Structure and Components of E-Commerce Business Model

Abstract

A successful e-commerce venture requires a viable business model and a long-term sustainable strategy. When planning and implementing e-commerce ventures, business executives must address several strategic questions, such as: What are the functions and components of a viable business model? How does one capture and capitalize on the unique features of the Internet and e-commerce to achieve sustainable competitive advantage and profits? How are values being created in the Digital Economy? How can network effects and scope economies change a company’s competitive position in e-commerce? How can cost, revenue, and growth models in e-commerce differ from the traditional businesses? This article extends Lee (2001) and Lee and Vonortas’ (2004) works on business model and strategy to discuss the structure, components, and key issues of a viable e-commerce business model.