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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
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“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”
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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
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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
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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?
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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?
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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?
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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?
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