Business models for Internet-based e-commerce: An anatomy

California Management Review

Volumn , Issue 4, 2000, Pages 55-69

  Mahadevan, B ^a  

^a NONE

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EID: 0034402273     PISSN: 00081256     EISSN: None     Source Type: Journal    
DOI: 10.2307/41166053     Document Type: Review

References (23)

1. In this article we use terms such as "Internet-based business," "Internet-based e-commerce," and "business over the net" in an interchangeable fashion. We do not draw any distinction among them.
2. A. Barua, J. Pinnell, J. Shutter, and A.B. Whinston, "Measuring Internet Economy: An Exploratory Paper," working paper, University of Texas, Austin, July 1999; http://cism.bus.utexas.edu/works/articles/internet-economy.pdf
3. A. Barua and A.B. Whinston, "Measuring the Internet Economy," Cisco Systems-University of Texas report, October 1999. The full report is available at http://www.internetindicators.com
4. There is a noticeable trend among portals to evolve into the market maker structure over a period of time by partnering with some third-party service providers. Such a trend is particularly significant in the business-to-business segment.
5. Traditionally, a market maker takes possession of goods allowing people to buy and sell goods from it. Because it takes possession of goods, it could also take positions in these goods, thereby profiting from price movements. In the definition used here, a market maker in an Internet context does not take possession of goods. Instead, it plays the role of matchmaker and facilitates the transaction between the buyer and the seller.
6. E. Schlachter, "Generating Revenues from Websites," http://boardwatch.internet.com/mag/95/jul/bwm39.html, July 1995.
7. C.S. Fedwa, "Business Models for Internetpreneurs," http://www.gen.com/iess/articles/art4.html, 1996.
8. J. Parkinson, "Retail Models in the Connected Economy: Emerging Business Affinities," http://www.ey.com/global/gcr.nsf/us/ insights_-_eBusiness_-_Ernst_&_Young_LLP, 1999.
9. P. Timmers, "Business Models for Electronic Markets," Electronic Markets, 8/2 (1998): 3-8.
10. D.A. Whetten, "What Constitutes a Theoretical Contribution?" Academy of Management Review, 14/4 (1989): 490-495.
11. For a good discussion on the implications of richness and reach in Internet-based e-commerce, see P.B. Evans and T.S. Wurster, "Strategy and the New Economics of Information," Harvard Business Review, 75/5 (September/October 1997): 70-82.
12. T.M. Siebel and P. House, Cyber Rules (New York, NY: Currency Doubleday, 1999).
13. John Hagel III, "Net Gain: Expanding Markets through Virtual Communities," Journal of Interactive Marketing, 13/2 (1999): 55-65.
14. J.Y. Bakos, "A Strategic Analysis of Electronic Market Places," MIS Quarterly, 15/3 (1991): 295-310.
15. For a theoretical treatment of the topic, see M.L. Katz and C. Shapiro, "Network Externalities, Competition and Compatibility," American Economic Review, 75 (Spring 1985): 70-83.
16. Y.M. Ioannides, "Market Allocation through Search: Equilibrium Adjustment and Price Dispersion," Journal of Economic Theory, 11 (1975): 247-262.
17. K. Chatterjee and L. Samuelson, "Bargaining Under Incomplete Information," Operations Research, 31/5 (1983): 835-851.
18. A detailed case study on this can be found at V. Kasturi Rangan, "Free Markets Online," Journal of Interactive Marketing, 13/2 (1999): 49-65.
19. During the early stages of adopting this aspect of the business model, organizations were charging a membership fee for the customers. However, increasingly organizations have come to realize the importance of providing free membership.
20. By electronically delivered product we mean all those that could be downloaded over the net. These include soft copies of books, electronic journals and research reports, software, music, and games.
21. H.R. Varian, "Pricing Information Goods," working paper, University of California, Berkeley, in Proceedings of the Research Libraries Group Symposium on "Scholarship in the New Information Environment," Harvard Law School, May 2-3, 1995.
22. See, for example, H.R. Varian, "Versioning Information Goods," working paper, University of California, Berkeley, 1997.
23. John Hagel III and J.F. Rayport, "The Coming Battle for Customer Information," Harvard Business Review, 75/1 (January/February 1997): 53-65.