CHAPTER 13 :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.

1.E-Business

*The Internet is a powerful channel that presents new opportunities for an organization to:

⇨Touch customers (If did not have Internet we have distance and hard to touch with customers.It also can make can close with the customers)

⇨Enrich products&services with information (If traditionally they use catalog ,brochures to update information).

⇨Reduce costs (It can operate at home ,no need to rent or buy premise .It also no need to hired employees).


2.E-Commerce & E-Business

*E-Commerce :limited buying and selling of goods and services over the Internet (online transactions)

*E-Business :more than e-commerce ,not onling buying and selling ,but also fulfill customers demand& needs (online transactions,serving customers & collaborating with business partner)


3.E-Business Models : An approach to conducting electronic business on the Internet.

➤i)Business-to-business (B2B): Businesses buying and selling to each other over the Internet(one company to one company).

➤ii)Business-to-consumer (B2C):Any businesses that sells its products or services to consumers over the Internet.

➤iii)Consumer-to-business (C2B):Any consumer that sells a product or service to a business over the Internet(from consumer to business.It also more to fashion and hard to sell it alone).

➤iv)Consumer-to-consumer (C2C):Sites primarily offering goods&services to assist consumers interacting with each other over the Internet(eg :Consumers sell preloved to consumer by Facebook group) .

3.i)Business-to-business (B2B)

➥Electronic marketplace(e-marketplace) :There are so many buyers&sellers from different business or industries ,can choose with the cheapest price)

      ➥It also create collaborative and create networking .

      ➥Primary goal:To increase market efficiency by tightening& automating the relationship between buyers& selles.

      ➥Variety of products from raw materials there are not limited.



3.ii)Business-to-consumer (B2C)

➔E-Shop :Retail store that sells their own products only ,customers can shop at any hour of the day(eg: Sugarscarf ,Fareeda ,and Hanami).

➔E-Mall : Variety number of e-shops; serves as a gateway through which a visitor can access other e-shops(eg:Zalora and Lazada).
*Business types:
➢Brick-and-mortar business :operation only at shop not in Internet .It physical store only such as Bata.

➢Pure-play business:operates on the Internet only and did not have store.

➢Click-and-mortar business:Not only have store but they operates on the Internet also such as Sugarscarf .

3.iii)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.

3.iv)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:Normal option where as sellers will choose buyers that bid the highest price.

➥Reverse auction :Buyers want to purchase with a lowest price sellers will bid the lowest price will wins.

*C2C communities include :

⤻Communities of interest :People setup group based on their interest such as group about reading novels.

⤻Communities of relations:People setup group based on experiences such as cancer patients they will share about their experience ,and how to overcome it.

⤻Communities of fantasy :People will setup group with different country to play games ,or their will sell signature of their idols .

4.E-Business Benefits

➜Highly accessible :Businesses can operate 24 hours a day ,7 days a week ,365 days a year.

➜Increased customer loyalty :Easy to contact with customers and easy to deals with the customers.

➜Improved information content : Easy to update and delete information.If use traditionally they use catalog and brochures if there have changes information they have printing again.

➜Increased convenience :E-Business automates and improves many of the activities that make up a buying experience.

➜Increased global reach : Businesses ,both small & large can reach new markets.

➜Decreased cost :No need rent or buy store.It also no need to hired employees.

5.E-Business Challenges

➙Identifying limited market segments (lack of growth in some sectors due to product/service limitation) 

➙Managing consumer trust (must develop a trustworthy relationship to make that initial sale and generate customer loyalty)

➙Ensuring consumer protection (implement Internet security,protect from misuse of customer information)

➙Adhere to taxation rules (Companies have to register and declare the profit because have pay taxation)

6.E-Business Benefits & Challenges

➤Transaction fees
➤License fees
➤Subscription fees
➤Value-added fees
➤Advertising fees

7.Mashups

*Web mashup - A website 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 :What You See Is What You Get for mashups.