Chapter 18: Global Internet and E-Commerce Chapter 18 Global Internet and E-Commerce International Business Oded Shenkar and Yadong Luo

Chapter 18: Global Internet and E-Commerce Do You Know? That E-Commerce is opening the international business environment? That E-commerce may help firms overcome trade barriers? A few of the prospects for global commerce in the years ahead?

Chapter 18: Global Internet and E-Commerce Otis Elevator: Using IT Otis is the leading company producing elevators and escalators. 80% of sales are outside the United States. It has more than 1.2 million installations. Otis started OTISLINE (a registered trademark) which is a computerized dispatch system for elevator repair and maintenance. By 2000, Otis was taking orders on OTISLINE in 49 countries and 29 languages. The company expects e-commerce to account for more than 25% of total growth by 2003.

Chapter 18: Global Internet and E-Commerce Internet and E-Commerce Diffusion The Internet is approaching worldwide distribution. The highest penetration countries are the United States, Taiwan, Singapore, Norway, Netherlands, South Korea, Israel, Ireland, Hong Kong, Germany, Finland, Denmark, Canada, Belgium, and Australia. The lowest penetration for the Internet is Ukraine, Thailand, Serbia, Romania, Poland, Mexico, Lithuania, Latvia, India, Indonesia, Hungary, Bulgaria, and Argentina.

Chapter 18: Global Internet and E-Commerce Internet and E-Commerce Diffusion Exhibit 18-2: Internet penetration, by country

Chapter 18: Global Internet and E-Commerce Internet and E-Commerce Diffusion Exhibit 18-3: Top country-level domains (2000)

Chapter 18: Global Internet and E-Commerce Comparative Internet Demographics Female usage is higher in United States and Canada, but lower everywhere else. American spend about 13 days on line per month. Japanese, about 14 days. Americans spend more time than anyone else. Japanese somewhat less, the French still less.

Chapter 18: Global Internet and E-Commerce Comparative Internet Demographics Exhibit 18-4: Internet usage by gender

Chapter 18: Global Internet and E-Commerce E-Commerce around the Globe This is the fastest growing segment of the internet economy. It accounts for less than 1% of total United States sales, but is growing faster than any other segment. The highest use segments are: Food, Clothing, Jewelry, Toys, Music, Video, Books, Sports Equipment, Electronics, Computers, Travel, Tickets, Stocks, Cars.

Chapter 18: Global Internet and E-Commerce E-Commerce around the Globe Exhibit 18-5: Estimated online ad spending by country in 2001, in millions of euros

Chapter 18: Global Internet and E-Commerce E-Readiness To be e-ready, a firm needs: Connectivity Information security Positive E-climate National E-readiness

Chapter 18: Global Internet and E-Commerce E-Readiness Exhibit 18-7: Access costs and usage of the internet

Chapter 18: Global Internet and E-Commerce E-Readiness Exhibit 18-10: E-business readiness rankings

Chapter 18: Global Internet and E-Commerce Cross-Border E-Commerce Cross border transactions account for 25% of all e-transactions. They are expected to grow to $3.7 trillion by Much greater percentages of sales are coming from international locations.

Chapter 18: Global Internet and E-Commerce Global E-Commerce Challenges The challenges E-commerce faces include: Standardization Forces Localization Challenges Taxation Issues

Chapter 18: Global Internet and E-Commerce Global E-Commerce Challenges Exhibit 18-16: Amazon.com’s market rankings worldwide

Chapter 18: Global Internet and E-Commerce Global E-Commerce Challenges Exhibit 18-17: Language used on internet web pages (1999)

Chapter 18: Global Internet and E-Commerce Global E-Commerce Challenges Exhibit 18-19:Customization of leading U.S. Web sites (2000)