$pagename = “Free Essays”;
= “Michael Rappa’s Business Models Essay | Business”;
$description =”Business Essay – An essay on a business model of a comparison website like a confused.com essay”;
$subject = “Business”;
Business Models Observed on the Internet
The brief was to research Michael Rappa’s Business Models and then find a website which displays use of two of the models. The website I found relates to Exchange and Mart magazine. The URL reference of their website is
http://www.exchangeandmart.co.uk/
2. Website Purpose
The purpose of the website is to provide a brokerage service for customers wishing to buy and sell products such as cars, home and leisure items and business products.
3. Nature & Business Goals
The business involves retail brokerage, providing a central point for individuals to buy and sell a range of goods. The business goals of Exchange and Mart would be to replicate their magazine publication on the internet website and to therefore use the Internet to reach more customers. This would also lead to increased activity and movement of goods. This, in turn should lead to increased revenue for Exchange and Mart. Additionally, the website has sold advertising space to related companies which further increases revenue for Exchange and Mart.
4. The Brokerage Model
The home page of the Exchange and Mart website provides a link to four main options. These options are Motoring, Home and Leisure, Money and Business. Selecting one of these options allows the user to enter the particular area of their choice to view advertisements and eventually engage in a consumer to consumer relationship if they wish to do so. Entering an option and viewing pages is very user-friendly which is obviously conducive to repeat visitors and eventual sales.
The Exchange and Mart website creates the market place for which business to consumer and consumer to consumer activity takes place. It is set up to introduce buyers and sellers of a variety of goods to each other. Fees are charged to advertisers when placing advertisements, as is also the case with the Exchange and Mart magazine.
5. The Advertising Model
Several banner advertisements are included on the Exchange and Mart website. On the home page there are advertisements for Norwich Union car insurance and Regtransfers.co.uk who sell personalised registration plates. These advertisements are obviously well positioned as they relate to the car industry. There is also an advertisement for Surveys.com which is an internet survey company which offers “ipoints” for the completion of surveys involving household information. These banner advertisements will be a significant source of income for Exchange and Mart but I would suggest that they are not the major source of revenue.
The volume of viewer traffic on the Exchange and Mart website is likely to be quite high and specialised. Whilst the website has a range of goods listed, the majority of viewers will be concerned with car advertisements. Therefore, I would suggest that the viewer traffic is quite specific overall. The high volume of traffic and its’ specific nature would suggest that advertising would be profitable.
The Exchange and Mart website is also clearly using the Classifieds Advertising model in that it catalogues items for sale. The website also charges listing fees for advertisements.
6. Summary
Michael Rappa suggests that his categories are basic and that business models are a continually evolving species. The Exchange and Mart website shows examples of two of Michael Rappa’s business models. There is evidence of the use of a Brokerage model in terms of the primary function of the website being to facilitate business to consumer and consumer to consumer relationships. The website also uses the Advertising model by classifying goods for sale and selling banner advertisements to industry related companies.