module 1 part 2 - e-com

What is a business model?

• A document that describes a firm's business plan

• A set of planned activities designed to result in a profit in a marketplace

• A short two-to-three minute presentation aimed at convincing investors to invest

• A digital marketplace where suppliers and commercial purchasers can conduct transactions

What does a value proposition define?

• How the firm will earn revenue and generate profits

• How a company's product or service fulfills the needs of customers

• How a company offers its users content or services and charges a subscription fee

• How a company uses its competitive advantages to achieve more advantage in surrounding markets

What is a revenue model?

• A company offers its users content or services and charges a subscription fee for access to some or all of its offerings

• A company receives a fee for enabling or executing a transaction

• A company provides a forum for advertisements and receives fees from advertisers

• A company derives revenue by selling goods, information, or services

What is a market opportunity?

• The set of activities performed in an industry or in a firm that transforms raw inputs into final products and services

• The area of actual or potential commercial value in which a company intends to operate

• The plan that details exactly how a company intends to enter a new market and attract new customers

• The nature of the players in an industry and their relative bargaining power

What is a competitive advantage?

• A market in which there are no competitive advantages or asymmetries because all firms have equal access to all the factors of production

• Occurs when one firm develops an advantage based on a factor that other firms cannot purchase

• Exists whenever one participant in a market has more resources than other participants

• Achieved by a firm when it can produce a superior product and/or bring the product to market at a lower price than most, or all, of its competitors

What is a market strategy?

• The plan you put together that details exactly how you intend to enter a new market and attract new customers

• The nature of the players in an industry and their relative bargaining power

• A set of activities a firm engages in to create final products from raw inputs

• The difference between the price a firm is able to charge for its products and the cost of producing and distributing goods

What is seed capital?

• Typically, an entrepreneur's personal funds derived from savings, credit card advances, home equity loans, or from family and friends

• A company receives a fee for enabling or executing a transaction

• A company offers its users content or services and charges a subscription fee for access to some or all of its offerings

• A company derives revenue by selling goods, information, or services

What is an elevator pitch?

• A short two-to-three minute presentation aimed at convincing investors to invest

• A set of planned activities designed to result in a profit in a marketplace

• A company provides a forum for advertisements and receives fees from advertisers

• A business model that aims to use and leverage the unique qualities of the Internet, the Web, and the mobile platform

What are disruptive technologies?

• Technologies that underpin a business model disruption

• A market in which there are no competitive advantages or asymmetries because all firms have equal access to all the factors of production

• Technologies that enable the incremental improvement of products and services

• A set of plans for achieving superior long-term returns on the capital invested in a business

What is a firm value chain?

• The set of activities performed in an industry or in a firm that transforms raw inputs into final products and services

• The set of activities a firm engages in to create final products from raw inputs

• The difference between the price a firm is able to charge for its products and the cost of producing and distributing goods

• A set of planned activities designed to result in a profit in a marketplace