Chapter 3
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Chapter 3. By Dr. Robert Chi Department of Information Systems College of Business Administration California State University, Long Beach. Internet Models Internet Travel Books Trade

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Chapter 3

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Chapter 3

Chapter 3

By

Dr. Robert Chi

Department of Information Systems

College of Business Administration

California State University, Long Beach


Chapter 3

  • Internet Models

  • Internet

  • Travel

  • Books

  • Trade

  • Auction

  • b. Intranet

  • Company’s internal website (CSULB)

  • Extranet

    • Between business partners


Chapter 3

  • Internet Economy

  • Infrastructure – AT&T

  • Network Applications Infrastructure - AOL

  • Intermediaries – Ebay

  • Intercommerce – Amazon

  • By 2006 ½ US jobs are internet related


Chapter 3

  • Terms

  • TCP/IP

  • ISP

  • Baseband

  • Broadband

  • - DSL

  • - ADSL

  • - Satellite

  • - Cable

  • c. Bandwidth

  • d. Router

  • e. Server


Chapter 3

  • Internet Services

  • E-Mail

  • -SMTP (Simple Mail Transfer Protocol)

  • - POP (Post Office Protocol)

  • b. FTP (File Transfer Protocol)

  • c. Telnet

  • d. WWW (World Wide Web)


Chapter 3

  • Web address

  • IP

  • DNS (Domain Name Services)

  • Domain names

  • .com, .net, .gov, .org, .us, .info

  • .uk, .jp


Chapter 3

  • Networked Economy

  • Competition across Industry Boundaries

  • Competitions are occurring in a very fast pace

  • Competition occurs between Alliances

  • Consumer behavior is still in the early stage

  • Industry value chains are being configured


Chapter 3

  • Step Framework

  • Investigate opportunity in an existing or new value system

  • Basic value types

  • 1. Trapped value

  • Efficient markets

  • Efficient value systems

  • 2. New to the world value

  • Mass customization

  • Virtual community

  • Voice over I.P

  • 2. Identify unmet or undeserved needs


Chapter 3

  • Determine target customer segments

  • Demographic – age, gender, ethnicity

  • Geographic – country, city

  • Behavioral – online/offline shopping

  • Occasion - routine/special occasion

  • Psycho graphic – Lifestyle

  • Benefits – convenience, economy, quality

  • Actionable and Meaningful

  • Actionable

  • - easy to identify

  • - readily reached

  • - can be described in growth, size, profile

  • Meaningful

  • - behave similarly


Chapter 3

Access resource requirements t deliver the offering

Resources in 3 classifications

- Customer facing

- Internal

- Upstream

Modification from B & M world to online world

1. Physical world - Virtual/Physical world

2. Activities – Capabilities

(what you are doing/what you can do)

3. Supply side- Demand side

4. Single system – Multiple system


Chapter 3

  • Assess Competitive , Technology, Financial attractiveness of opportunity

  • Competitive intensity

  • SWOT

  • - Strength

  • - Weakness

  • - Opportunities

  • - Threats

  • Customer Dynamics

  • - 1. Level/Magnitude of unmet need

  • - 2. Level of interaction

  • -3. Likely rate of growth

  • Technology vulnerability

  • a. Impact of the penetration of enabling technologies

  • b. Impact of new technologies on the value proposition

  • Microeconomics

  • a. Size/Volume of market (market size)

  • b. Projected level of profitability


Chapter 3

Go/ No – Go Assessment


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