Lecture 8: Lesson 3: Business Models

Apple's Online Music Store Sells 2 Million Songs


SAN FRANCISCO (Reuters) - Apple Computer Inc. said on Wednesday that more than two million songs have been purchased and downloaded at 99 cents each from its iTunes Music Store in the 16 days since it opened for business in the U.S. market, continuing strong momentum for the service. Click here to read the rest of this...

Notes from The Lesson Plan

The learning objectives of lesson 3 include:

• Define the major e-business models

• Be able to apply the various e-business models to companies on the web
  

In this lecture, we will continue to examine the various forms of the business model.

The interacitve for this lecture examines the various forms of the Brokerage Model. In summary, the brokerage model can be broken down into the following subforms:

Marketplace Exchange

Buy/Sell Fulfillment

Demand Collection System

Auction Broker

Transaction Broker

Distributor

Search Agent

Virtual Mall

Use this list to help you understand (and maybe memorize!) these types of models.

Now, the second reading has the following passage:

Unlike the real-world the native economy of the Internet is not based on scarcity but on abundance. There is an abundance of information and anyone can trade in it. Clearly the scarcity-based capitalist system that dominates the real-world economy is quite different from the native Internet economy. Unfortunately, governments and real-world business interests have tended to treat the Internet like a piece of real estate or a coal mine (as a scarce resource to be exploited).

The author then goes on to show various types of Internet based models including the following:

The library model One of the basic templates for a Web presence is a site that offers free information; many sites conform to this template.

The freeware model The open source model has largely been responsible for the development of the public network; the development of proprietary standards by some software companies is diametrically opposed to the native freeware culture of the Internet.

The information barter model It usually involves some sort of exchange of information over the Internet between individuals and organisations.

Digital products and the digital delivery model. These products include images, movies, animation, audio, text, certificates and software. Digital delivery may take place when products are purchased or where information is bartered.

The access provision model is absolutely fundamental to the operation of the Internet but is often neglected in discussions about I-Commerce.

Web site hosting and other Internet services. Many ISPs and other Web-based enterprises provide services such as hosting Web servers, electronic mail and URL and e-mail re-direction services.

Above, I have an article about Apple Music. Which of these models does Apple Music fall into? Which of the brokerage models does Apple fall into? Which of the models does Triggerstreet.com fall into? Which of the brokerage models? This could be a test question!

Make sure that you view the guest lecture: Online Marketplaces: Changing the Face of E-Commerce

Interactives

Brokerage Model Matching

Online Marketplaces: Changing the Face of E-Commerce