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Online trade and auctions by Emanuel Baisire
Online trade and auctions by Emanuel Baisire
Online trade and auctions by Emanuel Baisire
Online trade and auctions by Emanuel Baisire
Online trade and auctions by Emanuel Baisire
Online trade and auctions by Emanuel Baisire
Online trade and auctions by Emanuel Baisire
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Online trade and auctions by Emanuel Baisire

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Online auction is a market mechanism where sellers have the opportunity to list items for sell and also buyers can request bids from suppliers. The online auction can be exclusive or open to members …

Online auction is a market mechanism where sellers have the opportunity to list items for sell and also buyers can request bids from suppliers. The online auction can be exclusive or open to members of the public. Sellers and buyers make sequential bids and item price is often determined by the highest bid. There are two main forms of auction; forward auction and reverse auction. Forward auction is conducted by a seller through a selling channel or intermediary targeting many possible buyers. A common forward auction example is ebay.com which acts as a third-party auction seller. In a reverse auction there is usually a single buyer interested in purchasing a product or delivering service. This is commonly used by large organizations and governments.

Online auctions provide businesses and individual sellers with an instant and a larger number of prospective clients looking for listed items. Online auctions are also a better avenue for companies and individuals in need of getting rid of unwanted products at an acceptable price. It is commonly used by companies to free up their inventories from excess products. As a seller, online auctions provides new sales channel

Because most online auctions use a third-party intermediary companies incur limited electronic commerce technology costs in terms of hardware and software installations. Companies also avoid the need to hire IT staff and consultants and saved costs may be channeled to other company needs. Third-party online auctions enable businesses to avoid dealing with billing and shipping tasks which are often conducted by an intermediary. For instance the use of payment companies like PayPal and shipping companies like FedEx or UPS to deal with logistic issues. This is beneficial to the seller because it reduces the transaction cost for the company involved in the transaction

It is also a great avenue for buyers to easily find unique and inexpensive items thus enhancing customer convenience and greater access to a larger of pool of collectibles and unique items at a cheaper price. Online auctions also provide anonymity to the buyer. Buyers purchasing high value product may keep their identity unknown to the seller thus providing anonymity.

Online auctioneers benefits from higher repeated purchases as clients routinely visit the auction site in search for different products at discounted prices. Online auctions also provides extra source of revenue in form of advertisement because customers often spend more time on the auction site compared to e-catalogue sites.


E-catalog is used by companies to present their products to customers in an online format. It is considered as a product database for promotion and attrating potential buyers. E-catalog are categorized by how a product is presented to buyers and how it is displayed or integrated with the business process.

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  • 1. Selling through online auctions VS catalogs: by Emanuel Baisire Online auction is a market mechanism where sellers have the opportunity to list items for sell and also buyers can request bids from suppliers. The online auction can be exclusive or open to members of the public. Sellers and buyers make sequential bids and item price is often determined by the highest bid. There are two main forms of auction; forward auction and reverse auction. Forward auction is conducted by a seller through a selling channel or intermediary targeting many possible buyers. A common forward auction example is ebay.com which acts as a third-party auction seller. In a reverse auction there is usually a single buyer interested in purchasing a product or delivering service. This is commonly used by large organizations and governments. Online auctions provide businesses and individual sellers with an instant and a larger number of prospective clients looking for listed items. Online auctions are also a better avenue for companies and individuals in need of getting rid of unwanted products at an acceptable price. It is commonly used by companies to free up their inventories from excess products. As a seller, online auctions provides new sales channel Because most online auctions use a third-party intermediary companies incur limited electronic commerce technology costs in terms of hardware and software installations. Companies also avoid the need to hire IT staff and consultants and saved costs may be channeled to other company needs. Third-party online auctions enable businesses to avoid dealing with billing and shipping tasks which are often conducted by an intermediary. For instance the use of payment companies like PayPal and shipping companies like FedEx or UPS to deal with logistic issues. This is beneficial to the seller because it reduces the transaction cost for the company involved in the transaction It is also a great avenue for buyers to easily find unique and inexpensive items thus enhancing customer convenience and greater access to a larger of pool of collectibles and unique items at a cheaper price. Online auctions also provide anonymity to the buyer. Buyers purchasing high value product may keep their identity unknown to the seller thus providing anonymity. Online auctioneers benefits from higher repeated purchases as clients routinely visit the auction site in search for different products at discounted prices. Online auctions also provides extra source of revenue in form of advertisement because customers often spend more time on the auction site compared to e-catalogue sites. E-catalog is used by companies to present their products to customers in an online format. It is considered as a product database for promotion and attrating potential buyers. E-catalog are catgorized by how a product is presented to buyers and how it is diplayed or integrated with the business process.
  • 2. E-catalog advantages include broader customer reach and has a more detailed product information for customers, as well as possible customization of catalogs. Unlike e-auctions, ecatalogs offers several aspects in which value is added in terms of product and service is delivery. Value addedd service may include checking product availablity and order status. Owners of e-catalogs have the potential to capture data about user profiles that can then be used to offer customized products in line with a consumer’s purchase behaviors and demographic profiles. It is also easy for the e-catalog business to integrate the purchase process by linking of order processing, inventory processing, and payment systems. There is a greater possibility of cross-selling because as customers buy specific products they can be influenced to buy additional and different products . The use of a predertmined price enables both the seller and buyer to compare set prices with product demand and competititon in order to determine a fair price. Although Online auction is popularly used by both businesses and individual sellers and buyers it has some limitations. Major disadvantages of online auction are fraud, security, bid shielding, over price and monitoring costs. Fraud is very common in online auctions. This can be in form of posting non-existing items, damaged products, and failure to pay by the winning bidder. It is also common for enthusiastic bidders to simply compete with one another for the sake of wining. This pushes up product price regardless of its value and quality thus distorting product worth. A considerable amounts of business is mainly transacted in private auctions which limits business accessibility and participation. The level in which businesses and individuals participate is curtailed by private auctions. This affects revenue potential for auctioneer site, sellers and buyers. It is common for illegal items to be sold on online auctions due to lack of stringent measure by site owners who are mainly driven by transaction volumes. Online auctions are also characterized by a long cycle time due to some unresloved issues that have to be clarfied before the item is actuall sold and delivered to the winning bidder. The main disadvantage of e-catalog is related to technological cost involved in setting up electronic platforms. The most expensive items are mainly hardware and software costs, site maintenance and IT staff. These costs tend to drive up product prices to the consumer thus minimizing sale volume. E-catalogs are clouded with different types of products which make it hard for less savvy internet users to easily find what they need. Once a customer gets frustrated with the buying and search experience on the e- catalog site he/she is more likely to abandon the transaction and may never come back again to the site thus a lost customer. E-catalog businesses also have a hard time identifying and contacting would-be online buyers.
  • 3. sap.com portals capability Enterprise portals are applications that necessitate companies to provide information to employees and partners through a single access point to improve communication and easing decision-making process. SAP Enterprise Portal is referred to as SAP NetWeaver. SAP Enterprise Portal provides employees and business partners with a single access point for applications and information resources. Employees and authorized partners can retrieve information in data warehouses, share desktop documents and collaboration. It provides a personalized and secure user interface for retrieving internal and external data sources. SAP Netweaver also enhance collaboration by allowing authorized user to access and share information in a collaborative format. It is has virtual collaboration rooms that brings together users from different parts of the world to work together. Virtual rooms allow communication through other applications like instant messages and web conferencing. Its knowledge management application has the capability to enable employees and authorized business partners to distribute and retrieve structured and unstructured information stored within SAP content management system and external data sources. Experts in specific fields and authors are able to share knowledge with employees by publishing and distributing information in a web based format. SAP Enterprise Portal offers integrated access to business intelligence and knowledge management to its users. Bea systems inc. was acquired by Oracle but oracle continues to market Bea’s enterprise web logical portal. Bea Web Logic has a content management capability that allows businesses to manipulate and manage data resources scattered in multiple data repositories. It also provides an enterprise search capability which enable employees and other authorized users to search and locate information they need to conduct a transaction or aiding them in making a business decision. Its collaboration feature has been credited for improving employee interactions because it allows individual employees, groups and departments to create working communities to share information meeting specific needs of a given department. This is influential in forging cooperation and the sharing of knowledge. Bea WebLogic portal has an integrated commerce capability aimed at adding value to the portal and it also has a content search functionality which makes information retrieval speedy and easy thus reducing the waste of time by employees looking for specific information. The five capabilities of corporate portals include: knowledge bases and learning tools, business process support, collaboration and project support, data access, and security applications. The benefits include: • It improves access to information due to system integration and saves user time
  • 4. • • • • • • • Corporate portals helps businesses streamline operational costs by reducing waste of resources due to established and efficient work practices The use of a one-stop access point to interact with the system and collaborate with peers enhances creativity and limits duplication of resources and work efforts A streamlined business process reduces a company’s risk levels and also ensures that employees adhere to established standards and best practices The availability of a customized work flow process reduces the rate of errors and malfunctions The collaboration application strengthens employee and business partner interaction. This encourages information sharing through a customized web-based portal Collaboration suite enable people to work remotely thus increasing productivity and efficiency Improves the quality of decision making and communication capacity 1. Compare and contrast a commercial portal (such as Yahoo!) with a corporate portal. Commercial portal acts as an entry point to the internet by providing a wide range of resources and information via a single platform. Portals such as yahoo are sometimes referred to as horizontal portals. They strive to keep a strong relationship with everyone who uses the internet. They provides a wide variety of links to external website and also offer services like free e-mail services, discussion board, news, weather, chat rooms online shopping. Commercial portal primary motive is to keep as many internet users as possible on their portal. This boost its advertisement and marketing revenue and also enticing users to buy items or services provided by the portal While corporate portal tend to provide specific subject matter and content as pertains to a specific enterprise. They help enterprises integrate most of their information that is scattered throughout the organization to act as a unified system. This provides authorized users with a single access point to utilize needed information during a decision making process or execution process. Corporate portal functionalities are aimed at making businesses operate efficiently and effectively. They often have capabilities to streamline business process through workflows, improve collaboration among employees and partners, content management, data warehouses and other business intelligence applications to help managers reach informed decisions. Commercial portal • Avails users with variety of information covering nearly everything. They provide users with information regarding news, finance, dating, food, health and others • A login is required and users can be able to personalize their pages based on subject matters, interest and favorite applications • They have search features to help users easily find what they need. It allows users to make specific searches on yahoo and general web searches • They have communication functionalities like e-mails, discussion boards and chat rooms for users to exchange ideas and sharing experiences
  • 5. Corporate portal • Provides search and navigation functionalities that enable users to search for specific information deemed necessary for their role. • They tend to integrate information from several sources into a single interface without the need for the user to know the information source • Enterprise portal also provides a single sign-on for its users to access different enterprise resources without the need to resign in every time a user is accessing another system application • Just like commercial portal, enterprise portal allows its users to customize and personalize pages in line with their preference and taste. • Due to proprietary and commercial secrets, corporate portal restrict content and information access to only authorized user depending on their position and responsibilities within the organization • They also have communication functionalities like e-mails, discussion boards and chat rooms for users to enhance collaboration. 2. What is the relationship between mobile sales force automation, mobile field force automation, and mobile CRM? Mobile sales automation provides sales team with instant information about product information and order status that can be shared with clients. Mobile field force automation provides mobile workers with the details they need to execute their tasks without the need to contact a field office. Mobile customer relation management is comprised of all the elements and functions needed to satisfy customer needs. The relationship between the three is that they are part of the Customer Relationship Management functionalities that use a wide variety of mobile devices such as Wi-Fi enabled laptops, smart phones and other hand held devices to offer improved services to their customers. These are business applications used by firms to improve their business operations in order to reduce inefficiency. Customer Relationship Management (CRM) integrates information from marketing, production, sales, customer services, and other departments in order to streamline firms operations and delivery channels. These are innovative technologies aimed at managing customer relationships and business partner across the spectrum of marketing, sales and customer service. Sales Force Automation (SFA) and Field Force Automation (FFA) are considered to be functionalities of the Customer Relationship Management module. Another significant relationship is that they are each focused on supporting mobile workers execute their tasks without unnecessary delays to the customer and also be able to make informed decisions based on current data. The capability to receive and transmit on-time information enables firms to identify and retain profitable customers thus being profitable. Despite their efficiency they all face tremendous challenges in terms of network coverage gaps and interruptions, internetwork roaming, mobile network and application performance, device and network management, and mobile bandwidth management.
  • 6. 3. What are some of the risks companies may face if they decide to use public social networks? Many companies have embraced the idea of using social media sites like Facebook, MySpace, YouTube, blogs, Flicker and other social media to reach a targeted market audience. Due to social media network’s popularity, companies have started using them as marketing channels for promoting new products, brand awareness and soliciting customer feedback. Large companies like Ford, GMC, Starbucks, Macy and many others have all embraced the use of social network to promote their products The major risk faced by companies using social networks as a marketing channel is that there is a possibility of losing control over content posted on social networks. Once content is posted on these network companies will have limited capability in directing the flow of information in case of misinformation thus making it hard to avert risk The popularity of social network does not necessarily mean that a promoted product will be embraced or purchased because many social media fans tend to be younger people and in most cases have no sufficient means to become real customers. It is also suggested that social media network reach a limited audience because most consumers have not fully embraced social media or are simply not active internet users. Companies are faced with a challenge of determining how much marketing or promotional content is posted on social media networks. If it appears to the social network user that the company is involved in aggressive advertisement this might drive away users or they might simply pay less attention to the promoted product. There is lack of standardized metrics to measure the effectiveness of social network marketing channel. Because content is posted on a social network company server, advertising companies do not have easy means to manipulate data to understand user profiles and other purchase behavior. Companies often have to constantly monitor interaction between social network sites and company sites by click- through counts, redirects and other complex methods. There are also legal and privacy issues that can result from using social networking website. Proprietary information can be used without permission from brand owners. Companies involved in social network marketing tend to rely on social network users like bloggers and other “planted” users to generate excitement about a particular product content thus raising ethical issues that might affect a company’s reputation. Company’s network security may be compromised by opening up its network to the world. There is a possibility for cyber criminal to implant malwares on social network sites that can easily be spread to those companies with the presence in social network sites. A company’s message posted on the social network can be modified or distorted thus damaging the product market and brand.
  • 7. 3. What are some of the risks companies may face if they decide to use public social networks? Many companies have embraced the idea of using social media sites like Facebook, MySpace, YouTube, blogs, Flicker and other social media to reach a targeted market audience. Due to social media network’s popularity, companies have started using them as marketing channels for promoting new products, brand awareness and soliciting customer feedback. Large companies like Ford, GMC, Starbucks, Macy and many others have all embraced the use of social network to promote their products The major risk faced by companies using social networks as a marketing channel is that there is a possibility of losing control over content posted on social networks. Once content is posted on these network companies will have limited capability in directing the flow of information in case of misinformation thus making it hard to avert risk The popularity of social network does not necessarily mean that a promoted product will be embraced or purchased because many social media fans tend to be younger people and in most cases have no sufficient means to become real customers. It is also suggested that social media network reach a limited audience because most consumers have not fully embraced social media or are simply not active internet users. Companies are faced with a challenge of determining how much marketing or promotional content is posted on social media networks. If it appears to the social network user that the company is involved in aggressive advertisement this might drive away users or they might simply pay less attention to the promoted product. There is lack of standardized metrics to measure the effectiveness of social network marketing channel. Because content is posted on a social network company server, advertising companies do not have easy means to manipulate data to understand user profiles and other purchase behavior. Companies often have to constantly monitor interaction between social network sites and company sites by click- through counts, redirects and other complex methods. There are also legal and privacy issues that can result from using social networking website. Proprietary information can be used without permission from brand owners. Companies involved in social network marketing tend to rely on social network users like bloggers and other “planted” users to generate excitement about a particular product content thus raising ethical issues that might affect a company’s reputation. Company’s network security may be compromised by opening up its network to the world. There is a possibility for cyber criminal to implant malwares on social network sites that can easily be spread to those companies with the presence in social network sites. A company’s message posted on the social network can be modified or distorted thus damaging the product market and brand.

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