The Internet is a powerful channel that presents new
opportunities for an organization to:
· Touch
customers
· Enrich
products and services with information
· Reduce
costs
E-Commerce & E-Business
How do e-commerce and e-business differ?
· E-commerce
– the buying and selling of goods and services over the Internet (online
transactions)
· E-business
– the conducting of business on the Internet including, not only buying
and selling, but also serving customers and collaborating with business
partners (online transactions, serving customers and collaborating with
business partner)
Industries Using E-Business
E-business model – an approach to conducting electronic
business on the Internet
Business-to-Business (B2B)
· Electronic
marketplace (e-marketplace) – interactive business communities providing a
central market where multiple buyers and sellers can engage in e-business
activities
Electronic marketplace (e-marketplace)
Electronic marketplaces, or e-marketplaces, present
structures for conducting commercial exchange, consolidating supply chains, and
creating new sales channels
Their primary goal is to increase market efficiency by
tightening and automating the relationship between buyers and sellers
Existing e-marketplaces allow access to various mechanisms
in which to buy and sell almost anything, from services to direct materials
Electronic Marketplaces
Search Engine Marketing
Business-to-Consumer (B2C)
· Common B2C
e-business models include:
Ø e-shop – a version of a retail store where
customers can shop at any hour of the day without leaving their home or office
Ø e-mall – consists of a number of e-shops; it
serves as a gateway through which a visitor can access other e-shops
Ø Example: TudungRuffle
Business types:
Ø Brick-and-mortar
business- operates in a physical store without an Internet presence.
Eg: Bata.
Ø Pure-play
business- a business that operates on the Internet only without a
physical store.
Ø Click-and-mortar
business– a business that operates in a physical store and on the
Internet .Eg: Hijabs by Hanami
Amazon.com
Consumer-to-Business (C2B)
· Priceline.com
is an example of a C2B e-business model
· The demand
for C2B e-business will increase over the next few years due to customer’s
desire for greater convenience and lower prices
Priceline.com
Agoda.com
Consumer-to-Consumer (C2C)
Online auctions
-Electronic auction (e-auction) - Sellers and buyers
solicit consecutive bids from each other and prices are determined dynamically
-Forward auction - Sellers use as a selling channel to
many buyers and the highest bid wins
-Reverse auction - Buyers use to purchase a product or
service, selecting the seller with the lowest bid
Consumer-to-Consumer (C2C)
C2C communities include:
-Communities of interest - People interact with each
other on specific topics, such as golfing and stamp collecting
-Communities of relations - People come together to
share certain life experiences, such as cancer patients, senior citizens, and
car enthusiasts
-Communities of fantasy - People participate in
imaginary environments, such as fantasy football teams and playing one-on-one
with Michael Jordan
E-Bay
mudah.my
E-Business Benefits
include:
Ø Highly accessible
Businesses can operate 24 hours a day, 7 days a week, 365
days a year
Ø Increased customer loyalty
Additional channels to contact, respond to, and access
customers helps contribute to customer loyalty
Ø Improved information content
In the past, customers had to order catalogs or travel to a
physical facility before they could compare price and product attributes.
Electronic catalogs and Web pages present customers with updated information in
real-time about goods, services, and prices
Ø Increased convenience
E-business automates and improves many of the activities
that make up a buying experience
Ø Increased global reach
Businesses, both small and large, can reach new markets
Ø Decreased cost
The cost of conducting business on the Internet is
substantially smaller than traditional forms of business communication
E-Business Challenges
include:
Ø Identifying Limited Market Segments
The main challenge of e-business is the lack of growth in
some sectors due to product or service limitation.
Ø Managing Consumer Trust
Internet marketers must develop a trustworthy relationship
to make that initial sale and generate customer loyalty.
Ø Ensuring Consumer Protection
Implement Internet Security, protect from misuse of customer
information.
Ø Managing Consumer Trust
Companies that operate online must obey a patchwork of rules
about which customers are subject to sales tax on their purchase and which are
not.
E-Business Benefits and Challenges
There are numerous advantages and limitations in e-business
revenue models including:
· Transaction
fees
· License
fees
· Subscription
fees
· Value-added
fees
· Advertising
fees
Mashups
Web mashup - a Web site or Web application that uses
content from more than one source to create a completely new service
· Application
programming interface (API) - a set of routines, protocols, and tools for
building software applications
· Mashup
editor - WSYIWYGs (What You See Is What You Get) for mashups
Web Mashups
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