e-buisness

2. Introduction…………………………………………………… p.3

3. Business model definition………………………………….. p.3

4. Companies background……………………………………… p.4

4.1 Toyota business profile……………………………………. p.4

4.2 Volvo business profile……………………………………… p.4

5. Online Business Model……………………………………… p.5

5.1 E-tailing business model…………………………………. p.5

5.2 Manufacturer Model (direct marketing/Model)…….. p.6

5.2a Disintermediation…………………………………………………… p.6

5.2.1 Five Tents of the Manufacturer Model…………….. p.7

5.2.1a-Most efficient path to customer……………………. p.7

5.2.1b-Single point of accountability……………………… p.7

5.2.1c-“Build to order” customization &personalization. p.7

5.2.1d-Low Cost Leader……………………………………… p.8

5.2.1e-Standard Based technology………………………… p.8

6. Supply chain improvement……………………�

First, promoting products. EC enhances promotion abilities by implementing rich web based information and direct interaction with their customers from the online web sites. [1]. Second, Establishing new sales channels. Both Toyota and Volvo, when they decided to implement such a strategy, they were looking to expand their market by building a new market channel over the Internet. Third, direct saving. B2C maintains the cost of delivering information to customers over the Internet. This includes a physical or a digital form. Fourth, Reduced cycle time. The administrative work in relation to physical delivery, especially across international borders, can be reduced significantly. Fifth, consumers’ service. Customer’s service can be enhanced by enabling customers to find more information online [4].

[4] Charles, T.(2000) E-Commerce strategies, Microsoft press

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