ACCOUNTING INFORMATION SYSTEM & E-COMMERCE

LECTURE 4 B2B BUSINESS MODELS-ECOMMERCE

CHAPTER 2: E-COMMERCE BUSINESS MODELS AND CONCEPTS

ByHabib Ullah QamarMSCS,MBA(HRM)

LEARNING OBJECTIVE Identify the key components of e-

commerce business models. Describe the major B2C business

models. Describe the major B2B business

models. Understand key business concepts and

strategies applicable to e-commerce

RECOMMENDED BOOKS / RESOURCES http://www.theITeducation.com/ Wikipedia.org E-Commerce by Kenneth C. Loudon, Carol

Traver : 2014 version –Chapter 2 http://slideshare.net/habibullahqamar/

LETS STARTE-Commerce

RAISING CAPITAL Raising capital is one of the most important

functions for a founder of a start-up business and its management team.

Low capital is a primary reason why so many start-up businesses fail.

Many entrepreneurs initially “bootstrap” to get a business off the ground, using personal funds derived from savings, credit card advances, home equity loans, or from family and friends. Funds of this type are often referred to as seed capital.

TRADITIONAL SOURCES OF RAISING CAPITAL Incubators typically provide a small amount of

funding and also an array of services to start-up companies.

angel investors typically wealthy individuals or a group of individuals who invest their own money in exchange for an equity share in the stock of a business; often are the first outside investors in a start-up.

Venture capital investors invest funds they manage for other investors such as investment banks, pension funds, insurance companies, or other businesses, and usually want to obtain a larger stake in the business and exercise more control over the operation of the business.

TRADITIONAL SOURCES OF RAISING CAPITAL Crowdfunding involves using the Internet

to enable individuals to collectively contribute their money to support various projects. The concepts behind crowdfunding have been popularized by Kickstarter and Indiegogo but they were not able to be used for equity investments in for-profit companies in the United States due to securities regulations.

SELF LEARNING QUESTION

What are difficulties in categorizing e-commerce business models?

MAJOR BUSINESS-TO-CONSUMER (B2C) BUSINESS MODELS Business-to-consumer (B2C) e-commerce, in

which online businesses seek to reach individual consumers, is the most well-known and familiar type of e-commerce.

Virtual Merchant (Amazon, iTunes, kamyu.pk) Bricks-and-Clicks (Online distribution channel

for a company that also has physical stores) Catalog Merchant (Online version of direct

mail catalog)

MAJOR BUSINESS-TO-CONSUMER (B2C) BUSINESS MODELS

RESOURCES E-Commerce by Kenneth C. Loudon, Carol

Traver : 2014 version : Chapter 2 www.Wikipedia.org http://www.businessdictionary.com/ http://theITeducation.com/

THANK YOU