E-Business

Report
E-BUSINESS
LEARNING OBJECTIVES
• WHAT IS E-BUSINESS ?
• WHAT IS COMMERCE ?
• WHAT IS STRATEGY ?
• MODELS OF E-BUSINESS
• ADVANTAGES AND DISADVANTAGES
• APPLICATIONS IN TURKEY AND WORLD
WHAT IS E-BUSINESS

E-business, or electronic business, systems use a
number of information technology-based
business practices to enhance relationships
between the business and the customer. Ebusiness includes changes in marketing
communication, distribution systems, and
business models.
EVOLUTION OF E-BUSINESS
1997: Introduction of a brand new phrase – ebusiness
 1999: The emphasis of e-business shifted from
B2C to B2B
 2001: The emphasis shifted from B2B to B2E, ccommerce, e-government, e-learning, and mcommerce
 2004: Total online shopping and transactions in
the United States between $3 to $7 trillion

EVOLUTION OF E-BUSINESS
2007: Business.com acquired by R.H.
Donnelley for $345 million.
 2010: Groupon reportedly rejects a $6 billion offer
from Google. Instead, the group buying websites
went ahead with an IPO on 4 November 2011. It
was the largest IPO since Google
 2012: US eCommerce and Online Retail holiday
sales reach $33.8 billion, up 13 percent
 2014: India’s e-commerce industry is estimated to
have grown more than 30% from a year earlier to
$12.6 billion in 2013

WHY E-BUSINESS
Lack of time at public or consumer
 Flexibility in timings for payment
 Easy delivery at door steps
 Planning for payment
 Safe transactions

E-COMMERCE

E-commerce – Process of
buying or selling goods or
services across a
telecommunications
network
E-BUSINESS INDUSTRY TERMS(1)
Internet: A global network of computer
networks that use a common interface for
communication.
 World Wide Web: A graphically based Internet
standard that allows easy access to information
from around the world.
 E-Business: This is the process of using
information technology (IT) to support a fuller
operation of a business.

E-BUSINESS INDUSTRY TERMS(2)
E-Commerce: Uses electronic information based
systems to engage in transactions or commerce
online.
 Extranet: An Internet based connection between
a business and its suppliers, distributors, and
partners. This is not open to the general public.
 Intranets: Internal private network that use the
same types of hardware, software, and
connections as the Internet.

THE TRADITIONAL BUSINESS SYSTEM
Distribution
Flow
Product
Price
Communication
Information Flow
Payment Flow
Target
Customers
E-BUSINESS SYSTEMS
E-Business Systems are fostering a number of
changes to the marketing system:







Customized production.
Increasing price pressure resulting in lowering
prices.
Shorter channels of distribution dominated by
facilitators.
Extranet-enhanced supply chain management.
Non-linear promotions.
Electronic transfer of funds.
Database information management systems.
E-BUSINESS SYSTEMS

Shorter Channels
Dominated by
Facilitators
Customized
Production
Customized NonLinear Promotion
Dynamic Pricing
Knowledge Management
& Data Warehousing
Electronic Payments
Market-of-One
Customer
E-BUSINESS STRATEGY
STRATEGY:

Definition of the future direction and actions of
a company defined as approaches to achieve
specific objectives.
E-BUSINESS
STRATEGY AND PLANNING
INCLUDES THE FOLLOWING:
E-risk management
 Web site technology, applications,
infrastructure, security, resources
and
budget.
 Web site content - Information architecture,
customer experience, design, branding and
marketing.
 Marketing planning and budgeting.
 E-Commerce planning


. A generic strategy process model
Figure 1

Elements of strategic situation analysis for
the e-business
Figure 2.

Elements of strategic objective setting for
the e-business
Figure 3.

. Elements of strategy definition for the e-
Figure 4
business


Elements of strategy implementation for
the e-business
Figure 5:
WHY IS AN E-BUSINESS STRATEGY
IMPORTANT?

While e-business can help you increase your
visibility, profits and competitive advantage, it is
much more than just a website. Before jumping
headfirst, it is important to understand the
basics, recent models and applications that can
help you grow your business.
WHAT HAPPENS WHERE THERE IS
NO E-BUSINESS STRATEGY
Missed opportunities for additional sales on the
sell-side and more efficient purchasing on the
buy-side
 Fall-behind competitors in delivering online
services – may become difficult to catch-up.
 Poor customer experience from poorly
integrated channels.

E-BUSINESS MODELS

Business models
How a company conducts business in order to
generate revenue
 Widespread access to the Internet and Web allows
companies to adapt old models and create new ones

E -business model is an approach to conducting
electronic business on the Internet.E-business
transactions take place between two major
entities—businesses and consumers.
 E-business models are often categorized by type
of customer






Major the e-business models:
Business-to-business
Business-to-consumer
Consumer-to-consumer
Consumer-to-business
TYPES OF E-BUSINESS:
BUSINESS-TO-BUSINESS (B2B)

Business-to-business (B2B) applies to
businesses buying from and selling to each other
over the Internet. Online access to data,
including expected shipping date,delivery date,
and shipping status, provided either by the seller
or a third-party provider is widely supported by
B2B models. Electronic marketplaces represent a
new wave in B2B e-business models.
BUSINESS-TO-BUSINESS (B2B)
BUSINESS MODEL

“B2B” is business-to- business commerce
conducted over the Internet(called B2B ecommerce space, or e-marketplaces)
Electronic marketplaces, or e -marketplaces , are
interactive business communities providing a central
market where multiple buyers and sellers can engage in
e-business activities . They present structures for
conducting commercial exchange, consolidating supply
chains, and creating new sales channels. Their primary
goal is to increase market efficiency by tightening and
automating the relationship between buyers and sellers.
Existing e-marketplaces allow access to various
mechanisms in which to buy and sell almost anything,
from services to direct materials.
B2B APPLICATIONS
Advertising
Auctioning
Procurement
Channel management
E-commerce
www.Alibaba.com
 www.kobionline.com
 www.tradeturkey.com

BUSINESS-TO-CONSUMER (B2C)

Business-to-consumer (B2C) applies to any business
that sells its products or services to consumers over
the Internet. The business-to-consumer, or B2C,
model of e-business sells products directly to retail
consumers online.. The e-business has only an online
identity through which it offers a range of products
to customers. Most B2C models generate revenue
from direct sales and processing fees. B2C also is
known as electronic retail or e-tail.
B2C APPLICATIONS
Electronic storefront
 Electronic malls
 Advertising online
 Service online





selling books, toys, computers
e-banking (cyber banking)
online stock trading
online job market, travel, real estate
CONSUMER-TO-BUSINESS (C2B)

Consumer-to-business (C2B) applies to any consumer that
sells a product or service to a business over the Internet.
One example of this e-business model is Priceline.com
where bidders (or customers) set their prices for items
such as airline tickets or hotel rooms, and a seller decides
whether to supply them. The demand for C2B e-business
will increase over the next few years due to customer’s
desire for greater convenience and lower prices.

C2B model, also called a reverse auction or
demand collection model, enables buyers to name
their own price often binding, for a specific good
or service generating demand. The website
collects the demand bids and then offers the
bids to the participating sellers.
C2B APPLICATION


For example, when a consumer writes reviews, or
when a consumers gives a useful idea for new product
development, then this individual is creating value to
the firm, if the firm adopts the input. Excepted
concepts are crowd sourcing and co-creation.
Another form of C2B is the electronic
commerce business model, in which consumers can
offer products and services to companies and the
companies pay them. We can see this example
in blogs or internet forums where the author offers
a link back to an online business facilitating the
purchase of some product (like a book
on Amazon.com), and the author might receive
affiliate revenue from a successful sale.
CONSUMER-TO-CONSUMER (C2C)

Consumer-to-consumer (C2C) applies to sites
primarily offering goods and services to assist
consumers interacting with each other over the
Internet. auctions.C2C online communities, or
virtual communities, interact via e-mail
groups,Web-based discussion forums. C2C
business models are consumer driven and
opportunities are available to satisfy most
consumers’ needs, ranging from finding a
mortgage to job hunting. They are global swap
shops based on customer-centered
communication.
C2C APPLICATION
eBay, the Internet’s most successful C2C online
auction Web site, links like-minded buyers and
sellers for a small commission
 Gittigidiyor.com
1. YOU CAN BE YOUR OWN BOSS
•
•
•
Have full control over what you
sell
Charge the amount you want for
your products and/or services
Keep 100% of the profits
2. NO NEED TO RENT A BUILDING
FOR A STORE OR HIRE SALES STAFF
3. YOU CAN OPERATE YOUR ONLINE
BUSINESS
IN THE COMFORT OF YOUR OWN HOME
You don’t
have
to worry
about the
long
commute to
work.
4. YOU CAN SELL DIRECTLY
FROM YOUR WEBSITE

Your customers can
order your products
directly from your
website and you can
ship them to your
customers from one
central location.
5. YOU CAN REACH
TARGET AUDIENCE
 You
A
LARGER
are not restricted to selling to consumers
located in your neighbourhood or local region.
Your consumers can be located all around the
world.
6. YOU DO NOT NEED A LOT
OF MONEY
Internet business are
fast, cheap and easy to
set up.
 Reduced cost.

7. YOU DO NOT NEED A LARGE
ADVERTISING BUDGET
 You
can promote your
online business for FREE
very easily by producing a
video, submitting articles
to article directories,
interacting with other
users on social networks,
and creating slideshow
presentations.
ADVANTAGES (COUNT.)
Widen the availability of information
 Closer relationship
 Enhance work integration up to the world level
 Free samples.
 Media breaks.
 Time to market.
 Customer loyalty.
 Save time, movement, space and papers.

1.Promoting an Online Business
can be very Difficult

New online business
owners may find it very
difficult to establish
their websites on the
internet.
2. Competition with Large
Businesses

You will be competing with large businesses
that have far greater resources than you do to
attract customers to their
3. You may have Trouble
Developing Relatıonships with
your Customers
Having an internet business
means that you may have
trouble developing
relationships with your
customers because you do
not deal with them face to
face.
 This could hurt your business
because your customers may
be inclined to make an inperson purchase rather than
visiting your online store.

E-BUSINESS CHALLENGES

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Privacy
Privacy is among the top concerns of Internet users.
E-business sites often require passwords and use
electronic signatures, an electronic form of identity
verification.
Companies can track customers’ shopping and viewing
habits through cookies.
Customers usually prefer that companies do not share
their personal information. Merchants have responded by
joining privacy organizations.
Privacy protections may soon become legally required.
Employees also have concerns that employers are
monitoring their Internet behavior.
Companies worry about data theft.
RISKS
Web sites that fail because of spike in visitor
traffic
 Hacker penetrating the security of the system
 A company emails customer without receiving
their permission
 Problems wth fulfilment
 E-mail customer-service enquiries from the web
site don’t reach the right person


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