An On-line Business Model for Traditional Market’s Food Ingredients Vendors
Date Issued
2016
Date
2016
Author(s)
Shih, Tsun-Shiang
Abstract
With the development of computer, mobile device and the Internet, e-commerce companies bloomed. Consumers are gradually used to buying products on the Internet by their computer or mobile devices. In Taiwan, e-commerce companies provide services in different industries, including food, clothing, housing, transportation, education and entertainment industries. In the food ingredients industry, more and more food ingredients e-commerce companies which provide consumers an easier and time-saving way to buy food ingredients enter this market. The revenue of traditional market’s food ingredients vendors declines year by year. Moreover, supermarkets which sell food ingredients also eroded vendors’ revenue. Therefore, this research aimed to build an online business model for traditional market’s food ingredients vendors. The thesis separated the food ingredients supply chain into two kinds. The first kind is the traditional channel which means all the food ingredients are sent to the wholesale market and auctioned. After dealers get food ingredients, they sell these products to retailers, then retailers sell them to the end-users. After analyzing every part of this channel, this thesis found out a niche market for the traditional market’s food ingredients vendors. The other kind is e-commerce channel. The thesis separated food ingredients e-commerce companies into four kinds and analyzed these companies by examining their information flow, logistic and cash flow as a reference of new business model. In the end, this thesis built a feasible new business model to B2B market which combined online platform to collect orders, third-party payment to provide online cash flow service, and moto express to lower deliver cost. Then, it used the Value Creation Cycle to show the partnership of each player and the value-adding process in this business model.
Subjects
traditional market
e-commerce
food ingredients
business model
Type
thesis