BUSINESS MODEL USED 

BY KFC AND ZALORA

KFC As One Of The E-Commerce 🍔🍗
As we all know, KFC currently is doing their business by opening restaurants worldwide providing their consumers with variety of food and drinks. Their popularity are well-known by all categories of people from the elders to the youngster. 

However, in order to survive in the current new era whereby the importance usage of online purchasing, they have already started using online website to get a further reach with the consumers. KFC is a business to consumers type of E-Commerce. They use the concept of partial commerce whereby they have physical restaurants for consumers to dine in as well as their own online website for consumers to place order online. 

There are 8 elements of business models that they apply which are as below:

1. Value Proposition
    > KFC provide their consumers with online product delivery whereby goods are ordered online at their website. Convenient for consumers as they are able to eat fast food at home without the need to cook or going out to the restaurant hence saves their time.

2. Revenue Model
    > Basically based on sales revenue model as they sell goods online directly to their consumers. Apart from that, we think that KFC can also benefit the usage of advertising revenue model whereby they can allow other business to put advertisement at their online website by getting specific yearly payment from the business. 

3. Market Opportunity
    > KFC's market niche is basically for those who like fast food and have no time to go out dining for example the students who live at the hostel, working people, social web-based people and etc. 

4. Competitive Environment
    > Another fast food business which actively compete with KFC is MacDonald which has encouraged them to create an online website to get a wider reach towards their target market.

5. Competitive Advantage
    > MacDonald provide delivery services however only limited to certain places only. For example in Malaysia, they only provide online order and delivery service at West Malaysia but not in East Malaysia. KFC are able to get this competitive advantage as they are doing e-commerce at any places worldwide.

6. Market Strategy
    > KFC Facebook page is extremely high on interactions with customers and is even used as a medium to educate their customers with new product offerings, discounts and other schemes. Online ordering websites are being promoted on social media which is smart.

    > KFC does promotional activities by offering add-on to the existing menu, gift coupons, T-shirts, Kids meal etc. KFC follows both optional pricing and mixed bundling pricing. A consumer can buy dishes from the basic menu and go for add-on and there are combo offers which comprise a mix of items. 

7. Organizational Development
    > As they are doing delivery services, whereby KFC have separate department for this which is developing their own delivery team to make the ordered food delivered to the consumers.  

8. Management Team
    > KFC practice partial commerce which means that they do not have expert team in doing e-commerce. They used it along with the existing managers by only adding some teams for delivery services.


Zalora, An Online Shopping Website 👗👕
Well known, Zalora is one of the business that has no physical store and all goods are purchase by online through it websites. Zalora is a business to consumer’s type of e-commerce. They use the concept of click and mortar or pure e-commerce whereby they have no physical store and all business process such as purchasing are done by using their websites. 

There are 8 elements of business model that Zalora apply which are as the following: 

1. Value proposition 
    > Zalora provide quality products and some unique goods that cannot be found in physical stores. 

2. Revenue model 
    > Zalora benefit the use of a sales revenue model where they earn money by selling goods through online. Apart from that, Zalora can use the advertising revenue model as their revenue for the organization where their can advertise other business on their websites like what Youtube is doing for it business.   

3. Market opportunity 
    > Zalora have a huge markespace and opportunity as it operate globally and gain a large amount of revenue in each market niche especially from social consumers.  

4. Competitive environment 
    > Zalora have one competitor that have the similar business concept as Zalora which is Lazada that also operate globally which may be competitive for Zalora in the industries. 

5. Competitive advantage
    > Zalora has a special advantages that the organization bring to the market space which is Zalora has the concept of first-mover advantage and asymmetries:
a) First-mover advantage 
    ~ Zalora has target new market niche whereby they target on new market niche where consumers can make online purchasing by using a smartphone anywhere and anytime consumers want to.
b) Asymmetries
     ~ Zalora become different than other company in the same           industries whereby they use the concept of payment can be make only on delivery. 

6. Market strategy 
    > Zalora promote it goods by providing an attracting display of goods and arranged the goods according to the types of the goods such as sport items on sport area and and health products is on health area. 

7. Organizational development

  > Zalora is the pure e-commerce organization. It has a large warehouse where it also play role as inventories and all goods are keep in the warehouse. Zalora receive order by online through its website from the customer service department and all the order will be distribute to the warehouse department and all the order will be packs and send to the delivery department for deliveries to the customers. 

8. Management team  

    > From the research that have been made, Zalora manager Mr Giulio Xiloyannis is the Managing Director of Zalora Malaysia, Prior to Zalora, he served as an Entrepreneur in Residence at Rocket Internet Gmblt, the world largest internet incubator. His past experience at Rocket Internet Gmblt, Finance Manager ad item for E-Commerce.