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  1. 1. Defining Your E-Business Idea Chapter 2
  2. 2. The Entrepreneur <ul><li>Someone who assumes the risks of starting and running their own business </li></ul><ul><li>An entrepreneur needs </li></ul><ul><ul><li>High energy personality </li></ul></ul><ul><ul><li>Self-confidence </li></ul></ul><ul><ul><li>High levels of organizational skills </li></ul></ul><ul><ul><li>Ability to act </li></ul></ul>
  3. 3. The Entrepreneurial Process
  4. 4. E-Business Success Factors <ul><li>The network effect </li></ul><ul><li>Scalability </li></ul><ul><li>Innovative Web marketing ideas </li></ul><ul><li>Ease of entry into (electronic) markets </li></ul><ul><li>Adaptability to change </li></ul>
  5. 5. The Network Effect <ul><li>The greater the number of nodes (participants) the greater the value of the network </li></ul><ul><li>Metcalf law of network power </li></ul><ul><ul><li>Power= number of nodes 2 </li></ul></ul>
  6. 6. Scalability <ul><li>The ability of your idea to continue to function regardless of size </li></ul><ul><li>Can refer to the ability of a server or </li></ul><ul><li>Internet service to support increased loads </li></ul>
  7. 7. Innovative Web Marketing Ideas <ul><li>Use the power of the Web and Internet to leverage new ideas. </li></ul><ul><li>Hotmail gave away free e-mail accounts that used a Web interface and was linked to a site. </li></ul>
  8. 8. Hotmail
  9. 9. Ease of Entry Into Markets <ul><li>The Internet opened up access to markets by lowering barriers to entry. </li></ul><ul><li>Good ideas can be cloned. </li></ul><ul><li>Advantage frequently goes to first mover. </li></ul><ul><li>Ebay was a “first mover.” </li></ul>
  10. 10. Ebay Auction Site
  11. 11. Adaptability to Change <ul><li>Internet and Web Technologies facilitate rapid change in business models. </li></ul><ul><ul><li>New products or services </li></ul></ul><ul><ul><li>New features </li></ul></ul><ul><ul><li>Amazon.com added auctions to their product/service mix </li></ul></ul>
  12. 12. Amazon.com
  13. 13. Exploiting E-Business Advantages <ul><li>Expand the market </li></ul><ul><li>Acquire greater business visibility </li></ul><ul><li>Maximize customer relationships and improve responsiveness </li></ul><ul><li>Create new services </li></ul><ul><li>Reduce costs </li></ul>
  14. 14. Expand the Market <ul><li>Reach more customers </li></ul><ul><li>Lower location barrier </li></ul><ul><li>Lower time zone barrier </li></ul>
  15. 15. Acquire Greater Visibility <ul><li>The Internet allows companies to get their name, products, or services exposed to more customers than ever before. </li></ul><ul><li>Use or outsource distribution to others. </li></ul><ul><ul><li>Find distributors for eToys and Pier1 </li></ul></ul>
  16. 16. Maximize Customer Relationships <ul><li>Build one-on-one relationships with customers. </li></ul><ul><li>Use technology to build and sustain links with customers. </li></ul>
  17. 17. Improve Responsiveness <ul><li>Use technology to respond more quickly or effectively to customer needs and inquiries. </li></ul><ul><ul><li>Use services such as parcel tracking and delivery confirmation </li></ul></ul><ul><ul><li>Allow for on-line purchases </li></ul></ul>
  18. 18. Create New Services <ul><li>The Web allows for expansion and refinement of traditional business </li></ul><ul><li>Add new products quickly </li></ul>
  19. 19. Reduce Costs <ul><li>The Internet can lower costs of doing business by lowering… </li></ul><ul><ul><li>Distribution costs </li></ul></ul><ul><ul><li>Marketing costs </li></ul></ul>
  20. 20. Example Web Sites <ul><li>Fingerhut </li></ul><ul><li>Half.com </li></ul><ul><li>Southwest Airlines </li></ul><ul><li>WW Grainger </li></ul><ul><li>Trailmaker </li></ul><ul><li>Sun Microsystems </li></ul><ul><li>Foodlocker </li></ul><ul><li>Grocery Works.com </li></ul>
  21. 21. Fingerhut
  22. 22. Half.com
  23. 23. Southwest Airlines
  24. 24. Grainger.com
  25. 25. Trailmaker
  26. 26. Sun Microsystems
  27. 27. Foodlocker.com
  28. 28. Grocery Works.com