E-commerce involves direct selling of goods and services over the internet, agent services and research and development. E-commerce ventures target niche as well as broad customers. Examples of companies targeting niche customer’s includejbmountainbikes.com and southwest.com

1. Driving the E-Commerce
Revolution

2. Electronic Commerce
Activities
Product or
service search Price search
Activities
payments Actual purchase

3. Electronic Commerce
Activities -2
Direct selling of goods
and/or services over
the internet
Provision of company
homepage
Advertising
Priced Information
Agent Services
Research and
Developement

4. Niche, Broad or Target
Customer
Niche - targeting
a single customer
or a group of
customers
Broad – entire
population of
appropriate
customers

5. Targeting Strategy
Strategy
Differentiation Cost Leadership
Niche
Focus Internet Differentiation Focus Internet cost leadership
segment
e.g., Jb mountainbikes.com e.g., Southwest.com
Customer
Broad Internet Differentiation Broad Internet cost leadership
Broad
e.g., Old tools.com e.g., Amazon.com

6. Differentiation (features
& services)
Developing unique
products/services &
brand building
Providing value added
services and
customisation through
the internet
Cost advantage by
reducing transaction
costs through
appropriate use of
internet

7. Major Modes Found in
E- commerce -1
Four modes:
• Revenue
generating modes
• Product delivery
modes
• Payment collection
modes
• Operating modes

8. Major Modes Found in
E- commerce - 2
i. Revenue Generating
Modes
Profit from purchase/
sale of goods
Agent fees
Income from priced
packaged information
Advertising revenues
Priced information
Income from sale of
aggregated marketing
information

9. Major Modes Found in
E- commerce - 3
(ii) Product Delivery
Modes
• Physical
Maintenance
Repairs
Replacements
Other types of follow-up
activity
• virtual

10. Major Modes Found in
E- commerce - 4
(iii) Payment
Collection Modes
• Physical
• Virtual

11. Major Modes Found in
E- commerce - 5
(iv) Operating Modes
• Completely outsourced
operations
• Completely self-
handled operations
• Hybrid operations

12. Matrix of E – Commerce
Models
Principal Business • Single or multiple
Models: businesses
• B2B • The nature of
• B2C delivery
• C2B • Customisation
• C2C • Seller
• Single or multiple characteristics
individual • Price selling
consumers mechanism

13. Business to Consumer
(B2C) Commerce
Electronic Retailing on www
commerce and • Service efficiency
technology • Personalisation
Consumer • Socialisation
behaviour and
• Look & feel of site
choice
• Incentives
Business processes
and marketplace • security
competition

14. Elements & Resources
impacting Electronic Commerce
Changes
Network practices
Cultural change
Technology
Cost and Time
Frame
Management Work
Process Consultants
Integrators
vendors

15. Opportunity Development
for E-Commerce Stages
Step 1 : look for
business opportunities
Opportunity
development
Step 2 : map the
opportunities &
functions Step 3 : Require
opportunities with
executives
Map all the three steps &
form an e –commerce
opportunity framework

16. Factors in Decision
Making Strategy
Application
Business Technology Processes
Goal (Final
system)

17. Developing an
E – Commerce strategy
Involve Good understanding of
Ensure appropriate technology by all involved
manageme parties
nt support
Focus on E–
Develop a phased
high return COMMERC approach
E
STRATEG
Think fresh Y Document
on business case
alternatives
Prioritize Develop &
alternatives agree budget

18. International Strategy
Development
Does product
Direct/ meet the local
needs ?
Indirect
Shipping Product Agreements
Distribution
delivery & Suitability & pricing
Model
support
Fulfillment INTERNATIONAL Pricing &
legal factors
and support
E-COMMERCE
The Localisation
Transaction
Transaction &
Purchase & Consulting & education
acquisition customisation
for change

19. Client/server Paradigm
Server
Client Server
TCP/IP program
program
Result

20. Domain Name System
Root-Level
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112 113.37.53.181 162.79.21.123
Reverse Generic Country domain

21. Metadata
Meta-
sales Data
sales
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Girl. She is good but naughty

22. FTP
client server
User Protocol
Interface interpreter
Control connection
Protocol
Interpreter TCP/IP
Data
Data connection Transfer
Data
Transfer unit unit
Local Remove
disk disk

23. The Basic Website
Communication Proce
HTTP request
Get HTML file
Web Browser Web Server File system
Returned HTML
file

24. Basic Data Configuration
Back-end
Web browser Web server CGI SCRIPT
Application

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