Godiva and Craig's List

Godiva uses three different business models to generate income online. By selling directly to the consumer, Godiva employs the B2C business model by creating apps that provide access to best-selling chocolate, express checkout options, and photo depictions of products—there even exists interactive live help on traditional e-commerce platforms if the customer so desires (Turban, King, & Lang, 2011, p. 10). By selling directly to businesses, Godiva takes advantage of business plans that use an intermediary party with the B2B business model. This approach features incentive programs to encourage corporations to buy in greater quantities (Turban et al., 2011, p. 10). Finally, Godiva implements the B2B2C EC business model where "address lists of employees or customers to whom the chocolate is to be sent" are made available to streamline the distribution process (Turban et al., 2011, p. 10). These three business models combine to create the composite Godiva sales method.

One major driving factor led Godiva to sell online. Fundamentally, the company was looking for ways to increase sales by all relevant channels available; in 1994, marketers were driven to connect with Godiva chocolate aficionados already sharing recipes and tips online (Turban et al., 2011, p. 10). As they found a specialized customer base, they saw an opportunity for growth. Although there were some growing pains as the idea of online sales in 1994 was thoroughly unorthodox, the move was nevertheless a resounding success.

The B2B and B2C transactions Godiva uses are manifold. For the business, these transactions feature a central account feature that allows businesses to store all of their distribution information together (Turban et al., 2011, p. 10). This transaction feature primarily occurs electronically. For the consumer, transactions also occur electronically through the availability of shopping carts for checkout, online catalogs for product descriptions and even a search engine to locate specific sub-categories of product based on price or type of chocolate (Turban et al., 2011, p. 10). However, the consumer transaction experience also exists at physical stores, whose addresses are made available online (Turban et al., 2011, p. 10). As such, the B2C transaction is both electronic and physical while the B2B transactions appear to be electronic.

Godiva uses a host of features to keep consumers informed and interested in the experiences of the chocolate connoisseur. The bottom of the website invites users to share and partake in the Godiva experience with others through Facebook, Twitter, Pinterest, and YouTube. By making themselves available with a live chat feature, the Belgian chocolate company appeals beyond the electronic screen to engender a sense of connection between the consumer and business. By clicking on the "Experience GODIVA" button at the top of the site, users can share in the experience of discovering the history of the company, learning recipes, meeting the chefs, and participating in the Lady Godiva program where customers receive the opportunity to nominate an inspirational woman in their community. Through employing social media and interactive features that can facilitate the sales and discovery process, Godiva.com takes full advantage of Web 2.0 features.

The Craig's List business model focuses on advertising fees. While most classified advertisements are free, Craig’s List charges for employment advertising, housing advertising, and adult content advertising to make $98 million in 2009 (Turban et al., 2011, p. 78). Otherwise, business, rent, and sales advertisements come free of charge except for some large American cities (Turban et al., 2011, p. 78). Top pricing fees occur in the San Francisco bay area at $75 per job per category. As such, the sale of classified advertising provides the exclusive vehicle for revenue on Craig’s List.

Craig's List provides open business and social values. As the website is maintained by only twenty-four employees with 9 billion visits per month, Craig’s List has a limited policy of interaction with people that post online (Turban et al., 2011, p. 78). Ultimately, Craig’s List operates on a simplistic interface that promotes accessibility, gives people an approachable mouthpiece for sharing nearly anything they wish, promotes humble values, champions trust by encouraging people to meet in person to complete transactions, and even features Web 2.0 capabilities with social networking capabilities (Turban et al., 2011, p. 78). In a concise description of its business values, Craig Newmark, founder of the company, famously remarked that everything is for sale except for the website itself (Turban et al., 2011, p. 78). As such, Craig’s List embraces a thoroughly capitalistic social value that avoids regulation. Whether by intention or by necessity, Craig’s List appears as a sort of Wild West website on the digital landscape; anything is possible if one has the mind for typing it into a search query.

With the availability of options on Craig's List, ample opportunity exists for corruption - much like on eBay. Users benefit from a sense of anonymity that can easily be manipulated by criminals who defraud gullible Internet users into sending checks for services that are never realized (Turban et al., 2011, p. 78). A visit to the US Post Office immediately demonstrates to the wary public the prolific success of such scammers as posters mark the walls warning people of sending checks to people they do not know. Also, players in the sex trafficking industry find a major outlet for business on Craig's List. Critics point out that with so many erotic services made available through the site, it may be taken advantage of to facilitate illegal activities involving underage girls (Turban et al., 2011, p. 78). Craig's List depends on help from its visitors to police its implementation; it presents a neutral option for the public where people can sell broomsticks, iPads, or illegal substances, all in an effort to reach the ideal consumer.

Reference

Turban, E., King, D. R., & Lang, J. (2011). Introduction to electronic commerce (3rd ed.). Upper Saddle River, NJ: Prentice-Hall.