Online Business Models

In this current high tech era, we have seen many companies that are turning to the online business to expand their companies. Many big companies such as Best Buy, Tiger Direct, have a solid ground with their own websites that represent a great source of revenue for them. We also have seen several businesses that their entire operations are online such as amazon.com, dell.com, eBay.com and they are very successful at what they do. This has brought a numerous amount of websites that had tried to hit the pot and become one of this multi million e-companies. Many have failed doing so, and what is it that they are missing to get success???

The main key of getting success for this companies are their business models. In the recent blog from professor Miyasaki, he show us a very interesting article that talks about proposed way to examine a good business model according to professors Amit and Zott called eValue framework. The four key value drivers, in their view, are efficiency, complementarities, lock-in and novelty.    


For me the lock in factor is very important. It is imperative that businesses get their customers engaged on coming back and continue doing business with them. A way to have their customer happy is by having great customer service. With companies such as eBay, people as seller or buyers have the guarantee that they will have a reliable transaction due to the support that eBay gives you for any discrepancy that might arise. I am regular eBay user. I constantly buying and selling stuff on their website and so far in more than 5 years I have no complaints about them. When it has been required, I have contacted them and they have result any issues at the best convenient way for both parties. And it is this reliability on their transaction that make me be a regular user and constantly go to their website when I looking to get anything online.


In the same way many online companies have created this safe environment due to his excellent customer service that made them successful on what they do and made customer to rely and prefer them whenever you are going to do online transactions. 
In addition with their excellent customer service, eBay business model engaged a solid strategy which involves the automation of traditional methods of selling goods, reliability for their clients, customer friendly interaction, global accessibility, diversification, and great advertising.


Now the really important task for current companies is the ability to evolve constantly and adapt their current business models to new technologies creating a better experience for their customer. In a way that the can be innovative, friendly users and reliable.


So what is your is business model??