E-MARKETPLACES chapter2 박시윤 오윤정

Contents E-marketplaces Functions of a Market E-marketplace components and p E-marketplace components Types of E-marketplaces

Competition in the digital economy Impacts of EC on business processes and organizations E-commerce in the wireless enviroment Informediaries, distributor,and intermediation in E-commerce

1)Matching of Buyers & Sellers Functions of a Market  Deterination of product offerings  Search  Price discovery  Others

2)Facilitation of Transactions Functions of a Market  Logistics  Settlement  Trust  Communication

3)Institutional Infrastructure Functions of a Market  Legal  Regulatory  Discovery

Buyer Seller How and Who make up E-marketplace E-market place catalog logistics insuranceasurrance distribution legal finance transaction contents

 Customers  Sellers  Products and services  Infrastructure  Front end  Back end  Intermediaries  Other business partners  Support services E-marketplace components

Front end The portion of an e-seller’s business processes Through which customers interact, including the Seller’s portal, electronic catalogs, a shopping cart, A search engine, and a payment gateway The activities that support online order fulfillment, inventory management,purchasing from suppliers,payment processing Packaging, and delivery Back end

Dell computer: USA E-marketplace Buyer goods/accessory/optionorder(option/price) sales department Production assembly line Delivery business Corporation with business partner an actual output direction transport direction obtain delivery Recipt of order Analysis of data/ report stocks

Private (Sell side) (Buy side) Public E- marketplace Types of E-marketplaces

Types of E-marketplaces ModelB2CB2B E-Storefront ○ E-mall ○ E-procurement ○ E-Auction ○○ Information brokers ○○

E-MarketplaceComparisionTraditional Marketplace Direct arrangement B2CdistributionComplex steps Global marketTrade rangelimited AnytimeTrade timelimited Acquisition with Internet Digital data updated rapidly Communication on real time each other Understanding demand of whole market Needs for information manually Unable to communication on real time Importance of Interaction with customer MarketingMass marketing A one sided marketing ImmediatelyCRMDelaying in action Virtual spaceSale agencyNecessary condition Online - Offline

Intermediaries Cyberspace Informediaries, Brokers

Broker Buy/Sell fulfillment Virtual mall Metamediary Bounty Search agent Shopping facilitator Informediary (Intermediation on EC) Search cost Lack of privacy Incomplete information Contact risk Price inefficiencies

They provide relevant information about demand, supply, prices, and requirement and, just help match sellers and buyers. Disintermediation They offer value-added services such as transfer of products, escrow. payment arrangements, consulting, or assistance Reintermediation E-distributor

E-marketpalce Mechanism E- marketplace catalog Agency Shopping Cart Engine

M-Commerce L-Commerce(LBC)-GPS etc

Competitive Factors 1. Low search costs for buyers 2. Speedy comparisons 3. Lower price 4. Customer service 5. Barriers to entry are reduced 6. Virtual partnerships multiply 7. Market niches abound 8. Differentiation and personalization

Porter’s competitive Force model Threat of substitute products or service Rivaly among Existing competitors Buyer Bargaining power of channel/ end users Bargaining power of suppliers Barriers to entry

Improving Product promotion New sale channel Direct savings Reduced cycle time Improved customer service Brand or corporate image Customization Advertising Transforming Technology and organizational learning The changing nature of work Redefining New and Improved product capabilities New industry order and business model Improving the supply chain Impacts on manufacturing Impacts on finance and accounting HRM and tranning Impacts of EC