You are working to develop an online venture. It is your goal to make a differen

Question

You are working to develop an online venture. It is your goal to make a difference. Whether your project is for-profit or not-for-profit, you must raise revenue (in the case of a not-for-profit you must sustain the cause), so you will need to use one of the online business models. In developing a plan, you must take into consideration the potential ethical concerns, social impacts and legal issues involved in undertaking the venture. In a well-written paper, develop a plan that addresses the above considerations. You should include the following in your plan: A basic overview of the online venture, including its mission The type of online business model to be used for the venture A summary of how this venture will appeal to various cultures An analysis of the effects this venture might have on various cultures Any ethical issues this business can address, could encounter, or both Potential risks associated with operating an online venture such as this one Strategies for protecting privacy Discussion of any needed copyrights, trademarks, patents, or trade secrets, if applicable Potential benefits brought about by this venture Your paper should also meet the following requirements: Be 8-10 pages in length. Include at least three references from the readings or outside sources. The CSU-Global Library is a good place to find your sources. Writing and APA Required and References. Thank-you.

Explanation / Answer

Ans:

Before working to develop an online venture, first let us see How to develop an online business model:

Developing a business model is the process through which a company can be established and can generate revenue by creating buisness of its kind.The business model should be designed on the basis of how a company can make money by positioning itself in the specific market and also by creating a value chain. E-commerce is providing platform to new kinds of business models. An online buisness model have a lot of scope either in the sense of revenue or creating a name for self. And the web is also likely to reinvent tried-and-true models. Talking of Online Buisness, the term E-Business, sholud be understood clearly.

Concept Of E-Business:

    A company that does all or most of its transactions through the Internet which either providing a virtual service or making a financial transaction.

Let us see some components of E- Business Models

1.Value proposition: Something that determines, How a company's product or service fulfills the needs of its customers.

2.Revenue Model: We must understand how the company will generate Revenue and ofcourse profits.

3.Market Opportunity: What Opportunities we have in the present Market in the sense of revenue potential.

4.Competitive Environment: Kind of competitors selling the same product in the same market space.

5.Competitive Advantage: A Potential competitor will differentiate the business from its competition.

6.Market Strategy: A systematic process of How a company intends to enter a new market and attract the customers.

7.Organizational Development: How a company should organize all the works it has to do.

8.Management Team: A good Employees team reaps company’s Growth.

Next let us understand different kinds of E-Buisness models:

B2B:

Business-To-Business (B2B) is a model where Intermediaries and logistics comes such as, does the business will be between a manufacturer and a wholesaler, or between a wholesaler and a retailer. Because the overall sales volume of B2B transactions will be than the volume of B2C transactions.

For example, NET MARKETPLACE E-DISTRIBUTOR: Single-firm online version of retail and wholesale store for Supply maintenance, repair, operation goods, indirect inputs. With companies like Grainger.com, Partstore.com. Or an E-Procurement Single Firm Creating digital markets where sellers and buyers transact for indirect inputs like Wal-Mart, Alibaba.com, Proctor & Gamble, etc.

Since we understood the process, Now let us explore some types of E business models.

B2C:

The business-to-consumer, or B2C, model of e-business sells products directly to retail consumers online. Amazon.com is an example of a B2C model. The e-business has only an online identity through which it offers a range of products to customers. Other B2C enterprises include bestbookbuys.com and gartner.com. Most B2C models generate

revenue from direct sales and processing fees. B2C also is known as electronic retail or e-tail.

B2B:

The business-to-business, or B2B is a model where companies use the Internet to conduct transactions with one other. It is observed for that B2B e-business accounts for more than 90 percent of all electronic commerce, according to the U.S. Census Bureau. And the main reason for this could be the complexity of B2B transactions. Unlike B2C transactions which

involve sellers offering products and services while buyers purchasing them, B2B transactions are multifaceted and often involve multiple transactions at each step of the supply chain. B2B businesses generate revenue from direct sales.

C2B:

Consumer-to-business, or C2B, is a unique e-business model in which consumers create value and demand for products. The common characteristic of C2B models is reverse auctions, in which consumers drive transactions and offer their own prices for products.The E-Bay is a example of a C2B e-business model. The website allows customers to bid for products and offer their own prices. Shopping sites such as cheap.com, gilt.com and ruelala.com also are C2B.

C2C:

Consumer-to-consumer, or C2C, e-business model, a third-party-facilitated online marketplace which enable consumers to behave as buyers and sellers. Craigslist is an example of a third-party marketplace. The company brings together desperate buyers and sellers to conduct business. Examples of C2C websites include eBay and PayPal. A C2C model generates revenues in several ways, including personal ad fees, membership or subscription fees, sales commissions and transaction fees.

Ethical concerns, social impacts and legal issues involved in E-business:

Payment in E-Commerce for shopping transactions will be done with instant verification and validation of credit card transactions. E-Commerce is not about the technology itself, it is about doing business leveraging the technology. A technological innovation is followed by frequent incorporation of ethical standards into law. New forms of E-commerce that enables new business practices have many advantages but also bring numerous risks. Let us see some :

Ethical Issues:

In general, many ethical and global issues of Information Technology involves in e-business, like;

Web tracking:

E-businesses maintain records on how visitors use a site through log files. Analysis of log file means turning log data into application service or installing software that can steal relevant information from files in-house. Companies can track individual’s online activities through tracking software and cookie analysis. Privacy concerns are raised by programs

such as cookies. The tracking history is stored on your PC’s hard disk, and any time you revisit a website, the computer knows it. Many smart end users install programs such as Cookie cutters, Spam Butcher, etc which can provide users some control over the cookies.

Privacy:

Every Electronic Payment System knows the identity of the buyer. So it is necessary to protect the identity of a buyer who uses Electronic Payment System. Tracking is a privacy issue related to the employees of company. Monitoring systems are installed in many companies to monitor e-mail and other web activities just to identify employees who extensively use business hours for non-business activities. The e-commerce activities

performed by a buyer can be tracked by organizations. For example, reserving railway tickets for their personal journey purpose can be tracked easily. Many employees don’t want to be under the monitoring system even while at work. As far as brokers and some of the company employees are concerned, E-Commerce puts them in danger zone and results in elimination from their jobs.

Sorry this is not a complete answer due to insufficient time. you may send me your e-mail id to CHAKRRAVARTHY@GMAIL.COM. I will mail you, the complete answer. Thank you !

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