An e-business is a business that applies information and communication technologies to support all of its business activities. Currently, many businesses have embraced the use of the internet to link both the external and internal data processing systems in a more efficient and flexible manner and help them get more close to their customers and suppliers. E-business is applicable for different business models such as the merchants, auction, the broker, customer representatives among others. This paper discusses the application of e-business as embraced by a merchant and broker models. The paper will review two companies; one for each model, explain the advantages they have over their competitors and recommend other types of businesses that would benefit from using that site type.
Pizza Hut company is a superb example of an e-business under the merchant business model. This company deals with preparing and delivery of pizzas. Pizza Hut conducts all its business activities on its website; www.pizzahut.com. This website is an attractive eye-catching site where photos of delicious-looking pizzas will be the first thing to catch your eye. The user finds all details about the company by just clicking on specified bars; the managers, how to order, the ingredients used, the call center info and procurement details. This means that the company links to its customers directly with no intermediaries involved and sources for its employees here.
Bounty Quest is another e-business; under the broker or intermediaries model. This means that the company does not engage in the production process; it only connects the manufacturer to the buyer. Bounty Quest deals with the sale of patents where the company looks for buyers, and if successful, the company gets a fee or charges a percentage of the total transaction the person bought. This company operates at a webiste-bountyquest.com. The site offers the user information on how to find patent, patent attorney, the cost of patents and helps patent dealers to sell patents. It offers these services to people in Europe, America and Asia. One can also find contacts of the Patent Attorneys and access patent advice. This site is a one-stop shop for almost all the information one would require to obtain a patent. However, one has to pass through this intermediary so as to access the real patent seller or service provider.
Pizza hut site is an ideal location since it is straightforward to navigate. The user understands easily as the menu bar is simplified into specified topics. The fact that it does not contain many pages or lengthy details makes it less time consuming; which will make it appealing for many people to use. Additionally, it involves dealing seller-buyer direct interaction thus making the services faster than it would be if a third party was involved. The pizzahut.com model would be particularly useful for other companies; for instance book sales and those selling computers. This is mainly because for such goods high levels of trust are needed. A person buying a computer would prefer buying it directly from the manufacturing company so as to buy at a reasonable price and get it in a not-tampered-with form. Also, for books, the seller will capitalize on profit if he sells it direct to the buyer; which will also reduce cases of piracy.
Dynamic pricing is fixing prices differently based on such factors as time of purchase, distance and frequency of purchase. This method is applicable for this model since deliveries are made to people from different locations. The company has to offer favorable prices for frequent customers so as to retain them. In addition, when the demand starts falling, they should adjust the prices downwards to attract more purchases.