E-commerce and its business model Essay


What is the biggest beginning of information?

Where can we happen information about anything and everything under the Sun?

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E-commerce and its business model Essay
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Which beginning of informations is easy and most widely available?

When anybody asks these inquiries, the really first reply that comes to mind is Internet. Internet, today, has become a be all and stop all of information aggregation. If anybody is incognizant of something of import and does n’t cognize where to acquire the information from so, the really first thing he/she will make is to seek on cyberspace. That information can be anything like happening nearest physician, school, dispensary etc. Think about anything and you will non be able to deny direct or indirect function of cyberspace in it. Books and difficult signifier of information is going nonextant and is being replaced by soft signifier of informations. Peoples have become so busy that they do non hold adequate clip to open a newspaper and see what is go oning in the universe around them. Alternatively, they open their computing machine and rapidly look into the intelligence. Sing the clip crunch and popularity of soft signifier of informations, it has become imperative to supply people all the intelligence they need in customized signifier at one location. This demand has inspired us to get down an e-business venture www.newssense.com.

The Business

This e-business is ventured to come up with a web site which provides intelligence from assorted sectors like athleticss, amusement, concern, political relations and many other from the taking newspapers which can salvage clip for the user from sing in different web sites. This is a halt where all intelligence around is available at one topographic point.

This is besides an enterprise to update the pupils with the universe around them and its elaboratenesss. It will be helpful for those who are towards the terminal of their pupil life. They will be able to interact with the industry experts and will be able to measure themselves with regard to the industry criterions.

What are we selling?

We are selling convenience. Our web site contains intelligence, articles, research documents and treatment forum. These can be found on infinite web sites on cyberspace. But our distinguishing factor is the aggregation of of import and relevant intelligence at a individual point. If a individual working in stock market wants to travel through the current intelligence of the stock market, so he can hold all the relevant information through our web site. The “ equity market ” page on our web site will hold all the intelligence from many taking fiscal newspapers. Alternatively of sing web sites of assorted newspapers, readers can travel through all of them on our web site. This convenience of information is what we are supplying to our clients. This is the ground why people will see our web site.

This will promote the advertizers to do more and more usage of our web site for advertizement. In other words, our concern gives adequate ground and chance to our clients ( both the readers and the advertizers ) to purchase the merchandise or the service we are supplying.

Value proposition:

“ We cater to all intelligence reader with largest stock list of intelligence, 100 % dependable and effectual, from the universe of finance, amusement, political relations, concern and athleticss with merely one halt ”

The chief beneficiary signifier our services will be all intelligence readers who do non hold adequate clip to travel through different newspapers. Therefore, coming up with such thought of supplying intelligence from all Fieldss at merely one halt would add value to our services.

Our Gross Stream

Our gross watercourse is based on two models- Advertising Model and Subscription Model.

Ad Model

In this theoretical account, a company provides a forum for advertizements and receives fee from advertizers. Our web site will be visited by pupils and working people or professionals. So, seting advertizements which they can associate with will do a batch of sense and will bring forth gross for us. Since, our web site will incorporate separate pages for assorted industries ; we will lease our infinite consequently. For illustration, the page incorporating portion market intelligence will hold advertizements of securities firm houses, other fiscal web sites, fiscal intelligence documents, educational establishments related to finance. Page incorporating athleticss intelligence will hold advertizement of athleticss academies, athleticss stores, athleticss magazines etc.

Subscription Model

In this theoretical account, users pay for the service they avail themselves of. In our concern, some of the services or characteristics are free. To call a few- the customized intelligence links on every page, one-year studies, e magazines, articles and treatment forums. We will hold two types of customers- free users and subscribed users. Free users will acquire the services mentioned above. The subscribed users will pay Rs. 500 for 5 months. During this period, they can entree and download the white documents. More inside informations about the subscription fee has been given with the financials.

Our Customers

Our clients are pupils and working professionals across the Earth, who require to be updated with the current occurrences but at the same clip, they run out of clip to travel through assorted web sites for their day-to-day intelligence provender. The age of the mark section will run from 20-30 old ages for pupils and 25 old ages and beyond for professionals. We will aim largely on upper in-between category and in-between category professional section and all strata of pupils section. Among 1.17 billion people of India ‘s population, we will be aiming at 60 % of the whole batch which includes working people, concern people and the pupils.

The rivals provide broad assortment of intelligence, which is really much broadened and hard for the clients to segregate and take from. Our website provides the clients with yahoo pipes and Google reader which helps contracting down the hunt and happening the user ‘s reading form. This will assist the reader to be automatically provided with the intelligence he will necessitate. This will assist us remain in front in competition. This is where we precisely cater to necessitate of people who want to salvage clip.

Website Features

This web site is fundamentally a aggregation of intelligence at one topographic point. We will non print any intelligence or articles of our ain. We would be supplying links of intelligence from different newspapers. Our web site will hold different subdivisions like political relations, concern and economic system, athleticss, IT, articles or columns, treatment forums and white documents. This has been done with an purpose to supply the clients what we promise. As mentioned earlier, we are selling convenience. So, it becomes imperative that we provide a platform which is easy to voyage and where information can be found easy and handily.

We will supply the links of intelligence from newspapers like The Times of India, The Economic Times, Business Standards, Live Mint, The Hindu, Wall Street Journal etc. Each page will incorporate country specific advertizement. For illustration, Business and economic system page will incorporate advertizements from fiscal houses like securities firm houses, Mutual financess, fiscal magazines, educational establishments related to finance etc.

Each page will incorporate a subdivision for magazines related to that country. Sports page will hold subdivision for athleticss magazines ; political relations page will hold a subdivision for general magazines like India Today, Frontline, and Outlook etc. This magazine subdivision will incorporate the links for of import articles from different magazines. We will besides supply links for electronic transcript of the magazines in this subdivision. Snaping this e-magazine nexus will take the reader to a page which will incorporate the rubrics of all the articles in that magazine. This will assist the reader to make up one’s mind and happen out any article of involvement. This will salvage clip for the reader as he may non necessitate to travel through the full magazine to happen any article of involvement.

We will be supplying our readers with the one-year studies of the companies. To get down with, we have decided to include the one-year studies of the top 50 companies listed on National Stock Exchange and the top 30 companies listed on Bombay Stock Exchange. These studies can be found on infinite web sites but non jointly. It takes a batch of clip and attempt to happen the one-year studies of all or many of these companies. We want to salvage clip for our clients by supplying all the one-year studies. In future, we would be including more companies listed on the above mentioned stock exchanges and besides the foreign companies. The users of this web sites will besides be allowed to upload the one-year study of any company which will be losing from the list.

Our column subdivision will incorporate links for columns from assorted taking newspapers. This subdivision will besides incorporate articles written by experts of assorted industries and any good article written by any free-lance author that our squad will come across. We will besides include the sum-up of white paper published in our white paper page. This will incorporate the sum-up of merely those white documents which get maximal positive response and grasp on the white paper page and the treatment page.

The white paper page will incorporate any research work done by any expert or any pupil. These white documents will be published merely after acquiring the formal blessing from the author of the same. These documents will besides incorporate a brief profile of the author. This subdivision is a win-win proposition for all the readers. This will give a broad spectrum of readers for the research documents written by the experts. This will function as a pool of valuable information for the pupils and other readers. It will besides function as a platform for the pupils to look into themselves as to where they stand in the industry with regard to their cognition. The white documents written by the pupils and other readers will be examined and evaluated by a squad comprising of experts who participate on this page and those referred by these people. Other readers will be able to set their remarks and suggestion on this page every bit good for the white paper published. Every twelvemonth, a competition will be organized for pupils. The white paper written by the pupils and rated best by the readers and experts will be given the “ Best White Paper ” award. This will be an one-year competition.

The treatment forum will be unfastened to all the readers, experts and non-experts likewise. This will assist the reader to clear up their uncertainties on any issue and acquire valuable information on virtually anything. This will be of particular benefit for the pupils. This page will besides incorporate a chat engine. This will enable the readers to interact with each other in existent clip and acquire elucidation and valuable info outright.

To set in simple words, our enterprise is to custom-make the information as per the demands of today ‘s readers. It a good known fact that cipher wants to pass clip wading through a sea of informations. Everybody wants relevant information in the least clip possible and with the least attempt they can set in. This calls for the customization of information every bit much as possible. This will convey the readers to our web site. This will promote the advertizers to utilize us as a medium to aim the client section they want. Our web site will custom-make the information for the reader and it will besides custom-make the mark clients for the advertizers.

Major Rivals

Today, it ‘s an internet coevals. The cyberspace and IT has made it possible for anyone sitting in place to get down a concern. Many merchandises and services are offered on-line. Repeatedly, brick and howitzer theoretical account is being challenged. More Numberss of participants are plundering into this type of market. And this has progressively put force per unit area on the bing participants to continuously upgrade themselves with better service to their clients. Supplying intelligence from all taking newspapers and web logs is non something new. There are few participants already bing in the market like Pickmynews.com, Popurls.com and alltop.com

Features of Competitors ‘ Web sites


Pickmynews.com fundamentally focuses on supplying intelligence from different newspaper from the field of finance, concern and economic system. They provide all the intelligence on the same page. If you click on the nexus it will airt you to the chief beginning of that intelligence.


Popurls.com trades with all sorts of intelligence. They even broadcast few pictures of YouTube, metacafe and Yahoo. They are late sponsored by IBM for establishing their new web site edition which is popularly named as popurls bluish edition. But they lack in forming the top narratives in a manner intelligence readers use comfortably.


Another rival is Alltop.com. They deal with specific type intelligence like picture taking, nutrient, scientific discipline, faith, gambling, athleticss, cars etc. But once more the content is non organized in proper manner. One has to look difficult for information which he needs to read.

Differentiation Factors:

From the tabular array above, we can infer that distinguishing scheme will bring us competitory advantage over our rivals. Our rivals like pickmynews.com, popurls.com which focal point on general intelligence ; we will concentrate specific intelligence which is relevant for any on the job professional and pupils. We will concentrate intelligence related to political relations, concern and economic system, athleticss etc. We are besides supplying our readers with a installation of posting their whitepapers and stand a good opportunity of acquiring their name on home page of our web site, if there article is selected as best article by our experts. We are supplying Annul studies of assorted companies listed on stock exchanges. We besides encourage different web logs specially which have quality but are unknown to universe. We feature their web logs on our website if we find them a possible sufficiency.

Porter ‘s Five Forces

Buyer Power:

In our concern, purchaser power is something different from other concern theoretical accounts. Our purchasers are service purchasers, our intelligence readers. Since more figure of participants is come ining into the market, demand for better service will increase. Reader will inquire for more updated intelligence or necessitate more sophisticated service. Thus purchaser will ever stay one of the factors to see.

Menace of replacements:

This is one of the biggest menaces. Since intelligence are even available on the intelligence documents ‘ web sites which provide installation for e-newspaper. Customer may exchange to the replacements if they are non satisfied with the services.

Barriers for Entry:

By and large talking, there are no barriers for entry. It would be easy for any other individual to come in into this market. The grounds for low entry barriers are

  • Common engineering
  • Easy Access to distributed channels
  • Less initial investing
  • No demand for physical infinite


Income Statement

Break Even

In the first twelvemonth we will able to bring forth Rs 5900000 sum of gross revenues. This gross is partially generated by the subscription fee from the clients and staying from the advertizers. Every month we are aiming 20 colleges and estimation 2000 pupils to subscribe every month during our free subscription period. And from May 2009 when our premium subscription period starts we estimate around 1000 pupils to subscribe for the premium enrollment. In the first twelvemonth after subtracting all disbursals and cost from the gross we are able to do Rs.725000 net income before revenue enhancement. After subtracting 30 % of revenue enhancement our Internet net income after revenue enhancement is 507500. We will accomplish our interruption even at the terminal of the first twelvemonth at 5921 units. After selling 5921 units we will be able to accomplish our interruption even.


“ E-commerce and Its Business Model. ” Scribd.com. hypertext transfer protocol: //www.scribd.com/docinfo/2527149? access_key=key-17elyoikte8z8dz266uu ( accessed October 12, 2009 ) .

“ Demographics of India. ” Wikipedia.org. hypertext transfer protocol: //en.wikipedia.org/wiki/Demographics_of_India ( accessed October 12, 2009 ) .

“ Banner Ad Ratess for IRCTC..Rs. 5.2 Bn Transacted in January. ” pluggd.in. hypertext transfer protocol: //www.pluggd.in/india-internet/irctc-banner-ad-rates-traffic-3660/ ( accessed October 12, 2009 ) .


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