1. What are the eight key components of an effective business model?
A. Value proposition, revenue model, market opportunity, competitive environment, competitve advantage, market strategy, organizational development, managenment team.
2. Describe the five primary revenue models used by e-commerce firms.
A. Advertising revenue model is a web site that offers its users content. subscrition revenue model is a web site that offers content to users or service charges a subscription fee for access to some or all of its offerings. Transaction fee revenue model is a company recieves a fee for enabling or executing a transaction. Sales revenue model is companies derive revenue by selling goods, information, or services to customers. Affiliate revenue model is sites that steer business to an affiliate receive a referral fee or percentage of the revenue from any resulting sales.
3. Why is targeting a market niche generally smarter for a community provider than targeting a large market segment?
A. Because targeting a smaller market niche because u can focus on a target market.
4. Besides the examples given in the chapter, what are some other examples of vertical and horizontal portals in existence today?
A. Horizontal portals are Google, yahoo, youtube. Vertical portals are ask.com, google.
5. What are the major differences between virtual storefronts such as Drugstore.com and bricks-and-clicks operations such as Walmart.com? What are the advantages and disadvantages of each?
A. Virtual storefronts have a certain target market unlike the bricks and clicks target market is more wide ranged.
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