E commerce, Joint venture, Franchising, Merger and Acquisition,

1. E-commerce

2. • E-commerce is the activity of buying or selling of products on
online services or over the Internet.
• E-commerce is often used to refer to the sale of physical
products online, but it can also describe any kind of
commercial transaction that is facilitated through the internet.
• Electronic commerce draws on technologies such as mobile
commerce, electronic funds transfer, Internet marketing, online
transaction processing, electronic data interchange (EDI), and
inventory management systems.

3. Types of E-commerce Models
• Business to Consumer (B2C)
• Business to Business (B2B)
• Consumer to Consumer (C2C)
• Consumer to Business (C2B)

4. • Business to Consumer (B2C)
When a business sells a good or service to an individual
consumer. e.g. You buy a pair of shoes from an online retailer.
• Business to Business (B2B)
When a business sells a good or service to another business
e.g. A business sells software as a service for other businesses
to use.

5.  Consumer to Consumer (C2C)
When a consumer sells a good or service to another consumer.
e.g. You sell your old furniture on eBay to another consumer.
 Consumer to Business (C2B)
When a consumer sells their own products or services to a
business or organization
e.g. A photographer licenses their photo for a business to use.

6. Joint Venture
• A joint venture is a business arrangement in which two or more
parties agree to pool their resources for the purpose of
accomplishing a specific task.
• This task can be a new project or any other business activity.
• In a joint venture (JV), each of the participants is responsible
for profits, losses and costs associated with it. However, the
venture is its own entity, separate from the participant’s other
business interests.

7. Types of Joint Venture
• Domestic Joint Venture
The Domestic Joint Venture means all partners with the same
nationality.
• International Joint Venture
The international Joint Venture set up by partners of different
nationalities.

8. Advantage of Joint Venture
• Accessing additional financial resources
• Reduces risk involved in business due to sharing of losses and
expenses.
• Widening economic scope fast
• Tapping newer methods, technology, and approach you do not
have
• Building relationship with vital contacts

9. Disadvantage of Joint Venture
• Shared profit
• Diminished control over some important matters
• Undesired outcome of the quality of the product or project
• Uncontrolled or unmonitored increase in the operating cost
• Differences in the cultures and management styles of the
organizations may lead to a lack of cooperation and
coordination.

10. Examples of Joint ventures
 Renault-Nissan
 Max Life Insurance Co Ltd
Max Life Insurance Company Limited is a JV between Max
Financial Services Ltd and Japan’s Mitsui Sumitomo
Insurance Co. Ltd.
 Dhirubhai Ambani Aerospace Park
Dhirubhai Ambani Aerospace Park is a joint venture between
India’s corporate giant, Reliance Group and global defense
company from France, Dassault Aviation.

11. Merger
• A transaction where two firms agree to integrate their
operations on a relatively co-equal basis because they have
resources and capabilities that together may create a stronger
competitive advantage.
• The combining of two or more companies, generally by
offering the stockholders of one company securities in the
acquiring company in exchange for the surrender of their stock
• Example: Company A+ Company B= Company C.

12. Examples of Merger
• Microsoft and Skype
• Dell and EMC
• TransCanada and Columbia Pipeline Group

13. ACQUISITION
• A transaction where one firms buys another firm with the
intent of more effectively using a core competence by making
the acquired firm a subsidiary within its portfolio of business.
• It also known as a takeover or a buyout
• It is the buying of one company by another.
• In acquisition two companies are combine together to form a
new company altogether.
• Example: Company A+ Company B= Company A

14. Examples of Acquisitions
 Disney and Pixar
 Exxon and Mobile
 Comcast and Time Warner

15. Reasons for Mergers and Acquisitions
• Financial synergy for lower cost of capital
• Improving company’s performance and accelerate growth
• Diversification for higher growth products or markets
• To increase market share and positioning giving broader
market access
• Strategic realignment and technological change
• Tax considerations

16. Franchising
• Franchising is a business relationship; wherein the owner
authorises another party to use their brand, product, business
system and process in return for adequate consideration.
• The term ‘franchise‘ is understood as an exclusive right
conferred by the parent organisation to an individual or
enterprise to use the former’s successful business model, in
stipulated areas.

17. Features
• Immediate name recognition
• Tried and tested products
• Standard building design and décor
• Detailed techniques in running &promoting the business
• Training of employees

18. Examples of Franchising
• Subway
• Hampton Hotels
• Pizza Hut
• Servpro (insurance and disaster restoration and cleaning)
• Supercuts