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Evolution of E-Commerce

Evolution of E-Commerce

E-Commerce I
E-Commerce II
Technology driven
Business driven
Venture capital financing
Traditional financing
Emphasis on revenue growth
Emphasis on earnings and profits
Ungoverned
Stronger regulation and governance
Entrepreneurial
Large traditional firms
Disintermediation
Strengthen intermediaries
Perfect markets
Imperfect markets, brands and network effects
Pure Online strategies
Mixed ‘brick s and clicks’ strategies
First mover advantage
Strategic follower strength and complimentary assets
Eg: Autoweb, iVillage , Drugstore.com, Amazon.com, eToys, Eve.com
Eg: Amazon.com, Dell.com, Wal-Mart stores

E-Commerce I: It was traditional and failed drastically as there was less awareness about internet and online transactions, security was a biggest issue as earlier online frauds were easier and difficult to track, IT was very expensive and was just a luxury of high class allied society.

Three major characteristics are:
a.      Friction free commerce: The prices of products and services is low and information is same for all that is it is equally distributed and it eliminates unfair competitive advantage. Eg: Online passport application
b.     First movers: A firm that is first to market in a particular area and that moves quickly to get the market share, builds brand name, customer share, recognition etc. Eg: Amazon
c.     Network effect: It occurs when all participants receive value from a fact that all other are using the same tool or product. Eg: Microsoft Office, Facebook

E-Commerce II: It was more secure and gained popularity among people as there was more awareness, IT became very cheap and became a necessity for a common man and strategies like creativity and cash on delivery(COD) made it more successful.
Benefits of E-Commerce in today's world


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