LCCNCMIC ICkCLS AND

LCCMMLkCL
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SkUDnI GCALAkkISnNAN
M8A II LAk
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W P?SlCAL CCMML8CL
hyslcal commerce Lakes place when Lhe exchange of money
for goods or servlces happens wlLhln a sLore or as a
LransacLlon beLween Lwo or more people
1hls was done elLher ln an acLual sLore Lhrough buslnesses
maklng lnperson deals or vla oLher means where Lhe
LransacLlon was hands on"
W LCCMML8CL
LlecLronlc commerce ls Lhe process of buylng and selllng or
exchanglng of producLs servlces and lnformaLlon vla
compuLer neLworks lncludlng Lhe lnLerneL
lL ls Lhe appllcaLlon of Lechnology Lowards Lhe auLomaLlon of
buslness LransacLlons and work flow
lMAC1 Cl LCCMML8CL
W Lcommerce has made a profound lmpacL on socleLy eople
can now shop onllne ln Lhe prlvacy of Lhelr own homes
wlLhouL ever havlng Lo leave
W lL also force smaller buslnesses Lo shuL Lhelr doors or change
Lo belng compleLely onllne lL also changes Lhe way people
look aL maklng purchases and spendlng money
W LlecLronlc Commerce has changed Lhe face of reLall servlces
and oLher Lhlngs LhaL make our economy work undoubLedly
lL wlll conLlnue Lo lnfluence how companles sell and markeL
Lhelr producLs as well as how people choose Lo make
purchases for many years Lo come
LCCnCMlC AuvAn1ACLS Cl LCCMML8CL
Cne of Lhe mosL evldenL beneflLs of ecommerce ls
economlc efflclency resulLlng from
W 1he reducLlon ln communlcaLlons cosLs
W LowcosL Lechnologlcal lnfrasLrucLure
W Speedler and more economlc elecLronlc LransacLlons
wlLh suppllers
W Lower global lnformaLlon sharlng and adverLlslng cosLs
W Cheaper cusLomer servlce alLernaLlves
LCCnCMlC lC8CLS Anu LCCMML8CL
LconomlsLs use a formal deflnlLlon of markeL LhaL lnclude
Lwo condlLlons
W 1he sellers of a good come lnLo conLacL wlLh poLenLlal
buyers
W A medlum of exchange ls avallable 1hls medlum of
exchange can be currency or barLer
1ransact|on costs are the tota| of a|| costs that a buyer
and se||er |ncur as they gather |nformat|on and
negot|ate a purchasesa|e transact|on
W Jhen LransacLlon cosLs are hlgh buslnesses may form
organlzaLlons Lo replace markeLnegoLlaLed LransacLlons
1hese organlzaLlons are generally hlerarchlcal and lnclude
sLrong supervlslon and worker monlLorlng elemenLs
W 1he pracLlce of an exlsLlng flrm replaclng one or more of lLs
suppller markeLs wlLh lLs own hlerarchlcal sLrucLure for
creaLlng Lhe supplled producL ls called vL81lCAL
ln1LC8A1lCn
W 1hls pracLlce ls ofLen faclllLaLed by Lhe use of lnLerneL
Lechnologles Lo connecL Lhese suppllers wlLh Lhe flrm
CA1LCC8lLS Cl LCCnCMlC lC8CLS
-Lower market|ng costs
MarkeLlng on Lhe lnLerneL maybe cheaper and can reach a
wlder crowd Lhan Lhe normal markeLlng medlum
-Lower sa|es costs
lncrease ln Lhe cusLomer volume do noL need an lncrease
ln sLaff as Lhe sales funcLlon ls housed ln Lhe compuLer
and has vlrLually unllmlLed accesslblllLy
-Lower order|ng process|ng cost
Cnllne orderlng can be auLomaLed wlLh checks Lo ensure
LhaL orders are correcL before accepLlng Lhus reduclng
errors and Lhe cosL of correcLlng Lhem
-New sa|es opportun|t|es
1he webslLe ls accesslble all Lhe Llme and reaches Lhe global audlence
whlch ls noL posslble wlLh LradlLlonal sLorefronL
Lconomlc lnLegraLlon ls elLher exLernal or lnLernal
W Lxterna| |ntegrat|on refers Lo Lhe elecLronlc neLworklng of
corporaLlons suppllers cusLomers/cllenLs and lndependenL
conLracLors lnLo one communlLy communlcaLlng ln a vlrLual
envlronmenL (wlLh Lhe lnLerneL as medlum)
W Interna| |ntegrat|on ls Lhe neLworklng of Lhe varlous deparLmenLs
wlLhln a corporaLlon and of buslness operaLlons and processes 1hls
allows crlLlcal buslness lnformaLlon Lo be sLored ln a dlglLal form LhaL
can be reLrleved lnsLanLly and LransmlLLed elecLronlcally
lnLernal lnLegraLlon ls besL exempllfled by corporate |ntranets Among
Lhe companles wlLh efflclenL corporaLe lnLraneLs are rocLer and
Camble l8M nesLle and lnLel
LG SLSAM|NL1 L|nk|ng As|an Markets through 828 nubs
SLSAMlnL1 ls Asla's largesL 828 ehub a vlrLual exchange
lnLegraLlng and connecLlng buslnesses (small medlum or large) Lo
Lradlng parLners emarkeLplaces and lnLernal enLerprlse sysLems
for Lhe purpose of sourclng ouL supplles buylng and selllng goods
and servlces onllne ln real Llme
1he ehub serves as Lhe cenLer for managemenL of conLenL and Lhe
processlng of buslness LransacLlons wlLh supporL servlces such as
flnanclal clearance and lnformaLlon servlces
lL ls sLraLeglcally and dynamlcally llnked Lo Lhe Clobal 1radlng Jeb
(C1J) Lhe world's largesL neLwork of Lradlng communlLles on Lhe
lnLerneL 8ecause of Lhls very lmporLanL llnk