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E-Commerce Introduction

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– – – – About founders History How it is operating its functions Other related details 2 .Assignment 1 • A presentation on any e commerce portal like e bay.

Assignment 2 Government Regulations on e commerce • Regulating bodies like Federal Trade Commission • Acts on e commerce 3 .

4 . Internet. definitions. Web. • The evolution of new businesses.Overview • E-Commerce. • Market failures and economic explanations for the new economy. • The adoption of Brick and Mortar companies to the new economy.

and that can be accessed by other computers on the Internet. • World Wide Web (Web): – A collection of multimedia hypertext documents that reside on computers. • The computers are all connected to each other. 5 . • Information can pass from one computer to another through several other computers.Definitions • Internet: – A collection of computers that speak a common language TCP/IP.

• The purpose was to create a net that can function even if one center is destroyed in a military attack. • The Arpanet became effective in 1971 with computers on both coasts of the US. – Network can continue to be functional even if some nodes are destroyed. 6 . – “Hub and spokes” can be useless if the hub is destroyed. as long as information can pass through other nodes.History of The Internet • Started as a US government project in 1969.

which transfers it to a chain of other computers until it reaches the final destination. • Each packet is identified by the sender address and a receiver address. • The Internet transfers data packets among computers.TCP/IP Protocol • Allows any two computers to communicate and exchange data. 7 . • The sender´s computer transfers the data packet to another computer on the Internet.

Web • Multimedia documents: – – – – – Text Images Sounds Drawings Video • Hypertext: – Links to other documents – Can begin execution of a program 8 .

9 .Web Browsers • Computer programs that can: – – – – Display Web documents Follow links Execute other programs Enhance applications such as real-time audio or video • Netscape and Internet Explorer • The Microsoft legal trouble due to the Explorer.

• A server waits for request to arrive from a user.Web Servers • Computers that run server software. – The request is typically for a document. • The server sends (serves) the document to the requesting computer. • Sometimes the server allows a user to fill in information on a document. and the then transfers the information to another program or a server. 10 .

– Enables profiling. – Enables targeted advertising.Information on Users and Sites • Web log file – User information – Requested documents • Cookies – Information stored on a PC´s hard drive by the site. – Enables the site to identify the user. 11 .

content. and services among parties that are connected to through the Internet. – Superior information – Convenience 12 .E-Commerce • Transformation of economic activity into digital media – Exchange information. delivering and capturing value to customers. agreements. • Enables new ways of creating.

cable.The Evolution of New Businesses • Infrastructure – Telecommunications. ISP • Supporting services – AOL. browsers. payment and banking systems. hardware. portals. exchanges (EBAY) 13 . directories. • Content – Media. security of systems and transactions.

14 . Buy the technology from a consultant. Create a new subsidiary. Invest in an Internet competitor. Work with other firms to create an exchange.Old Economy Firms • Brick and Mortar companies need to adopt to the new economy – – – – – – Create a new Internet company. Integrate with suppliers and or customers.

– Inability to meet new economy competitors ´prices. 15 . – Reduced profits and cash flows. – Loss of control in an acquisition by a new economy firm. – Inability to raise new financing.Old Economy Firms • Failure of old economy companies to adopt may result in: – Loss of market share.

The evolution continues.Summary • The Internet revolutionized ways of doing business. • The transformation is still in process. • Entrepreneurs found ways to exploit market failures and earn economic rents. 16 . • The new economy poses threats to old economy firms that do not wish to adapt. • New businesses were created that were not feasible earlier.