Business introduction of AE.com, its business models and its Essay

Business introduction of AE.com, its business models and its evaluation - Essay Example The organisation aims to follow innovativeness and sheer dedication regarding offering quality services to the customers along with offering highly admired products. The organisation mainly offers branded products to the customers in global markets for younger population as well as for infants. Moreover, the organisation also possesses its online site named AE.com, through which various individuals are capable to purchase products and services on an extensive basis. It is also observed that for the previous few years, the company has also expanded its business activities in the global marketplace. It had launched outlets in Canada during the year 2001 and three franchise stores in Middle East, during the year 2010. The franchise stores in Hong Kong, Russia and China were founded in the year 2011. The company is also planning to expand its business in Israel and Japan in the coming years. It possesses 30,000 associates and around 1000 outlets all over the world (AE Better World, n.d.) . There are a number of competitors in the market for the organisation, among them The Gap Inc., Abercrombie & Fitch Co. and Pacific Sunwear of California Inc. deserve special mention. The company is also committed extensively towards providing affordable services to its customers. Moreover, in order to uphold safety standards, the products that are offered to the customers are tested in the laboratory to maintain hygienic process (AEO Management Co., 2013). The paper intends to discuss E- Business models and revenue generation mechanisms through web portal of AEO as well as the future business opportunities for the organisation in a detailed basis along with providing certain recommendations. Business Models (E-Business Models) E- Business models are vital components for an organisation which aims to conduct business activities through online basis. These models enable a company to direct information flow on the basis of which product as well as service related activities of the co mpany can be maintained within the framework of internet. AEO generally uses e-Commerce business model within the periphery of e-business model. A few of the leading e-Commerce business models include storefront model, dynamic pricing model, portal model and auction model among others. The e-business model used by AEO is storefront model, as it is observed with the assistance of storefront model the customers are able to purchase a variety of products through online sources or sites. The key facets that are involved in the storefront model encompass the features such as security policies, transaction processing, storage of information as well as payment through online mode (Catedra Inginerie Software, 2002). In this similar context, it is also recognised that the organisation provides the facility of transaction processing through its website as customers are facilitated to make payments through online sources and also through mobile phones. The company is also providing auction rat e securities to the organisation and securities to the customers regarding theft of products in the outlets. However, negative conditions and respondents in Auction Rate Security (ARS) market, could provide a drastic impact on the investment process of the organization for a