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E-Commerce Business Model - Htc

In: Business and Management

Submitted By liennguyen
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Pages 5
HTC - 8 keys elements in Business Model 1. Value proposition
Value proposition is the benefits, including the intangible, nonquantitative ones, that a company can derive from using EC.
In B2C EC, value proposition defines how a company’s product or service fulfills the needs of customers. Thus, a company can fulfill the needs of customers when they can obtain four sets of values that are created by e-business. According to Amit and Zott (2011) the four sets of values includes search and transaction cost efficiency, complementarities, lock-in and novelty.
It can be seen clearly in the case of HTC: * HTC’s business model actually brings search and transaction cost efficiency. It enables HTC faster and more informed decision making, wider product and service selection, greater economies of scale. This element has contributed to the satisfaction of customer of HTC when they find an excellent products and services in a wide range of smartphones with a reasonable and competitive cost. * Complementarities is also a benefit derived from using EC of HTC because HTC has bundled their and services together to provide more value to customers. For example when buying a HTC smartphone you will also find their after-sale services from HTC. * Lock-in is considered a contributor to the stickness of customers with HTC’s products. * Novelty: On February 17, 2010, Fast Company ranked HTC as the 31st most innovative company in the world. It’s smartphones and tablets powered by the Android or Windows Phone operating systems. HTC contributes a variety of innovations that include an amazing camera — cameras that rival leading point-and-shoot models and HD video that turns mobile screens into intimate, state-of-the-art theaters. And it makes authentic sound a priority — integrating Beats technology because it’s not just the music you play that matters, but also...

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