What Is Revenue Model

Published Date: 02 Nov 2017

Questions

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University Affiliation

Describe three factors that would cause a company to continue doing business in traditional ways and avoid electronic commerce.

There are number of companies that still prefer to do business in traditional ways because of certain reasons. Firstly, it is believed that the chances of fraud are less in traditional business as compared to the electronic commerce business style. The reason for this thinking is the physical involvement of both parties in the business dealing lessens the effect of doubts. Secondly, the nature of business decides whether the business should be using e-commerce mode or not. Some business do not allow the luxury of e commerce as they require the physical involvement of both parties especially the service oriented business like doctors. Thirdly, some business have a very smaller customer base and products are high involvement products. It is important for the buying party to be present at the buying station to assess the quality and features of product because if the product does not meet the requirements the severity of loss is huge. These are some of the reasons that some organisations still prefer the traditional way of doing business.

Choose one major difference between the first wave and the second wave of electronic commerce. Write a paragraph that describes this difference to a person who is not familiar with either business or Internet technologies

These two waves of electronic commerce were actually the two generations of the e-commerce business. The first wave describes the starting era of e-commerce in which online business websites sell to the American customers only and the language on the website was only English. However, in the second wave or era, the organisations and websites started to target the international customers as well and included more languages according to the target market. The basic difference between the two waves was the scope of market. The first wave targeted only the American market, but second wave included most of the international customers residing on different countries as well.

What are transaction costs and why are they important?

Transaction costs involve the costs of doing business including the processing charges, commissions, etc. In other words, these are the expenses that are incurred to complete buying and selling process involved in a business. Transaction costs are extremely important because they decode the profit margin of the company. More the transaction costs are lesser will be the net profit of the business. Therefore, it is important for the business to control and plan the transaction cost as it decides the major portion of the company’s performance.

Provide one example of how electronic commerce could help change an industry’s economic structure from a hierarchy to a network.

The communication aspect that e-commerce provides helps organisations to minimize the transaction costs. A common example of this fact can be observed by the increasing trend of outsourcing by different companies. The organisations in recent times have been focusing on getting their work done through internet in developing countries where the cost of operations are very low. The internet technology has diminished the gap between countries allowing companies an easy access to low cost of productions.

How might managers use SWOT analysis to identify new applications for electronic commerce in their strategic business units?

The SWOT analysis is an important tool that helps organisations in identifying their strengths and then use strengths to cash in the opportunities and refraining from threats and weaknesses. Managesr can use SWOT analysis to identify new opportunities available in the market and then according to their strengths utilize them y making new applications accrding to the demands of the market.

In about 200 words, explain the difference between language translation and language localization

There is one major difference between the language localization and language translation. The difference is based upon the inclusion of features in both. The language localization will translate and will take care of the different elements regarding, cultures, business norms, etc. Moreover, one major feature of the language localization is the involvement of the local accent of the language. These features of particular importance for the organisations while doing business with an oversee customer as it helps them create an impression that organisation respect their values and norms. In addition, it helps them create feeling of belongingness for the customer. There are languages that require different accents for different translations and language localization serves this need of websites.

Language translation is just a simple process of converting the words of one language to the other language. It does not involve the cultural values and beliefs while translating as it is mechanical conversion of words into words of other language. Language localization is used when websites have products are services that require audio guide for the customer and hence if the products does not require audio guide websites use the language translation method only.

In one or two paragraphs, explain the difference between a network access provider and an Internet service provider.

The internet service provider will help in facilitating the communication needs that are to be done through internet. It helps you connect with internet and communicate worldwide. On the other hand, the network access provider provides the internet access to the users by the use of devices like modem, routers, etc. The network access provider in simple words is the intermediary between the user and the internet service provider by providing a link to use the internet.

In about 150 words, describe the similarities and differences between XML and HTML. Provide examples of at least two situations in which you would use XML and two situations in which you would use HTML.

Both XML and HTML are widely used tools for creating the web pages. Both of these tools uses tags to organize data on the websites. The one feature that distinguishes them is the use of markup language in the HTML with defined tags, which is not present in the XML. XML allows the creation of own tags of companies, individuals, etc. These tags portray the information that is attached with them. HTML is used when the web page is simpler and does not require any complication of data management.XML is mostly used by the organisations, which requires data management on their websites especially the websites that performs the function of e-commerce. The XML allow websites to store different functions including inventory management accounts management, etc.

In about 100 words, outline the issues that a user might encounter when using a Web browser on a smart phone to view a Web page. Explain what a Web designer might do to address those issues.

The increasing use of Smartphone has compelled the website designers to make websites that are compatible with the Smartphone browsers. The users may face the issues of uploading data of large size, the problems with HTTP scripting which shows an encrypted version of the webpage, it may not allow the use of hardware buttons, etc. The major step that any webpage developer can take to eradicate these issues is to test the website on different popularly used Smartphone browsers, point out, and solve any issues that are found. The coding and tags of the websites can be altered to accommodate different browsers.

In about 100 words, explain the differences between a private network and a virtual private network.

Private network is similar to the "private property". It means that the private network is used by a single entity that may be in one building or in one room. The network used by many businesses under one roof or building is an example of private network. They can share files and documents internally. On the other hand, Virtual Private Network means the networks that may exist within the networks. There are number of networks within the network, which combines to appear as one network but may have been connected through one source.

What is revenue model?

Revenue model provides businesses the base on hich they can convert theor services and products into monetary terms. These monetary terms are then used as the basis for pricing the products and services of the company.

Write a paragraph in which you describe the conditions under which a Web site could become profitable by relying exclusively on advertising revenue. In a second paragraph, provide an example of a company not mentioned in the chapter that is using the advertising-supported model and that is likely to be successful in the long run. Explain why you think it will succeed?

Relying solely on the advertisement model can create many problems for the website. The user traffic on these websites is generally low which a critical success factor for any website is. The websites that become successful using advertising revenue model generally get assisted from the search engines. They need to invest in heavily to become part of the search engine and use different techniques including content of the website to increase their ranking on the search engines and hence increasing the user traffic.

Google provides an excellent example of website that advertising revenue to become profitable. It uses information provided by the users on its search engine and then shows the result of websites that match to the queries. That is why websites uses Google to advertise their websites.

In two paragraphs, outline ways in which not-for-profit organizations can design their Web sites to increase the number and amount of donations they receive from supporters?

Firstly, the content of the website should be written in a manner that it appeals the audience. The content of the website will help organisation in two ways. Firstly, it will increase their ranking on the Google hence whenever user search for NGO has to donate funds their website would come on top of the search results; secondly, an effective content will appeal the visitor towards the good work an organisation is doing compelling him / her to donate for the cause.

Secondly, the websites need to have more pictures on the page. The pictures would always attract the visitor after reaching the website. The noble work that a NGO is doing will become more prominent to the visitor once he / she shown the pictures. This will convince him / her that the NGO is performing duties responsibly and hence should be supported in the noble cause.

In two paragraphs, explain why a customer-centric Web site design is so important, yet is so difficult to accomplish?

It is important for the website to be customer centric as it will fulfill the eeds an d demands of the customers. The websites has to be easy and provides the visistor an experience in which he / she feels comfortable. As visitor is not experiencing the products physically it is important that he / she does not feel hesitant while using the website for buying and selling purposes.

Most of the times it is difficult for the website to accomplish this because of the diverse demands of the customers. Websites are visited by users form all backgrounds and one design that can be customer centric for background may be the opposite for the other background. This is the major reason that websites find difficult to be customer centric.

In one paragraph, define the term "presence." Write an additional paragraph in which you explain why companies that do business on the Web should be more concerned about presence than firms that operate only in the physical world?

"Presence" means the physical image a company may have in the actual world and what they appear to its vendors, employees, customers, shareholders, etc. Businesses show their presence by their offices, stores, building, etc, which helps others to recognize them

It is more important for the online business to have presence as they do not have the physical existence to show to their customers as traditional businesses may have. Therefore, they should always be focusing on creating an image in the mind of the customer to create their presence, which will eventually compel the users to use their website for business purposes.

Describe two possible service-for-fee offerings that could be introduced on smart phones in the near future. These would be services delivered to the phone by the wireless carrier, which would charge a monthly subscription fee for the service. Write one paragraph for each service in which you outline the profit potential and risk of losses for each?

The first service that could be offered is the facility to shop on the mobile using much simpler methods i.e. payments from mobile. Secondly, the introduction of phone-to-phone meetings with the far of business party, which will help business entities to save time and resources of visiting other countries to do business deals.

The payment form the mobile will help cater the dangers of fraud that can be caused by using credit cards and the users can easily pay for their bill by transferring amount form their mobile i.e. "mobile money".

The introduction of phone-to phone meetings is an important concept as it will not only help businesses to save time, but also involve all of the stakeholders in the deal with minimum possible cost. The concept of conference calls can be further enhanced by introducing video conferencing in the Smartphone.

In about 100 words, outline a marketing strategy that could help an online shoe store improve its customer retention. Present facts and logical arguments that support the strategy you outline.

Firstly, the product details should be in depth to help customer make a decision about the product. The use of brand ambassador is an essential strategy to attract and retain customers in online business. If celebrity is recommending your product, it means a major portion of the target market will use the products. Lastly, the advertisement of the website on the social media networks including Facebook, Twitter, etc. The large presence of the target market on these websites will also compel the users to use the online shoe store for shopping purposes.

Many people have strong negative reactions to pop-up, pop-behind, interstitial, and rich media ads. Assume you are the director of an advertising agency that specializes in creating and placing these ads. You see an opinion article in your local online newspaper that harshly criticizes these ads as intrusive and unnecessary. Write a 100-word rejoinder to post in the comments section of this article in which you explain, from the advertiser’s viewpoint, why these ads can be more effective advertising media than text ads.

Pop up ads can be annoying for the customers as they can halt the work of the users. The pop up ads however are en effective marketing strategy if used properly. The pop up ad may help users get the required information without even searching for it. If the users take time to visit the pop up ads they will find that what they were searching for long time is automatically reached them. Too much of the pop up das are against the ethics, but a controlled number of the pop up ads can help users and organisations as well. They can reach their prospective customers without too much of the hassle hence providing the desired services to the customer.

In one or two paragraphs, explain how CRM analysts might use the information contained in a data warehouse to increase their company’s online sales.

The data that is stored by the CRM can be used effectively in order to design the products and services according to the preferences of the customer. Moreover, the web pages can be altered according to the ease of the customer, which will directly impact the sales of the company. The data can be analyzed describing preferences according to age group, culture backgrounds, etc.

Define "knowledge management." In one paragraph, describe three advantages that a management consulting firm could gain over its competitors by creating an internal knowledge management system

The knowledge management is a system that organizes knowledge and converts it into the information that can be used for different purposes. Knowledge management in the current corporate world provides the basis of the competition and allows forms to build competitive advantage based on it.

The first major advantage of the knowledge management is the designing of the products according to the trends of the market.

The second major advantage of the knowledge management is the better planning and strategizing for the future

The third major advantage of the knowledge management is the creation of customer loyalty as it can help organisation to keep record of individual customers.

Many towns and small cities have Web sites (e.g. http://www.ballarat.vic.gov.au/) that they use to interact with their citizens. In 100 words, describe three departments that should be included on the home page of a small town’s Web site and describe the citizen interactions that should be facilitated by the site for each department

Firstly, the department of health should be present that could help members of the community to use information in case of any emergency. Secondly, the department that takes cares of the cleanliness of the town so that they can encourage the members to contribute towards the cleanliness of the town. In addition to this, they can listen to the complaints of the residents about the cleanliness of the town. Thirdly, the department of crime reporting should be there which will allow the residents the facility to complaint about any legal matter without having to show their identity or compromising their security.

In about 100 words, describe the reasons a buyer might have for wanting to participate in an industry consortium marketplace instead of setting up its own private company marketplace

The preference of the customer to use the industry consortium marketplace rather than setting up of its own private market place because it allows them the opportunity to build competitive advantage over others that may not be possible in private company marketplace. The competitive advantage allows profits in the longer run and the return is much larger than the private company is. The chances to grown in the industry are more than the private setup as more opportunities come in the way to be exploited. This promises a much broader growth and hence allows company to increase their bottom-line of the income statement.