CHAPTER 6: E-Business & E-Commerce
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Transcript of CHAPTER 6: E-Business & E-Commerce
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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
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E-Commerce Business Strategies
Differentiated based on levels of physical / virtual presence
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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)
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Ingredients of an E-Business Model
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Common Revenue Models for EC
Most important ingredient of a business model How will the firm earn revenue?
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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
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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
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B2C: Search Engine Advertising
Problem: Getting listed in search engine results
Solution: Sponsored
search (Paid inclusion)
Search engine optimization to influence order
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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”
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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)
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Business-to-Business E- Commerce
The Internet has changed everythingPrimarily three models
Sell-side Marketplace Buy-side Marketplace Electronic Exchanges
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Trading Mechanisms in E-Commerce
Bid price
Time
Bid price
Time
Forward Auction
Reverse Auction
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B2B Sell-Side Marketplace
Key mechanisms: electronic catalogs and forward auctions
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B2B Buy-Side Marketplace
Key mechanism: reverse auctions
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Electronic Exchanges
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E-Exchange Example: VertMarkets (Vertical Exchange)
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E-Exchange Example: Alibaba.com (Horizontal Exchange)
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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
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