Chapter 2
This presentation is the property of its rightful owner.
Sponsored Links
1 / 26

Chapter 2 PowerPoint PPT Presentation


  • 99 Views
  • Uploaded on
  • Presentation posted in: General

Chapter 2. E-MARKETPLACES: STRUCTURE, MECHANISMS, ECONOMICS, AND IMPACTS. Markets play a central role in the economy facilitating the exchange of: information goods services payments. Markets create economic value for: buyers sellers market intermediaries society at large.

Download Presentation

Chapter 2

An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -

Presentation Transcript


Chapter 2

Chapter 2

E-MARKETPLACES: STRUCTURE, MECHANISMS, ECONOMICS,

AND IMPACTS


Electronic marketplaces

Markets play a central role in the economy facilitating the exchange of:

information

goods

services

payments

Markets create economic value for:

buyers

sellers

market intermediaries

society at large

Electronic Marketplaces


Electronic marketplaces cont

Electronic Marketplaces (cont.)

  • What are the functions of markets?

    • matching buyers and sellers

    • facilitating the exchange of information, goods, services, and payments associated with market transactions

    • providing an institutional infrastructure, such as a legal and regulatory framework, that enables the efficient functioning of the market


Types of electronic markets

Types of Electronic Markets

  • Electronic storefront: A single or company Web site where products and services are sold

  • Mechanisms necessary for conducting the sale:

    • electronic catalogs

    • search engine

    • e-auction facilities

    • payment gateway

    • shipment court

    • customer services


Types of electronic markets cont

Types of Electronic Markets (cont.)

  • e-mall (online mall): An online shopping center where many stores are located

    • some are merely directories

    • some provide shared services (e.g., choicemall.com).

    • some are actually large click-and-mortar retailers

    • some are virtual retailers (e.g., buy.com)


Information portals

Information Portals

  • Information portal: a single point of access through a Web browser to business information inside and/or outside an organization

    • Yahoo

    • MSN


Information portals cont

Information Portals (cont.)

  • Six types of portals

    • Commercial (public) portals

    • Corporate portals

    • Publishing portals

    • Personal portals

    • Mobile portals: a portal accessible via a mobile device

    • Voice portals: a portal accessed by telephone or cell phone


Intermediation and syndication in e commerce

Intermediation and Syndication in E-Commerce

  • Intermediaries (brokers) provide value-added activities and services to buyers and sellers

  • Intermediaries in the physical world are wholesalers and retailers

    • Infomediaries: electronic intermediaries that control information flow in cyberspace, often aggregating information and selling it to others


Intermediation and syndication in e commerce cont

Intermediation and Syndication in E-Commerce (cont.)

  • Disintermediation and reintermediation

    • Disintermediation:

      Elimination of intermediaries between sellers and buyers

    • Reintermediation:

      Establishment of new intermediary roles for traditional intermediaries that were disintermediated


Intermediation and syndication in e commerce cont1

Intermediation and Syndication in E-Commerce (cont.)

  • Syndication as an EC mechanism

    • Syndication:

      The sale of the same good (e.g., digital content) to many customers, who then integrate it with other offerings and resell it or give it away free


Electronic catalogs

Electronic Catalogs

  • Electronic catalogs:

    The presentation of product information in an electronic form; the backbone of most e-selling sites

  • Electronic catalogs can be classified by the following dimensions:

    • The dynamics of the information presentation

    • The degree of customization

    • Integration with business processes


Auctions as ec market mechanisms

Auctions as EC Market Mechanisms

  • Auction:

    A market mechanism by which a seller places an offer to sell a product and buyers make bids sequentially and competitively until a final price is reached

  • Auctions can be done:

    • online

    • off-line

    • at public sites (eBay)

    • at private sites (by invitation)


Auctions as ec market mechanisms cont

Auctions as EC Market Mechanisms (cont.)

  • Four major categories of dynamic pricing

    • One buyer, one seller

    • One seller, many potential buyers

    • One buyer, many potential sellers (reverse auction; name your price)

    • Many sellers, many buyers (Double auction)


E commerce in the wireless environment m commerce

E-Commerce in the Wireless Environment: M-Commerce

  • Mobile computing:

    Permits real-time access to information, applications, and tools that, until recently, were accessible only from a desktop computer

  • Mobile commerce (m-commerce):

    E-commerce conducted via wireless devices

  • m-business:

    The broadest definition of m-commerce, in which e-business is conducted in a wireless environment


E commerce in the wireless environment m commerce cont

E-Commerce in the Wireless Environment: M-Commerce (cont.)

  • Promise of m-commerce

    • Mobility significantly changes the manner in which people and trading partners interact, communicate, and collaborate

    • Mobile applications are expected to change the way we live, play, and do business

    • Much of the Internet culture may change to one based on mobile devices

    • M-commerce creates new business models for EC, notably location-based applications


E commerce in the wireless environment m commerce cont1

DoCoMo’s (nttdocomo.com) i-Mode—pioneering wireless service—with a few clicks on a handset, i-Mode users can conduct a large variety of m-commerce activities

Shopping guides

Maps and transportation

Ticketing

News and reports

Personalized movie service

Entertainment

Dining and reservations

Additional services

E-Commerce in the Wireless Environment: M-Commerce (cont.)


Issues in e markets liquidity quality and success factors

Issues in E-Markets: Liquidity, Quality, and Success Factors

  • Early liquidity:

    Achieving a critical mass of buyers and sellers as fast as possible, before a start-up company’s cash disappears

  • Quality uncertainty:

    The uncertainty of online buyers about the quality of non-commodity type products that they have never seen, especially from an unknown vendor


E market success factors

E-Market Success Factors

  • Product Characteristics

    Digitizable products can be electronically distributed to customers, resulting in very low distribution costs, allowing order-fulfillment cycle time “to be minimal”

  • Industry Characteristics

    Electronic markets are most useful when they are able to directly match buyers and sellers


E market success factors cont

E-Market Success Factors (cont.)

  • Seller Characteristics

    Electronic markets reduce search costs, allowing consumers to find sellers offering lower prices

  • Consumer Characteristics

    e-markets require a certain degree of effort on the part of the consumer, e-markets are more conducive to consumers who do some comparison and analysis before buying


Economics of e marketplaces

Economics of E-Marketplaces


Competition in the digital economy

Competition in the Digital Economy

  • Internet ecosystem:

    The business model of the Internet economy

  • Competitive factors

    • Lower search costs for buyers

    • Speedy comparisons

    • Differentiation and personalization

      Differentiation: Providing a product or service that is unique

      Personalization: The ability to tailor a product, service, or Web content to specific user preferences

    • Lower prices

    • Customer service


Competition in the digital economy cont

Competition in the Digital Economy (cont.)

  • Characteristics necessary for perfect competition are the following:

    • Many buyers and sellers must be able to enter the market at little or no entry cost

    • Large buyers or sellers are not able to individually influence the market

    • Products must be homogeneous (no product differentiation)

    • Buyers and sellers must have comprehensive information about the products and about the market participants’ demands, supplies, and conditions


Competition in the digital economy cont1

Competition in the Digital Economy (cont.)

  • Porter’s competitive forces model:

    The model that says that five major forces of competition determine industry structure and how economic value is divided among the industry players in the industry; analysis of these forces helps companies develop their competitive strategy


Exhibit 2 9 porter s competitive forces model how the internet influences industry structure

Exhibit 2.9 Porter’s Competitive Forces Model: How the Internet Influences Industry Structure


Impacts of e markets on business processes and organizations

Impacts of E-Markets on Business Processes and Organizations

  • Improving direct marketing

    • Product promotion

    • New sales channel

    • Direct savings

    • Reduced cycle time

    • Improved customer service

    • Brand or corporate image

    • Customization

    • Advertising

    • Ordering systems

    • Market operations


Transforming organizations

Transforming Organizations

  • Technology and organizational learning—the changing nature of work

  • Redefining organizations

  • New and improved product capabilities

  • New business models

  • Improving the supply chain

  • Impacts on manufacturing

    Build-to-order: Production system in which manufacturing or assembly will start only after an order is received


  • Login