Advantages Of E-Business Model

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The e-Business model is seen as a model that “describes how a company functions; how it provides a product or service, how it generates revenue, and how it will create and adapt to new markets and technologies”. The e-Business Model contains four traditional components. These are labelled as the e-business concept, value proposition, sources of revenue, and the required activities, resources, and capabilities. For a business to be successful their aim would be to integrate these components successfully to ensure the business can work cooperatively. The e-business concept describes the collective mind-set of the business in question, this mind-set encompasses the company’s set goals and vision for the future. The concept also includes the products…show more content…
The idea was to form partnerships with hundreds of brands and feed their warehouses to customers. It's called drop ship and, on paper, it's a great business model. You don't have to manage the inventory or take on any of the…show more content…
Hiseh had said “ It was hard for us to persuade anyone to fund this crazy concept of selling shoes online, and about 25 percent of our revenue at the time was coming from drop ship. But we decided to end it. Even though it was hard to walk away from sales at a time when nobody is offering you money, we couldn't distinguish ourselves in the eyes of our customers if we weren't going to control the entire experience. We had to give up the easy money, manage the inventory, and take the risk. ”This led to a reduction in the amount of outsourcing the company would partake in and an increase of workload in-house. This change in strategy would lead to a needed change in how they approached their job of selling shoes. This in house storage in turn helped Hiseh’s aim of strong customer service and customer satisfaction. With a more organised control of their stock, they had the means to influence a higher standard of customer satisfaction. While letting go of the ‘drop ship’ service put Zappos at a financial disadvantage the new business model of the company were set as the main priority and the driving force behind the companies new e-business
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