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Fahad Farhan Ali Zubair Khokhar M.Saad
A production of FASTian Students @ 2007
Fahad Farhan Ali Zubair Khokhar M.Saad
To our Marvelous Teacher Simon John Sir
E-commerce Classification……………………………… B2B B2C C2B B2E C2C 4..Concept of Ecommerce………………………………… Definition Explanation Characteristics 2.Table of Contents 1. .History of Ecommerce………………………………….Advantages/Disadvantages of Ecommerce……..E-commerce Players……………………………………… Internet Users Regulations Institutions 5. Concerning Technology Concerning Decisions/Foot Steps Concerning Transformation of IT A concise look at its Evaluation 3.
Farhan Ali helped us a lot on both review process and the book supplements.Problems regarding Ecommerce…………………… 8. cooperation. our team members scrutinized every aspects of the text and made countless suggestions for improving the accuracy and completeness of the report. We are fortunate to have been able to work on this report with talented and dedicated team members. Under tight deadlines..Success Factors in Ecommerce…………………….. Tariq answered our various queries and he is responsible for smooth flow of our report. This report happened because of the encouragement .Product Suitability……………………………………… … 9. M. criticisms. Fahad helped us to operate Adobe Photoshop CS and dedicated his time for finding quality information from internet. We owe special thanks to the creativity and ideas of Zubair Khokhar who suggested all the art work for our report title and cover. friend-ship and understanding were crucial to the production of this report. correctness and suggestions for improving the report. Please address all correspondence to: . as he is responsible for the auditorium selection and booking.Saad Siddiqui has done a great work for presenting of our report. E-commerce Standards Impact of Broadband Software as Services Acknowledgments One of the great pleasures of writing a report is acknowledging the efforts of people whose hard work.Future of Ecommerce…………………………………. 7.6. We will sincerely appreciate your comments. enthusiasm and persistence of our parents.
its pillars. As a glance at Table of Contents will show. This report is suitable as a supplement to existing texts or as a guide to study.com Well. This report presents from basic concepts of E-commerce to the impact and importance of dreams in our daily life. Our report “E-commerce – An Introduction” provides a detailed view about E-commerce. all important topics in the subject are covered. importance. and there are many accompanying examples and illustrations to clarify the material. We hope that you will enjoy this look at contemporary report of e-commerce. that is it for now.virtualspidy@yahoo. Welcome to the exciting world of ecommerce and its impact on the growing population of world. problems and significance in future. We hope that you will find this report quite helpful and interesting. Group Members Fahad Farhan Ali Zubair Khokhar M. It can be used both as a reference and as a tool for learning about e-commerce or improving your knowledge of the subject.Saad Siddiqui Muhammad Tariq Preface E-commerce have been a topic of study since quite long ago. Group Members Fahad Farhan Ali .
To better understand what E-Commerce is all about. to understand ecommerce from a broad perspective. According to Person Halls book E-commerce started in 1994 with the first banner ad being placed on a website. It is essential for organizations. reserve a hotel room. It is one of the most important aspects of the internet to emerge.Zubair Khokhar M.Saad Siddiqui Muhammad Tariq Introduction E-commerce is actually short form of “Electronic COMMERCE”. an airline ticket to London. or do business with your suppliers? . Any time of the day or night. to learn the basics of underlying technology. you can go online and buy almost anything you want. to assess the impact of the technology on business processes. and changes the way consumers make their purchase decisions. large or small. The Internet continues to change every aspects of our life. to foresee how the Internet may shape the course of the future in our everyday life and business word. It allows people to exchange goods and services immediately and with no barriers of time or distance. and to fully enjoy the benefits of electronic ecommerce in their business practices. think about it! Want to buy a CD for your spouse? Send a greeting card and chocolates? Or a car perhaps? Buy a concert ticket or better yet.
Then go online. check. It’s that simple! It’s all about doing business online the E-commerce way. Soon enough. and will ask you for your name. According to a CNN Opinion Poll. 1998 issue (Asian Edition). Bank of America and Wells Fargo are now giving their clients accessibility to their bank accounts via the web. . it’s about anything and everything to do with money. you head to the virtual checkout counter. When a visitor wants to buy something he/she likes. E-Commerce is not about just online stores. If you are paying via cash. and if you are feeling hungry. access the local restaurant and order dinner right on internet. banks in Pakistan would be following suit. It’s that simple. E-Commerce is about setting your business on the Internet. you can then just wait for delivery. etc. Items in the virtual shopping basket can be added or deleted. and method of payment e. which has your complete total. allowing visitors to access your website. they merely. Days are not far away when while living in Pakistan.com" in its December 7. address etc. and go through a virtual catalog of your products/services online. 62% of respondents who were surveyed said they plan to shop online during the Christmas season.g. E-Commerce is about to make an introduction into your life soon. etc. The title was "Why Online Stores are the Best Thing since Santa Claus". "add" it to their virtual shopping cart/basket. via credit card etc. Newsweek devoted its front page story to "shopping. credit card. you would be able to order and reserve your request for a movie at the local video store and be able to browse through various titles. Once you have entered all this information which by the way is being transmitted securely. Banks like. and when you're all set to checkout.
online marketing. E-commerce (also referred to as e-commerce. at some point in the transaction's lifecycle. electronic data interchange (EDI). it can involve electronic funds transfer. in this context. eCommerce. supply chain management. buying. selling. Explanation : Electronic Commerce is exactly analogous to a marketplace on the Internet. Electronic commerce typically uses electronic communications technology of the World Wide Web. The information technology industry might see it as an electronic business application aimed at commercial transactions. online transaction processing. although of course electronic commerce . marketing and servicing of products or services over electronic systems such as the Internet and other computer networks. ecommerce. e-marketing. and automated data collection systems. automated inventory management systems.Section # 01 Concept of E-commerce Definition : E-commerce (electronic commerce or EC) is the buying and selling of goods and services on the Internet/Phone/Electronic devices. Electronic commerce or EC) consists primarily of the distributing.
Send Messages Faster and Cheaper When you send a message. the message is likely to arrive at its destination. share. Electronic Business. such as transportation for physical goods sold via ecommerce. letter. however. can be emailed to you as an attachment for your approval. reliable and cheap eCommerce communications. Introduce Collaborative Working With fast. and in new ways. can be converted into data and sent as email attachments or presented on a web site. Moreover. etc. and e-mail. photographs. Think of the possibilities for saving time and money with email. Characteristics : Exchange and Share Data Across the World Text messages. There are no postage. to use collaborative working practices to manage. music. use this new communications method to work quicker. purchase order.frequently depends on computer technologies other than the World Wide Web. video. The distinction between Ecommerce and E-business has become blurred. with customers and suppliers outside of your locality or country. . So. brochure. printing and packaging costs with eCommerce communications. and enhance the project work. customers. it is possible for colleagues. it is sent for zero cost to all the people to whom it has been addressed. suppliers and partners. The concept has been broadened to include all business activities of a sales cycle. graphics. you only pay for the Internet access. depending on the size of the email and its attachments. Ecommerce and Electronic Commerce has been used interchangeably. documents. in a matter of seconds or minutes. Approve and Proof Work Quickly A quotation. regardless of location where they are at a particular instance. or advert colour proof. and on other non-computer technologies. design drawings. As soon as the message arrives at your ISP. such as databases. Using email in this way can dramatically speed-up the turn-around of work between you and your business contacts. and much more. has not been a widely accepted terminology.
Use the Internet to Improve Business Administration With a mobile phone connected to a portable computer. for administrative tasks such as invoicing. etc) on to a web site and enable it to be viewed and edited in real-time through the Internet. out of the country. cheap.Update Employees Instantly With New Policies or Procedures Email and messengers etc. Providing remote Internet access for staff makes it possible for the latest information to be at hand. When training material is updated. which. time sheets. employees working off-site can access and update internal information. the latest version is immediately available. schedules. and expense claims etc. price lists. On-line learning facilities enable trainees living all over the world to access courseware when it is convenient to them. and without . on the other side of the world. employee whereabouts. Hold Web Meetings (Data Conferencing) A great way to have a virtual meeting is to upload a document (spreadsheets. and job reports. new business relationship have been established where work is exchanged between time zones at the end of one day. project plans. Take Advantage of Time Differences As eCommerce communications are so fast and low cost. There. Train on the Web The multi-media capabilities of web sites make them ideal for creating a virtual learning environment for employees and customers. such as customer records. and to update customers on order progress. Holding virtual meetings can save significantly on travel expenses and time. Send Out email Automatically Event-triggered emails can be used to acknowledge orders made on web sites. Alertemails or SMS messages can also be used to notify technical support of critical issues or maintenance problems.or teleworking. works well when communicating with colleagues/pals who are off-site. is the beginning of either the same or next day. and efficient ways of enhancing customer service and the brand experience. and many other similar applications. are effortless.
the 'commerce' refers to be traditional business models. to send commercial documents like purchase orders or invoices electronically. "electronic commerce" meant the facilitation of commercial transactions electronically. which in turn. In the 1970s and 1980s. . The cost savings can be huge if email is used instead. for example. usually using technology like Electronic Data Interchange (EDI) and Electronic Funds Transfer (EFT). saves time and expenses. The meaning of the term "electronic commerce" has changed over the last 30 years. E-commerce is the complete set of processes that support commercial business activities on a network. Originally. especially if a national or international call has to be made. The 'electronic' or 'e' in e-commerce refers to the technology/systems.having to travel to a training centre. Replace the Fax Machine and Save Money If a multi-page document has to be faxed to many people. where both were introduced in the late 1970s. Section # 02 History of E-commerce Concerning Technology E-commerce began before personal computers were prevalent and has grown into a multi-billion dollar industry. it can work out expensive on telephone bills. and the message can also be sent to multiple people for no extra cost.
the purchase of goods and services over the World Wide Web. from e-banking to offshore manufacturing to e-logistics. between 1998 and 2000. Concerning Decisions/Foot steps When the Web first became well-known among the general public in 1994. However. The emergence of e-commerce also significantly lowered barriers to entry in the selling of many types of goods. However. The ever growing dependence of modern industries on electronically enabled business processes gave impetus to the growth and development of supporting systems. two traditional supermarket chains. usually with secure connections (HTTPS. including backend systems. many "brick-and-mortar" retailers recognized that such companies had identified valuable niche markets and began to add e-commerce capabilities to their Web sites. Today. it came to include activities more precisely termed "Web commerce" . many journalists and pundits forecast that e-commerce would soon become a major economic sector.this would also have involved information analysis. from the 1990s onwards. supply-chain management software. applications and middleware. In the dot com era. automated teller machines (ATM) and telephone banking in the 1980s were also forms of e-commerce. customer relationship management software. a special server protocol that encrypts confidential ordering data for customer protection) with e-shopping carts and with electronic payment services. this would include enterprise resource planning systems (ERP). after the collapse of online grocer Webvan. accordingly . it took about four years for security protocols (like HTTPS) to become sufficiently developed and widely deployed. Although a large number of "pure e-commerce" companies disappeared during the dot-com collapse in 2000 and 2001. a substantial number of businesses in the United States and Western Europe developed rudimentary web sites. Examples are broadband and fibre-optic networks. both started e-commerce subsidiaries through which consumers could order groceries online. like credit card payment authorizations. The growth and acceptance of credit cards. Subsequently. data mining and data warehousing. inventory control systems and financial accounting software. it encompasses a very wide range of business activities and processes. For example. Albertsons and Safeway.
Large organizations have been investing in development of EDI since sixties. The web and telecommunication technology had fueled the stock bubble in the roaring 90s and eventually pushed NASDAQ over 5. EDI (Electronic Data Interchange) is widely viewed as the beginning of ecommerce if we consider ecommerce as the networking of business communities and digitalization of business information. which are the obstacles of EDI development.many small home-based proprietors are able to use the internet to sell goods. The Internet and the Web have overcome the technical difficulty of EDI. The Web became a popular mainstream medium (perceived as the fourth mainstream medium in addition to print.com. The Internet and the Web The Internet was conceived in 1969. the popularity of the Web is largely attributed to the low cost of access and simplicity of HTML authoring. small sellers use online auction sites such as EBay. The complexity of developing EDI applications limited its adaptation to a narrow user base. 3. Often. but it has not solved the problem of slow development of ecommerce standards. XML and Web Services Besides the availability of technical infrastructures. when the Advanced Research Projects Agency (a Department of Defense organization) funded research of computer networking. EDI has never reached the level of popularity of the webbased ecommerce for several reasons: 1. in order to take advantage of the exposure and setup convenience of such sites. radio and TV) in a speed which had never been seen before. 2. or sell via large corporate websites like Amazon. The Internet could end up like EDI without the emergence of the World Wide Web in 1990s. Concerning Transformation of IT EDI Some authors will track back the history of ecommerce to the invention of the telephone at the end of last century. High cost of EDI prohibited small businesses and medium-sized companies from participating in the electronic commerce. Slow development of standards hindered the growth of EDI.000 in 2000 before it crashed down to 1. It has not gained reasonable acceptance until eighties. The Web users and content were almost doubled every a couple of months in 1995 and 1996. .200 in 2002.
The U. There is no doubt that XML and the Web Services will shape the course of ecommerce in years to come. as a meta markup language. This guaranteed that companies would be able to complete transactions with one another reliably. Netscape arrived.S government extended the moratorium on Internet 2000 taxes until at least 2005. This prompts people to spend more time.com.com.XML. or Digital Subscriber Line. Two of the biggest names in e-commerce are launched: 1995 Amazon. was standardized 1984 through ASC X12. Web Services offers a flexible and effective architecture for the implementation. A concise look at its Evaluation Year Event EDI. or electronic data interchange. 1999 according to Business. Providing users a simple 1994 browser to surf the Internet and a safe online transaction technology called Secure Sockets Layer. . and money. provides fast. Retail spending over the Internet reaches $20 billion. 1992 This gives people the first chance to buy things off their computer. provides a development tool for defining format of data interchange in a wide variety of business communities. alwayson Internet service to 1998 subscribers across California. Compuserve offers online retail products to its customers.com and eBay. online. DSL.
The two businesses pass information electronically to each other. In the past EDI was conducted on a direct link of some form between the two businesses where as today the most popular connection is the internet.Business to Consumer . B2C .Section # 03 E-commerce Classification There are a number of different types of E-Commerce: B2B .Business to Business Business to Business e-commerce has been in use for quite a few years and is more commonly known as EDI (electronic data interchange). B2B e-commerce currently makes up about 94% of all e-commerce transactions.
Consumer to Consumer These sites are usually some form of an auction site.com. C2B . The intranet is usually accessed through the organisation's network. This form of e-commerce is more commonly known as an 'Intranet'. Other consumers access the site and place bids on the items. Harry places a submission with in a web based C2B facility. though it can and is often extended to an entrant who uses the Internet but restricts uses by signon and password.Business to Consumer e-commerce is relatively new to Australia. An intranet is a web site developed to provide employees of an organisation with information. Example: Harry is planning a holiday in Darwin. Due to it being a slow period. The wine is then dispatched from the suppliers warehouse and in theory is delivered to the consumer without delay. He requires a flight in the first week of December and is only willing to pay $250. the airline offers Harry a return fare for $250. In reality this site should be call C2B2C. This is where the consumer accesses the system of the supplier. Dodgy Brothers Airways accesses the facility and sees Harry's submission. B2E . C2C . It is still a two way function but is usually done solely through the Internet.au and follows the links to read a report on the recommended wines. After reading the tasting notes the user follows the links to place an order along with delivery and payment details directly into the merchants inventory system. The consumer lists items for sale with a commercial auction site.Consumer to Business Consumer to Business is a growing arena where the consumer requests a specific service from the business. The site then provides a connection between the seller and buyer to complete the transaction. The site provider usually charges a transaction cost.Business to Employee Business to Employee e-commerce is growing in use. The user accesses the Internet site http://www.craigs. . Example: A home user wishes to purchase some good quality wine.
Section # 04 E-commerce Players Basically. and the active user base is 253 millions world wide. . Internet Users 2. Institutions Internet Users: Size of the Internet users. • Global Internet Usage According to Nielsen/NetRatings. 2003. the size of the Internet universe is estimated about 416 million users for August. Regulations 3. Users spent 12 hours and viewed 900 pages a month on average. there are three players of E-commerce which are mentioned as follows: 1. usage patterns and user behaviors is worth observing during E-commerce.
Ecommerce. b) using search engines to search new information. CommerceNet CommerceNet is a neutral. Founded in 1994. XML messaging and defining the next generation of the Internet. Institutions: Institutions like World Wide Web Consortium. • Regulations: Government agencies and law enforcement etc. W3C has around 400 Member . while 51 millions of US Internet users (47 million users are considered active users) spent 26 hours to access 96 sites from work. play a vital role in communication and other respects. Within US. 2003. 182 millions of US Internet users (127 million users are considered active users) spent 26 hours to access 53 sites from home for August. The Web has no exception.• United States Internet Usage According to Nielsen/NetRatings. it has drastically increased the complexity of related law practice. also play an important role in E-commerce. ecommerce are governed by federal and state laws. non-profit consortium dedicated to advancing the growth of global electronic trade through business process interoperability and the creation of open Business Service Networks. The World Wide Web Consortium The World Wide Web Consortium was created in October 1994 to lead the World Wide Web to its full potential by developing common protocols that promote its evolution and ensure its interoperability. the following are the top three things they do on the Internet. Several organizations have been instrumental in shaping the course of the development of the Internet/Web and electronic commerce. a) accessing content on familiar sites. and c) online shopping and auction. like other business activities. commerceNet and IETF etc. CommerceNet has had a direct role in pioneering some of the industries first milestones including secure transactions. CommerceNet has been a trusted intermediary conducting industry-wide research and programs that have advanced the commercial use of the Internet. are governed by international and country-specific laws. While success of every new technology has made our life easier. Internet User Behaviors Internet users flock to the Web for many reasons.
and society. especially the Web. consumers. exploring new markets and opportunities. business now offer a wide range of choices and higher levels of customer information and details for individuals to search and compare. It is open to any interested individual. Wireless LAN. This breaks down geographic limitations. and reaches narrow markets that traditional businesses have difficulties accessing.organizations from all over the world and has earned international recognition for its contributions to the growth of the Web. Some build-to-order companies . The advantages of E-commerce will be divided into the benefits it provides to organizations. Advantages to Organizations Due to the global reach of the Internet. IEEE 802 LAN/MAN Standards Committee The IEEE 802 LAN/MAN Standards Committee develops Local Area Network standards and Metropolitan Area Network standards. and researchers concerned with the evolution of the Internet architecture and the smooth operation of the Internet. Section # 05 Advantages/Disadvantages of E-commerce Advantages: The advantages of E-commerce are basically increased sales and decreased costs through the use of electronical media. An individual Working Group provides the focus for each area. vendors. businesses organizations are able to send messages worldwide. operators. The most widely used standards are for the Ethernet family. Through the Internet. Token Ring. The Internet Engineering Task Force The Internet Engineering Task Force (IETF) is a large open international community of network designers. Bridging and Virtual Bridged LANs.
Extended trading hours is another benefit. 7 days a week in 365 days allows business always free to open on the Internet without overtime and extra cost. E-commerce provides customers with a platform to search product information through global markets with a wider range of choices. In terms of cost reduction. Public services such as health care. many service and products are now available which were unavailable in the past. In terms of online ordering and online auction organizations. Examples are e-books. Furthermore. which makes comparison and evaluation easier and more efficient. than by using television commercials or the print media. storing and retrieving information. individuals can nowadays work and do their purchasing at home rather than by traveling around. software. also benefit from E-commerce by the online payment system which supports the payment of tax refunds and pensions quickly and securely.such as Dell Computer Corp can even provide a competitive advantage by inexpensive customization of products and services. Cheaper goods and services is one of the benefits for consumers who purchase online. current inventories. education. distributing. delivery time and costs can be saved by buyers when they purchase digital goods and services. games. For . the 24 hours a day. Advantages to Consumers For customers. E-commerce helps organizations decrease costs in creating. evaluation and execution. music and audio clips. consumers are able to search for shops or perform other transactions anytime in almost location. including government services. the advantages occur in the buying process. Non-profit organizations. For example the communication and advertising costs could be lower by sending e-mails and using online advertising channels. This will result in less traffic and air pollution. and public social service also benefit from E-commerce. increased operating and trading flexibility. the costs could be lower than running an actual shop with the associated manpower. Other advantages includes the up-to-date company material. and distance education delivered via the Internet. Advantages to Society By telecommuting. With the ubiquity in accessing the Internet. improved customers service. processing. better customers communication. opportunities and higher education services are more achievable for students. product research. For people in Third World countries.
but avoids the low . and processes handle the proposed strategy? Have e-tailer's failed to develop employee and management skills? These issues may call for thorough resource planning and employee training. and clothing sold through the internet is big business in the U. Also.S. but lack the capability to compete with Amazon. age. the recycling program Cheapcycle sells goods over the internet. just as in non-electronic commerce. Overall. why they buy and how they buy. one of the main ones is fraud. These details can then be used to steal money from you and can be used to buy things on line that you are completely unaware of until it is too late. Even a product with a sound value proposition can fail if producers and retailers do not understand customer habits. expectations. and motivations. products that have a smell. Products less suitable for e-commerce include products that have a low value-to-weight ratio. industries and markets may mitigate some consequences here. e-commerce makes products and services more easily available without geographic limitations. This is where your details (name. If this information is leaked into the wrong hands. rural doctors and nurses can access professional information and the latest health care technologies. Inability to predict environmental reaction. Finally there are many problems with e commerce some of which are: Failure to understand customers. People are able to steal your identity.example. Failure to consider the competitive situation. Disadvantages: There are also many disadvantages of e-commerce. software. E-commerce could potentially mitigate this potential problem with proactive and focused marketing research. products that need trial fittings — most notably clothing — and products where colour integrity appears important. One may have the will to construct a viable book e-tailing business model. What will competitors do? Will they introduce competitive brands or competitive web sites? Will they supplement their service offerings? Will they try to sabotage a competitor's site? Will price wars break out? What will the government do? Research into competitors. and commit more fraud crimes under your name. hardware. Nonetheless. Overestimation of resource competence. or touch component. Tesco. just as traditional retailers may do. bank card number.com has had success delivering groceries in the UK. taste. Can staff. national insurance number) are entered into what look to be a safe site but really it is not. albeit that many of its goods are of a generic quality.
just like a flesh-and-blood retailer. graphics. Providing value to customers. . 2. The tasteful use of colour. userfriendly purchasing experience. animation. Section # 06 Success Factors in E-commerce Several factors have a role in the success of any e-commerce venture. Offering a responsive. Providing an attractive website. Vendors can achieve this by offering a product or product-line that attracts potential customers at a competitive price. may go some way to achieving these goals. as in non-electronic commerce. Providing service and performance. and white-space percentage may aid success in this respect. so that shipping costs remain low. 3. photographs. They may include: 1. fonts.value-to-weight ratio problem by creating different groups for various regions.
Constructing a commercially sound business model. Providing a sense of community. and the same view. many of the dot. Chat rooms. 9. and partners have a complete view. 13. 10. 11. 8. discussion boards. Cross-linked websites and advertising affiliate programs can also help.) Operating on or near the cutting edge of technology and staying there as technology changes (but remembering that the fundamentals of commerce remain indifferent to technology). Helping customers do their job of consuming. Owning the customer's total experience. 6. soliciting customer input. hardware redundancy. Engineering an electronic value chain in which one focuses on a "limited" number of core competencies -. and firewalls can enhance this requirement. suppliers. defined as ensuring that all employees. (Electronic stores can appear either specialist or generalist if properly programmed. E-tailers foster this by treating any contacts with a customer as part of a total experience. social and physical environment. Providing personal attention. Providing reliability and security. Personalized web sites. 15. special offers. Providing an incentive for customers to buy and to return.the opposite of a onestop shop. 5. Letting customers help themselves. of the customer. possibly through re-engineering and information technologies. . Providing a 360-degree view of the customer relationship. fail-safe technology. Sales promotions to this end can involve coupons. Setting up an organization of sufficient alertness and agility to respond quickly to any changes in the economic. loyalty schemes and affinity programs can help in this respect. 7. and personalized special offers may go some of the way to substituting for the face-to-face human interaction found at a traditional point of sale. Parallel servers. and discounts. If this key success factor had appeared in textbooks in 2000. 12. customers may not appreciate the big brother experience. information encryption. 16. 14.coms might not have gone bust. Provision of component information and safetyand-health comments may assist e-tailers to define the customers' job. However. an experience that becomes synonymous with the brand. easy to use without assistance.4. can help in this respect. Streamlining business processes. Provision of a self-serve site. purchase suggestions. E-tailers can provide such help through ample comparative information and good search facilities.
and motivations. . Even a product with a sound value proposition can fail if producers and retailers do not understand customer habits.Section # 07 Problems regarding E-commerce Even if a provider of E-commerce goods and services rigorously follows these sixteen "key factors" to devise an exemplary e-commerce strategy. just as traditional retailers may do. E-commerce could potentially mitigate this potential problem with proactive and focused marketing research. problems can still arise. why they buy and how they buy. Sources of such problems include: 1. expectations. Failure to understand customers.
Failure to follow a plan. and flexible organizational structure. and remedial realignments. industries and markets may mitigate some consequences here. This often results in a failure to gain sufficient corporate resources to accomplish a task. rewards for positive variances. If planners do not explain their strategy well to employees. Inability to predict environmental reaction. One may have the capability to construct a viable book e-tailing business model. and processes handle the proposed strategy? Have etailers failed to develop employee and management skills? These issues may call for thorough resource planning and employee training. Profitability may have to wait for the achievement of market share. 6. penalties for negative variances. 9. Basic project planning. critical path.com. 4. critical chain. and failure to understand the timing and sequencing of tasks can lead to significant cost overruns. Poor follow-through after the initial planning. or fail to give employees the whole picture. or PERT analysis may mitigate such failings.2. then training and setting up incentives for workers to embrace the strategy may assist. Setting up an ecommerce venture can take considerable time and money. 5. and insufficient tracking of progress against a plan can result in problems. Failure to consider the competitive situation. variance tracking. One may mitigate such problems with standard tools: benchmarking. just as in non-electronic commerce. It may help to get top management involved right from the start. Failure to obtain senior management commitment. Under-estimation of time requirements. What will competitors do? Will they introduce competitive brands or competitive web sites. Can staff. If existing reporting and control relationships do not suffice. 8. which may or may not aid coordination. Failure to coordinate. hardware. 3. one can move towards a flat. . milestones. Will they supplement their service offerings? Will they try to sabotage a competitor's site? Will price wars break out? What will the government do? Research into competitors. 7. Failure to obtain employee commitment. but lack the will to compete with Amazon. software. Over-estimation of resource competence. accountable.
Google. and financial transactions. photography. Paypal. software. and modification. communication. movies. and Morpheus. Examples of this type of company include: Schwab. Virtual marketers can sell some non-digital products/services successfully. eBay. including information storage. education.Section # 08 Product Suitability Certain products/services appear more suitable for online sales. music. Many successful purely virtual companies deal with digital products. Such products generally have a high value-to-weight . retrieval. others remain more suitable for offline sales. Egghead.
unsurprisingly. Products unsuitable for e-commerce include products that have a low value-to-weight ratio. products that have a smell. Products such as spare parts. for example by providing parts lists keyed by serial number. A factor for success in this niche can consist of providing customers with exact.ratio. Purchases of pornography and of other sex-related products and services fulfill the requirements of both virtuality or if non-virtual. Retailers often need to order spare parts specially. taste. also seem good candidates for selling online. The development and .in such cases. products that need trial fittings. or touch component. however. both for consumer items like washing machines and for industrial equipment like centrifugal pumps. and/or typically go to people in remote locations. but it has not solved the problem of slow development of ecommerce standards. and/or have shut-ins as their typical purchasers. provision of such services has become the most profitable segment of e-commerce. will be the efforts of solving the major problems we face today and the possibility of that some of technical and business initiatives at the infant stage today will become main-stream tomorrow. The predictable part of the future. E-commerce Standards The Internet and the Web have overcome the technical difficulty of EDI. and/or involve embarrassing purchases. Section # 09 Future of E-commerce The attempt to paint a clear picture of the future is always fertile. and products where colour integrity appears important. only with other ordering systems. since they typically do not stock them at consumer outlets -. e-commerce solutions in in spares do not compete with retail stores. generally high-value and potential embarrassment. reliable information about which part number their particular version of a product needs.
acceptance of standards will significantly impact the future success of the electronic commerce. 7 days-a-week. are online 24 hours-a-day. online gaming and etc. radio and video) in one way or another. The functionality of some software may be presented as online services that users can subscribe. carrying overloaded heavy shopping bags etc. It may change the way how software is developed.) to the end users will drastically impact the consumer market in near future. Impact of Broadband The continuing acceptance of broadband technology and maturity of technology for delivering broadband applications (video on demand. has the potential to integrate other three types of media (print. XML will play a pivotal role in that process. the easy way. shopping crowds. Conclusion In short. Software as Services The Internet has changed the way how software is distributed. The ability to present multimedia applications to consumers will transform the Internet from an information tool to an entertainment tool. as the fourth medium. The Web. no traffic jams. Distribution of some software may not be necessary. Just more business. by implementing E-Commerce. . you save money.
Dillon. D. H.Bibliography References Chan. E. J. LTD. Sites . Lee. and Chang. T. (2001) E-Commerce: Fundamentals and Applications. R. Lee... (2004) Electronic Commerce: A Managerial Perspective. and Viehland.. Turban.. D. King.. New Jersey: Pearson Prentice Hall. E. England: John Wiley & Sons.
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