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    CSTUDY Jan22 BCOMIT INF2B6

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    Mr Z Abrahams
    The document is an assignment cover sheet for a student named Zakariya Abrahams submitting an assignment for their Informatics 2B subject. It provides details such as the student's contact information, assignment details including the question, a signed declaration of original work, and a bibliography citing sources. The question asks to explain the conflicting issue of using all revenue generation models for eCommerce and provide four solutions. It also asks to describe two major challenges of adopting online advertising as the sole revenue source. The response provides analysis and examples for both parts of the question.

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    CSTUDY Jan22 BCOMIT INF2B6

    Uploaded by

    Mr Z Abrahams
    10 views5 pages
    The document is an assignment cover sheet for a student named Zakariya Abrahams submitting an assignment for their Informatics 2B subject. It provides details such as the student's contact information, assignment details including the question, a signed declaration of original work, and a bibliography citing sources. The question asks to explain the conflicting issue of using all revenue generation models for eCommerce and provide four solutions. It also asks to describe two major challenges of adopting online advertising as the sole revenue source. The response provides analysis and examples for both parts of the question.

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    CSTUDY_Jan22_BCOMIT_INF2B6

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    The document is an assignment cover sheet for a student named Zakariya Abrahams submitting an assignment for their Informatics 2B subject. It provides details such as the student's contact information, assignment details including the question, a signed declaration of original work, and a bibliography citing sources. The question asks to explain the conflicting issue of using all revenue generation models for eCommerce and provide four solutions. It also asks to describe two major challenges of adopting online advertising as the sole revenue source. The response provides analysis and examples for both parts of the question.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    10 views5 pages

    CSTUDY Jan22 BCOMIT INF2B6

    Uploaded by

    Mr Z Abrahams
    The document is an assignment cover sheet for a student named Zakariya Abrahams submitting an assignment for their Informatics 2B subject. It provides details such as the student's contact information, assignment details including the question, a signed declaration of original work, and a bibliography citing sources. The question asks to explain the conflicting issue of using all revenue generation models for eCommerce and provide four solutions. It also asks to describe two major challenges of adopting online advertising as the sole revenue source. The response provides analysis and examples for both parts of the question.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 5

    APPENDIX A: ASSIGNMENT COVER SHEET

    ASSIGNMENT COVER SHEET

    Surname Abrahams
    First Name/s Zakariya
    Student Number 158761
    Subject Informatics 2B
    Assignment Number 2 (INF2B6)
    Tutor’s Name Mr. Victor Mashakada
    Examination Venue N/A
    Date Submitted 7 September 2022
    Submission (√) First Submission Yes Resubmission
    11 Denneboom Street
    Bosmont
    Postal Address
    Johannesburg
    Gauteng
    South Africa 2093
    E-Mail [email protected]
    (Work)
    Contact Numbers
    (Home) 011 474 3648
    (Cell) 0673193607
    Course/Intake Bachelor of Commerce in Information and Technology Management – 2022 Intake

    Declaration: I hereby declare that the assignment submitted is an original piece of work produced by myself.

    Signature: Mr. Zakariya Abrahams Date: 7 September 2022

    1
    Question 1

    The article above states: “A revenue generation model is a critical component of the
    eCommerce business plan”. Explain the conflicting issue associated with the use of all
    revenue generation models and FOUR (4) solutions that may be used to resolve this issue.
    (20 Marks)

    A business model is a set of processes combined to achieve a company's primary goal, which is
    typically to yield a profit. Ecommerce is a platform that has gained a lot of popularity in recent
    years. Today, it has become the most reliable source of products and services that customers
    don't even go out to buy sometimes. Through e-commerce, many businesses around the world
    started reaching their potential when their visibility was increased beyond their surrounding state
    or town. It has helped many companies generate excessive revenue that helped in their growth
    and development. The revenue generated is not sufficient enough to develop but to somehow
    stay in the competition for the long term.

    Unicorn start-ups are those that are at the peak of their business and are dominating the
    competition. Those start-ups fail that are not able to manage their finances and shape their growth
    better. Through finances, value is created. This value helps connect through various prospects that
    contribute to generating future profits.

    The main conflicting issue generated with all revenue generation models is that of stability. The
    revenue generated may not be stable in long term. Based on the recent trends and lifestyle, that
    profit is sufficient enough for business alone but not for long-term stability. Another rising conflict
    that can be seen is the interference of local government. The government wants to do things their
    way but it does not mean that benefits will always be shared by businesses.

    2
    Four solutions to resolving such conflicts are:

    1. Forecasting: If forecasting is done accurately, then money never troubles any


    organization. Although forecasting alone is never very much accurate, but still, it
    provides a major idea regarding the unforeseen situation. Through this, a separate fund
    can be started where only important investments are made and do not meet day-to-day
    requirements.
    2. Expertise: In such situations, a financial expert should be there for every business to
    manage cash outflow and inflow on a daily, weekly, monthly, and yearly basis. Through
    this, it is always known to a business how much they are in debt, and what suitable
    measures can be adopted for the same.
    3. Information/Input: One such solution is gathering as much knowledge as possible to
    learn how efficiently to manage one's own money. People will provide suggestions or
    tell us what is right or wrong but if we know the concept, no one can play tricks and a
    risk and loss situation can be avoided for good.
    4. Budgeting System: There should always be a good budgeting system where it is
    possible to assess if expenses can be saved or not. Poor budgeting always leads to
    incontrollable financial leakage that can harm an organization in every way possible.

    Question 2

    The article above further states: “Amazon is the eCommerce titan the industry has been
    waiting for”. Describe TWO (2) major challenges of adopting online advertising as the sole
    revenue. (10 Marks)

    While some people build websites to assist them to generate many streams of income, others are
    content with just having one. In many instances, that involves relying only on website page
    advertisements. Before choosing that path, it is important to examine the pros and cons of relying
    only on advertising revenue.

    3
    Below listed are the two major challenges of adopting online advertising as the sole revenue:

    1. Unpredictable income: While using advertising as your sole source of income is a good way
    to make money, it may not be suitable for everyone because it can be dangerous. This is
    especially true for people whose primary or sole source of income comes from advertising.
    Simply having excellent adverts on your website does not guarantee that anyone will click on
    them. If advertisers don't get a decent return on their ad expenditure with you, they might also
    pull their commercials. You can go from earning a lot of money to having none at all.

    2. Having a website that is not suitable for all types of advertisers: A website that is
    unsuitable for online advertising is another issue that some publishers could have. Advertisers
    are quite particular about where they spend, they may achieve budgets, so if your site doesn't
    meet their precise requirements or has an unattractive audience, they will look elsewhere. For
    instance, it can be challenging to change your website appearance to sell advertising if your
    company focuses on promoting locally grown products. What you can achieve will probably be
    limited by the type of business you write about on your website.

    4
    Bibliography

    1. Holcombe, C. 2012. Revenue Streams [online]: http://www.ecommercedigest.com/revenue-


    streams.html

    2. Revenue Streams [online]: http://www.inc.com/encyclopedia/revenue-streams.html

    3. Ehrenberg, D. 2013. 7 Steps to Developing Your Revenue Model [online]. :


    https://www.affinitylive.com/resources/blog/7-steps-to-developing-your-revenuemodel/

    4. Grant, E. 2010. Defining a Revenue Model for Your Business: A solid revenue model is the
    foundation for a sustainable business [online]: http://www.business.com/business-
    planning/defining-a-revenuemodel-for-your-business/

    5. Afuah, A. 2004. Business Models: A Strategic Management Approach. New York: McGraw-
    Hill/Irwin, pp. 67-69

    6. Laniado, E. 2013. Revenue model types: the quick guide [online]. BMN! :
    http://www.bmnow.com/revenue-models-quick-guide/

    7. Sprenger, Michaela; Mettler, Tobias; Winter, Robert (2016). "A viability theory for digital
    businesses:Exploring the evolutionary changes of revenue mechanisms to support managerial
    decisions". Information Systems Frontiers. 19 (4): 899– 922. doi:10.1007/s10796-016-9645-y

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