Starting an Internet business is becoming an idea that more and more people are opting for each day. One can say that Internet has definitely brought the world closer.
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For example, a person sitting in UK can do business deals with people across the world and he/she does not have to actually leave their room. You need to make your Internet Business Model to make sure you move on the right track.
Like another form of business or venture, there are forms of Internet Business too. These may be called as Internet business models. It is similar to a business model where the Internet business model is a framework for creating an economic-social framework for value.
It is a broad term which can be diversified into many sub-categories. It formally or informally represents every aspect of the business. This includes the purpose of the business, what the business will offer its infrastructure and the organizational structure etc.
It will also highlight the trading practices, operational processes and policies of the venture.
To conceptualize the business model further, the informal descriptions are formalized into creating the building blocks of the business. This will further define the relationship of the business with its clients.
Experts like Oster Walder propose a different method. He states "A synthesis of different concepts into one model which acts as a reference and is based on the similarities of a large number of models. This constitutes a business model design that allows different companies to describe their working business models."
He also states different aspects of working Internet business models such as:
- The nine building blocks and their relationships.
- Infrastructure and Core capabilities: what a company requires to execute its model.
- Networking: how networking complements different aspects of a business.
- Configuring the Value: how to make the business mutually beneficial for the business and its customers.
- Proposition of the value: the products and service the business offers.
- Target audience: Aiming at the right target audience
- Distribution: making sure that the company has a sound distribution strategy. This will enhance marketing.
- Maintaining customer relationships: Being always open for feedback and treating each customer equally.
- Maintaining the cost structure.
- Revenues.
There are different types of working Internet business models such as:
- Auction and Bricks and click business models
- Collective and collaborative business models
- Direct to Customer sales model
- Franchise
- Monopoly oriented business models
- Inexpensive business models
Multi level oriented business models
- Effective network business models
- Value added models.
There are many more that can be named. Whatever model is chosen, a lot of hard work goes into making the working model a success. Either you choose to work alone or employ people to look after the administrative work.
An Internet business model will collapse if it is not updated. This is important because there are score of other companies offering the same kind of products and services. Therefore, one has to remain updated with new trends too.
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