Group no 4
Madiha Jabeen (23) Aisha Akram (01) Madiha Latif (24) Fehmida Akram (11) Naveed Qamar (44)
4 4

The advent of this Internet-based electronic commerce has given businesses an unprecedented marketing opportunity. Despite the economic slowdown, this increased e-commerce activity has translated in growing online sales revenue.

We are in the midst of a social, business, and cultural revolution. This revolution was enabled and accelerated by technology change. At the center of this change is the Internet, and, more specifically, e-commerce.

“An electronic transaction is the sale or purchase of goods or services, whether between businesses, households, individuals, governments, and other public or private organizations, conducted over computer mediated networks. The goods and services are ordered over those networks, but the ultimate delivery of the goods or service may be conducted on or off-line.”

Development of e-commerce
Factors need to be considered when dealing with e-commerce support/development: c) d) e) web models the type of merchandise that is being offered the information that will be made available to the user of the e-commerce system and its role in the business model

web models
1. 2. Pure-web play model where E-commerce plays only the role of an intermediary between server and buyers. E-commerce portal combined with their own delivery system, which can be considered a counterpart to the standard store-chains except that points of sale exist only on the Web. Click-an-mortar business model, where the e-commerce presence is developed as an extension to the physical store (-chain) presence.


type of merchandise Physical commodities (cloths,
stereo equipments)
– Direct contact with the merchandiser is typically considered as part of the purchasing process

Virtual commodities (tickets for
sporting events)
– No physical contact with the merchandiser is required.

Information • Direct sales related advertising • Indirect advertising • “value-added” information

 Amazon.com, Inc. is an American ecommerce company in Seattle, Washington.  It is America's largest online retailer.  Founded by Jeff bezos in 1994  Started as online bookstore.

• Amazon.com sells lots and lots of stuff. • DVD's. music online. video games,

software, home improvement products, and gifts.
• Besides its tremendous product range, Amazon makes every possible attempt to customize the buyer experience.

Both retailers and individual sellers utilize the Amazon.com platform to sell goods. Large retailers like Nordstrom and Target use Amazon.com to sell their products in addition to selling them through their own Web sites.

The sales go through Amazon.com and end up at Nordstrom.com, or Target.com for processing and order fulfillment. Amazon essentially leases space to these retailers, who use Amazon.com as a supplemental outlet for their online sales.

E-commerce portals combined with their own delivery systems • Amazon sales channel called Amazon Advantage is a place where people can sell new books, music and movies directly from the Amazon warehouse instead of from their home or store. • Sellers ship a number of units to Amazon, and Amazon handles the entire sales transaction from start to finish.

Amazon has four software development centers worldwide. These units are constantly creating new features for Amazon.com and developing the technology to support them.

Expanded Geographical Reach and Expanded Customer Base • E-commerce helps organizations to market their goods and services internationally, nationally and locally Easy access to

Reduction of Marketing and Advertising Costs Reduction in costs of distribution Reduced administration overhead

Costs of creating the product Cost of determining product availability (inventory management). Low costs of storing information and lower telecommunication costs.

It minimizes Supply Chain inefficiencies i.e.  reduces inventories  reduces delivery delays  enables efficient eprocurement.

Benefits to organizations that use e-Commerce with their business partners i.e. manufacturers and service companies

Benefits to organizations that use eCommerce with…….

Through EC organizations can build more collaborative and stronger relationships with suppliers. This includes streamlining and automating the

Benefits to organizations that use eCommerce with…….

 selling   direct marketing   fulfillment   procurement  replenishment and   customer

Consumers can buy when they want from more locations. More choices and when you have more choices you can decide on a product with better features at a more competitive price. Quicker delivery

Customer can receive more information about the product, make a more informed decision. More information also leads to enhanced customer satisfaction because the customer has a better idea how to use the product.

• E-commerce can help to realize customer needs and help to provide new and better products or services. • One of the important drivers for an organization to adopt e-commerce is the demand from its supply chain members. • As a result of adopting e-commerce across the supply chain pipeline, organizations are able to create linkages with suppliers, service providers, and customers

• Equipped with richer information about downstream markets, e-business can improve firm’s responsiveness to market dynamics and help to expand sales channels hence enhance revenue opportunity

Government Incentives
E-government can take the form of various online transactions such as company registration, taxation, and applications for a variety of employee- and business-related requirement. Government can disseminate information about e-business policies, best practice and obstacles in order to facilitate ecommerce adoption.

Organizations want to adopt e commerce:  To improve coordination with Customers  To cope with intense global Competition  To enter new businesses or market  To expand market for existing Products/service  For digital convergence ( digitalization of traditional

Key issues
 Low education level for developing countries  Infrastructure bottleneck  Legal and regulatory obstacles to private business and international trade

Key issues…………. Organization inability to utilize net capabilities Lack of Security in financial transaction Lack of trust in virtual sellers

Key issues…………. Low bandwidth connections Limited Internet/computer experience customer fear of personal information being used wrongly
 privacy issues

Key issues…………. lack of trust and user resistance
 fear of payment information being unsecure

linguistic challenges limitations of support services
 financial cost  sourcing tech support in foreign languages

Key issues………….
 higher employee training required to be click and mortar   people's resistance to change   people not used to  faceless / paperless / nonphysical

key inhibitors
Organizational Resource
Organizational inability to utilize Internet capabilities The lack of experience Management support to motivate staff Insufficient investments Knowledge barriers

key inhibitors……..
Business Environment
Security and trust are major impediments for organizations Problems relating to security Consumers concerns

key inhibitors…………
Legal Policies:
Legal protection for Internet purchase Lack of specific laws governing Internet banking and internet purchases Lack of supporting law about electronic documents as legal evidence

Other Inhibitors……

 Lack of trust/confidence among supply chain members  Credit card use in the country

key inhibitors…………..
Culture (resistance to change) Trust Technophobia Internet access still limited

Weaknesses of General E commerce Infrastructure  The greatest weakness is, there is no interaction between Customer database and Supply Module so current customers’ behavior is neglected in existing infrastructure’s resource allocation which is a big question mark.  The whole infrastructure is based on current and historical analysis of customers’ data so minor manipulation attack can wobble the whole infrastructure.

Weaknesses of General E commerce Infrastructure
There should be visitors’ behavior analysis {why he/she didn’t purchase? They were just surfers or just return back / drop the item in registration phase configurations due to security reasons?} Download delays as it is a major problem in case of digital products due to heavy traffic. Language problem Improper handling of customers’ complains

Concept of Postponement Assuring the database security by using firewalls Visitors’ Behavior analysis software Download accelerator {Region wise division} Language converter Software Email Management system

7. Customer data stowing


8. Current data analysis

Regional Language Converter Postponement

14. Markets scouting 15. Business partner selection 17. Sale strategy generation 16. Supply function


5. Customer data registration 6. Data preparation


10. Commodity and transaction registration 11. Current data analysis 2. Customer identification 3. Support strategy selection

Visitors Behavior analysis


Download Accelerator for digital products

12. Data archive(s) creation / modification 13. Data archive analysis

8. Transaction’s service 9. Transaction realization



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