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EBusiness Company Comparisons - Assignment Example

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Customers are allowed to search for the available best price of products. However, Priceline also uses the demand collection system, where customers can name their best prices. These companies can also make…
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EBusiness Company Comparisons
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QUESTION Expedia and Price Line: These utilise the brokerage search agent model. s are allowed to search for the available best price of products. However, Priceline also uses the demand collection system, where customers can name their best prices. These companies can also make profits by allowing other companies to advertise on their sites (Rappa, 2010).
Amazon and EBay: These have adopted the virtual marketplace brokerage Model. These have developed an online marketplace that increases the level of customer participation. Through such online platforms, customers experience great levels of flexibility and choice, which translates into increased profits for the companies. Commissions are also earned when users visit company sites, advertise their products, or post the link of the company. The customer base of these companies lies between 10 and 80 million people. Therefore, a sales revenue business model for these companies therefore, can result in great profits (Rappa, 2010).
Yahoo: This Company uses portal advertising model. It offers products that suit customer-specific needs. This is through the complex Customer Relationship Management (CRM), where the company gathers important legal and behavioural information of its customers (Rappa, 2010). According to Cusumano (2004) for software business, the key aspect of its business model is understanding specific customer needs.
Google: This is a search engine, and adopts the Advertising Model. It utilizes Content-Targeted Advertising, where advertisements relate to the content of a web page. It also uses the Query-based paid placement. For instance, when searching for terms, the advertisements that are paid for will show up (Rappa, 2010). Mayer (2006) notes that Google aims at acquiring many users and retaining them through developing the products they need.
QUESTION 2
Social media has changed how companies conduct marketing and advertising. In future, there will be increased participation of customers and information sharing on company products. Customers will also highly influence the nature of company products.
The use of cloud computing has resulted in low costs for online companies, especially those costs that are related to suppliers. This thus leads to reduced prices for customers. In future, more use of cloud computing will abate the financial challenges experienced by these companies.
References
Cusumano, W. (2004). Strategy for High Tech Companies – What to Think About. Retrieved
from http://video.mit.edu/watch/strategy-for-high-tech-companies-what-to-think-about-9101/
Mayer, M. (2006). Bank Users, Not Money. Retrieved from
http://ecorner.stanford.edu/authorMaterialInfo.html?mid=1531
Rappa, M. (2010). Business Models on the Web. North Carolina State University. Retrieved
from http://digitalenterprise.org/models/models.html Read More
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