The document discusses e-commerce and various types of online businesses. It defines e-commerce as the buying and selling of products and services electronically. It describes business-to-business, business-to-consumer, and intra-organizational e-commerce. It also discusses several types of online businesses like retail, banking, travel, career services, real estate, and insurance and how they have benefited from e-commerce.

1. E-COMMERCE –An Introduction
The buying and selling of products and services by businesses
and consumers through an electronic medium, without using
any paper documents. E-commerce is widely considered the
buying and selling of products over the internet, but any
transaction that is completed solely through electronic
measures is considered
E-commerce.
Features:
• Scalable
• Reliable
• Secure
• Cost-effective

2. E-Commerce Applications
• Inter-organizational (business-to-business)
- Supplier management
- Inventory management
- Distribution management
- Channel management
• Intra-organizational (within business)
- Workgroup management
- Collaborative publishing
- Sales force productivity
• Customer-to-business
- Social portals
- Transactional portals

3. Elements of Internet, Extranet and Intranet
E-Commerce
ELEMENT INTERNET EXTRANET INTRANET
E-Commerce
type
B2C (e.g. Mail order via the web) B2B (Procurement and
fulfillment)
Internal procurement
and processing.
Access Unrestricted (anyone can access
a URL address)
Restricted to company
employees, staff, and
business partners)
Restricted to company
customers, employees
and staff
Security Generally minimal, except for
verifying credit cards and
financial transaction integrity.
Firewalls and restricted
access to data and
applications.
Firewalls to eliminate
non-company
employees.
Payment
method
Credit card or electronic cash Predefined credit
agreement between
businesses
Within-business
charges
Trading with Untrusted customer Trusted trading
partners
Trusted employees

4. What sorts of E-Businesses are there?
• Selling advertising space
• Selling an on-line service
• Selling a retail service

5. RETAIL and On-Line Retail
• Retail is the sale of goods and services from individuals or
businesses to the end-user.
• Online retailing, a type of electronic commerce used for
business-to-consumer (B2C) transactions and mail order, are
forms of non-shop retailing.
• E-Commerce allows small and large businesses to compete
on a more level playing field, enabling to have customers all
over the world.

6. Evolution Of On-Line Retail
Predicted Scenario: On-Line retail today:

7. Analyzing viability of On-Line firms
Strategic analysis:
General Factors:
 Barriers to entry
 Power of suppliers
 Power of customers
 Existence of substitutes
 Competition
 Industry value chain
Firm-specific Factors:
 Firm Value Chain
 Core competencies
 Synergies
 Technology
 Social and legal challenges
Financial Analysis:
General Factors:
 Sales
 Cost of sales
 Gross Profit ratio
 Operating expenses
 Net Profit
 Balance Sheet

8. E-Retailing
Business models
Single channel web firms creating revenues from
on-line sale.
Operate both On-Line and Physical space
First establish brand name, the use the strength
of image, to sell or mail printed catalogs. Orders
are received by mail or toll –free telephone
Generate revenues from rents and services paid
for by retailers who sell on their site
Sell directly to customers On-Line without
intervention of retailers

9. On-Line Service Sector
Service companies are those companies that provide services or perform
tasks for its customers; which may include consumers, businesses,
governments and other organizations.
 Largest and most rapidly
expanding part of the
economies in advanced
industrial nations
 In the US, the service sector
(broadly defined) employs
about four out of every five
workers and accounts for about
75% of all economic activity
 E-commerce in the service
sector offers extraordinary
opportunities to deliver
information, knowledge, and
transaction efficiencies
 The major service industry
groups include:
 Finance, insurance, real
estate
 Travel
 Legal and accounting
 Business services –
consulting, advertising
and marketing, and
information processing
 Banking services
 Educational services

10. On-Line Banking sector
Cyber banking/ electronic banking/ home banking
Advantages:
• Easy to check balance
• Easy payment of dues
• Easy Transferability
• Easy handling of finances
• Wider reach
• Feasibility of Capital
• Management
• International Banking and
multiple currency handling
Limitations:
• Brand name plays an
unavoidable role.
• Low switching cost
increases rivalry
• Threat of substitutes
• Threat of negative
information.

11. On-Line Travel Services
 Online travel is one of the most successful B2C e-commerce segments
 Travel is an information intensive product requiring significant consumer
research
 Travel market segments include airline tickets, hotel reservations, car
rentals, and cruises/tours
Benefits :
 Easy Fare Comparison
 Easy Fare Tracking
 Free Information
 Prospects of potential
savings
 One-Stop Shopping
 Paperless
Environment
 Personalized Service.
Limitations:
 Internet
inaccessibility
 Difficulty of usage
 Complex trips
require
specialized
knowledge.

12. ON LINE CAREER SERVICE INDUSTRY
The online career services are utilized by:
Job seekers
1) Job offers
2) Recruiting firms
3) Government agencies and Institutions

13. Applications of online career service
industry

14. Advantages & Disadvantages of online
career services industry
• Provides the ability to
advertise to a large no of
job seekers.
• Provides the ability to save
on advertisement costs.
• Provides the ability to
reduce the cost of
processing the applications
by using electronic
application form.
• Provides the ability search
highly skilled employees.
• Many people do not use
the internet.
• Security and privacy
issues.
• online career services are
not very suitable for non
technology oriented jobs.

15. Online Real Estate services industry
Real estate transaction are an ideal area for e-commerce due to
the following reasons :
• Potential buyer can view many properties on the screen which results
in saving time for not only the buyer but also for the broker
• Potential buyer can make mortgage or rental comparisons or
calculations
• Potential customers can view information such as neighborhood ,
crime reports , etc. before taking a final decision

16. Online insurance industry
• Online insurance industry has significantly improved to include more
plans than ever before and entirely online application process
• Online insurance has enabled customers to receive quotes apply for
coverage signed electronically and pay by credit card. All within
approximately within ten minutes.
• The websites of online insurance companies operate as market places
that enable customers to make comparisons online for a variety of
insurance products, including automobile and life insurance.