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Lesson 3. E-MARKET MAP. What is an Entrepreneur?. Entrepreneur n. a business man or woman of positive disposition who attempts to make profit from opportunities by risk, initiative and guidance from 2-small-business.com. SESSION OBJECTIVES.

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Lesson 3

E-MARKET MAP


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What is an Entrepreneur?

  • Entrepreneur n. a business man

    or woman of positive disposition who

    attempts to make profit from opportunities

    by risk, initiative and guidance from

    2-small-business.com


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SESSION OBJECTIVES

  • ANALYSING INFORMATION AND TRANSACTION FLOWS

  • BUILDING AN E-SYSTEM MAP

  • ROLE OF INTERMEDIARIES

  • COMPETITION AND SUPPLIER ANALYSIS


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  • E-COMMERCE STILL A PROCESS OF MANAGING TRANSACTION

  • EXAMINE HOW TECHNOLOGY:

    • REDUCES INFORMATION COST

    • INCREASES INFORMATION SPEED

    • PROVIDES 24 HOUR/365 DAY ACCESS

    • MAKES HIGH VOLUME INFORMATION PROVISION TECHNICAL FEASIBLE

    • PERMITS INFORMATION CUSTOMISATION


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  • EXAMINE TRANSACTION OPPORTUNITIES:

    • REDUCE COSTS / SPEED-UP DELIVERY

    • ENHANCE CONVENIENCE

    • EXPAND MARKET COVERAGE

    • EXPAND PRODUCT CHOICE

  • E-COMMERCE STRATEGY MUST BE INTEGRATED INTO OVERALL ORGANISATIONAL STRATEGY


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FIGURE 3:1 A MAP OF A MARKET SYSTEM

KEY = Transaction Flows

= Information Flows


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MACROENVIRONMENT

  • ECONOMIC CONDITIONS WILL IMPACT CORE MARKET PERFORMANCE

  • POLITICS WILL INFLUENCE E-COMMERCE (CHINESE GOVERNMENT DATE EXCHANGE RULES)

  • LEGISLATION OVER WEB OPERATIONS

    • WHO PAYS SALE TAX?

    • SHOULD ALCOHOL BE SOLD ON-LINE?

    • CROSS BORDER VARIATION IS LEGISLATION


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  • TECHNOLOGY CRITICAL BECAUSE IMPACTS SYSTEM (E.G. ADVENT OF WAP ON MOBILE PHONES)

  • FINANCE NOT AN ISSUE FOR NEW DOT COMS

  • EXISTING FIRMS HAVE TO FUND FROM NORMAL SOURCES AND NOT ABLE TO USE START-UP STOCK OPTION PACKAGES

  • CULTURE IS INFLUENCE OF SOCIAL VALUES AND “NORMS” ON USAGE OF E-COMMERCE (E.G. DELL’S BLACK BORDER WEB-SITE IN JAPAN)


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FIGURE 3:3 AN E-COMMERCE CONTENDING COMPETITIVE FORCES MODEL

(Adapted from Kleinal 1999)

E-commerce New Market Entrants

E-commerce Downstream System Threat

E-commerce Upstream System Threat

E-commerce Competitive Rivalry

E-commerce Substitute Goods


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CORE MARKET FORCES MODEL

  • GENERIC MARKET OF ALL POTENTIAL CUSTOMERS

  • CORE MARKET OF ACTUAL CUSTOMERS

  • GIVEN USAGE/BEHAVIOUR VARIATION PROBABLY NET ON-LINE AND OFF-LINE MARKETING PROGRAMMES


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  • INTERMEDIARIES LINK SUPPLIER TO CUSTOMER FORCES MODEL

  • ROLES OF LOGISTICS AND PROVISION OF END-USER OUTLETS

  • SUPPLIER E-CHOICE OF GO DIRECT OR USE INTERMEDIARY WEB-SITE

  • SUPPLIER GOING DIRECT COULD ALIENATE TRADITIONAL CHANNEL MEMBERS


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  • JAKORSKI PROPOSES CHANGE OF: MIXED MODEL (E.G. VISIT WEB-SITE, THEN RETAIL STORE)

    • MARKET REDEFINITION (FRESH FLOWERS)

    • PLAYER ELIMINATION (MP3 IN MUSIC)

    • ROLE MODIFICATION (MICROSOFT INTO CAR MARKET)


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  • COMPETITION MODEL (PORTERIAN THEORY) OF CONTENDING FORCES: MIXED MODEL (E.G. VISIT WEB-SITE, THEN RETAIL STORE)

    • COMPETITIVE RIVALRY (DELL vs. OTHER PC MAKERS)

    • DOWNSTREAM THREAT (CONSUMERS WITH PRICE KNOWLEDGE)

    • UPSTREAM THREAT (WEB-SITE DESIGNERS)

    • SUBSTITUTE GOODS (FROM DEVELOPING NATION WEB-SITES)

    • NEW ENTRANTS


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Reasons to join 2-small-business.com SOURCE OF BETTER TECHNOLOGY (INTEL’S PENTIUM CHIPS)

  • To get FREE marketing content

  • To become an Entrepreneur

  • To get these benefits

  • To get discounts on our services

  • To get FREE software


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