Review the following details:
STEP 1
B2C Apple website:
o Who is the target audience for this Web site (e.g., business buyers, consumers, government constituents, international clientele)?
1. The target audience for this Website is the consumers.
2. The target audience is that of customers that are music lovers, those that have access to computes and are open to the idea of purchasing music online.
3. Usually these are young customers.
o What are they offering to their buyers or consumers via the Web (e.g., product, service, information, recreation)?
The Apple website is offering a multitude of products, services, information and recreation: In particular it is offering:
1. The sale of different models of iPods and Apple TV;
2. The offer of downloading different iTunes, access to iTune Store and iTune games;
3. The offer of combinations of iTunes and iPods, accessories and iPods for education;
4. The website also offers service for iPods.
5. It allows gifting of iPods, corporate gifting and gifting of coupons.
6. The website allows the redemption of gift coupons.
7. The website allows making of requests for song downloads on iTune stores.
8. The website offers services like the use of iTune 7.3 for activating iTunes.
o What Web site features or functions are used to reach this target audience (e.g., shopping cart, real-time inventory, customer service, product information or catalog, customization, order status, personalization, pre-order, wish lists, intelligent agents, membership)?
The website uses several features to reach its target audience like:
1. It uses different pages for the store, Mac, iPod + iTunes, iPhone, Download and Support
2. The Mac page sells the different models of the Mac and attempts to sell the operating system of Mac.
3. It targets different audiences with the Mac page like creative professions, those related to education, scientists and developers.
4. It provides extensive product information about the Mac, iPods +iTunes, iPhone and Apple TV.
5. Even those who want to purchase second hand are targeted. The website helps find resellers.
6. The feature that iTunes can be used to activate the iPhones;
7. The feature that YouTube available on Apple TV;
8. Tips on making the best use of iPods;
9. The gift cards that can be e-mailed;
10. Direct and seamless integration between the car and iPod.
11. The iTunes store that allows purchase of individual songs with prices US$0.99.
o How do these organizations’ business models affect the way they market themselves? How does the target market learn about or find this site (e.g., search engines, referral sites, click-and-mortar advertising)?
1. Almost every search engine like Google, Alta Vista and Search features the Apple site.
2. Most music referral sites have links to the Apple site. For instance, Padora.com features Apple.
3. Click and mortar stores that sell computers, TV and Music have Apple links.
o Identify benefits of this site to the organization and to the site’s visitors (e.g., revenue, cost reduction, brand recognition, global presence).
The iTunes store of Apple has brought great repute and market leadership in that category to Apple. The site is affected by DRM restriction of MP3 players and so only iPods can play protected content from the iTunes store.
The store was such a success that Apple decided to launch the sale of videos from Octobler 2005. After a year, Apple started selling full length movies from the website store. Upto five computers and an unlimited number of iPods can play the files. Currently, DRM free songs are also being sold by EMI through the website at the rate of $1.29.
Apple has gain a lot from its website. The iTunes sales have reached 400M and iTune sales top 3 billion songs. On July 31st 2007 the company announced that iTunes recently surpassed the sales of Amazon.com and Target.com to become the third largest music retailer in the USA. The company has become the pioneer in legal online digital music. It has set standards for the industry and has revolutionized the way in which music is purchased and downloaded.
STEP 2
eBay.com
o Who is the target audience for this Web site (e.g., business buyers, consumers, government constituents, international clientele)?
1. Mainly businesses and consumers are the target audiences of eBay.
2. Those who are interested in participating in online auctions are the target audiences of eBay.
3. Those who use computers and want to make purchases or sales are the target audiences.
4. The persons who want to find buyers for their products are the ones who are targeted by eBay.
5. Those who have rare and valuable items, those who have industrial surplus or even intangibles are targets of eBay.
6. Even large companies that want to launch their new products are targeted by eBay, for instance IBM has launched its products on eBay.
o What are they offering to their buyers or consumers via the Web (e.g., product, service, information, recreation)?
1. The website is offering an opportunity to auction products and services;
2. eBay is offering the service of online auctioning to buyers and sellers.
3. It is offering the service of bringing together buyers and seller of products.
4. It also has been providing SmarMarket Technologies on license to third parties. For example it entered into a deal with a third party called Electronic Travel Auction to sell plane tickets and travel related products.
5. The website provides opportunities to software developers to create software applications to support eBay buyers and sellers.
o What Web site features or functions are used to reach this target audience (e.g., shopping cart, real-time inventory, customer service, product information or catalog, customization, order status, personalization, pre-order, wish lists, intelligent agents, membership)?
1. The site has a feature that teaches its potential customers how to register, buy and sell.
2. The site also encourages users to register.
3. The site attracts its customers by providing buyer protection up to a certain sum of money.
4. The site uses ‘bestsellers’ with prices to attract customers.
5. It also lists categories of products so that customer can click direct on the link he wishes to use.
6. The site lists a charity link.
7. There is an offer to potential targets to become an affiliate.
8. The site also provides convenient sellers tools to attract potential customers.
o How do these organizations’ business models affect the way they market themselves? How does the target market learn about or find this site (e.g., search engines, referral sites, click-and-mortar advertising)?
The business model used by eBay affects its marketing strategies in several ways:
1. eBay publicizes low cost sales and offers low prices.
2. eBay uses internet for a large proportion of its advertising;
3. eBay uses consumer relationship management to the fullest and eBay gets a wealth of consumer information through its registration process.
4. The brand eBay has become synonymous with international auction sites and the company has opened several sites all over the world.
5. Online auction categories in search engines come up with several eBay entries.
o Identify benefits of this site to the organization and to the site’s visitors (e.g., revenue, cost reduction, brand recognition, global presence).
The company has gained a lot from online auctions. Its second quarter results for 2007 show net revenues of $1.82 billion showing a growth rate of 30%. The GAAP operating income was $457 million, an increase of 47%!
The company has shown strong growth potential and increased margins. The main investments are made to strengthen the business of auctions.
The core capabilities of Apple and eBay are different. Apple has hardware and software abilities including agreements with top music companies.
The partner network: Apple is more dependent on partner network for its iTunes product. In case of eBay the customers are its main partners.
The value configuration of Apple is that in case of iTunes it has made it possible to download single songs at reasonable prices and load it on portable players. The value configuration in case of eBay is that it provides a forum for buyers and sellers to come together for mutual benefit.
The value position of Apple website is that it offers iPods, iTune and hardware on the same website. The value proposition of eBay is that it offers an online auction site to everyone that wants to deal in legitimate products and services.
Target customers: In case of Apple it is the young and computer savvy music lovers. In case of eBay it is anyone who wants to buy or sell in online auctions.
Distribution channels: Apple makes possible the delivery of legal music though the computers of users. This was unique and Apple enjoyed the first mover advantage. eBay uses the courier system for deliveries of its products.
Customer relationship: Because of the unique facility of allowing direct downloads the sales of Apple have increased, on the other hand customer relationships are built by eBay using customer registration information.
References:
www.yeald.com/Yeald/a/32361/can_ebay_be_beaten.html;jsessionid=13FE0451090C20B3B61A16E3A7B05EB8
www.hpmuseum.org/cgi-sys/cgiwrap/hpmuseum/archv015.cgi?read=77106 - www.etmag.com/publication/magazine/2005-07/25.htm -
www.ebay.com/
www.free-ebooks.net/index.php?category=eBay - seattlepi.nwsource.com/business/209191_itunes25.html - in.tech.yahoo.com/070731/137/6iuws.html playlistmag.com/weblogs/ipodblog/2007/02/storelossless/index.php -
Prepare a paper that assesses different organizations' specific e-business model. Choose at least three categories from this list: B2B (e.g., Intel), B2C (e.g., Amazon), C2C (e.g., eBay), e-Government (e.g., IRS.gov, ARMY), Nonprofit (e.g., United Way), or an organization in the Web 2.0 space (e.g., YouTube, Twitter). Identify differences and similarities of the models, taking into account the following factors:
1) Who is the target audience for the Web site (e.g., consumers, government constituents, international clientele)?
2) What Web site features or functions are used to reach this target audience (e.g., shopping cart, real-time inventory, customer service, product information or catalog, customization, order status, personalization, pre-order, wish lists, intelligent agents, membership)?
3) How do these organizations' business models affect the way they market themselves? How does the target market learn about or find this site (e.g., search engines, referral sites, advertising)?
4) Identify benefits of this site to the organization and to the site's visitors (e.g., revenue, cost reduction, brand recognition, global presence).