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E-commerce & E-Buisness-1

E-commerce & E-Buisness-1

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Published by Samkit Shah

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Published by: Samkit Shah on Aug 22, 2010
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Name Pratik A. Sheth Samkit P. Shah Silky A. Thakkar

Roll No. 15. 16. 55.


E-Commerce refers to the use of Internet and the Web to transact business.


Its about digitally enabled commercial transactions between and among organization and individuals. E-Commerce begins in 1995 when one of the first Internet portals, Netscap.com, accepted the first ads from major corporations and popularized the idea that the Web could be used as a new medium for advertizing sales. Mirroring the history of commercial innovation, such as the telephone, radio, and television, the very rapid growth in ecommerce in the early years created a stock market bubble in E-Commerce.



and air travel.  . such as Amazon-bay.wi-max and 3G mobile phone) grow rapidly.DEVELOPMENT IN E-COMMERCE BUISNESS TRANSFORMATION -The first wave of e-commerce transformed the business world of books. and overture. -The internet broadband foundation becomes stronger in households and business as transmission price fall. -Small business and entrepreneurs continue to flood the e-commerce marketplace.  -The breadth of e-commerce offering grows. entertainment. appliances and home furnishings. especially in travel information clearinghouses. TECHNOLOGY FOUNDATION -Wireless Internet connections (Wi-Fi. music. retail apparel . often riding on the infrastructure created by industry giants.

interactive models.  -More than half of the Internet user population join a social group on the internet. -News Paper and other media adopt online. .NEW BUISNESS MODELS EMERGE -Advertisers begin taking advantage of bloges and social sities z new commercial medium.

namely Internet standers. 2. and elsewhere via mobile devices. and text messages are possible. anytime. UNIVERSAL STANDERED -There is one set of technology standers. . 4. RICHNESS -Video. 3. GLOBAL REACH -The technology reaches across national boundaries. around the earth. audio. at home.7 UNIQUE FEATURES OF ECOMMERCE 1. UBIQUITY -Internet/web technology is available everywhere at work.

INFORMATION DENSITY -The technology reduces information cost and raises quality.5. INTERACTIVITY -The technology works through interaction with the users. 7. . PERSONALIZATION/CUSTOMIZATION -The technology allows personalized messages to be delivered to individuals as well as groups. 6.

delayed High cost . instant Low cost High/low (Depend on product) Strong More Possible/likely TRADITIONAL MARKET Asymmetry High High ( time.delayed High cost High eaker Less Possible/unlikely .DIGITAL MARKETS COMPARED TO TRADITIONAL MARKETS DIGITAL MARKET Information asymmetry Search costs Transaction Cost Delayed gratification Menu Costs Dynamic Costs Price discrimination Market Segmentation Switching Costs Network effects Disintermediation Asymmetry reduced Low Low(Sometimes Virtually Nothing) High (Or lower in case of a digital good) Low Low cost. travel ) Lower ² purchase now High High cost . instant Low cost.

search and display product and establish price for that Creates revenue by providing digital content such as music. pricing.INTERNET BUSINESS MODELS CATEGORY Virtual Storefront DESCRIPTION EXAMPLES Sell physical product Amazon. photo. com Expedia.com Google search engine. E* Trade.com Information Broker Transaction Broker Online Marketplace Ebay.com Priceline. Provides a digital environment where buyers and sellers can meet.com Content Provider WSJ.com Itunes. and availability information to individuals and business Saves users money and time by processing online sales transactions and generating a fee each time a transaction occurs.vidoe etc Edmunda.com directly to the consumers or RedEnvelope.com individual business Provides product.com .

Consumer-to-Consumer (C2C) . Business-to-Consumers (B2C) 2. Business-to-Business (B2B) 3.TYPES OF E-COMMERCE ´ The three most important categories are« 1.

Ex. refined and intermediate fuels chemicals etc are the example of B2B e-commerce. Consumer-to-Consumer (C2C) . For ex. ChemConnect·s Web site for buying and selling natural gas liquids.is an and example of B2C e-commerce. Business-to-Business (B2B) .Amazon 2. Barnesandnoble. and music to individual consumes . software.e-bay. Ex.1.It involves sales of goods and services among businesses.It involves retailing products and services to individual shoppers.It involves consumers selling directly to consumers.e-bay . 3. the giant Web auction.com. which sells books . Business-to-Consumers (B2C) . enables people to sell their goods to others consumers by auctioning the merchandise off to the highest bidder.

Opportunity to reduce costs 4.ADVANTAGE OF E-COMMERCE 1. Computer platform-independent 5. Efficient applications development environment .Speed. Market space 3. 2.

Limited and selected sensory information 5. supplier & delivery uncertainty 3. Time for delivery of physical products 2. Physical product.LIMITATION OF E-COMMERCE 1. Returning goods . Perishable goods 4.


invoices. bills of lading.B2B E-COMMERCE: NEW EFFICIENCY AND RELATIONSHIP -About 80% of the B2B e-commerce is still based on proprietary system for Electronic data interchange(EDI).EDI originally automated the exchange of documents such as purchase order. which enables a computer-to-computer exchange between two organization of standard transaction such as invoices. shipment. and shipping notices. . .

´ . however. This usage is somewhat archaic.that is to say.E-BUISNESS What is E-Business E-business is a term used to describe businesses run on the Internet. any business which utilizes a computer. or utilizing Internet technologies to improve the productivity or profitability of a business. the term may be used to describe any form of electronic business ³. and in most contexts e-business refers exclusively to Internet businesses. In a more general sense.

These organizations view cross-functional enterprise systems as a strategic way to use IT to share information resources and improve the efficiency and effectiveness of business processes. and develop strategic relationship with customers. supplier.µ . and business partners.CROSS FUNCTIONAL ENTERPRISE APPLICATION What is Cross Functional Enterprise Application "many organizations are using information technology to develop integrated cross-functional enterprise systems that cross the boundaries of traditional business functions (such as marketing and finance). in order to reengineer and improve vital business processes all across the enterprise.

Customer Feedback Market Research Market Test Component Design Product Test Product Release Process Design Marketing R&D /Engineering Manufacturing .´ Example of business process that must be supported by crossfunctional information systems that cross boundaries of several business function.

international. or ignore decision about IT to one where they cant create a marketing. organization. product. or financial plan that does not involves such decisionµ .FUNCTIONAL BUSINESS SYSTEM -µBusiness managers are moving from a tradition where they could avoid. delegate.

Example of Functional Business information System (How they support the major functional areas of business.Cash Management .Manufacturing Resource Planning .Inventory control .Order Processing .Accounts Payable .Process Control Functional Business System .) Marketing -Customer Relationship Management -Incentive Marketing Production/Operation HRM -Compensation analysis -Employee skill inventory .Payroll .Credit Management .Investment management .accounts receivable .Capital Budgeting Accounting Financing .

and that effect is to speed up.IT IN BUISNESS . . is affecting nearly every fact of human endeavor.Everything is speeding up. my ability to transfer my thoughts into text has probably trebled or possibly quadrupled. for instance I am writing this. . to simplify the process of work. then the impact on business is vast. that is one small example of the affect of software on productivity. I am not actually writing it! I am speaking. well. .T. of innovation. . and my computer is writing it down for me.My productivity.If you look at a broad spectrum of information technology. of scientific exploration.I.

promotion and sale of existing products in existing markets..Foe ex. . marketing.MARKETING SYSYTEM .Marketing information system provides information technologies that support major components of the marketing function. .The business function of marketing is concerned with the Planning.Internet/intranet websites and services make an interactive marketing process possible where customer can become partners in creating. purchasing. . and the development of new products and new markets to better attract and serve present potential customers.

Example of Marketing Information System Components Marketing Information System Interactive Marketing Sales Force Automation Customer relationship management Sales Management Market Research and forecasting Advertising and promotion Product Management .

Content 3. 1. Demographic/ psychographic 5.Target Marketing has become an important tool in developing advertising and promotion strategies to strengthen a companies e ²commerce initiatives. . Community 2. Context 4.TARGET MARKETING What is Target Marketing .Its and Advertising and promotion concept that included five targeting components. as well as its traditional business venues. . Online Behavior.

Community . . (Ex. The Content of this message is aim at targeted audience.Advertising such as electronic billboards or banners can be places on variety of selected websites. in addition to a companies web sites. So advertising is targets only at people who are already looking for information about a subject matter.Companies can customize their Web advertizing message and promotion methods to appeal to people in specific communities. 2. Content .Vacation travel) that is related to companies product.Advertising appears only in web pages that are relevant to the content of the product or service. 3. Context .1.

Web marketing efforts can be aimed only at specific types or classes of people: For ex-Unmarried . 5.Adverting and promotion ad efforts can be tailored to each visit to a site by an individual. middle income. twenty something. This strategy is based on a variety of tracking techniques such as where ´ cookieµ files receded on the visitors disk drive from previous visits. Demographic/ psychographic .4. Online Behavior . . male college gradate.


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