Introduction
E-Business models are now essential to doing good business. According to Wilder (1999), ¡§Many companies are struggling with the most basic problem: What's the best E-business model? They're experimenting with different formulas. Some are incorporating E-business throughout the organization. Some are creating E-business subsidiaries, then spinning them off as separate online entities. Others are investing in or merging with Internet startups. Some are even moving their businesses entirely to the Web¡¨.
This paper will explore the e-business model similarities and differences of three different types of businesses, Dell Computers, Classmates.com and the American Red Cross. In addition, the strengths and weaknesses of each model will be examined.
B2C E-Business: Dell Computers
Dell is a global computer company that has become the company to benchmark in the computer industry. Michael Dell created Dell Computer in 1984 and the company essentially changed the way consumers purchase computers by eliminating the middleman and allowing customers to purchase equipment direct from the company. This has allowed them to have a closer relationship with their customers so they can understand their needs and constantly improve service.
Dell sells a variety of goods such as desktop and notebook computers, their own brand of televisions, handhelds, printers and various other electronics and accessories. Computer equipment arrives with a large color-coded diagram showing the customer exactly how to hook up equipment. The customer can also pay to have someone come to his or her home to set up the equipment leaving the computer ready to use. Dell also markets equipment such as servers and storage solutions to small and large businesses but their ...