CHAPTER 13 : E-BUSINESS

E BUSINESS

• Ø  The internet is a powerful channel that presents new opportunities for organization to;

§  Touch customers

§  Enrich products and services with information

§  Reduce costs

• Ø  How do ecommerce and e business differ?

§  Ecommerce – the buying and selling of goods and services over the internet

§  E business – the conducting of business on the internet including, not only buying and selling, but also serving customers and collaborating with business partners

E BUSINESS MODELS

• Ø  E business model – An approach to conducting electronic business on the Internet 

Business-to-Business (B2B)

Ø  Electronic marketplace (E market place) – interactive business communities providing a central market where multiple buyers and sellers can engage in e business activities.

Business-to-Consumer (B2C)

Ø  Common B2C e business models include;

§  E shop – A version of retail store where customers can shop at any hour of the day without leaving their home or office

§  E mall – consists of a number of e shops; it serves as a gateway through which a visitor can access other e shops

Ø  Business types;

§  Brick-and-mortar business

§  Pure-play business

§  Click-and-mortar business

Consumer-to-Business (C2B)

Ø  Priceline.com is an example of a C2B e business model

Ø  The demand for C2B e business will increase over the next few years due to customer’s desire for greater convenience and lower prices

Consumer-to-Consumer (C2C)

Ø  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

Ø  C2C communities include;

§  Communities of interest – People interact with each other on specific topics, such as golfing and stamps 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-to-one with Michael Jordan

EBUSINESS BENEFITS AND CHALLENGES

Ø  E business benefits include;

• §  Highly accessible
• §  Increased customer loyalty
• §  Improved information content
• §  Increased convenience
• §  Increased global reach
• §  Decreased cost

Ø  E business challenges include;

• §  Protecting consumers
• §  Leveraging existing systems
• §  Increased liability
• §  Providing security