The paper "The Concept of Business Models When Applied Online" is a great example of marketing coursework. A business model is a unique tool that contains what the organization wishes to perceive. It is designed in every organization because it will help in directing the company in the right way on achieving their objectives. It provides a clear view of how the business will look like in reality, therefore, placing the company in a position to plan and budget for their operations. It contains important aspects that guide the company, for example, the goals perceived, the strategies on how to achieve the goals, the technological plan, the process and structures of implementing the ideas.
All these aspects contained in a business model are important because it helps the company to find ways of ensuring the goals are attained by providing satisfactory services to their customers and thus winning their trust and loyalty which will enable the company to be in the phase with the competing markets. Business model, therefore, acts as a tool used to predict the future of business. The concept of business models when applied online With the advancement in technology, there has been a rise in competition and companies have gone to the step of engaging in electronic commerce where they provide goods and services through internet (Alt, 2010.
pg 7). This has shown a great step in innovations and; therefore, more companies are established online. The purpose of engaging in commercial activities through the use of the internet comes with the need to connect with customers and clients globally. In any companies that wish to extend their commerce online, they always have to plan and set strategies that will enable them to connect with people and thus winning more customers and being part of the competition. When planning for expanding on services and goods provision online, it is, therefore, important to have a business model.
This will be used as a tool for projecting how the business will look like. Since the model will help the company to set strategies that will fit the available resources in the company and thus enabling the company to have a clue on the projected profits.
The model is used according to the objectives of the company; therefore, we can conclude that the objectives are determinant of what model to design. For example, if the objective of the company is to create awareness of the company services and goods they provide, it is important to consider an advertising model (Holden, 2010). Different from the business plan, a business model is just a tool that projects the future of the company; the business plan is used to actualize the contents of the model. Business plan contains aspects like marketing plan which describes how the business will market their products and services, financial plan which describes how the business will allocate the available finance to achieve their goals and the control measures of finance, the management plan which describes how the organization will integrate all the managerial aspects to accomplish the mission, technical plan is used to describe the systems that will be used in the operation of the business and lastly the economic plan which describes how the business will look like in the macro-environment (Teece, 2010.pg 180).
Alt, R. (2010). introduction to special sections-business models. taylor and francis online , 3-9.
Currie, W. (2004). Value Creation from E-Business models. butterworth-heinemann.
Fusco, M. (2010). An analysis of the competing business models of online journalism. Michael fusco.
Holden, G. (2010). Starting an online business for dummies. John Wiley & sons.
Mahadevan, C. (2000). Business models for internet- based E-commerce. Carlifonia management review , 55-69.
Palmer, D. (2010). Ethical issues in E-business : models and frameworks. Idea group Inc.
Shafer, S. (2005). the power of business models. business horizons , 199-207.
Teece, D. (2010). Business models,business strategy and innovation. Long range planning , 172-194.
William, H. (2006). Open Business Models:how to thrivein the new innovation landscape. Harvard business press.