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Lesson 3

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.

Gabriel
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Lesson 3

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  1. Lesson 3 E-MARKET MAP

  2. 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

  3. SESSION OBJECTIVES • ANALYSING INFORMATION AND TRANSACTION FLOWS • BUILDING AN E-SYSTEM MAP • ROLE OF INTERMEDIARIES • COMPETITION AND SUPPLIER ANALYSIS

  4. 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

  5. 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

  6. FIGURE 3:1 A MAP OF A MARKET SYSTEM KEY = Transaction Flows = Information Flows

  7. 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

  8. 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)

  9. 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

  10. CORE MARKET • GENERIC MARKET OF ALL POTENTIAL CUSTOMERS • CORE MARKET OF ACTUAL CUSTOMERS • GIVEN USAGE/BEHAVIOUR VARIATION PROBABLY NET ON-LINE AND OFF-LINE MARKETING PROGRAMMES

  11. INTERMEDIARIES LINK SUPPLIER TO CUSTOMER • 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

  12. ERNST & YOUNG RESEARCH INDICATES MAJORITY OF CONSUMERS LIKE MIXED MODEL (E.G. VISIT WEB-SITE, THEN RETAIL STORE) • ISSUE OF “DISINTERMEDIATION”, I.E. REMOVAL OF INTERMEDIARY • EXAMPLE OF AIRLINES SELLING DIRECT NOT VIA TRAVEL AGENTS

  13. JAKORSKI PROPOSES CHANGE OF: • MARKET REDEFINITION (FRESH FLOWERS) • PLAYER ELIMINATION (MP3 IN MUSIC) • ROLE MODIFICATION (MICROSOFT INTO CAR MARKET)

  14. COMPETITION MODEL (PORTERIAN THEORY) OF CONTENDING FORCES: • 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

  15. SUPPLIERS CAN CONSTRAIN SUPPLIES BUT MORE USUAL ROLE AS SOURCE OF BETTER TECHNOLOGY (INTEL’S PENTIUM CHIPS)

  16. Reasons to join 2-small-business.com • 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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