topic 5 - business models

Brokerage - Brokers are market-makers: they bring buyers and sellers together and facilitate transactions. Brokers play a frequent role in business-to-business (B2B), business-to-consumer (B2C), or consumer-to-consumer (C2C) markets. Usually a broker charges a fee or commission for each transaction it enables. Brokerage models include marketplace exchange, buy/sell fulfillment, demand collection system, auction broker, transaction broker, distributor, search agent and virtual marketplace. An example of brokerage model is eBay which is an auction broker.

Advertising - The web advertising model is an extension of the traditional media broadcast model. The broadcaster, in this case, a web site, provides content 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. The broadcaster may be a content creator or a distributor of content created elsewhere. The advertising model works best when the volume of viewer traffic is large or highly specialized. Example: Yahoo

Infomediary - 

 

Merchant - Wholesalers and retailers of goods and services. Sales may be made based on list prices or through auction. Example: Apple iTunes Music Store

Manufacturer (Direct) - The manufacturer or "direct model", it is predicated on the power of the web to allow a manufacturer (i.e., a company that creates a product or service) to reach buyers directly and thereby compress the distribution channel. The manufacturer model can be based on efficiency, improved customer service, and a better understanding of customer preferences. Example: Dell Computers

Affiliate -

 

Community - The viability of the community model is based on user loyalty. Users have a high investment in both time and emotion. Revenue can be based on the sale of ancillary products and services or voluntary contributions; or revenue may be tied to contextual advertising and subscriptions for premium services. The Internet is inherently suited to community business models and today this is one of the more fertile areas of development, as seen in rise of social networking. Example: Wikipedia

Subscription - Users are charged a periodic -- daily, monthly or annual -- fee to subscribe to a service. It is not uncommon for sites to combine free content with "premium" (i.e., subscriber- or member-only) content. Subscription fees are incurred irrespective of actual usage rates. Subscription and advertising models are frequently combined. Example: Netflix

Utility - The utility or "on-demand" model is based on metering usage, or a "pay as you go" approach. Unlike subscriber services, metered services are based on actual usage rates. Traditionally, metering has been used for essential services (e.g., electricity water, long-distance telephone services). Internet service providers (ISPs) in some parts of the world operate as utilities, charging customers for connection minutes, as opposed to the subscriber model common in the U.S. Example: Slashdot

Information retrieved from http://digitalenterprise.org/models/models.html

In contrast to the generalized portal, which seeks to drive a high volume of traffic to one site, the affiliate model, provides purchase opportunities wherever people may be surfing. It does this by offering financial incentives (in the form of a percentage of revenue) to affiliated partner sites. The affiliates provide purchase-point click-through to the merchant. It is a pay-for-performance model -- if an affiliate does not generate sales, it represents no cost to the merchant. The affiliate model is inherently well-suited to the web, which explains its popularity. Variations include, banner exchange, pay-per-click, and revenue sharing programs. Example: Amazon

Data about consumers and their consumption habits are valuable, especially when that information is carefully analyzed and used to target marketing campaigns. Independently collected data about producers and their products are useful to consumers when considering a purchase. Some firms function as infomediaries (information intermediaries) assisting buyers and/or sellers understand a given market. Example: DoubleClick
1) What is the Mobile phone use /100 population - compare Australia, USA, China, India.
Australia - 54.19
USA - 71.94
China - 15.81
India - 6.93

2) Internet use / 100 population - compare Australia, USA, China, India.
Australia - 71.98
USA - 74
China - 22.28
India - 4.38

3) Compare main strengths and weaknesses of Australia or your home country in the survey
Strenghts: how Australia is ranked in relation to others
Government usage index - 5th
Environment Component Index - 14th
Market Environment - 14th
Usage Component Index - 17th
Individual Usage - 20th
Business Usage - 30th
Weaknesses: how Australia is ranked in relation to other countries in the following caterogies
Fixed Telephone tariffs 82nd
Business monthly telephone subscriptions  - 97th
Total tax rate- 90th

4) What does the survey suggest to you about the Information Technology readiness of Australian business compared to Australian consumers?
Australia has a ranking of 25 when looking at the overall readiness component index, so we can assume that Australian business is better than that of the countries individual readiness

Ref: http://cgthornton.blogspot.com/2010/04/5.html
http://ebonybell.blogspot.com/2009_04_01_archive.html