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Chapter 14

Chapter 14. E-Business. Learning Outcomes. 14.1 Compare e-commerce and e-business 14.2 Compare the four types of e-business models 14.3 Describe the benefits and challenges associated with e-business 14.4 Explain the differences among e-shops, e- malls, and online auctions.

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Chapter 14

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  1. Chapter 14 E-Business

  2. Learning Outcomes 14.1 Compare e-commerce and e-business 14.2 Compare the four types of e-business models 14.3 Describe the benefits and challenges associated with e-business 14.4 Explain the differences among e-shops, e- malls, and online auctions

  3. E-Business • The Internet is a powerful channel that presents new opportunities for an organization to: • Touch customers • Enrich products and services with information • Reduce costs

  4. E-Business • How do e-commerce and e-business differ? • E-commerce – the buying and selling of goods and services over the Internet • E-business – the conducting of business on the Internet including, not only buying and selling, but also serving customers and collaborating with business partners

  5. E-Business Industries Using E-Business

  6. E-Business Models • E-business model – an approach to conducting electronic business on the Internet

  7. E-Business Models

  8. E-Business Models

  9. Business-to-Business (B2B) • Electronic marketplace (e-marketplace) – interactive business communities providing a central market where multiple buyers and sellers can engage in e-business activities

  10. Business-to-Consumer (B2C) • Common B2C e-business models include: • e-shop – a version of a retail store where customers can shop at any hour of the day without leaving their home or office • e-mall – consists of a number of e-shops; it serves as a gateway through which a visitor can access other e-shops • Business types: • Brick-and-mortar business • Pure-play business • Click-and-mortar business

  11. Consumer-to-Business (C2B) • Priceline.com is an example of a C2B e-business model • The demand for C2B e-business will increase over the next few years due to customer’s desire for greater convenience and lower prices

  12. Consumer-to-Consumer (C2C) • Online auctions • Electronic auction (e-auction) -sellers and buyers solicit consecutive bids from each other and prices are determined dynamically • Forward auction -sellers use as a selling channel to many buyers and the highest bid wins • Reverse auction -buyers use to purchase a product or service, selecting the seller with the lowest bid

  13. Consumer-to-Consumer (C2C) • C2C communities include: • Communities of interest -people interact with each other on specific topics, such as golfing and stamp collecting • Communities of relations -people come together to share certain life experiences, such as cancer patients, senior citizens, and car enthusiasts • Communities of fantasy -people participate inimaginary environments, such as fantasy football teams and playing one-on-one with Michael Jordan

  14. E-Business Benefits and Challenges • E-Business benefits include: • Highly accessible • Increased customer loyalty • Improved information content • Increased convenience • Increased global reach • Decreased cost

  15. E-Business Benefits and Challenges • E-business challenges include: • Protecting consumers • Leveraging existing systems • Increasing liability • Providing security • Adhering to taxation rules

  16. E-Business Benefits and Challenges • There are numerous advantages and limitations in e-business revenue models including: • Transaction fees • License fees • Subscription fees • Value-added fees • Advertising fees

  17. Mashups • Web mashup - a Web site or Web application that uses content from more than one source to create a completely new service • Application programming interface (API) - a set of routines,protocols, and tools for building software applications • Mashup editor - WSYIWYGs (What You See IsWhat You Get) for mashups

  18. CHAPTER FOURTEEN Opening Case Study Questions • Identify the type of e-business model eBay is using and explain why it has been so successful • Other major Web sites, like Amazon.com and Yahoo!, have entered the e-marketplace with far less success than eBay. How has eBay maintained its dominant position? • What are the three different types of online auctions and which one is eBay using?

  19. CHAPTER FOURTEEN CASEeBiz • There are numerous ways to make money on the Internet • Million dollar home page • One red paperclip

  20. Chapter Fourteen Case Questions • How else can you use the Internet to raise money? • What types of businesses could benefit from trading on the Internet? • Can you think of any other disruptive or non-traditional ways that you could use the Internet?

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