Business PPT

Online Business Model

In its simplest terms, a business model is a unique framework that a company uses to start value. A business entity exists to fulfil its purpose(s) and how they define “value” is unique to them. A commercial business may exist solely to generate profit whilst a non-profit organisation may exist to start social or other value. A business model eventually answers the question of “how does the business survive and how does it achieve its purpose?” It does NOT describe the internal actors, relations or processes of an organisation, but rather describes the logic in the rear its operation.

Some business models are honestly simple whilst others are intricately woven. For instance, a newspaper seller on the street makes a profit in a very basic way, whilst the way in which the BBC broadcasts the news is incomparably more complicated. Not considering levels of complexity, all business models that exist consist of four main components and we wish to discuss these with particular relevance to EasyJet. These are summarised below but will be discussed in greater detail:

1. Value Proposition – the combination of benefits existing to customers. EasyJet operates very cheaply which enables them to offer customers convenience, reliability and fantastic service.

2. The online offering is a broad description of the service that a company provides. EasyJet offers cheap flights to convenient European destinations and also offers other related services.

3. The store system describes how the company aligns its resources (CELL) to provide the value proposition. EasyJet hacks at overhead costs by various means to provide low cost per seat.

4. The revenue model describes the means by which the business generates revenue. EasyJet implements a service revenue model as they make a profit by providing various services.

Ever in view of the fact that Haji-loannou made the choice to re-establish EasyJet as an E-business in April 1998, EasyJet has intensified their online strategy. Now that 95% of the company’s sales take place online we can safely say that EasyJet implements a preside over services business model. The model reaches buyers and sellers directly thereby compressing the distribution channel and improving efficiency. The reduced overheads enable EasyJet to offers a cluster of benefits to customers. EasyJet’s value proposition can be summarised by “value for money, convenience and brilliant customer service.”

It's all in my own words. I write in the plural form because it's a group assignment. I gonna sleep now

That is brilliant!