Business Model for Grandmas Treats Essay

There are many ways by which a pedigree can go online. This paper examines a few of the online crease models and helps find out which among these air models best suits Grandmas Treats. Site types While there are many different types of online business models, there are three to the spunkyest degree common ones viz. auction, portal and store effort. Auction models are those in which the participants bid for intersections or services all over the internet. The auction sites sometimes do not give birth the products on its site, but facilitates the process of listing and displaying goods as an affiliate (Kinsler, 2009)Commissions are the main source of revenue in the auction business model. Advertising withal forms a small portion of the revenue. In a portal business model, the so called portal website is like a gateway to the customers to various online stores. It provides personalized data to the users. A major portion of revenue in such a model is usually from personalized a dvertising. The store front business model is a shopping location that customers can browse and shop from the comfort of their homes, and where businesses can advertise their products and services for a fraction of the cost of brick and mortar businesses (Kinsler, 2009)The store front shop can reach its customer either directly or through the portals such as hick or Google. The store front business model is best suited for individual businesses which provide a unique product offering. Companies that use these business models Portal business model Yahoo consort to Deitel and Deitel Sites such as yahoo. com provide users with a shopping page that links them to thousands of sites carrying a variety of products Yahoo provides consumer with shopping-cart capabilities To improve the quality of its web searching capabilities, Yahoo as partnered with Google. com search engine Yahoo is made more attractive for the user As this model collects the user to register, the web page that opens afterward registration is a personalized one based on the information provided by the users. (Deitel and Deitel, 2000) consequently Yahoos portal model is convenient for customers who need to shop a variety of similar or dissimilar products. Say when a consumer is done shopping and is ready to check out, he can bargain for all their items through the single portal (Yahoo ) rather than purchasing at each store.This simplifies the purchasing process and provides convenience to the customer. Auction business model eBay some other type of business model is the auction model. Such websites act as forums through which internet users can be either a seller or bidder. Online auction off late has become a very popular and successful method of e-commerce. The leading company in this business is e-bay. It is one of the virtually profitable businesses. On eBay people are able to buy and sell almost everything. eBay has spawned a number of businesses that use the site as their means of sel l products.The main advantage that e-bay offers is that there are no overhead or upfront costs. The seller can sell his product without incurring any high costs as he does not need sales staff or distributors. There is also no need of any initial investiture and most importantly the seller gets access to millions of online auctions from buying customers. And hence it has become a forum where there are no geographical constraints. Bidders and sellers from all over the world can come together and moreover there is no need to ship the products to a central location which reduces the costs and the sellers minimum acceptable price.Many businesses would prefer eBay as they can avoid losses on sale of items by setting the minimum bid price high enough to cover their cost. Advantages Yahoo which uses the portal business model has a lot advantages over its competitors. Many of the websites are viewed by the users mainly through the portals (through yahoo search, yahoo shopping etc) thus Ya hoo can leverage this to generate revenues. Similarly eBay offers many of the businesses a platform to showcase their products in its site.Thus it could generate revenues by charging those businesses which benefit by utilizing the eBay auction system. Business model for Grandmas Treats Grandmas Treats has a specialty product i. e. low sugar bakery products which it needs to cook up available to its customers through the World Wide Web. Since Grandmas Treats has a unique product which it needs to take to its customers, it would be appropriate for it to make use of the storefront business model. It could also make use of the internet portals such as Yahoo or Google to direct more customers to its website.Would dynamic pricing apply for Grandmas Treats? Grandmas Treats core product is low sugar baked products. The target customers for Grandmas Treats would be those who are calorie conscious and those who are with specific ailments such as diabetes. These customers usually prefer a low sugar food product as compared to the normal food products. Hence Grandmas Treats could expect to have more or less constant convey for its product in the market. Therefore Grandmas Treats need not have to use dynamic pricing.