The document discusses traditional distribution channels and how the internet has affected distribution. It provides examples of how the internet allows companies to directly reach customers faster and cheaper. The internet has also made it possible to create online-specific products and extend a company's territorial reach. The document then discusses different e-channel strategies companies can take, such as transaction enhancement, e-channel compression, expansion, and innovation.

1. E-Business Distribution
Systems
The E-channel vs Traditional Channels
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2. The nature of Distribution
 Simple-you made a product or
provide a service. That product or
service has to reach the customer
 Depending on the type of good or
service, different distribution
channels are used.
 In some cases you distribute via own
channel direct to the customer; other
via an intermediary or
intermediaries.
 Intermediaries were necessary
because company did not have the
knowledge or territorial reach to the
customer. In some cases, product
was too bulky to sell directly to
customer; product needed to be
bundled.
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3. How has the Internet affected distribution
 Possible to reach directly your customers
faster and cheaply
 Made it possible to create products
specific for an online distribution
channel.
 Made it possible to extend territorial
reach.
 Has dispensed with time.
 Now possible to combine your
distribution and service under one
package
 Has made it possible to support
traditional distributor more effectively.
 In somes cases has resulted in lower than
average costs for distributing products. In
fact in some cases, the MC is almost
zero.
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4. E-Channel
 E-Channel is the chain
of relationships
between companies
and customers and
between companies
and their
partners/resellers.
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5. Issues
 Technology is used to
alter the
distribution/marketing
channel.
 Links are either been
removed or new links
added
 New ways of linking
businesses and
customers
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6. E-Business Distribution
Systems
Which e-Channel
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7. What Channel Strategy?
 Transaction enhancement
 E-Channel Compression
 E-Channel Expansion
 E-Channel Innovation
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8. Transaction Enhancement
 Use the current
distribution channel,
but add enhanced
functionality through
technology
 Providing marketing
information
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9. E-Channel Compression
 Eliminates redundant
steps in the channel.
 Shortening of the
legacy channel. This
can result in a closed,
more direct
relationship between
customer and supplier.
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10. E-Channel Expansion
 This actually lengthens
the process. Why?
 Due to inefficiencies in
the market place
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11. E-Channel Innovation
 Attract new customers
by pioneering new
channels to satisfy and
to anticipate unmet and
potential customer
desires.
 An example is the post
office selling stamps
online
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12. E-Business Distribution
Systems
Compare and Contrast Traditional distribution
systems and e-business distribution systems
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13. The Hotel Industry
Hotel Travel
Traditional CRO Switch GDS Consumer
Agent
Hotel Travel
Internet CRO
Switch GDS
Agent
Consumer
Hotel
Switch GDS Consumer
CRO
Hotel
CRO Switch Consumer
Hotel
Consumer
CRO
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14. The Publication Industry
 Download Version
 From Publisher to
Customer
 Online Editions
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