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CHAPTER 6: E-Business & E-Commerce

CHAPTER 6: E-Business & E-Commerce. Overview of E-Business & E-Commerce Business-to-Consumer (B2C) E-Commerce Business-to-Business (B2B) E-Commerce Ethical and Legal Issues in E-Business. E-Commerce Business Strategies. Differentiated based on levels of physical / virtual presence.

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CHAPTER 6: E-Business & E-Commerce

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  1. CHAPTER 6: E-Business & E-Commerce Overview of E-Business & E-Commerce Business-to-Consumer (B2C) E-Commerce Business-to-Business (B2B) E-Commerce Ethical and Legal Issues in E-Business

  2. E-Commerce Business Strategies • Differentiated based on levels of physical / virtual presence

  3. Types of E-Commerce • Business-to-Consumer (B2C) • Business-to-Business (B2B) • Consumer-to-Consumer (C2C) • Business-to-Employee (B2E) • E-Government • Mobile Commerce (m-commerce)

  4. Ingredients of an E-Business Model

  5. Common Revenue Models for EC • Most important ingredient of a business model • How will the firm earn revenue?

  6. Benefits of E-Commerce • To Organizations • Expanding markets and product offerings • Lowering costs of transactions • To Customers • Access a vast number of products and services around the clock (24/7) • Mass customization (made-to-order) • Disintermediation

  7. Business-to-Consumer E-Commerce • a.k.a. Electronic Retailing or E-tailing • Allow price comparisons • Challenges: • Order fulfillment and Time lags • Lack of sensory experience • Lack of social contact • Concerns about fraud and security

  8. B2C: Search Engine Advertising • Problem: Getting listed in search engine results • Solution: • Sponsored search (Paid inclusion) • Search engine optimization to influence order

  9. Search Engine Optimization • Position within search results based on complex formula • Site owner has no control over the position of the ad • Optimization based on • Web site updates • Use of key terms • Unethical “tricks”

  10. Business-to-Business E-Commerce • Started as early as 1960’s with EDI – Electronic Data Interchange • transmission of electronic business forms between organizations via private, value-added networks (VANs)

  11. Business-to-Business E- Commerce • The Internet has changed everything • Primarily three models • Sell-side Marketplace • Buy-side Marketplace • Electronic Exchanges

  12. Trading Mechanisms in E-Commerce Forward Auction Bid price Bid price Reverse Auction Time Time

  13. B2B Sell-Side Marketplace Key mechanisms: electronic catalogs and forward auctions

  14. B2B Buy-Side Marketplace Key mechanism: reverse auctions

  15. Electronic Exchanges

  16. E-Exchange Example: VertMarkets(Vertical Exchange)

  17. E-Exchange Example: Alibaba.com (Horizontal Exchange)

  18. Ethical and Legal Issues in Electronic Commerce • Privacy • Cybersquatting • Internet Taxation • No sales taxes paid in states where the company has no presence • Net Neutrality • Data sent over the Internet is handled in a neutral manner

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