Discussion on eCommerce business models and supply chain processes.
Acknowledgment of the indigenous people of Australia as traditional owners of the land.
Recap of the first meeting, highlighting initial introduction to eCommerce and customer behavior in online business.
Discussion Points
Assessment Announcement
Assessment 1 (online test/quiz) is currently open for completion.
Opened on 03/16/2026 and closes on 03/22/2026.
Students encouraged to check the assessment session under the assessment tab for more details.
Opportunity for students to ask questions about the assessment.
eCommerce Business Models
Introduction to various eCommerce business models and supply chain processes.
Mention of the "Australia's Canva case study" for discussion.
Request for students to contribute their thoughts in the discussion forum regarding the eCommerce business model in the case study.
Long-term Strategy vs. Business Model
Clarification of the distinction between long-term strategy (business strategy) and business model:
Business Strategy: A long-term goal that organizations seek to achieve; involves assessing environment strengths, weaknesses, opportunities, and threats.
Business Model: A set of activities undertaken by an organization to achieve long-term strategy, focused on creating, delivering, and capturing value for customers and achieving profitability through online platforms.
Key Elements of a Business Model
Value Proposition:
Definition: The unique value that the business promises to deliver to customers.
Considerations: Quality of service, delivery efficiency, product uniqueness, customer experience.
Revenue Model:
Definition: Describes how an organization generates income through various means.
Types of Revenue Models:
Advertisements: Earning income by promoting other products/services on one's platform.
Subscription-Based Model: Charging periodic fees for products or services (e.g., Netflix, Apple Music).
Transaction Fees: E.g., fees charged by platforms like eBay for facilitating sales.
Sales Revenue: Direct sales of goods/services to customers.
Affiliate Fee: Earnings from referring customers to other companies, earning a commission on sales.
Market Opportunity:
Definition: Identifying gaps in the market that the business can address.
Considerations: Existing competitors and potential niches within the market.
Competitive Environment:
Definition: Assessment of other companies offering similar products/services and potential new entrants to the market.
Importance of understanding competitive dynamics and market share.
Competitive Advantage:
Definition: Ability to produce goods/services at a lower cost or superior quality compared to competitors.
Strategies: Patents, unique branding, and efficient processes that can help establish a competitive edge.
Market Strategy:
Definition: The plan to promote products/services to target customers effectively.
Importance of digital marketing and strategic engagement through various online platforms.
Organizational Development:
Definition: Refers to functional areas within the organization that evolve as it grows.
Importance of structured organization in achieving long-term goals.
Management Team:
Definition: Essential personnel leading the organization towards its goals.
Importance of experience, credibility, and leadership in guiding organizational success.
Case Study Example:
Amazon’s value proposition: Focused on being the customer-centric company with vast selection and maximum convenience.
Importance of understanding customer service, product range, and how these contribute to the overall eCommerce strategy.
Supply Chain Processes
Overview of eCommerce supply chain, including upstream (production), midstream (processing), and downstream (retail).
Importance of understanding the various processes involved in delivering products to final consumers.
ECommerce businesses may bypass traditional supply chain tiers by sourcing directly from manufacturers or warehouses.
Procurement Processes
Definition: The process of acquiring goods required for production and retail.
Various forms include:
Direct Purchases: Goods necessary for production (raw materials).
Indirect Purchases: Office supplies and maintenance items.
Contracts: Services rendered not involving direct product exchanges.
Modern procurement benefits from digital platforms improving efficiency and monitoring.
Challenges in Supply Chains
Visibility issues: Difficulty in monitoring supplier performance and product logistics.
Demand forecasting issues: Anomalies can lead to missed opportunities or excess inventory issues.
Importance of integrating technologies like blockchain for transparency in supply chains.
Reminder
Encourage participants to review the course material and engage with discussions regarding assessments and the case study.
Final reminder regarding the quiz assessment due date of 03/22/2026.
Conclusion
Emphasis on the significance of eCommerce business models in achieving long-term organizational strategies.
Encourage engagement in discussions and continued learning.
Additional Content
Please review Chapter 12 of the prescribed textbook and module 2 of Brightspace content.
Remain open for questions and concerns regarding the subject.