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Chapter 18

International Business Oded Shenkar and Yadong Luo. Chapter 18. Global Internet and E-Commerce. Do You Know?. That E-Commerce is opening the international business environment? That E-commerce may help firms overcome trade barriers?

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Chapter 18

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  1. International Business Oded Shenkar and Yadong Luo Chapter 18 Global Internet and E-Commerce Chapter 18: Global Internet and E-Commerce

  2. Do You Know? • That E-Commerce is opening the international business environment? • That E-commerce may help firms overcome trade barriers? • A few of the prospects for global commerce in the years ahead? Chapter 18: Global Internet and E-Commerce

  3. Otis Elevator: Using IT • Otis is the leading company producing elevators and escalators. 80% of sales are outside the United States. It has more than 1.2 million installations. • Otis started OTISLINE (a registered trademark) which is a computerized dispatch system for elevator repair and maintenance. • By 2000, Otis was taking orders on OTISLINE in 49 countries and 29 languages. • The company expects e-commerce to account for more than 25% of total growth by 2003. Chapter 18: Global Internet and E-Commerce

  4. Internet and E-Commerce Diffusion • The Internet is approaching worldwide distribution. • The highest penetration countries are the United States, Taiwan, Singapore, Norway, Netherlands, South Korea, Israel, Ireland, Hong Kong, Germany, Finland, Denmark, Canada, Belgium, and Australia. • The lowest penetration for the Internet is Ukraine, Thailand, Serbia, Romania, Poland, Mexico, Lithuania, Latvia, India, Indonesia, Hungary, Bulgaria, and Argentina. Chapter 18: Global Internet and E-Commerce

  5. Internet and E-Commerce Diffusion Exhibit 18-2: Internet penetration, by country Chapter 18: Global Internet and E-Commerce

  6. Internet and E-Commerce Diffusion Exhibit 18-3: Top country-level domains (2000) Chapter 18: Global Internet and E-Commerce

  7. Comparative Internet Demographics • Female usage is higher in United States and Canada, but lower everywhere else. • American spend about 13 days on line per month. Japanese, about 14 days. • Americans spend more time than anyone else. Japanese somewhat less, the French still less. Chapter 18: Global Internet and E-Commerce

  8. Comparative Internet Demographics Exhibit 18-4:Internet usage by gender Chapter 18: Global Internet and E-Commerce

  9. E-Commerce around the Globe • This is the fastest growing segment of the internet economy. • It accounts for less than 1% of total United States sales, but is growing faster than any other segment. • The highest use segments are: Food, Clothing, Jewelry, Toys, Music, Video, Books, Sports Equipment, Electronics, Computers, Travel, Tickets, Stocks, Cars. Chapter 18: Global Internet and E-Commerce

  10. E-Commerce around the Globe Exhibit 18-5: Estimated online ad spending by country in 2001, in millions of euros Chapter 18: Global Internet and E-Commerce

  11. E-Readiness To be e-ready, a firm needs: • Connectivity • Information security • Positive E-climate • National E-readiness Chapter 18: Global Internet and E-Commerce

  12. E-Readiness Exhibit 18-7: Access costs and usage of the internet Chapter 18: Global Internet and E-Commerce

  13. E-Readiness Exhibit 18-10: E-business readiness rankings Chapter 18: Global Internet and E-Commerce

  14. Cross-Border E-Commerce • Cross border transactions account for 25% of all e-transactions. • They are expected to grow to $3.7 trillion by 2004. • Much greater percentages of sales are coming from international locations. Chapter 18: Global Internet and E-Commerce

  15. Global E-Commerce Challenges The challenges E-commerce faces include: • Standardization Forces • Localization Challenges • Taxation Issues Chapter 18: Global Internet and E-Commerce

  16. Global E-Commerce Challenges Exhibit 18-16: Amazon.com’s market rankings worldwide Chapter 18: Global Internet and E-Commerce

  17. Global E-Commerce Challenges Exhibit 18-17: Language used on internet web pages (1999) Chapter 18: Global Internet and E-Commerce

  18. Global E-Commerce Challenges Exhibit 18-19:Customization of leading U.S. Web sites (2000) Chapter 18: Global Internet and E-Commerce

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