1. E-commerce Details & History
pp 17-51

2. Types of E-commerce B2C – Business to Consumer
Example?
B2B – Business to Business
C2C – Consumer to Consumer
P2P – Peer to Peer

3. Growth of Internet 1997 – 20 million hosts (web servers)
2003 – over 160 million hosts
Web Content
1997 – Less than 500 million pages
2003 – More than 6 billion.

4. B2B E-commerce Started much earlier Actually grew much faster than B2C
Matured in the early 1990’s
whereas B2C matured in the late 1990’s
Actually grew much faster than B2C
Overlooked during the B2C explosion circa 2000.

5. B2C E-commerce Surprisingly, there are numerous limiting factors
What are they?
Hint: Think about what might limit the customer from participating?
PC Cost/Internet Cost
Skill level/sophistication
Cultural barriers
Regional Infrastructure Barriers

6. E-commerce I: 1995-2000 Lack of standardization Exuberance
Un-controlled growth
B2B successes
B2C failures
Real Sales Growth vs. New Pathways for Sales

7. E-commerce I: 1995-2000 Key concepts for this era:
Network effect – users receive value because everyone uses the same tools/products
First Mover – The first to market in a particular area can more easily gain market share (but not always)
Friction-Free Commerce –
info is equally distributed
transaction costs are low
prices adjust automatically based on demand
middle-men are eliminated
unfair competitive advantages are eliminated

8. E-commerce II: 2000-today E-commerce I Technology driven
Growth emphasis
Venture capital
Ungoverned
Start-ups
Disintermediation
E-commerce II
Business driven
Profit emphasis
Traditional financing
Strong regulations
Large traditional firms
Strengthening intermediaries

9. E-commerce II Key concept:
Disintermediation – get rid of the middle man, create a new direct relationship between manufacturers and customers
Disintermediation is good, right?
How can it be bad?
Consider this: Manufacturing business that have no expertise in sales, marketing, and micro distribution.

10. Project If you have the book, read the Kazaa case study pp 47-51.
It may inspire your proposal.
Things that are one the agenda for up-coming labs:
The art of picking a domain name.
Registering domain names for under $3/year
Web hosting: Criteria to make your decision
Website Development: Free resources to get you started.