consumers is identified by a business as not being supplied by
rival companies. Need potential + size of opportunity.