E-Business

Phase 1: Individual Project

E-Business Environments

Tonya Myers

Colorado Tech University

E-Business

MGM310-1102B-06

Instructor: Dr. Bari Courts

May 23, 2011

There is a lot of discussion on business models, yet they are least understood on the web aspects. Business model concepts have become more popular in the past few years. There have been new models which are needed for the newer types of businesses being developed to use on the internet. The basic sense of a business model is being that it’s a method of doing business by which a company can maintain itself in having revenue generated. The spelling out of a business model is how a business makes their money by making it clear as to where their position in the value chain is.

There are those models that are real simple. When a good or service is produced by a company, they then sell it to customers. Then if everything is good, then that will make the revenues from what sales to exceed what the operation cost and the company then notices a profit. Though there are models that are more complicated. An example would be broadcasting; the radio and the later programming of television have been broadcasted free over the airwaves for any individual that has a receiver for most of the past centuries. With a broadcaster there is a complex network of distributors, content developers, advertisers, as well as their agencies, and the viewers and listeners (Rappa, 2010). So what amount of the money isn’t always clear at the outset and who makes it, well there are many competing factors that it all comes down too.

What is certain is that internet commerce is giving rise to many new kinds of business models. But also, the web is much likely to reinvent tried models and also true models. An example would be auctions. Auctions being a form of one the oldest that is used widely throughout the world in setting prices for items such as; financial instruments, commodities, items that are...