Business Model Development for E-commerce Initiative
Heikinniemi, Ilkka (2019)
Heikinniemi, Ilkka
2019
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-201905159965
https://urn.fi/URN:NBN:fi:amk-201905159965
Tiivistelmä
The objective of this thesis was to develop a preliminary e-commerce business model, which would provide mutual benefit for the case company and its channel partners. The need for e-commerce emerges from increased online buying, and from urgency to better serve digital native customers. However, the existing business model, which relies on distributors and channel partners generating majority of the revenue, is currently a challenge. This work strives to find an e-commerce solution where intermediaries are not disregarded, whereby the channel conflict between traditional and digital channels can be avoided.
The thesis was conducted by using the action research method with pragmatic and iterative approach. Firstly, literature best practices regarding e-commerce and channel conflict mitigation was reviewed. It was followed by a current state analysis, where internal data were utilized, and relevant senior management interviewed. Thirdly, based on the analysis of the previous phases and on the case company’s strategic intents, a development phase was carried out to combine existing and new business elements.
An ecosystem-based model was developed to address the business challenge. The model is based on a webshop, which utilizes local channel partners in the end of customer journey. The channel partners use their existing stock and fulfill orders placed online, for those customers closest to them. A sales profit and additional commission from value-added services would be provided to the partners fulfilling the online orders, as if the webshop sold products and services on behalf of the partners. The channel conflict is thus avoided.
The thesis was conducted by using the action research method with pragmatic and iterative approach. Firstly, literature best practices regarding e-commerce and channel conflict mitigation was reviewed. It was followed by a current state analysis, where internal data were utilized, and relevant senior management interviewed. Thirdly, based on the analysis of the previous phases and on the case company’s strategic intents, a development phase was carried out to combine existing and new business elements.
An ecosystem-based model was developed to address the business challenge. The model is based on a webshop, which utilizes local channel partners in the end of customer journey. The channel partners use their existing stock and fulfill orders placed online, for those customers closest to them. A sales profit and additional commission from value-added services would be provided to the partners fulfilling the online orders, as if the webshop sold products and services on behalf of the partners. The channel conflict is thus avoided.