Ecomerce Essay

1829 words - 8 pages

9/12/2011

Chapter 1
Overview of Electronic Commerce

© 2008 Pearson Prentice Hall, Electronic Commerce 2008, Efraim Turban, et al.

Learning Objectives
1. Define electronic commerce (EC) and describe its various categories. 2. Describe and discuss the content and framework of EC. 3. Describe the major types of EC transactions. 4. Describe the digital revolution as a driver of EC. 5. Describe the business environment as a driver of EC.
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Learning Objectives
6. Describe some EC business models. 7. Describe the benefits of EC to organizations, consumers, and society. 8. Describe the limitations of EC. 9. Describe the contribution of EC to organizations ...view middle of the document...

0 The second-generation of Internet-based services that let people collaborate and share information online in perceived new ways—such as social networking sites, wikis, communication tools, and folksonomies

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The EC Framework, Classification, and Content

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The EC Framework, Classification, and Content

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Digital Revolution Drives EC
 digital economy An economy that is based on digital technologies, including digital communication networks, computers, software, and other related information technologies; also called the Internet economy, the new economy, or the Web economy
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Digital Revolution Drives EC

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Business Environment Drives EC
 The Business Environment
The business environment impact model Business pressures Organizational response strategies

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Business Environment Drives EC

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Business Environment Drives EC

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EC Business Models
 business model A method of doing business by which a company can generate revenue to sustain itself

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EC Business Models
 Six elements of a business model include descriptions of:
1. Customers to be served and the company’s relationships with these customers including customers’ value proposition 2. All products and services the business will offer 3. The business process required to make and deliver the products and services 4. The resources required and the identification of which ones are available, which will be developed in house, and which will need to be acquired 5. The organization’s supply chain, including suppliers and other business partners 6. The revenues expected (revenue model), anticipated costs, sources of financing, and estimated profitability (financial viability)

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EC Business Models
 revenue model Description of how the company or an EC project will earn revenue  value proposition The benefits a company can derive from using EC

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EC Business Models
 The major revenue models are:
Sales Transaction fees Subscription fees Advertising fees Affiliate fees Other revenue sources

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EC Business Models

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EC Business Models
 Functions of a Business Model
 Articulate a customer value proposition  Identify a market segment  Define the venture’s specific value chain structure  Estimate the cost structure and profit potential  Describe the venture’s positioning within the value network linking suppliers and customers  Formulate the venture’s competitive strategy

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EC Business Models
Typical EC Business Models
         Online direct marketing Electronic tendering systems. Name your own price Find the best price Affiliate marketing Viral marketing Group purchasing Online auctions Product and service...

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