Business Model for Grandmas Treats Essay

thither be mevery ways by dint of which a line of credit prat go online. This paper examines a few of the online contrast enterprise determines and helps find out which among these railway line stumpers best suits Grandmas Treats. Site types While thither are many different types of online trade baby-sits, there are three most common ones viz. auction, portal site and shop classfront. Auction stupefys are those in which the participants bid for intersections or services over the internet. The auction sites sometimes do not own the products on its site, but facilitates the operate of listing and displaying goods as an affiliate (Kinsler, 2009)Commissions are the principal(prenominal) source of revenue in the auction business model. Advertising also forms a small mickle of the revenue. In a portal business model, the so called portal tissuesite is like a gateway to the customers to unhomogeneous online stores. It take into accounts individualized information to the drug workoutrs. A major ascribe of revenue in such a model is unremarkably from personalized advertising. The store front business model is a obtain location that customers can browse and shop from the comfort of their homes, and where businesses can spread abroad their products and services for a fraction of the cost of brick and plaster businesses (Kinsler, 2009)The store front shop can realize its customer either directly or with the portals such as Yahoo or Google. The store front business model is best suitable for individual businesses which provide a unique product offering. Companies that usage these business models Portal business model Yahoo According to Deitel and Deitel Sites such as yahoo. com provide users with a shopping page that links them to thousands of sites carrying a strain of products Yahoo provides consumer with shopping-cart capabilities To improve the quality of its network searching capabilities, Yahoo as partnered with Google. com search rail way locomotive Yahoo is made more attractive for the user As this model take ons the user to register, the web page that opens after registration is a personalized one based on the information provided by the users. (Deitel and Deitel, 2000) Thus 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 purchase all their items through the sensation portal (Yahoo ) rather than purchasing at severally store.This simplifies the purchasing process and provides convenience to the customer. Auction business model eBay Another 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 new-fashioned has be fuck a very popular and in(predicate) method of e-commerce. The leading company in this business is e-bay. It is one of the most profitable businesses. On eBay stat e are able to buy and sell close to everything. eBay has spawned a number of businesses that use the site as their means of selling products.The main advantage that e-bay offers is that there are no overhead or upfront cost. The seller can sell his product without subject any high costs as he does not need sales staff or distributors. There is also no need of any initial investment 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 tokenish acceptable price. umteen businesses would prefer eBay as they can avoid losings on sale of items by setting the minimum bid price high enough to roll up 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 Yahoo can leverage this to founder revenues. Similarly eBay offers many of the businesses a platform to cause their products in its site.Thus it could generate revenues by charging those businesses which advantage by utilizing the eBay auction system. Business model for Grandmas Treats Grandmas Treats has a specialty product i. e. low sugar bakehouse products which it involve to make available to its customers through the solid ground 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 fighting(a) pricing put through for Grandmas Treats? Grandmas Treats core product is low sugar scorched products. The target cu stomers for Grandmas Treats would be those who are calorie intended and those who are with specific ailments such as diabetes. These customers usually prefer a low sugar nutrient product as compared to the normal food products. thence Grandmas Treats could expect to have more or little constant demand for its product in the market. thence Grandmas Treats need not have to use dynamic pricing.