CHAPTER 13 : E-Business

14.1  Compare e-commerce and e-business

14.2  Compare the four types of e-business

       models

14.3  Describe the benefits and challenges

       associated with e-business

14.4  Explain the differences among e-shops, e-

       malls, and online auctions

v 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

v 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


-retail

-manufacturing

-travel

-healthcare



Business-to-Business (B2B)

v 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)

v Electronic marketplaces, or e-marketplaces, present structures for conducting commercial exchange, consolidating supply chains, and creating new sales channels

v Their primary goal is to increase market efficiency by tightening and automating the relationship between buyers and sellers

v Existing e-marketplaces allow access to various mechanisms in which to buy and sell almost anything, from services to direct materials

Business-to-Consumer (B2C)

v Common B2C e-business models include:

§e -shop – a version of a 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

Business-to-Consumer (B2C)

v Business types:

§Brick-and-mortar business- operates in a physical store without an Internet presence. Eg: Bata.

§Pure-play business- a business that operates on the Internet only without a physical store. Examples include fashionvalet.com.

§Click-and-mortar business– a business that operates in a physical store and on the Internet .Eg: Hijabs by Hanami

Consumer-to-Business (C2B)

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

v 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)

v 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)

v 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-Business Benefits and Challenges

v There are numerous advantages and limitations in e-business revenue models including:

§Transaction fees

§License fees

§Subscription fees

§Value-added fees

§Advertising fees