Are eBusinesses Better?

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Presentation transcript:

Are eBusinesses Better? Electronic Commerce Are eBusinesses Better?

Topics Covered A first look at online businesses FreshDirect – how is this ‘pure play’ business different from more traditional rivals? Value proposition Dealings with suppliers Operations differences Customer acquisition issues Are any of the firm’s advantages sustainable?

Distribution Channels: Disintermediation Electronic Commerce Distribution Channels: Disintermediation

Topics Covered Collapsing Channels Firms ‘changing the channel’ Failures & successes the role of value gaps Firms ‘changing the channel’ Expedia & the travel industry BlueNile & the jewelry industry NetFlix & the movie industry

Disintermediation Source: Benjamin & Wigand (SMR)

The Long Tail Source: Wired

Revenue sharing for DVDs Source: Video Rental Developments & the Supply Chain: Netflix Inc., WUSTL.EDU case http://www.olin.wustl.edu/workingpapers/pdf/2004-03-225.pdf