CHAPTER 13: CREATING COLLABORATIVE PARTNERSHIPS THROUGH E-BUSINESS

CHAPTER 13: CREATING COLLABORATIVE PARTENSHIPS THROUGH EBUSINESS

QUESTION FROM THIS CHAPTER:

• Compare e-commerce and e-business
• Compare the four types of a e-business models
• Describe the benefits and challenge associated with e-business
• The difference among e-shops and e-malls

E-BUSINESS

The internet is a powerful channel that presents new opportunities for an organization to touch customers, enrich products and services with information and reduce costs.

Compare e-commerce and e-business:

• E-commerce is the buying and selling of goods and services over the Internet. E-commerce refers only to online transactions.
• E-business is the conducting of business on the Internet, not only buying and selling. But also serving customers and collaborating with business partners.

The primary difference between e-commerce and e-business is that e-business also refers to online exchanges of information.

INDUSTRIES USING E-BUSINESS

E-BUSINESS MODELS

E-business model an approach to conducting electronic business on the Internet

Compare the four types of a e-business models

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

• Electronic marketplaces, or e-market places present structures for conducting commercial exchange, consolidating supply chains, and creating new sales channels
• Their primary goal is to increase market efficiency by tightening and automating the relationship between buyers and sellers
• Existing e-marketplaces allow access to various mechanisms in which to buy and sell almost anything, from services to direct materials

ELECTRONIC MARKETPLACES

SEARCH ENGINE MARKETING

BUSINESS-TO CUSTOMER (B2C)

The difference among e-shops and e-malls:

• 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 : consist of a number of e-shops; it serves as a gateway through which a visitor can access other e-shops

e-shop

e-mall

Business types:

• Brick-and mortar business- operate in a physical store without an Internet presence. For example, Bata.

• Pure-play business- a business that operates on Internet only without a physical store. Examples, Amazon.com

• Click-and-mortar business- a business that operates in a physical store and on the Internet. Example, Calaqisya

CONSUMER-TO-BUSINESS (C2B)

• Priceline.com is an example of 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 price

 Agoda.com

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
• Reversed 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 participate in imaginary environments, such as fantasy football teams and playing one-on-one with Michael Jordan

E-bay:

mudah.my:

Describe the benefits and challenge associated with e-business:

E-BUSINESS BENEFITS

• Highly accessible: businesses can operate 24 hours a day, 7 days a week, 365 a year
• Increased customer loyalty: additional channels to contact, respond to, and access customers helps contribute to customer 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.
• Increased convenience: E-business automates and improves many of the activities that make up a buying experience.
• Increased global reach: business, 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

E-business challenges include:

• 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 develops a trustworthy relationship to make that initial sale and generate customer loyalty
• Ensuring Consumer Protection: implement Internet security, protect from misuse of a customer information.
• Adhere to Taxation Rules: companies that operate online must obey a     patchwork of rules about which customers 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 services
• Application programming interface(API)- a set of routines, protocols, and tools for building software applications
• Mashup editor- WSYIWYGs (What You See Is What You Get) for mashups

WEB MASHUPS: