but most will focus on a single category for each perspective. Such a categorisation of
business models can be used as a tool for formulating e-business strategy. The three per-
spectives, with examples are:1 Marketplace position perspective. The book publisher is the manufacturer, Amazon is a
retailer and MSN is a retailer, marketplace intermediary and media owner.
2 Revenue model perspective. The book publisher can use the web to sell direct and MSN and
Amazon can take commission-based sales. Yahoo! also has advertising as a revenue model.
3 Commercial model perspective. All three companies offer fixed-price sales, but in its
place as a marketplace intermediary, MSN also offers other alternatives.
Michael Porter (2001) urges caution against overemphasis on new business or revenue
models and attacks those who have suggested that the Internet invalidates his well-
known strategy models. He says:Many have assumed that the Internet changes everything, rendering all the old rules about
companies and competition obsolete. That may be a natural reaction, but it is a dangerous
one... [companies have taken] decisions that have eroded the attractiveness of their
industries and undermined their own competitive advantages.CHAPTER 2· THE INTERNET MICRO-ENVIRONMENT
Figure 2.12Alternative perspectives on business models- Marketplace position
Manufacturer or
primary service
providerReseller/retailer
(intermediary)Marketplace/exchange
(intermediary)Media owner
or publisher
(intermediary)- Revenue model
Direct product
sales of
product or service
B BA B
YYAYYSubscription or
rental of
serviceCommission-based
sales
(affiliate, auction,
marketplace)Advertising
(banner ads,
sponsorship)- Commercial model
Fixed-price
saleBrokered or
negotiated
dealAuction or
spotKey
Y = Yahoo!
A = Amazon
B = Book publisherBA
YYYNot-for-profit
organisationSales of syndicated
content or services
(for media owner)Product or service
bundlingLoyalty based
pricing
or promotionsSupply chain
provider
or integratorY