E-Business Model Paper

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Table of Contents

INTRODUCTION

PURE PLAY

AMAZON

ENTERPRISE LEVEL 4

TARGET 5

BUSINESS PROCESSES LEVEL 5

INTEL.COM 6

ACTIVITY LEVEL 7

GOODWILL 7

REFERENCES

e-Business Model Paper

Introduction

Mohan Sawhney's "level of commitment to e-business" pyramid offers a number of opportunities for businesses to achieve value and generate revenue using information technology. This report assesses why Amazon, Target, Intel, and Goodwill chose the level of commitment provided in the assignment.

Pure Play

A pure play business is one that began conducting business strictly via the Internet. Even if a business has subsequently added a brick-and-mortar presence, it is still considered a pure play entity. These types of entities face significant challenges acquiring customers that have been loyal to the brick-and-mortar companies in the past. The way to keep up is by changing the rules of traditional business models to adapt to an e-business' needs.

Let us look at Amazon.com, which is considered a pure play company.

Amazon

Amazon.com was founded by its CEO, Jeff Bezos, and opened its virtual doors in July of 15. Since then it has grown to become a Fortune 500 company. Its mission statement is "…to be earths most customer centric company; to build a place where people can come to find and discover anything they might want to buy online." Amazon has made endeavors to offer its customers the lowest possible prices by selling millions of unique new, used and collectible items in categories such as apparel and accessories, electronics, computers, kitchen and house wares, books, music, DVDs, videos, cameras and photo items, office products, toys, baby items and baby registry, software, computer and video games, cell phones and service, tools and hardware, travel services, magazine subscriptions and outdoor living items.

Amazon.com works best as a pure play company, and has clearly chosen this level of commitment because of the global reach that can take advantage of the gigantic inventory of products that the company can provide its customers. The challenges that face pure plays, such as establishing a customer base as a new brand, are tackled by Amazon's commitment to low prices and vast product selection. Its website has customizable features to enhance the experience of the customer.

Amazon.com will most likely not be establishing any brick-and-mortar presence anytime soon, but they are constantly expanding their internet presence. Amazon also owns the IMDB (Internet Movie Database) website and announced on June 6, 00 the launching of two new stores Software and Computer & Video Games to be found on Amazon.ca.

Enterprise Level

The enterprise level involves click-and-mortar businesses that have opportunities involved with direct selling, e-commerce, online brokers, portals, selling agents, online agents, reverse auctions, manufacturer's agents, shopping agents, catalog aggregator, and virtual malls. Many of these factors are merely the ways in which products are presented and sold. For instance

ɨ Catalog aggregator many catalog companies join together to create a new searchable database for buyers

ɨ Shopping Agents assist consumers with finding specific products at the best prices online

ɨ Virtual Malls multiple online merchants are hosted at a website.

Target operates at the enterprise level with its target.direct and resembles a virtual mall.

Target

In 16, Target was brought to life by Dayton's department store to fill the demand for a store that would sell less expensive products in a quick and convenient format.

Unlike most other mass merchandisers, we have department store roots. Target was the first retail store to offer well-known national brands at discounted prices. In the 0s, Target launched its first Target Greatland® store and through the years its following was the Club Wedd bridal and Lullaby Club gift registry, the SuperTarget store, and the Target Guest Card. It was inevitable for Target to go online, so it did just that with target.direct at target.com.

At target.com, you will experience a virtual mall made up of the Dayton companies, Target, Marshall Fields, and Mervyns. Target.direct provides this virtual mall to provide customers with one stop shopping for their e-shopping convenience.

Business Processes Level

Companies that fall under this level have opportunities to participate or provide e-business methods to manage customer relations and to achieve effective customer retention. These opportunities are within Customer Relationship Management (CRM), Knowledge Management (KM), Supply Chain Management (SCM), Community Building Online, Database Marketing (DM), Enterprise Resource Planning (ERP), and Mass Customization.

ɨ CRM retaining customers through strategies that ensure satisfaction and frequency of transactions

ɨ KM transforming a company's data into useful information and knowledge

ɨ SCM delivering products more efficiently to customers through the coordination of the distribution channel

ɨ Community Building using the website to draw customers by posting e-mails of having chat capability

ɨ Database Marketing using information about customers to increase profits

ɨ ERP Back-office systems for order entry, invoicing, and inventory control

ɨ Mass Customization ability to customize marketing mixes to the individual level

Intel.com falls under this level because its use of some of the above listed factors on its website as part of its e-business model.

Intel.com

Innovation is the principle that led its founders to create the worlds first microprocessor in 171. Thanks to that innovation, technology now allows business travelers to connect wirelessly to their company's network while waiting to board a plane and it allows managers to deliver training electronically to employees at their desks. Intel provides the building blocks, including wireless networking and next-generation computing and communications architectures, for products that make people more productive virtually anytime, anywhere.

Intel's goal is to be the preeminent building block supplier to the worldwide Internet economy. Its chips, boards and other semiconductor components are the building blocks integral to computers, servers, and networking and communications products. These components, which offer products at various levels of integration, allow customers flexibility to create advanced computing and communications systems.

The Intel.com website entails a community section as well as conscious efforts of CRM strategies, such as search and support capabilities, to manage and retain customers.

Activity Level

Businesses at this level can have the following opportunities

ɨ Order processing

ɨ Online purchasing

ɨ Email

ɨ Content publisher

ɨ Business Intelligence (BI)

ɨ Online Advertising

ɨ Online Sales

ɨ Dynamic pricing strategies

taken from http//www.nd.edu/~mkt84/mark461/powerpoints/1

Goodwill participates in content publishing on their website www.goodwill.org.

Goodwill

"Goodwill Industries International is a network of 07 community-based, autonomous member organizations that serves people with workplace disadvantages and disabilities by providing job training and employment services, as well as job placement opportunities and post-employment support." (www.goodwill.org) Goodwill funds their missions by the collection of donated clothing and household goods and then they sell these goods in their 1,00 retail stores. They also provide contract labor services to business and government, and receive funding from donations and corporate, foundation and government grants.

Goodwill uses e-mail communications by posting their "Working!" magazine on their website. Working! Magazine chronicles the organizations involvement in job training and other career services, as well as news about our contract services and Goodwill retail stores. This information is taken from testimonials of Goodwill graduates, programs and services, and community partnerships success stories. By having this publication online, the cost of printing and distribution are lowered.

References

Amazon 00 Annual Report. Retrieved June 8, 00, from www.amazon.com

Goodwill Website. Retrieved June 8, 00, from www.goodwill.org.

Intel 00 Annual Report. Retrieved June 8, 00, from www.intel.com

Strauss, J. et al. (00). E-Marketing, rd Edition; Chapter Strategic E-Marketing. Retrieved June , 00, from http//www.nd.edu/~mkt84/mark461/powerpoints/1

Target 00 Annual Report. Retrieved June 8, 00 from www.target.com

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