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Chapter 3

Chapter 3. By Dr. Robert Chi Department of Information Systems College of Business Administration California State University, Long Beach. Internet Models Internet Travel Books Trade

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Chapter 3

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  1. Chapter 3 By Dr. Robert Chi Department of Information Systems College of Business Administration California State University, Long Beach

  2. Internet Models • Internet • Travel • Books • Trade • Auction • b. Intranet • Company’s internal website (CSULB) • Extranet • Between business partners

  3. Internet Economy • Infrastructure – AT&T • Network Applications Infrastructure - AOL • Intermediaries – Ebay • Intercommerce – Amazon • By 2006 ½ US jobs are internet related

  4. Terms • TCP/IP • ISP • Baseband • Broadband • - DSL • - ADSL • - Satellite • - Cable • c. Bandwidth • d. Router • e. Server

  5. Internet Services • E-Mail • -SMTP (Simple Mail Transfer Protocol) • - POP (Post Office Protocol) • b. FTP (File Transfer Protocol) • c. Telnet • d. WWW (World Wide Web)

  6. Web address • IP • DNS (Domain Name Services) • Domain names • .com, .net, .gov, .org, .us, .info • .uk, .jp

  7. Networked Economy • Competition across Industry Boundaries • Competitions are occurring in a very fast pace • Competition occurs between Alliances • Consumer behavior is still in the early stage • Industry value chains are being configured

  8. Step Framework • Investigate opportunity in an existing or new value system • Basic value types • 1. Trapped value • Efficient markets • Efficient value systems • 2. New to the world value • Mass customization • Virtual community • Voice over I.P • 2. Identify unmet or undeserved needs

  9. Determine target customer segments • Demographic – age, gender, ethnicity • Geographic – country, city • Behavioral – online/offline shopping • Occasion - routine/special occasion • Psycho graphic – Lifestyle • Benefits – convenience, economy, quality • Actionable and Meaningful • Actionable • - easy to identify • - readily reached • - can be described in growth, size, profile • Meaningful • - behave similarly

  10. Access resource requirements t deliver the offering Resources in 3 classifications - Customer facing - Internal - Upstream Modification from B & M world to online world 1. Physical world - Virtual/Physical world 2. Activities – Capabilities (what you are doing/what you can do) 3. Supply side- Demand side 4. Single system – Multiple system

  11. Assess Competitive , Technology, Financial attractiveness of opportunity • Competitive intensity • SWOT • - Strength • - Weakness • - Opportunities • - Threats • Customer Dynamics • - 1. Level/Magnitude of unmet need • - 2. Level of interaction • -3. Likely rate of growth • Technology vulnerability • a. Impact of the penetration of enabling technologies • b. Impact of new technologies on the value proposition • Microeconomics • a. Size/Volume of market (market size) • b. Projected level of profitability

  12. Go/ No – Go Assessment

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