1 / 12

E-Commerce

E-Commerce. What is E-Commerce?. considered the buying and selling of products over the internet Examples: Amazon- sell CDs, videos and others, and acts as a “host for other suppliers”

romney
Download Presentation

E-Commerce

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. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. E-Commerce

  2. What is E-Commerce? • considered the buying and selling of products over the internet Examples: • Amazon- sell CDs, videos and others, and acts as a “host for other suppliers” • Lastminute.com- founded an idea in catering people who’d like to do something at the last minute (ex. Buy flight tickets) • Boo.com- sell sports goods

  3. Products sold on Internet

  4. Key issues of E-commerce • Physical delivery of goods • The future of services- real growth in consumer e-commerce is going to be in services (ex. Travel, hotel bookings) • The frustration of using e-commerce sites • Business-to-business e-commerce- happens when suppliers competitively bid for orders

  5. Question • What are the advantages of E-commerce? • What are the disadvantages?

  6. Group Discussion Discuss these questions: • What goods or services do you buy over the Internet? What do you prefer not to buy? • What problems have you had buying on the Internet? • What are the kinds of products or services sold on the Net? • Are there any things which could not or should not be sold on the Net? • What are the risks of e-commerce for a.) the companies involved b.) their customers

  7. Group Discussion Discuss these questions: • Which search engines do you use? • What makes a website easy or difficult to use? Why? • What do you like about the sites you visit regularly? • How much time do you spend browsing on the Net? • How can businesses make sure their websites receive more hits than their competitors?

  8. CASE STUDY: KGV Europe

  9. KGV Background • Is a traditional high-street music retailer • Based in Amsterdam, and has 12 stores in Netherlands. Expanded into the rest of Europe and owns 65 stores • Problem: • Profits have steadily fallen, from $450 million to $290 million • Sales have risen by 8% only because of excessive expenditure on advertising and promotions

  10. Problem • There was fierce competition • Narrow product range • Lack of innovation • Not exploiting opportunities offered by selling through Internet

  11. Market Study Study made by KGV produced the ff. findings: • Estimated in 5 years, 70% of music products will be bought via Internet • 65% of consumers under 30y.o will shop via Internet • KGV’s customers would like stores to provide a wider product range • Average spending per month in KGV’s medium-sized stores is highest among 41-60 years old group. • Spending on music products by the over 60 age group will increase significantly in the next 10 years in Europe. • The various age groups have clear preferences as to the type of music they enjoy and purchase.

  12. TASK – Future Strategy • Should KGV keep some of their stores but sell at least 50% of their goods via the Internet? • Should they close all their stores and offer a total online service? If so:a. what are the risks involved? B) how would cost of business change? c.) what organizational changes would the company have to make? • Should KGV stay as it is, but follow Hanna’s advice: a. outsource advertising and promotionb. introduce new products c. target new segments • What are the consequences of the chosen strategy? How can problems be minimized?

More Related