Saturday, 12 September 2015

Chapter 14 – E business


The internet is a powerful channel that presents new opportunities for organization to;

  • Touch customers
  • Enrich products and services with information
  • Reduce costs

How do ecommerce and e business differ?

  • Ecommerce – the buying and selling of goods and services over the internet
  • 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 E business 


E business model – An approach to conducting electronic business on the Internet

Business-to-Business (B2B)

Electronic marketplace (E market place) – interactive business communities providing a central market where multiple buyers and sellers can engage in e business activities.

Business-to-Consumer (B2C)

Common B2C e business models include;
E shop – A version of retail store where customers can shop at any hour of the day without leaving their home or office
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;

  • Brick-and-mortar business
  • Pure-play business
  • Click-and-mortar business

Consumer-to-Business (C2B)

  • 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

  • Electronic auction (E auction) – Sellers and buyers solicit consecutive bids from each other and prices are determined dynamically
  • Forward auction – Sellers use as a selling channel to many buyers and the highest bid wins
  • Reverse auction – Buyers use to purchase a product or service, selecting the seller with the lowest bid

C2C communities include;

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


E business benefits include;

  • Highly accessible
  • Increased customer loyalty
  • Improved information content
  • Increased convenience
  • Increased global reach
  • Decreased cost

E business challenges include;

  • Protecting consumers
  • Leveraging existing systems
  • Increased liability
  • Providing security
  • Adhering to taxation rules

There are numerous advantages and limitations in e business revenue models including;

  • Transaction fees
  • License fees
  • Subscription fees
  • Value-added fees
  • Advertising fees


  • Web mash up – A Web site or Web application that uses content from more than one source to create a completely new services
  • Application programming interface (API) – A set of routines, protocols, and tools for building software applications
  • Mash up editor – WSYIWYGs (What You See Is What You Get) for mash ups 

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