The World Wide Web and the Internet has huge potential to accelerate the growth of food and agribusiness sector of a nation, even more so when it comes to the economic performance of agricultural marketing systems. With the advent of the e-businesses and e-commercial transactions, the number of internet users who rely on internet for their buying and selling transactions has gone up considerably paving way for technological progress in the food and agribusiness sector around the world.
THREE standard e-Business models that are still popular among business strategists are, B2B, B2C and C2C.
- Business-to-Business (B2B): B2B model focuses on market link transaction between two businesses where an established network of suppliers and buyers is used for business transactions. For example, online B2B directories
- Business-to-Consumer (B2C): In B2C, a business tries to reach its target customers through an established digital system to sell its products and/or services. For example, online shopping sites
- Consumer-to-Consumer (C2C): In C2C model, focus is on consumer-to-consumer transactions and interactions.
Potential Business Models for a Technology-Empowered Environment: However, in this era of technological innovations, standard business models sometimes may not work due to the want of regular technological upgrades and highly skilled employees. In this scenario, two other business models may be considered for your E-Business: These are, ‘the improvement-based business model’ and ‘the revenue-based business model’.
The Improvement-Based Business Model: Improvement-based business models neither bring immediate profits nor focus on the sales volumes. Rather its focus is to use the Internet to enhance the internal efficiency of the business; to increase the effectiveness of business promotion and marketing; and most importantly to make positive changes in customer’s attitude. For that matter, two important reasons behind a firm’s creation of an E-Business are cost-effectiveness and internal efficiency. Other important products of an E-Business are brand building, database building, expanded customer service, and product and/or service enhancement through online information and customer feedback.
The Revenue-Based Business Model: Major focus of a revenue-based model is to create a steady revenue stream so that the business venture sustains itself for a long term. Revenue-based business models are of two types: the provider-based revenue approach or the user-based revenue approach.
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