Chapter 13 : E-Business

Difference between E-Commerce and E-business

E-Commerce

The buying and selling goods and services over the internet (online transaction)

E-Business

The conducting of business on the internet including ,not only buying and selling ,but also serving customers and collaborating with business partners  ,serving customers and collaborating with business partner

 

E-Business Model 

an approach to conduct electronic business on the internet

Business-to-Business (B2B)

• Electronic marketplace (e-marketplace) - interactive business communities providing a central market where multiple buyers and sellers can engage in e-business activities

Business-to-Consumer (B2C)

• Common B2C e-business models include :
  - e-shop - a version of a retail store where customers can shop at any hour of the day without leaving their home or office
  - e-mall - consists of a number of e-shops, it serves as a gateway through which a visitor can access other e-shops

Business types :
- Brick-and-mortar business - operates in a physical store without an internet presence
e.g : Bata
- Pure-play business - a business that operates on the internet only without a physical store.
e.g : Amazon.com and Expedia.com
- Click-and-mortar business - a business that operates in a physical store and on the internet.
e.g : Hijabs by Hanami

Consumer-to-Business (C2B)

• Priceline.com is an example of a C2B e-business model
• The demand for C2B e-business will increase over the next few years due to customer's desire for greater convenience and lower prices

Consumer-to-consumer (C2C)

• Online auctions :
  - Electronic auction (e-auction) - Sellers and buyers solicit consecutive bids from each other and prices are determined dynamically
  - Forward auction - Sellers use as a selling channel to many buyers and the highest bid wins
  - Reverse auction - Buyers use to purchase a product or service, selecting the seller with the lowest bid
• C2C communities include :
  - Communities of interest - People interact with each other on specific topics, such as golfing and stamp collecting
  - Communities of relations - People come together to share certain life experiences, such as cancer patients, senior citizens, and car enthusiasts
  - Communities of fantasy - People anticipate in imaginary environments, such as fantasy football teams and playing one-on-one with Michael Jordan

E-Business Benefits

• Highly accessible
  - Businesses can operate 24 hours a day, 7 days a week, 365 days a year
• Increased customer loyalty
  - Additional channels to contact, respond to, and access customers helps contribute to consumer loyalty
• Improved information content
  - In the past, customers had to order catalogs or travel to a physical facility before they could compare price and product attributes. Electronic catalogs and web pages present customers with updated information in real-time about goods, services and prices
• Increase convenience
  - E-business automates and improves many of the activities that make up a buying experience
• Increased global reach
  - Businesses, both small and large can reach new markets
• Decreased cost
  - The cost of conducting business on the internet is substantially smaller than traditional forms of business communication

E-Business Challenges

• Identifying Limited Market Segments
  - The main challenge of e-business is the lack of growth in some sectors due to product or service limitation
• Managing Consumer Trust
  - Internet marketers must develop a trustworthy relationships to make that initial sale and generate customer loyalty
• Ensuring consumer Protection
  - Implement Internet Security, protect the misuse of customer information
• Managing Consumer Trust
  - Companies that operate online must obey a patchwork of rules about which customers are subject are subject to sales tax on their purchase and which are not

E-Business Benefits and Challenges

• There are numerous advantages and limitations in e-business revenue models including :
  - Transaction fees
  - License fees
  - Subscription fees
  - Value-added fees
  - Advertising fees

Mashups

• Web mashup - a Web site or Web application that uses content from more than one source to create a completely new service
  - Application programming interface (API) - a set of routines, protocols, and tools for building software applications
  - Mashup editors - WYSIWYGs (What You See Is What You Get) for mashups