1 © 2001 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin Copyright NEW BUSINESS MODELS AND STRATEGIES FOR THE INTERNET ECONOMY.

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1 © 2001 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin Copyright NEW BUSINESS MODELS AND STRATEGIES FOR THE INTERNET ECONOMY CHAPTER 7

“If you are going to be in E-commerce, you have to build a business that destroys the old brick-and-mortar model.” John B. McCoy © 2001 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin Copyright “There will be thousands of winners on the Internet. But there there will be only a very few really big winners.” Mary G. Meeker “Quote”

3 © 2001 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin Copyright Chapter Outline  Internet Technology and Market Structure  Strategy-Shaping Characteristics of the E- Commerce Environment  E-Commerce Business Models and Strategies  Internet Strategies for Traditional Businesses  Innovative Business Models and Fast-Evolving Strategies are KSFs in E-Commerce

4 © 2001 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin Copyright Characteristics of Internet Market Structure  Internet is composed of  Integrated network of users’ connected computers  Banks of servers and high-speed computers  Digital switches and routers  Telecommunications equipment and lines

5 © 2001 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin Copyright Impact of the Internet and E-Commerce  What are the barriers to entry for e-commerce?  What is the impact of the Internet and E- Commerce on the strength of each of the Five Forces?  In terms of e-commerce enterprises, what does business-to-business mean? Business-to- consumer?  What is an internet media company? A content provider?  What impact does the Internet and E-commerce have on some of the Value Chain activities?

6 © 2001 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin Copyright Supply Side of the Internet Economy  What are the major groups on the supply side of e-commerce?  What type of products does each group provide?  What are some strategies for firms that supply communications components and equipment?  What are some things to do for firms that supply communications services?

7 © 2001 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin Copyright Supply Side of the Internet Economy  What are some possible strategies for firms that supply computer hardware?  What are some options for firms that supply specialized e-commerce software?  What are two categories of e-commerce retailers?  What are some possible strategies for e-commerce retailers?

8 © 2001 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin Copyright Supply Side of the Internet Economy  What are some possible strategies for media and content providers?  What are some options for traditional firms?  What some of the key success factors for competing in the e-commerce environment?