E-business and value chain Essay Example | Topics and Well Written Essays - 3000 words

E-business and value chain - Essay Example The source of revenue for Amazon is mainly from direct sales of items ordered and processed by customers. QXL ricardo plc operates through auction model of e-business where bidders and sellers are connected to undertake different transactions. Commissions are identified as the main source of revenue and are based on what has been agreed upon between site administrators and seller of merchandise. QXL ricardo plc has introduced a number of innovations such as live auctioning which resulted in combination of internet and television in the process of auction to involve viewers therefore attracting more users. Daum Communication Corporation is the third business organization analysed and operates using portal model of e-business with horizontal portal being specific system used to offer content from different areas potential users of company portal are interested to visit. Core value proposition for Daum is based on user access to a range of content on different topics and services offere d by Daum. Duam earns revenue from sales of different services and products while also providing an advertisement and database-marketing platform. Analysis of different business models is an essential practice which helps in understanding available methods of doing business more suitable for a company to sustain its operation through generation of revenue. It is possible to use business model to identify how a business makes money and therefore be able to determine its position in the value chain. In order to tap into potentials presented by scientific and technological development of internet and computer technology, companies have developed different business models. These business models that are web- based have taken advantage of benefits of personalized service, high-quality customer service, and improved supply chain management that can be generated from conducting an e-business. To understand how different e-business models