The e-Business model, like any business model, describes how a company functions;
how it provides a product or service, how it generates revenue, and how it will create and adapt to new markets and technologies.
It has four traditional components.
- e-Business Concept
- Value Proposition
- Sources of Revenue
- Activities, Resources, and Capabilities
In the e-Business Model, there exists the e-business concept, value proposition, sources of revenue, and the required activities.
In a successful business, all of its business model components work together in a cooperative and supportive fashion.
Although an e-Business is often thought of as e-Commerce, there are other types of online activities that fall under the definition of e-Business that can benefit from this discussion.
The e-business concept describes the rationale of the business, its goals and vision, and products or offerings from which it will earn revenue.
A successful concept is based on a market analysis that identifies customers likely to purchase the product and how much they are willing to pay for it.