Analysis of E-Commerce Business Model Implementation for NBF

This report provides a comprehensive analysis of the e-commerce business model for Nuts and Bolts Fasteners (NBF), a family-owned business based in Adelaide, Australia. It begins with an introduction to e-commerce and its relevance to NBF, followed by a background of the company, which cur...Read More

Running head: E-COMMERCE BUSINESS MODEL AT NBF
Implementation of E-commerce Business Model at NBF
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1E-COMMERCE BUSINESS MODEL AT NBF
Table of Contents
Introduction:....................................................................................................................................2
Background:.................................................................................................................................2
Discussion:.......................................................................................................................................3
Implementation of E-commerce model.......................................................................................3
Relevant Value proposition of the e-commerce model...............................................................4
Identification of suitable e-commerce business model for NBF.................................................5
Recommendation on suitable website domain name for NBF:...................................................6
Online revenue models for NBF:.................................................................................................7
Organizational development need for the e-commerce business model:....................................7
Role of Private Industrial Network:.............................................................................................8
PIN role in increasing the buying and selling efficiency in a supply chain:...............................8
Three features of collaborative e-commerce:..............................................................................8
Conclusion:......................................................................................................................................9
References:....................................................................................................................................10

2E-COMMERCE BUSINESS MODEL AT NBF
Introduction:
Electronic commerce is comprised consists of services including selling and purchasing
of products or services with the help of electronic systems such as computer networks (Laudon
& Traver, 2016). With the increasing demand in the online method of purchasing majority of the
businesses are moving towards online platform while growing their interest for developing
business and managing the customer relationship model within the business (Chaffey, Hemphill
& Edmundson-Bird, 2015). This report is prepared so as to reflect the need for a suitable e-
commerce model for the business of Nuts and Bolts Fastners.
Background:
The business of Nuts and Bolts Fastner is one of the family business that began in the
year 2013 with a limited number of products. The company gradually started growing and
established its three different outlets in Adelaide while mostly serving the South of Australia. At
recent times, the business requires sales representatives in order to manage its customer
relationships among all the operating outlets of the company. The company of NBF consists of a
Vendor Managed Inventory System that helps the business in managing all the supply related
process for the trade customers. This helps them in increasing the level of stock while reducing
the stock outs. As the business is now trying to increase its sales in the retail market while
simultaneously growing the procurement and selling competence in the supply chain a new type
of e-commerce prototype is hence required for the business of NBF. The following report is thus
prepared so as to suggest the type of e-commerce model that ensembles best to the organization
while implementing strategies so as to upsurge the efficiency of the supply chain of the business.

3E-COMMERCE BUSINESS MODEL AT NBF
Discussion:
Execution of E-commerce model:
E-commerce business models are the type of platform where the commerce meets the
internet and helps business to conduct their trade over the internet (Jansen, 2017). There are
diverse kinds of e-commerce platform that the trade organization of NBF can implement within
their business such as B2B, B2C, C2C, Social e-commerce, Mobile e-commerce as well as Local
e-commerce model.
B2B e-commerce model:
The B2B e-commerce prototype is mainly utilized by commercial platforms so as to
provide goods and services based on the business needs. It includes online marketplaces and
other catalogue websites like Ahrefs, Boeing and many more.
B2C e-commerce model:
The B2C e-commerce exemplar helps any occupational organization to sell their goods
directly to the end customers. Examples of such type of business models includes various types
of social websites meant for e-commerce shopping such as Amazon or GAP and many more.
C2C model:
The C2C model provides customers the podium to sell their products to other customers
while enabling them to make money through advertisements. This includes C2C market place
websites such as OLX, Kickstarter and many more.
Mobile e-commerce model:

4E-COMMERCE BUSINESS MODEL AT NBF
The mobile e-commerce model is a type of corporate model that helps in describing the
online transaction of sales using wireless electronic strategies such as hand held computers,
laptops or mobile phones. In this type of platform, the wireless device interacts with other
computer networks so as to enable online purchasing capacity.
Social e-commerce model:
Social e-commerce platform is the type of e-commerce model making use of social
networking podiums such as Facebook, Twitter or Instagram while promoting the selling of
products and services to the targeted consumers.
Local e-commerce model:
Finally, the last type of e-commerce prototype is the Local e-commerce model that is
mainly focused on the delivery and marketing of consumer based products based on their
geographic location. This type of e-commerce platform makes use of variety of online techniques
to initiate marketing to drive consumers to their respective stores.
As the business of NBF is aiming to increase its sales in the retail market as well as
increasing its efficiency in the supply chain, hence the implementation of B2C e-commerce
platform would be beneficial so as to gain its competitive advantages in gaining business goals
(Turban et al., 2015).
Relevant Value proposition of the e-commerce model:
For the chosen B2C e-commerce model for the company of NBF, the relevant Value
proposition that would enable the company to compete in the relevant market position can be-
“Your Products Are Easy to Find Online”.

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By including this kind of value proposition, will enable the business organization of NBF to
show up their existence in the Google platform while ensuring that their customers find the
products and services offered by them via online. Using this kind of value proposition helps in
ensuring the easy availability of the products via online and enabling shoppers to start their
search within the proposed platform of the business.
Identification of suitable e-commerce business model for NBF:
As the recent aim of the business of NBF is directed towards increasing its sales in the
overall retail market by 5 % by the year 2020, implementing the B2C digital marketing model
within the business platform of NBF would be beneficial. Some of the useful ways that are
provided by the B2C model to boost up the sales of the company includes- knowing its targeted
customers, keeping focus on the mobile, making engaging contents, focusing on personalized
marketing strategies, adding visuals, building brand loyalty, initiating quick response, initiating
plan based data analysis and enabling easy buying of products and services.
Among the recent aims, another aim that the company of NBF targets is to increase its
buying and marketing competence in the supply chain of the organization. Implementing a B2C
e-commerce business prototypical, will help the business of NBF to deal with the relationships
between the customers as well as with the business products and services while enabling increase
in the buying and selling behavior of consumers to manage the supply chain efficiently. The B2C
e-commerce business model involves gathering of customer information that would help the
business of NBF to initiate their products and services based on data collected from the public
networks while improving their buying and selling behavior of the customers and making the
supply chain more efficient.

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Limitations:
Although the B2C e-commerce model will serve the purposes of the organization of NBF
that they aim to but still there remains certain limitations while implementing this kind of e-
commerce business model within their services. The limitations that arises in this respect
includes security concerns, lack of proper infrastructure, limited interaction as well as gradual
increase in the competition within the market.
Recommendation on suitable website domain name for NBF:

7E-COMMERCE BUSINESS MODEL AT NBF
Online revenue models for NBF:
Online e-commerce revenue models are the type of models that are used to generate the
online income and other information related to product and sales of the affiliated market or
subscription services of the products that are offered by the company (Wang, Wang & Liu,
2016). There ae different kinds of online revenue models that can be applied for the company of
NBF such as Affiliate marketing, transaction fees, online advertising and many more.
For the company of NBF the recommended types of revenue model that can be
implemented includes- Affiliate marketing and online advertising (Ketonen-Oksi, Jussila &
Kärkkäinen, 2016).
While implementing affiliate marketing revenue model within the business of NBF will
allow the business to earn market revenue while offering products for sales on their e-commerce
sites (Lo & Lam, 2015). As a result of which the overall traffic for the e-commerce site increases
while enabling the business of NBF to enjoy increased amount of sales in the retail market
(Mangiaracina et al., 2016).
Another type of revenue model that can be implemented within the e-commerce platform
of NBF is the online advertising revenue model, where the company can advertise their products
and services on their sites providing personalized designs to promote their messages (Yu et al.,
2016). This will in turn also help in increasing the buying and selling efficiency of the overall
business while affecting the supply chain behavior.
Organizational development need for the e-commerce business model:
As the entire corporate of NBF is new in the platform of e-commerce, hence it is required
to adapt important strategies so as to move its business effectively to the online platform while

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analyzing its technical standpoint from the perspective of its market view. The company also
needs to adapt successful e-commerce websites so as to present a relational overview of their e-
commerce platform.
Role of Private Industrial Network:
Private Industrial Networks are defined as the type of web based networks that helps in
mnaga8ng the interaction between companies supply sequence from the suppliers to the retailers
and lastly connecting them to the clients. It also initiates communication from the manufacturers
to the end customers.
PIN role in increasing the buying and selling efficiency in a supply chain:
Private Industrial Network also helps in increasing the buying and retailing efficiency in
supply chain while providing various inventory levels of buyers as well as suppliers that can be
monitored to keep the supply chain management efficient. It also helps in reducing the risks with
the financial derivatives while preventing the misbalancing of the supply chain behavior.
Three features of collaborative e-commerce:
Collaborative e-commerce is generally regarded as the electronic way of business
interactions among enterprises and personnel included in the business. This type of e-commerce
can be applied to any industry segment or any type of supply chain segment.
The features of collaborative e-commerce that would help in enhancing the relationship for
NBF in the supply chain activities include:
1. Customization of products: Collaborative e-commerce allows inter enterprise as well as
intra enterprise entities to participate in real time designing of product while enabling

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reviewing of product specifications to change them in the real time application (Hajli,
Sims, Zadeh & Richard, 2017).
2. Customer perception: CPC also facilitates greater interaction between stakeholders while
understanding the requirements and translating them to the system requirements.
3. Utilization of available computing systems: The use of internet technology enables the
CPC to link together with a whole range of heterogeneous computing systems while
utilizing the data and making the product life cycle efficient.
Conclusion:
Hence from the report it can be concluded that for any business which is moving to
online based platform of e-commerce should implement suitable e-commerce models so as to
offer better communication with the customers knowing their needs. For the business of NBF, as
they are new to the e-commerce system hence it would be beneficial for them to make use of the
B2C e-commerce model so as to align with their future business objectives.

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References:
Chaffey, D., Hemphill, T., & Edmundson-Bird, D. (2015). Digital business and e-commerce
management. Pearson UK.
Hajli, N., Sims, J., Zadeh, A. H., & Richard, M. O. (2017). A social commerce investigation of
the role of trust in a social networking site on purchase intentions. Journal of Business
Research, 71, 133-141.
Jansen, W. (2017). New business models for the knowledge economy. Routledge.
Ketonen-Oksi, S., Jussila, J. J., & Kärkkäinen, H. (2016). Social media based value creation and
business models. Industrial Management & Data Systems, 116(8), 1820-1838.
Laudon, K. C., & Traver, C. G. (2016). E-commerce: business, technology, society.
Lo, W., & Lam, G. (2015). E-commerce business models. Manag Theor Bus Models, 3, 8-12.
Mangiaracina, R., Marchet, G., Perotti, S., & Tumino, A. (2015). A review of the environmental
implications of B2C e-commerce: a logistics perspective. International Journal of
Physical Distribution & Logistics Management, 45(6), 565-591.
Turban, E., King, D., Lee, J. K., Liang, T. P., & Turban, D. C. (2015). Business-to-business E-
commerce. In Electronic Commerce (pp. 161-207). Springer, Cham.
Wang, W. T., Wang, Y. S., & Liu, E. R. (2016). The stickiness intention of group-buying
websites: The integration of the commitment–trust theory and e-commerce success
model. Information & Management, 53(5), 625-642.

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Yu, Y., Wang, X., Zhong, R. Y., & Huang, G. Q. (2016). E-commerce logistics in supply chain
management: Practice perspective. Procedia Cirp, 52, 179-185.