There are many e-commerce businesses that have been developed. The e-commerce sites have different business models that are being used. This paper will focus on two e-commerce applications and an analysis of the business models that are used.
Airbnb is a business that gets accommodation for travelers. This company is owned by Airbnb, Inc. in a private arrangement. The company gets hosts, who are the owners of the apartments which are not used. The hosts are provided with a platform which will be used to rent out property.
Business model
The business model of Airbnb is where vacation rentals are offered. Vacation rentals are offered through service networking where the owners of the businesses will get to know the places where vacation rentals are offered.
Customer value proposition – the company value proposition that is offered by the company is with the offer that they give to customers. The company offers convenience of getting vacation rentals which are safe and reliable. There is also the value proposition of the accessibility that the company offers to the customers. This is an important development where customers will have ways in which they will offer the required strengths and the availability of the issues that are associated with the services that are offered.
Revenue model - The revenue model of the company is that of transaction model. They rely on the transactions that the customers make in order to get the revenue. This is an important development. Another revenue model that Airbnb makes use is that of sales. The company sells available space to the customers. With this, there is the sale of available space to the customers. This sale makes another revenue model for the company.
Marketing opportunity
The company has untapped market that they are trying to exploit. One of the opportunities that the company is making use is that of the sports market. There is a lot of untapped opportunity in the sports events where there is a lot of potential for people in this opportunity. The company relies on customers who have low budget on money that is supposed to be spent in the market. This is an important opportunity. There are issues that need to be taken into consideration and have ways in which they will have issues to be solved in this regard. There are many clients who will seek to have cheaper spending options while on vacation. This is where the company fits. Airbnb seeks opportunities for clients with low spending profiles.
Competitive advantage – there is the issue of competitive advantage. There are competitors who have come up and will want to take advantage of the market. One competitive advantage of Airbnb is that they have been in operation for long and that they have developed trust with the clients. Their edge over the competition is in their issues that they have and that regard the management of the opportunities that they have. This is an important development for the company. There is a small market share that is left for the competition and that is not a big threat to Airbnb. The competitive environment of the business is that there are competitors who are new and have not mastered the market that they are operating.
Market strategy - The market strategy of Airbnb is to enter into new markets that have not been exploited. This will give the company an opportunity to expand their markets. One of the opportunities that the company has strategically placed their strategies is to have exploitation of the sports events. This is a potential issue that needs to be exploited.
Organizational development – the strategies that have been laid down by the company have been done with the use of an effective and well-structured organizational development. There are branches in many countries. The countries have branch managers who manage the operations in those locations.
Reebonz/Kwerkee
This is an e-commerce site that is based in Singapore. This e-commerce site deals with luxury products sales. This is where there are many products that are sold in the market. The company deals with luxury products and services. Examples of the products and services that are sold include handbags which are high-end, and travel packages. Customers enjoy the service of free shipping.
Customer value proposition - The customer value proposition of the company is in getting the right service and offering the right opportunities that can be offered by the company. They offer the clients the convenience and the reliability of getting the products delivered to their locations. Clients will just order the
Business model – Reebonz Company has a transactional business model. The company gets the revenue through the sale of luxury products. They deal with products that are considered to be luxurious. Another issue is the authenticity of the products that are offered by the client. This is where there are opportunities that are offered by eth client and is an important development.
There is also the sales revenue where the company sells luxury services to potential customers. This makes another business model. This is a development that makes the business successful. There are issues that need to be assessed and analyzed in this aspect.
Market opportunity - The market opportunity of the company is with electronics industry. There are many luxurious electronics that have been manufactured and is an opportunity that the company has not taken into consideration. This is an area where there is a need to have developments.
There are also many services that the company can take advantage and start selling. One of the opportunities is in the service industry where there are many luxurious services that are required. One is availability of luxurious travel plans for executives. This is an emerging market that the company can take advantage.
The revenue models of the company are through sale of luxurious products and services. They also get the revenue from selling luxury services. The company sales are through the use of online payment services like MasterCard and PayPal services. These are found to be convenient ways of making the payments. The client will select the products that they would like to purchase and make the payments. After the payment is made, the shipping process will start.
Conclusion
There are many opportunities that are available for e-commerce businesses. There is a need to ensure that there is a better ways in which customers get proposition and value for the money that they get. It is an important development that should be developed and integrated in the entire process. There is a need to ensure that there is a better competition and understanding of the business models that have been presented.
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