CHAPTER 14

E-BUSINESS

In this chapter, we learned about :

• Compare e-commerce and e-business
• Compare the four types of e-business models
• Describe the benefits and challenges associated with e-business
• Explain the differences among e-shops, e-malls, and online auctions

E-business

• The Internet is a powerful channel that presents new opportunities for an organization to :

1.  Touch customers
2. Enrich products and services with information
3. Reduce costs

 

• How do e-commerce and e-business differ?

1. E-commerce : The buying and selling of goods and services over the Internet
2. E-business : The conducting of business on the Internet including, not only buying and selling, but also serving customers and collaborating with business partners

 

Industries using business

 

 

E-business Models

• E-business model : An approach to conducting electronic business on the Internet

Business-to-Business (B2B)

• Electronic marketplace (e-marketplace) : Interactive business communities providing a central market where multiple buyer and sellers can engage in e-business activities

Business-to-Consumer (B2C)

• Common B2C e-business models include :

1. E-shop - A version of a retail store where customers can shop at any hour of the day without leaving their home or office
2. E-mall - Consists of a number of e-shops; it serves as a gateway through which a visitor can access other e-shops

 

• Business types :

1. Brick-and-mortar business - Operates in a physical store without and Internet presence
2. Pure-play business - A business that operates on the Internet only without a physical store. Examples include Amazon.com and Expedia.com
3. Click-and-mortar business - A business that operates in a physical store and on the Internet. Examples include REI and Barnes and Noble

 

Consumer-to-Business (C2B)

• Priceline.com is an example of a C2B e-business model

 

• The demand for C2B e-business will increase over the next few years due to customer's desire for greater convenience and lower prices

Consumer-to-Consumer (C2C)

• Online auctions

1. Electronic auction (e-auction) : Sellers and buyers solicit consecutive bids from each other and prices are determined dynamically
2. Forward auction : Sellers use as a selling channel to many buyers and the highers bid wins
3. Rivers auction : Buyers use to purchase a product or service, selecting the seller with the lowest bid

 

• C2 communities include :

1. Communities of interest - People interact with each other on specific topics, such as golfing and stamp collecting
2. Communities of relations - People come together to share certain life experiences, such as cancer patients, senior citizens, and car enthusiasts
3. Communities of fantasy - People participate in imaginary environments, such as fantasy football teams and playing one-on-one with Micheal Jordan

 

 

E-business Benefits and Challenges

 

 

• E-business benefits include :

1. Highly accessible
2. Increased customer loyalty
3. Improved information content
4. Increased convenience
5. Increased global reach
6. Decreased cost

 

• E-business challenges include :

1. Protecting consumers
2. Leveraging existing systems
3. Increasing liability
4. Providing security
5. Adhering to taxation rules

 

• There are numerous advantages and limitations in e-business revenue models including :

1. Transaction fees
2. License fees
3. Subscription fees
4. Value-added fees
5. Advertising fees

 

 

Mashups

 

 

• Web mashup : A Web site or Web application that uses content from more than one source to create a completely new service

1. Application programming interface (API) : A set of routines, protocols, and tools for building software applications
2. Mashup editor : WSYIWYGs (What You See is What You Get) for mashups