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Transcript

  • 1. Chapter 14 E-Business
  • 2. Learning Outcomes
    • 14.1 Compare e-commerce and e-business
    • 14.2 Compare the four types of e-business
    • models
    • 14.3 Describe the benefits and challenges
    • associated with e-business
    • 14.4 Explain the differences among e-shops, e-
    • malls, and online auctions
  • 3. E-Business
    • The Internet is a powerful channel that presents new opportunities for an organization to:
      • Touch customers
      • Enrich products and services with information
      • Reduce costs
  • 4. E-Business
    • How do e-commerce and e-business differ?
      • E-commerce – the buying and selling of goods and services over the Internet
      • E-business – the conducting of business on the Internet including, not only buying and selling, but also serving customers and collaborating with business partners
  • 5. E-Business
    • Industries Using E-Business
  • 6. E-Business Models
    • E-business model – an approach to conducting electronic business on the Internet
  • 7. E-Business Models
  • 8. E-Business Models
  • 9. Business-to-Business (B2B)
    • Electronic marketplace (e-marketplace) – interactive business communities providing a central market where multiple buyers and sellers can engage in e-business activities
  • 10. Business-to-Consumer (B2C)
    • Common B2C e-business models include:
      • e-shop – a version of a retail store where customers can shop at any hour of the day without leaving their home or office
      • e-mall – consists of a number of e-shops; it serves as a gateway through which a visitor can access other e-shops
    • Business types:
      • Brick-and-mortar business
      • Pure-play business
      • Click-and-mortar business
  • 11. Consumer-to-Business (C2B)
    • Priceline.com is an example of a C2B e-business model
    • The demand for C2B e-business will increase over the next few years due to customer’s desire for greater convenience and lower prices
  • 12. Consumer-to-Consumer (C2C)
    • Online auctions
      • Electronic auction (e-auction) - sellers and buyers solicit consecutive bids from each other and prices are determined dynamically
      • Forward auction - sellers use as a selling channel to many buyers and the highest bid wins
      • Reverse auction - buyers use to purchase a product or service, selecting the seller with the lowest bid
  • 13. Consumer-to-Consumer (C2C)
    • C2C communities include:
      • Communities of interest - people interact with each other on specific topics, such as golfing and stamp collecting
      • Communities of relations - people come together to share certain life experiences, such as cancer patients, senior citizens, and car enthusiasts
      • Communities of fantasy - people participate in imaginary environments, such as fantasy football teams and playing one-on-one with Michael Jordan
  • 14. E-Business Benefits and Challenges
    • E-Business benefits include:
      • Highly accessible
      • Increased customer loyalty
      • Improved information content
      • Increased convenience
      • Increased global reach
      • Decreased cost
  • 15. E-Business Benefits and Challenges
    • E-business challenges include:
      • Protecting consumers
      • Leveraging existing systems
      • Increasing liability
      • Providing security
      • Adhering to taxation rules
  • 16. E-Business Benefits and Challenges
    • There are numerous advantages and limitations in e-business revenue models including:
      • Transaction fees
      • License fees
      • Subscription fees
      • Value-added fees
      • Advertising fees
  • 17. CHAPTER FOURTEEN Opening Case Study Questions
    • Identify the type of e-business model eBay is using and explain why it has been so successful
    • Other major Web sites, like Amazon.com and Yahoo!, have entered the e-marketplace with far less success than eBay. How has eBay maintained its dominant position?
    • What are the three different types of online auctions and which one is eBay using?
  • 18. CHAPTER FOURTEEN CASE 7-Eleven’s Dream Team
    • 7-Eleven Japan has integrated its online site 7dream.com with its physical stores
    • Through the 7dream.com Web site, 7-Eleven Japan enables consumers to choose from an online assortment of 100,000 products which are picked up from one of 8,400 store locations
  • 19. Chapter Fourteen Case Questions
    • What 7dream.com sells is “convenience.” Explain how integrating the Internet into its existing business is the key to its success
    • Identify new electronic relationships 7-Eleven Japan can create to increase customer acquisitions
    • Explain how 7-Eleven Japan can leverage the advantages of an e-marketplace to increase customer retention
  • 20. Chapter Fourteen Case Questions
    • Why is 7-Eleven Japan’s e-business venture successful?
    • Would 7-Eleven Japan’s e-business venture be successful in the United States? Discuss the challenges facing 7-Eleven’s e-business model in the United States
    • How can companies leverage knowledge gained abroad to improve stateside business process?