Copyright: What Creators and Users of Art Need to Know
E-COMMERCE
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5. 7 unique features of e-commerce and its significance Ubiquity It is available just about everywhere, at all times, making it possible to shop from your desktop. Global reach Permitting commercial transactions to across cultural and national boundaries far more conveniently and cost-effectively. Universal standard Shared by all nations around the world. Information richness Complexity and content of a message
6. -Interactiveallows for two way communication between merchant and consumer and enable the merchant to engage a consumer.-Information densityThe total amount and quality of information available to all market participants.-Personalization and customizationMerchants can target their marketing messages to specific individuals by adjusting the messages to a person’s name, interest, and past purchases
13. example, Amazon.com is a general merchandiser that sells consumer products to retail consumers
14. 7 different B2C business models * portals * online retailers * content providers * transaction brokers * market creators * service providers * community providers
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16. other activity, includes purchasing and procurement, supplier management, inventory management, channel management, sales activity, payment management, and service and support
21. Mobile consumers can conduct many types of transaction, including stock trade in store price comparisons, banking, travel reservations, and more
22. M- commerce is used most widely in Japan and Europe especially Finland
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25. Second, the executive must possess with knowledge in variety disciplines, including marketing, logistics, accounting and finance.
26. Third, the senior manager must expertise in technology sophistication and media knowledge.
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28. THE ROLES AND RESPONSIBILITIES OF A SENIOR E-COMMERCE MANAGER 3) Location in the Organization ). ).
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30. 5 Challenges For Senior Leadership In Today’s Environment a) Understanding customer evolution * customer behaviour evolves * firms anticipate the features and functions that matter most to target customer * firm must invest ahead of the customer tastes to produce a product or service that matches the evolution of the market.
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33. particularly true of “customer- facing ” activities such as adverting, branding, retail and online store design, service, warranties, and returns.
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35. the executive must realign the resource system of the firm in advance of these trends
38. A) Improving Marketing And SalesTraditional direct marketing is done by mail order (catalogs) and telephone (telemarketing).Bloch et al. (1996), Kioses et. al. (2006), and Singh (2006) describe the following impacts of e-marketplces on B2C direct marketing:
39. a) Product promotionb) New sales channel. c) Direct savingsd) Reduced cycle timee) Improving customer servicef) Brand or corporate imageg) Customizationh) Advertisingi) Ordering systemsj) Accessibilityk) Market operations
40. B) Transforming Organizations Two key of this impact are technology and organizational learning and the changing nature of work.
41. i)Technology and Organizational Learning offer them an opportunity to experiment with new products, services, and business models, which may lead to strategic and structural changes
42. ii) The Changing Nature of Work creating new opportunities and new risks and is forcing people to think in new ways about jobs, careers, and salaries. The Digital Age company will have to view its core of essential workers as its most valuable asset.
43. C) REDEFINING ORGANIZATIONS There are two ways to redefining organizations which is: a) new and improved product capabilities, b) new industry order and business models.
44. i) New and Improved Product Capabilities E-markets allow for new products to be created and for existing products to be customized in innovative ways. -Such changes may redefine organizations’ missions and the manner in which they operate.
45. ii) New Industry Order and Business Models- E-market affects not only individual companies and their products, but also entire industries (e.g., airlines are moving to electronic ticketing and stocks are moving to online trading)- The wide availability of information and its direct distribution to consumers will lead to the use of new business models (e.g., the name-your-own-price model of Priceline.com).
46. PORTER’S COMPETITIVE FORCES MODEL (2001)Competitive Forces Model-Model devised by Porter that says that five major forces of competition determine industry structure and -how economic value is divided among the industry; -analysis of these forces helps companies develop their competitive strategy.
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48. 1) Threat of substitute products or servicesPositive impact: the internet can expand the size of the market. Negative impact: The proliferation of Internet approaches creates new substitution threats.
49. 2) Bargaining power of buyersPositive impact: Eliminates powerful channels or improving bargaining power over traditional channels.Negative impact: a) Shifts bargaining power to end consumers.b) Reduces switching costs.
50. 3) Barriers to entryNegative impact:a) Internet applications are difficult to keep proprietary from new entrants.b) A flood of new entrants has come into many industries.c) Reduces barriers to entry
51. 4) Rivalry among existing competitorsNegative impact:a) Migrates competition to priceb) Widens the geographic market, increasing the number of competitors.c) Lowers variable cost relative to fixed cost, increasing pressures for price discounting.d) Reduces differences among competitors as offerings are difficult to keep proprietary.
52. 5) Bargaining power of suppliersNegative impact:a) Procurement using the Internet tends to raise bargaining power over suppliersb) The Internet provides a channel for suppliers to reach end users, reducing the intervening companies.c) Internet procurement and digital markets tend to give all companies equal access to suppliers, and gravitate procurements to standardized products that reduce differentiation. d) Reduces barriers to entry and the proliferation of competitors downstream shifts power to suppliers.
54. BenefitsBenefits to Organizations Global reachLocating customers and/or suppliers worldwide, at reasonable cost and fast.Cost reductionLower cost of information processing, storage, distribution.Supply chain improvementsReduce delays, inventories, and cost.Customization /PersonalizationMake it to consumer’s wish, fast and at reasonable cost.Sellers specialization (niche market)Seller can specialize in a narrow field (e.g. dog toys), yet make money.
55. Lower communication costThe internet is cheaper than VAN private lines.Fewer permits and less taxMay need fewer permits and be able to avoid sales tax.Business always openOpen 24/7/365; no overtime or other cost.Up-to-date company materialAll distributed material is up-to-date.Efficient procurementSaves time and reduces cost by enabling e-procurement.Lower inventoriesUsing customization inventories can be minimized.Rapid time-to-market and increased speedExpedite processes; higher speed and productivity.
56. Benefits to Consumers UbiquityCan shop anytime from any place.More product/servicesLarge selection to choose from (vendor, products, styles).Customized products/servicesCan customize many product and/or services.Cheaper products/ servicesCan compare and shop for lower prices.Instant deliveryDigitized products can be downloaded immediately upon payment.
57. Information availabilityEasy finding what you need, with details, demos, etc.Convenient auction participationDo auctions anytime and from any place.Enable telecommutingCan work or study at home.Electronic socialization Can socialize online in communities yet be at home.Find unique itemsUsing online auctions, collectible items can be found.
58. Benefits to Society Increased Standard of LivingCan buy more and cheaper goods/services.Close the digital divideAllow people in developing countries and rural areas to accept more services and purchasing what they really like.More public servicesMake education, health, etc., available for more people. Rural area can share benefits; more services for the poor.Enable telecommutingFacilitate work at home; less traffic, pollution.
59. Limitations A) Technological Limitations1) Lack of universal standards for quality, security, and reliability.2) The telecommunications bandwidth is insufficient, especially for m-commerce. 3) Software development tools are still evolving.
60. 4) Special Web servers are needed in addition to the network servers, which add to the cost of EC. 5) Internet accessibility is still expensive and/or inconvenient.6) It is difficult to integrate Internet and EC software with some existing (especially legacy) applications and databases.7) Other fulfillment of large-scale B2C requires special automated warehouses.
61. B) Nontechnological Limitations1) Security and privacy concerns deter customers from buying.2) Lack of trust in EC and in unknown sellers hinders buying.3) People do not yet sufficiently trust paperless, faceless transactions.4) Many legal and public policy issues, including taxation, have no yet been resolved or are not clear.5) National and international government regulations sometimes get in the way.
62. 6) It is difficult to measurement some of the benefits of EC, such as online advertising. Mature measurement methodologies are not yet available.7) Some customers like to feel and touch products. 8) Online fraud is increasing.9) It is difficult to obtain venture capital due to the failure of many dot.coms.10) In many cases, the number of sellers and buyers that are needed for profitable EC operations is insufficient.
63. Conclusion E-commerce is generating thousands of new jobs for young managers in all fields from marketing to a management, entrepreneurial studies, and information systems. E-commerce and Internet technologies have important social consequences which mean E-commerce has challenged our concepts of privacy, intellectual property, and even ideas about national sovereignty and governance.
![DEFINITION OF E-COMMERCE E-commerce is characterized by several attributes: ,[object Object],-This information exchange can represent communication between two parties, coordination of the flows of goods and services, or transmission of the electronic orders. ,[object Object],-E-commerce is about technology-enabled transactions. -The use of internet browsers in the World Wide Web is perhaps the best known of these technology-enabled customer interfaces.](https://image.slidesharecdn.com/mgmpowerpointnew-090926143225-phpapp01/85/E-COMMERCE-1-320.jpg)
![DEFINITION OF E-COMMERCE E-commerce is characterized by several attributes: ,[object Object], -The focus is moving away from the simply technology-enabled transaction to a technology-mediated relationships. -The transaction is mediated not so much through human contact but largely by technology. ,[object Object], -The scope of e-commerce including all electronically based intra and interorganizational activities that directly or indirectly support marketplace exchanges..](data:image/gif;base64,R0lGODlhAQABAIAAAAAAAP///yH5BAEAAAAALAAAAAABAAEAAAIBRAA7)