E-COMMERCE

ASSIGNMENT 2

It is the aim of this paper to present e-commerce business models on any type of business that
would strive if it went e-commerce. The Business models that are to be explained in this paper
are value proposition, revenue model, resource system and online offer. My choice of business
has fallen on taking Farm Inputs to ecommerce.

To begin with, as per magretta (2002) a business model is a set of planned activities (sometimes
referred to as business processes) designed to result in a profit in a market place. The business
model is always at the center of a business plan. A business plan is a document that describes a
firm’s business model. A company’s value proposition is at the very heart of its business model.
A value proposition defines how a company’s product or service fulfills the needs of customers
(Kambil, Ginsberg, and Blech, 1998). To develop or analyze a firms value proposition, one
needs to understand why customers will choose to do business with their firm instead of other
companies and what the firm provides that other firms do not and cannot.

Value Proposition for my Farm Inputs Business

Company Target Customer Key resources

(Products) Customers Benefits
Fertilizer, Farm Produce Farmers, Certified, Warehouses,
and Crop Protection Suppliers and quality, cheap trucks, personnel,
Products Markets and affordable the products and
Fertilizers: farm inputs multiple contact
NKP,D- point e.g satellite
COMPOUND,UREA,CA depots and
N and 23:21:0+0S regional offices

Farm Produce
Certified Maize and
Legume Seeds

Crop Protection Products

Dithane, Cypermethrin and
Shumba Super Dust

The Expanded form of my farm inputs value proposition

My targeted customers

My choice of business is farm inputs, and my target customers are farmers, suppliers and
markets. For farmers who want bumper yields, our farm inputs are an ideal choice which are
certified and recommended for all types of crops and works in all types of soils in the world. For

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suppliers who want to order in bulk our products are reasonable and affordable that they will also
find higher profits from it. Our company is a one stop shop for all farmers.

Customer benefits

We shall put our customers first in all our activities by offering cheap, affordable and quality
farm inputs and services timely to achieve customer’s satisfaction. In terms of price our farm
inputs are so cheap, in terms of quality our farm inputs are certified and recommended and are of
high quality and suffices all types of soil needs therefore giving customers 100% guarantee to
have bumper yield at an affordable price that farmers will highly benefit from the products.
Unlike other companies that sell poor quality farm inputs, our company’s main goal is to help
farmers all over the world therefore our charges are so affordable.

Key Resources

The company’s key resources that will be helping in the smooth running of the farm inputs
business include our employees who will be helping in operations and management of the
website and orders, our trucks that will be helping in timely and smooth transportation delivery
of farm inputs from our warehouses to customers choice of place be it to their farm or door steps,
our warehouses will help in the storing of farm produce in good temperature that it will remain in
good condition, the skilled personnel we have will help in processing the whole chain of ordering
to delivery, the quality products and multiple contact points e.g satellite depots and regional
offices these will act as channels for fast delivering of the products.

Taking the farm inputs business e-commerce

I have shown a simple website presentation of how my farm inputs website will look like. The
website will be called [Link]. Page 3 and 4 is my small website presentation.

2014/1/273 IT 222 Assignment 2 Semester 1 Page 2

 [Link]
Our Farm Inputs are certified, cheap, of high quality and affordable

HOME ABOUT US DELIVERY INFO OUR PRODUCTS CONTACT US

OUR REGIONAL OFFICES OUR SATELLITE DEPOTS

BUY FROM US FROM

THE COMFORT OF
YOUR HOME TO
HAVE BUMPER
YIELDS. TRY US YOU
WILL NEVER
REGRET.

[Link] is the new way to buy your farm inputs online

We have hired technological experts, built the perfect environment
for the farm inputs and found the shortest distance from our
warehouse to your farm. We have the best quality, affordable farm
inputs you could want for less than other suppliers prices and we
bring it right to your farms.

Direct from the warehouse to your Farms – certified higher

quality at lower prices
Our farm inputs are cheap and affordable. They come direct from
our warehouse and we deliver direct to your farms or door step. No
need for you to worry about transporting it to the farm or home.
We take pride in our high quality farm inputs that is why we
guarantee your satisfaction with all our types of farm inputs we
sell.

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 [Link]
Our Fertilizer is cheap, of high quality and affordable
HOME ABOUT US DELIVERY INFO OUR PRODUCTS CONTACT US

OUR REGIONAL OFFICES OUR SATELLITE DEPOTS

Select
A PHOTOGRAPHIC TOUR OF OUR FARM INPUTS the
products
When you place an order with [Link] it is custom prepared by a team of experts working in of your
one of the most advanced technologically farm inputs company in the world. The farm inputs choice
delivered to your door or farm is certified and of good quality and we ensure that it is exactly and put
the way you want it. them in
CHOOSE THE TYPE OF FERTILIZER YOU WANT BELOW TO START THE cart
TOUR!! click
ENTER
to press
your
order

NPK D-compound UREA CAN

23:21:0+4S

CHOOSE THE TYPE OF MAIZE AND LEGUME SEEDS YOU WANT BELOW TO START
THE TOUR!!

Peas Seeds Beans Seeds

Maize Seeds G-nuts seeds
CHOOSE THE TYPE OF CROP PROTECTION PRODUCTS SEEDS YOU WANT
BELOW TO START THE TOUR!!
These crop protection products control fungicides, insectcides and herbicides

Dithane Cypermethrin Shumba Super Dust

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This farm inputs business will be introduced online. Computers are going to be bought and a
website will be designed and the skilled personnel that I have will be helping in the operating of
the website and business. To this end my farm inputs will be sold both on line and in brick and
mortal market. On my website, I am going to have a catalogue which will allow customers to
browse through my products and their details, such as description, weight, price and whatever
would appear in a hardcopy catalogue, my website will also have a cart so that customers can
choose the type of fertilizer they want and put it in the cart ready for ordering. The advantage
that an online shop has over a bricks and mortar shop is that customers can order goods from the
comfort of their own home or office. Customers will be paying using credit cards or Mo262
facility.

The Revenue Model

A firms revenue model describes how the firm will earn revenue, generate profits and produce a
superior return on invested capital (Laudon and Traver, 2009, 5 th ed). In order for a firm to be
considered successful, a firm must prduce returns greater than alternative investments.

My fertilizer company will be generating its revenue and profits through different ways. Firstly it
will be through Government Sponsorship, secondly my company will be sponsoring sports teams
like football and netball to get fame therefore advertising itself and gaining customers who will
be buying from us and generating its profits and revenue, thirdly our website will provide a
certain forum for advertisement and in return we will be receiving fees from advertisers in
exchange of advertisement. Fourthly, we will be generating our profits through our sales of
products and services.

Resource System
Resource systems are resources that a company has that are required to deliver or create value to
the targeted customers and to the company and the way those elements interact (Johnson et al
2010). Our key resources are our assets like our people (employees) these employees help in the
daily operations and management duties of the company that will allow them to deliver value to
the customers. our truck deliver value by providing smooth transportation of the ordered
products to the targeted customers choice of place. Our products create value by helping our
customers harvest bumper yields because the farm inputs are of high quality and meet all the
necessary needs of farmers. The satellite depots and regional offices will help in quick delivery
of the same.

Online Offer

My farm inputs business website will be offering maize and legume seeds like peas, beans and
ground nuts, crop protection products like cypermethrin, dithane and shumba super D and all
types of fertilizer recommended for all crops, locations and farm sizes like CAN, NPK,
Ammonium Sulphate, D Compound, Super D Compound fertilizer and 23:21 fertilizer. Once
customers visit our website they will find a catalogue on which they will select and put products
in cart ready for ordering. Once they order and payment made, the company is ready to deliver
on their door steps through our regional offices or satellite depots and the trucks we have will be

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used for smooth and fast delivery of the fertilizer. Customers can choose either to prebuy their
fertilizer or post buy depending on their choice. They can also choose whether they would want
the products to be delivered on spot or on a day of their choice.

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References
Kambil, Ginsberg, and Blech, 1998, Deconstructing The Value Proposition Of A Service
Innovation Exemplar

Kenneth C. Laudon and Carol Guercio Traver, [Link]:Business, Technology and Society
2009, Published by Prentice Hall, a division of pearsons Education, Inc 2009, 5th edition
Magretta, J (2002), ‘Why Business Models Matter’. Havard business review, May.

Mark W. Johnson, Clayton M. Christensen and Henning Kagermann, Reinventing your business
model, December 2010

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