University Swinburne

Web site Evaluations for eBusiness Model Design

by

 Sandra Gaessler

Table of contents

Executive Summary 4

1. Introduction 5

2. Basis of choice 5

3. Business model 5

4. Business performance 6

5. Reverse value chain 6

6. "Wrigley′s" 7
6.1 Business performance 8
6.2 Competitive advantage 8

7. "Stimorol" 9
7.1 Business performance 9
7.2 Competitive advantage 9

8. "ColesOnline" 9
8.1 Business performance 10
8.2 Competitive Advantage 10

9. Conclusion 11

10. References 12
10.1 Books 12
10.2 Electronic Sources 12

11. Appendices 13
11.1 Appendix 1: Basis of choice 13
11.2 Appendix 2: Instrument/measurement tool for gathering and sorting important information from the webside 13
11.3 Appendix 3: Reasons for choosing the evaluation criteria used in Appendix 2 16

List of Figures

Figure 1: PWC Reversion of Power
Figure 2: Reverse Value Chain
Figure 3: Refining the business model
Figure 4: Taking advantage of the networked economy

Executive Summary

Even though the three websites evaluated within this report meet the basic costumer expectation of being visible on the net, they seem to miss the motivation to reconstruct their value chain and build an eBusiness design that could be used as a tool to invent new products from costumer wants. The reverse value chain business model that empowers costumers and encourages interactive communication is therefore not yet fully implemented.

1. Introduction

This report is initiated to discover how much I can learn about eBusiness design by evaluating the business model embedded in three business web sides of my own choice. In order to reflect on the value proposition, the competitive advantage, and the profit performance of three different web sides for later comparison, I found it necessary to analyse three sides that are targeting the same or similar costumer. Each of the three businesses has a different approach to design its eBusiness model and thus offers a variety in how to apply the reverse value chain. Within the following pages, I will evaluate each approach based on my perception of the findings in the three selected web sides:

http://www.wrigley.com/
http://www.stimorol.com/
http://colesonline.com.au/

2. Basis of choice

The reasons for choosing these particular websites are explained in Appendix 1.

3. Business model

In the most basic sense, a business model is the method of doing business by which a company can sustain itself - that is, generate revenue (Rappa,M, 2002, Managing the Digital Enterprise - Business Models, <http://digitalenterprise.org/models/models.html>, accessed 27.11.2002).

The advent of the Internet changes and has changed the normal rules of business and set rise for the evolution of new business models imbedded in the web. By applying the Business to Costumer, or BtoC model, the three websites discussed within this report have not created a completely new way of doing business. Nevertheless, they generated business performance, by initiating a new way of how to communicate with their costumers.

4. Business performance

Costumers as well as investors and/or suppliers are not only able to gain information from the web side, but at least for the “Wrigley” and “Stimorol” sides, the web is the only possibility to contact the companies directly. The web therefore gives the company the advantage to find out what the costumer wants, what kind of products he or she is interested in, what his or her concerns are, and so forth. “Coles” website even goes further, by not only offering interesting facts or entertainment, but also integrating a new concept, called eCommerce within their side.

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