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The next consideration is Grandma’s Treats’ move to the Internet business model. “Storefront” sites make money, like many traditional businesses, by selling products or services for a predetermined price that will generate a profit above its cost. Look on the web for at least two companies that use at least 2 different business models (Storefront, Auction, Portal, or a combination) and document your findings, or speculation, on how they have a technological advantage over their competitors. Select any one of the site-types you have reviewed and explain why it would be most profitable for Grandma’s Treats. Which type of company do you think would be most profitable using that site-type? Would the concept of Dynamic Pricing be applicable to the model you selected? Explain why or why not.

Use the Library, the Internet, and any other materials at your disposal to identify and justify advantages of using a specific business model to compete with other e-businesses. Which model would you choose for Grandma’s Treats?


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The response addresses the queries posted in 781 words with references.

//This paper discusses about the business model that should be used by GrandMa Treats in order to effectively compete with the other e-businesses. Before discussing, we need to understand a business model and its relevance in any business. This has been explained in the heading introduction, for example://

Introduction

Business model is defined as the conceptual and architectural execution of a business strategy. Apart from this, Business model serves as a base for the execution of the business processes. Internet business model works as an appropriate methodology and base for managerial tools, which can respond in a highly active and uncertain business environment (Afuah & Tucci, 2001)

//After understanding a business model, we come to the point of discussing about the different business models. Two business models have explained below that includes the e- Business Model and Portal e-business model.//

Two companies using different Business Model

One of the most widely used e- Business Model is online auction business model. In this model, members bid for products and services on the Internet. Auction software makes it possible to increase the functionality of purchasing and selling, that too in an auction format. Amazon.com is the company, which is based on the online auction business model. It is an American e-commerce (electronic commerce) company situated in Seattle, Washington. Amazon forms the part of major companies that sell goods through Internet (Competitive Advantage, 2006).

The companies that deal in the Business-to-business transaction make the use of Portal e-business model. This model facilitates the interaction and communication between buyers and sellers. These portals have been …

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