Slide 6.1 Curtis/Cobham © Pearson Education Limited 2008 Chapter 6 Electronic Commerce and Business
Slide 6.2 Curtis/Cobham © Pearson Education Limited 2008 The Development of Websites Reduction in costs of advertising Cheaper and easier provision of information Ease of update Reduced importance on physical shop front Crossing geographical boundaries Cut out ‘middleman’
Slide 6.3 Curtis/Cobham © Pearson Education Limited 2008 E-Commerce ‘any exchange of information or business transaction that is facilitated by the use of information and communications technologies.’ Categories –electronic markets –electronic data interchange –internet commerce
Slide 6.4 Curtis/Cobham © Pearson Education Limited 2008 The Drivers for Using the Internet for Business Cost Flexibility Protecting investment Connectivity Low risk Improved customer service Globalization
Slide 6.5 Curtis/Cobham © Pearson Education Limited 2008 Barriers To Entry Uncertainty over business models Telecommunications costs Bandwidth Security Lack of standards Legal frameworks Preparedness
Slide 6.6 Curtis/Cobham © Pearson Education Limited 2008 Repeat Trade Cycles Figure 6.2 Repeat trade cycles Source: FT.com
Slide 6.7 Curtis/Cobham © Pearson Education Limited 2008 Irregular Invoiced Transactions Figure 6.3 Irregular invoiced transactions
Slide 6.8 Curtis/Cobham © Pearson Education Limited 2008 Irregular Cash Transactions Figure 6.4 Irregular cash transactions
Slide 6.9 Curtis/Cobham © Pearson Education Limited 2008 Porter’s Five Forces Model and E-Commerce Threat of new entrants Threat of substitution Bargaining power of customers Bargaining power of suppliers Competition with rivals
Slide 6.10 Curtis/Cobham © Pearson Education Limited 2008 E-Commerce Business Models E-shops and e-malls E-procurement E-auctions Specialist service providers –parcel distribution and tracking Market segmenters –low-cost airlines
Slide 6.11 Curtis/Cobham © Pearson Education Limited 2008 E-commerce Business Models (Continued) Content providers –news archivists Internet infrastructure providers –trust services Push and pull marketing strategies
Slide 6.12 Curtis/Cobham © Pearson Education Limited 2008 A Business-To-Consumer Website Figure 6.5 A business-to-consumer website
Slide 6.13 Curtis/Cobham © Pearson Education Limited 2008 A Business-To-Business Website Figure 6.6 A business-to-business website Source: with permission from Woolworths
Slide 6.14 Curtis/Cobham © Pearson Education Limited 2008 An E-mall Website Figure 6.7 An e-mall website Source: with permission
Slide 6.15 Curtis/Cobham © Pearson Education Limited 2008 A Web Auction Site Figure 6.8 A web auction site Source: eBay
Slide 6.16 Curtis/Cobham © Pearson Education Limited 2008 Development of a Business Website Connection Publication policy Presentation of materials Web presence Website awareness Website metrics
Slide 6.17 Curtis/Cobham © Pearson Education Limited 2008 Trends in E-Commerce Structural developments Reliance on advertising Maintaining competitive advantage Intelligence on the Web –intelligent agents –bots