Skip to main content

E-Commerce Notes #10


C2C
Usage of tech. to enable customers to share resources with each other. Major revenue model : subscription, transaction fees and advertisements

M-Commerce : With the wireless tech. its possible to conduct transactions on a mobile. Revenue model : sale of goods.

E-Commerce enablers : hardware : Web Servers from IBM, Oracle, DELL; Software : OS, Server Software from Oracle (technology).
  • E-Commerce software system that enables B2B and B2C.
  • Networking  products like routers from CISCO.
  • CRM softwares : Salesforce.com
  • Online payment system : Paypal, Cybercash, etc.

    Seven unique features of e-commerce technology :
    • Ubiquity - No regional boundary, new market channels has been created causing expansion in the size of overall market, resulting in improved efficiency by lowering the cost of operations. Like travelling, and inventory mngmt. Cost is zero.
    • Global Reach - Low cost entry in global market
    • Universal standard - Easy to find a product's quality and prices. Thus a transparent market.
    • Richness - Has altered industrial structure by reducing the strength of powerful distribution channel. Cutting down the intermediates.
    • Interactivity - Has altered the industrial structure by increasing interactivity. Reduced the industry cost by reducing dependency on sale-forces. Direct interaction with the seller.
    • Personalization / Customization - Alters the industry structure by reducing the threat of substitute by providing personalized environment to the users.
    • Information Density - Has changed the industry structure by weakening the power of sales channel, shifting bargaining power to the consumers, it has lowered the cost of obtaining, processing and distributing information about supplies and consumers.

      What is Industry Structure : It refers to the nature of the players in the industry and their relative bargaining power.
      E-Commerce changes the industry structure and industry structure can be characterized by five forces :
      • Rivalry among the existing competitors
      • Threat of substitute products.
      • Barriers to the entry in industry.
      • Bargaining power of suppliers.
      • Bargaining power of buyers.

      By describing the industry structure you need to understand the general business environment of the industry and overall profit that can be generated in that environment. E-Commerce has potential to change the strength of these competitive forces.


      <<DIAGRAM>>


      To study the industry structure we conduct analysis : Is an effort to understand & describe the nature of competition in the industry, nature of substitute products, barriers to entry and relative strength of buyers' and sellers'.

      GREAT IMPACT on Music industry, no impact on chemical industry.

      INDUSTRY VALUE CHAIN : It’s a set of activities performed in a firm or industry that transforms input into final products. Each of this activity adds economic value to the final product. And industrial structure analysis helps to understand the impact of e-commerce tech. or overall business environment. Value chain analysis helps to identify more precisely how e-commerce can change business operations at industrial  level.

      Every industry can be characterized by the set of these value-added activities : e-commerce effect each player as well as overall operational efficiency of the system. e.g. : manufacturer can reduce cost by having direct relationship

      <<needs revision>>
      Distributers can build an efficient online inventory management system
      Retailers : Customer
      <</needs revision>>

      Firm value chain : Set of activities a firm engages into to create a final product from the raw input. A firm developer supports activities that coordinate the whole process contribute to the overall efficiency of the system. Primary activities of firm value chain are :
      • Inbound logistics.
      • Operations logistics
      • Outbound Logistics
      • S & M
      • After sale services
        Labels:

        Comments

        Anonymous said…
        Nice one.
        Keep sharing and updating your blog with new topics.
        Shopping Cart Software Solutions
        3:23 AM
        Anonymous said…
        Its really worthful being here to update my knowledge of ecommerce and its importance.
        E-Commerce Software
        11:43 PM
        Post a Comment

        Popular posts from this blog

        Advantages and Disadvantages of EIS Advantages of EIS Easy for upper-level executives to use, extensive computer experience is not required in operations Provides timely delivery of company summary information Information that is provided is better understood Filters data for management Improves to tracking information Offers efficiency to decision makers Disadvantages of EIS System dependent Limited functionality, by design Information overload for some managers Benefits hard to quantify High implementation costs System may become slow, large, and hard to manage Need good internal processes for data management May lead to less reliable and less secure data
        1 comment
        Read more

        Inter-Organizational Value Chain

        The value chain of   a company is part of over all value chain. The over all competitive advantage of an organization is not just dependent on the quality and efficiency of the company and quality of products but also upon the that of its suppliers and wholesalers and retailers it may use. The analysis of overall supply chain is called the value system. Different parts of the value chain 1.  Supplier     2.  Firm       3.   Channel 4 .   Buyer
        Post a Comment
        Read more

        Big-M Method and Two-Phase Method

        Big-M Method The Big-M method of handling instances with artificial  variables is the “commonsense approach”. Essentially, the notion is to make the artificial variables, through their coefficients in the objective function, so costly or unprofitable that any feasible solution to the real problem would be preferred, unless the original instance possessed no feasible solutions at all. But this means that we need to assign, in the objective function, coefficients to the artificial variables that are either very small (maximization problem) or very large (minimization problem); whatever this value,let us call it Big M . In fact, this notion is an old trick in optimization in general; we  simply associate a penalty value with variables that we do not want to be part of an ultimate solution(unless such an outcome is unavoidable). Indeed, the penalty is so costly that unless any of the  respective variables' inclusion is warranted algorithmically, such variables will never be p
        Post a Comment
        Read more