After a specific type of business model is selected, then the firm must consider other important factors, which are essential for good business model. A good business model needs to consider several factors, some of which include:
A good business model must have an incomparable…
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Different market segments have different needs. A good business model identifies its relevant target market in order to serve the needs of homogenous people. Alibaba.com possesses number of customers belonging to middle class and upper-middle class. It deals in consumers electronic products, which are ordered online by its customers.
It defines the way in which the company generates revenues. It can be measured in terms of sales, support, subscription, etc. The primary source through which Alibaba.com generates revenue is through online trading. It is a B2C website and therefore sells directly to its customers.
Ecommerce market has already reached its saturation point. An e-commerce site needs to provide its customers exquisite and exceptional services so they remain loyal to the site. In e-commerce, there is a huge concern of trust so when a customer performs transaction with a site then on the basis of its customer service, he decides whether to make repeat transactions in future or not. Alibaba.com provides exceptional services to its customers, both in terms of quality and price. This is the reason that it possesses number of loyal customers.
The more an e-commerce site invests in digital channels, the more it gets close to its target market. Alibaba.com is a multichannel website and therefore possesses a good reputation in eyes of its customers.
By providing options such as free sign up, no registration processes, facility of tracking order, Alibaba.com ensures that customers feel safe throughout the process of making purchases from the company. It ensures that the best quality services are provided exactly on the specified time. Moreover, it does not impose any hidden charges upon customers’ orders, which enhances customers’ trust in the company.
Alibaba.com ensures that all the potential and latent demands of customers are satisfied just by navigating the
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(ISDS Part2 Assignment Example | Topics and Well Written Essays - 750 Words - 1)
“ISDS Part2 Assignment Example | Topics and Well Written Essays - 750 Words - 1”, n.d. https://studentshare.org/e-commerce/1611087-isds-part2.
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