Category Archives: Business & Finance

What is the Good Business Model?(II)

  • Business model revolution

There are major changes in the business model, as well as micro-design. In fact, for the business model, there is no need to pursue too much change, and it is possible to generate huge benefits by only one point.

The big change in business model involves two issues of transaction structure: The transactional subject and transaction content.

Changing stakeholder, activity, and resource capabilities is part of a major change in business models.

  1. Stakeholders

For stakeholders, we can achieve changes in our business model by adding, reducing, split, aggregating, selecting or changing stakeholders. Among the stakeholders, there is another category called “key stakeholders”, those who can achieve strategic goals and make a qualitative leap in the business model. For this type of stakeholder, there is a need to focus on business model design.

  1. Activity links

The activities include the processing of cutting, recombination and fragmentation. In some industries, there are many channels and chains, which can be shortened by business model plus technology manufacturing. By removing some links from the information system, efficiency can be improved.

  1. Resource capacity

Resource capabilities can be designed through new business models, allowing companies to create greater value in their resource capabilities.

For many small businesses, they can actually stare at big companies, not for competition, but to understand what they are doing next, in order to ponder their business model. When a small business develops to a certain extent, the best way to grow is to dance with big companies. In this way, you can fully use the leveraged assets of large companies to develop themselves. When many small enterprises develop into large enterprises, they use the leveraged assets of large enterprises at key nodes to develop.

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Russia Talks With China For New Business Cooperation

Russia is very near to North of China, so there are massive business and trade cooperation between Russia and China. Recently, the website of the Russian Ministry of Transport released a message after the regular meeting between the Russian and Chinese Prime Ministers that Russia and China are discussing a substantial increase in the volume of transit container transport from China to Europe through Russia directly.

7th November, Russian Prime Minister Dmitry Medvedev and China Premier Li Keqiang held the periodical meeting of Prime Minister of China and Russia. According to the news released by the Ministry of Communications “The possibility of substantially increasing container transport from China to Europe through Russia is discussed, meanwhile there has reached an agreement on close cooperation in this field.”

 

8th November – China and Russia signed the “Memorandum of Understanding between the Ministry of Commerce of the People’s Republic of China and the Ministry of Economic Development of the Russian Federation on Cooperation in the Field of Trade in Services” in Beijing on 7th November.

 

According to the Ministry of Commerce of China, Mr. Zhongshan, Minister of Commerce of China, and Maksim Oreshkin, Minister of Economic Development of Russia signed “Memorandum of Understanding between the Ministry of Commerce of the People’s Republic of China and the Ministry of Economic Development of the Russian Federation on Cooperation in the Field of Trade in Services” on the same day, witnessed by Li Keqiang, Premier of the State Council, and Medvedev, Prime Minister of Russia.

 

According to the memorandum, China and Russia will establish a permanent cooperation working group on services trade within the framework of the Sub-Committee on Economic and Trade Cooperation of the Prime Minister’s regular meeting committee. The two sides will strengthen cooperation in tourism, culture, sports, transport services, medical services, education services, exhibition services and service outsourcing, promote bilateral exhibitions aimed at the development of Service Trade, and strengthen data exchange in bilateral trade in services.

 

The news indicates that in recent years, Sino-Russian economic and trade relations have developed steadily, bilateral trade in services has developed well, and cooperation has broad prospects. By this time singing the memorandum of understanding based on cooperation of domain of trade in service will accordant to new tendency and new requirement of Sino-Russia economic and trade cooperation and development. For next pace, China and Russia will work together pragmatically, translate the contents of the memorandum into practical results, continuously improve the level of cooperation in trade in services, and further promote the sustained and stable development of bilateral economic and trade relations.

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Foreign Trade Knowledge

Nowadays, the most of people begin to sell and purchase from oversea market through related B2B online platform and international terms (International Rules for the interpretation of Trade Terms) because of its advantage of price from oversea sourcing, advantage of quality. The most of businessman or companies purchase from Asia area such as China, India and Korea to content own companies’ demand and development. Certainly, Foreign trade still get some risk when you buy from over suppliers because of its far distance. Normally the buyers cannot inspect the production; shipment through sea facing many risk of products loss; dispute uneasy to be solved after receiving the goods as flaw and substandard. So hereby, I hope the most of businessman should be skilled to grasp foreign trade knowledge.

Introduction

Foreign trade is also called international trade or importing and exporting trade, shortcut as foreign trade. It refers to the exchange of goods, services and technology between one country (region) and another country (region). This trade consists of two parts: import and export. For the countries (regions) that import goods or services, we call imports; for countries (regions) that export goods or services, we call exports. After know of foreign trade concept, by next links let me explain other two concepts as competition of price, non-competition of price.

 

Basic Concept

Price Competition

Price Competition (Rate war) is simple to know that normally expanding the oversea market, seeking channels, beating rivals must be depended on price. Bargain price is the good choice for exporters and suppliers. When the products’ performance, effect, design and related service are extremely same by manufacturing through both of countries (or enterprises), the enterprises manufactured products will sale its products by lower price than rival’s. Undoubtedly, the enterprises are plunged into vicious price competition.

 

Non-price Competition

it refers to a form of competition in which a product is sold and participates in the market competition by means of non-price forms such as tangible and intangible differences of products, sales services, advertising and other means of promotion, etc., besides the price of the product or when the selling price remains unchanged.

 

Trade Dependence Ratio

The trade dependence ratio is also known as the “foreign trade coefficient”. A country’s Dependence On Trade is generally expressed in terms of the proportion of the total import and export value of foreign trade in the gross national product, GNP (or gross domestic product, GDP). That is, trade dependence = total of foreign trade / GNP. The change of proportion implies the change of the position of foreign trade in the national economy.

Foreign Trade Expert Online

How To Be A Good Trade Platform

Nowadays, the most of online business models should be two categories such as B2C (Business to Client) trade platform and B2B (Business to Business) trade platform. But between B2C and B2B trade platforms there are some quite different points to marketing your customers and operate your website. No matter which modes of trade platform, the final target should be profit to be gained and enhance its website’s brand recognition and popularity. Certainly, after various of widespread, advertisement and marketing, and related campaign through platforms, our purpose is about good business return and customers retention as well. So how to be a good trade platform, and how could be prominent during hundreds of thousands of trade platforms.

B2C Trade Platform

B2C is one kind of form of marketing. Certainly, there are many of way to marketing your customers through B2C model, but your customers should be individual consumers or retail to your consumers (end customer). and B2C trade platform is one online platform or website to realize model of business to client. The most of individual consumers will spend time on your website and choose and buy what they want. By following the methods below to make your B2C trade platform (B2C E-commerce platform) with good profits.

 

  1. Content Marketing

Content marketing is the strategic marketing way to attract customers and retain clients by creating and distributing related, coherent and valuable and worthy information. Certainly, the purpose is to drive customers’ buying from website.

 

  1. Search Engine Optimization

Actually this is very simple ways to a lot of online trade platforms. Meanwhile, it will help platform or website to enhance own products’ rank through Search Engine such as Google, Bing or Yahoo. Customers may find out high ranking site or products page after that, and attract customers to click on it and boost buying chance. So some tips of SEO for B2C trade platform.

  • Utilizing JavaScript to text links
  • Keyword and title tag
  • Attractive headline as necessary
  • Basic Meta description

 

  1. Social Media Marketing

This is very important tools to help your website as well known during so many B2C trade platforms. Now there are so many famous social media platforms such as Facebook. Twitter, Pintrest and on on.

B2B Trade Platform

B2B trade platform, normally it is as service platform between suppliers of related products and buyers such as distributors, retailers or purchases of supermarket and department store. The most of buyers are not end customers because the B2B model is the most like wholesale. There are some methods to improve your B2B website

 

  1. Try to know about your target customers.
  2. Quality products and good products description are essential.
  3. Navigation function is very important to be built through your website.
  4. Social media platforms are very useful for your B2B marketing.
  5. Mobile device is also the way to prompt your website and be convenient to buyers.
  6. Corresponding advertisement through Google, Bing and Yahoo so that oversea buyers know about it.

 

There is a classic B2B trade platform in China as sinosources with good operation and management, now it has been great and famous trade platform around East Europe, Southeast Asia and other areas around the world.