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Week 4 Business Models

Week 4 Business Models. Last week - Metrics * Identify common web metrics and how they are used; * Examine server log data and understand what the data represent; * Become familiar with tools for measuring web activity; * Understand the limitations of commonly used measures;

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Week 4 Business Models

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  1. Week 4 Business Models

  2. Last week - Metrics * Identify common web metrics and how they are used; * Examine server log data and understand what the data represent; * Become familiar with tools for measuring web activity; * Understand the limitations of commonly used measures; * Examine the characteristics of a range of measurement techniques, from passive to cookies; * Learn about trends in web metrics.

  3. Google Analytics example – 7 days on Sites tracked OZRURAL and KAZBAAH

  4. What is a business model? Nine main web business models Business Models

  5. What business models?

  6. how does an organization creates a sustainable revenue stream that generates a profit? Not much new but the web and other digital technologies (e.g. mobile) have allowed some interesting variations Main issue -

  7. Gates V’s Jobs World economic forum Amazon – new business models Google Videos

  8. Mail order or catalog model Proven to be successful for a wide variety of consumer items Web catalog revenue model Taking the catalog model to the Web Revenue Models

  9. People are still reluctant to buy luxury goods through a Web site The Web sites of Vera Wang and Versace were constructed to provide information to shoppers, not to generate revenue The Evian Web site was designed for a select, affluent group of customers Luxury Goods

  10. Lands’ End online Web shopping assistance with its Lands’ End Live feature in 1999 Personal shopper Intelligent agent program that learns a customer’s preferences and makes suggestions Virtual model Graphic image built from customer measurements Clothing Retailers

  11. 1-800-Flowers Chocolatier Godiva Offers business gift plans on its site Flowers and Gifts

  12. Channel conflict Occurs whenever sales activities on a company’s Web site interfere with existing sales outlets Also called cannibalization Channel cooperation Giving customers access to the company’s products through a coordinated presence in all distribution channels Revenue Strategy Issues

  13. Digital Content Revenue Models Advertising-Supported Revenue Models Web Portals – e.g. Yahoo Advertising-Subscription Mixed Revenue Models e.g. Business Week Fee-for-Transaction Revenue Models e.g. Games Multiple transitions e.g. Britanica

  14. Strategic alliance When two or more companies join forces to undertake an activity over a long period of time Account aggregation services Increase the propensity of customers to return to a site Channel distribution managers Companies that take over the responsibility for a particular product line within a retail store Strategic Alliances and Channel Distribution Management

  15. Focus currently on the web Includes mobile Includes other digital applications Business Models

  16. 1 brokerage, 2 advertising 3 infomediary, 4 merchant 5 manufacturer 6 affiliate 7 community 8 subscription, and 9 utility models.

  17. 1 brokerage, 2 advertising 3 infomediary, 4 merchant 5 manufacturer 6 affiliate 7 community 8 subscription, and 9 utility models. ????

  18. Next Week Digital Markets Gates V’s Jobs

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