CHAPTER 13 - E-BUSINESS

E-Business

• The internet is a powerful channel that presents new opportunities for an organization to: 

1. Touch customers
2. Enrich products and services with information
3. Reduce costs

• E-commerce - the buying and selling of goods and services over the Internet
•  E-business - the conducting of business on the internet, not only buying and selling, but also serving the customers and collaborating with business partners 

Industries Using E-Business

• E-business model - an approach to conducting electronic business on the internet

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 
• Electronic marketplaces, or e-marketplaces, present structures for conducting commercial exchange, consolidating supply chains, and creating new sales channels
• Their primary goal is to increase market efficiency by tightening and automating the relationship between buyers and sellers
• Existing e-marketplaces allow access to various mechanisms in which to buy and sell almost anything, from services to direct materials

Business-to-Consumer (B2C)

• 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:

1. Brick-and-mortar business - operates in a physical store without an internet presence
2. Pure-play business - a business that operates on the Internet only without a pysical store
3. Click-and-mortar business - a business that operates in a physical store and on the internet

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

Consumer-to-Consumer(C2C)

• Electronic auction (e-auction) - Sellers and buyers solicit consecutive bids from each other and prices are determined dynamically
• Forward auction - Sellers use as a channel to many buyers and the highest bid wins
• Reverse auction - Buyers use to purchase a product or service, selecting the seller with lowest bid
• Communities of interest -People interact with each other on specific topics
• Communities of relations - People come together to share certain life experiences
• Communities of fantasy - People participate in imaginary environments

E-Business Benefits

• Highly accessible
• Increased customer loyalty
• Improved information content
• Increased convenience
• Increased global reach
• Decreased cost

E-Business challenges

• Indentifying Limited Market Segments
• Managing Consumer Trust
• Ensuring Consumer Protection