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MD253 – Electronic Commerce

Jan. 23, 2006


Are eBusinesses Better?
Topics Covered

• A first look at online businesses


– FreshDirect – how is this ‘pure play’
business different from more traditional
rivals?
• Value proposition
• Dealings with suppliers
• Operations differences
• Customer acquisition issues
– Are any of the firm’s advantages
sustainable?
Switching Costs
Value of service

Value of service

Incumbent Late Entering Rival

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