* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
Download Electronic auction
Survey
Document related concepts
Pricing strategies wikipedia , lookup
Market penetration wikipedia , lookup
Service parts pricing wikipedia , lookup
Michael Aldrich wikipedia , lookup
Product lifecycle wikipedia , lookup
Global marketing wikipedia , lookup
Marketing strategy wikipedia , lookup
Predictive engineering analytics wikipedia , lookup
Perfect competition wikipedia , lookup
Supply chain management wikipedia , lookup
Payment for ecosystem services wikipedia , lookup
Supermarket wikipedia , lookup
E-governance wikipedia , lookup
Product planning wikipedia , lookup
Darknet market wikipedia , lookup
Online shopping wikipedia , lookup
Transcript
Chapter 2 E-Commerce Market Mechanisms How Raffles Hotel is Conducting E-Commerce The Problem The company’s success depends on the its ability to lure customers to its hotels and facilities and on its ability to contain costs Solution Business-to-consumer—maintains a public portal (raffles.com) that includes: Information on the hotels Reservation system Links to travelers’ resources Customer relationship management (CRM) program Online store for Raffles products Raffles Hotel (cont.) Business-to-business—maintains an interorganizational systems that enable efficient contacts with its suppliers The e-marketplace also has a sellside, allowing other hotels to buy Raffles-branded products from electronic catalogs (bathrobes) Competitors buy Raffles-branded products because they are inexpensive, but look upscale Raffles Hotel (cont.) The Results Public portal helps in customer acquisition Hotel is able to maintain high occupancy rates using: Promotions Direct sales Electronic Marketplaces Markets facilitate exchange of Information Goods Services Payments Markets create economic value for Buyers Sellers Market intermediaries Society at large Electronic Marketplaces (cont.) 3 main functions of markets Matching buyers and sellers Facilitating the exchange of information, goods, services, and payments associated with market transactions Providing an institutional infrastructure NTE Evens the Load National Transportation Exchange (nte.com) is attempting to keep trucks on the road full on both outbound and return trips—uses the Internet to connect shippers with fleet managers who have space to fill Creates spot market Gets information from shippers about their needs and flexibility in dates Works out the best deals for the shippers and the haulers Issues the contract and handles payments The process takes only a few minutes NTE Evens the Load (cont.) NTE collects a commission based on the value of each deal Fleet manager gets extra revenue that they would otherwise have missed out on The shipper gets a bargain price, at the cost of some loss of flexibility NTE reaches down to the level of individual truck drivers and provides a much wider range of services (wireless Internet access) Marketspace Components Marketspace—a marketplace in which sellers and buyers exchange goods and services for money (or for other goods and services), but do so electronically Customers Sellers Goods (physical or digital) Infrastructure Front-end Back-end Intermediaries/business partners Support services Marketspace Components (cont.) Customers Web surfers looking for Bargains customized items Collectors’ items entertainment etc. Organizations account for over 85 percent of EC activities Sellers Hundreds of thousands of storefronts are on the Web Advertising and offering millions of Web sites Sellers can sell Direct from their Web site E-marketplaces Marketspace Components (cont.) Products Physical products Digital products— goods that can be transformed to digital format and delivered over the Internet Infrastructure Hardware Software Networks Marketspace Components (cont.) Front-end business Back-end activities are processes include related to Seller’s portal Electronic catalogs shopping cart Search engine Payment gateway Order aggregation and fulfillment Inventory management Purchasing from suppliers Payment processing Packaging and delivery Marketspace Components (cont.) Intermediary—a third party that operates between sellers and buyers Other business partners— collaborate on the Internet, mostly along the supply chain Support services such as Certification and trust services Knowledge providers Types of Electronic Markets Electronic storefronts—a single company’s Web site where products and services are sold Mechanisms for conducting sales Electronic catalogs Search engine Customer services E-auction facilities Payment gateway Shipment court Electronic cart Electronic malls (e-malls)—an online shopping center where many stores are located Types of Electronic Markets (cont.) Types of stores and malls General stores/malls— large marketspaces that sell all types of products Public portals Specialized stores/malls—sell only one or a few types of products Regional vs. global stores Pure online organizations vs. click-and-mortar stores E-marketplaces—online market, usually B2B, in which buyers and sellers negotiate; the three types of e-marketplaces are private , public , consortia E-Marketplaces Private e-marketplaces—online markets owned by a single company: Sell-side—company sells either standard or customized products to qualified companies Buy-side marketplaces—company makes purchases from invited suppliers Public e-marketplaces—B2B markets, usually owned and/or managed by an independent third party, that include many sellers and many buyers (exchanges) Consortia & Information Portals Consortia—e-marketplaces that deal with suppliers and buyers in a single industry Vertical consortia are confined to one industry Horizontal allow different industries trade there Information portal—a personalized, single point of access through a Web browser to business information inside (and marginally from outside) an organization Publishing portals Commercial portals Personal portals Mobile portals Corporate portals Supply Chains Supply chain—the flow of materials, information, money, and services from raw material suppliers through factories and warehouses to the end customers Includes organizations and processes that create and deliver the following to the end customers: Products Information Services Supply Chains (cont.) A supply chain involves activities that take place during the entire product life cycle It also includes: Movement of information and money and procedures that support the movement of a product or a service The organizations and individuals involved Exhibit 2.3 A Simple Supply Chain Supply Chain Components Upstream supply chain—includes the activities of suppliers (manufacturers and/or assemblers) and their suppliers Internal supply chain—includes all in-house processes used in transforming the inputs received from the suppliers into the organization’s outputs Downstream supply chain—includes all the activities involved in delivering the product to the final customers Types of Supply Chains Integrated make-to-stock Continuous replenishment Build-to-order—model in which a manufacturer begins assembly of the customer’s order almost immediately upon receipt of the order Channel assembly—model in which product is assembled as it moves through the distribution channel Exhibit 2.4 Supply Chains: Integrated & Build-to-Order Value Chain & Value System Value chain—the series of activities a company performs to achieve its goal(s) at various stages of the production process; each activity adds value to the company’s product or service, contributes to profit, and enhances competitive position in the market Value system—a set of value chains in an entire industry, including the value chains of tiers of suppliers, distribution channels, and customers Supply Chain & Value Chain Value chain and the supply chain concepts are interrelated Value chain shows the activities performed by an organization and the values added by each The supply chain shows flows of materials, money, and information that support the execution of these activities Supply Chain & Value Chain (cont.) EC increases the value added by: Introducing new business models Automating business processes EC smoothes the supply chain by: Reducing problems in the flows of material, money, and information EC facilitates the restructuring of business activities and supply chains Intermediation in E-Commerce Intermediaries provide value-added activities and services to buyers and sellers: wholesalers, retailers, infomediaries Roles of intermediaries Search costs—databases on customer preferences Lack of privacy—anonymity of sellers and buyers Incomplete information—gather product information Contract risk—protect sellers against non-payment Pricing inefficiencies—induce appropriate trades E-Distributors on B2B E-distributor—an e-commerce intermediary that connects manufacturers (suppliers) with buyers by aggregating the catalogs of many suppliers in one place—the intermediary’s Web site E-distributors also provide support services Payments Deliveries Escrow services Aggregate buyers’ and or sellers’ orders Disintermediation & Reintermediation Disintermediation—elimination of intermediaries between sellers and buyers Reintermediation—establishment of new intermediary roles for traditional intermediaries that were disintermediated Syndication as an EC Mechanism Syndication—the sale of the same good (e.g., digital content) to many customers, who then integrate it with other offerings and resell it or give it away free Competition in the Internet Ecosystem Competition in the Internet ecosystem (business model of the online economy) Inclusive with low barriers to entry Self-organizing Old rules may no longer apply Competition is tense Lower buyers’ search cost Speedy comparisons Differentiation and personalization Competition in the Internet Ecosystem (cont.) Differentiation—providing a product or service that is unique Personalization—the ability to tailor a product, service, or Web content to specific user preferences Lower prices Competition in the Internet Ecosystem (cont.) Customer service is an extremely important competitive factor Some competitive factors are less important as a result of EC: Size of company is no longer significant Geographical location is insignificant Language barriers are being removed Digital products do not have normal wear and tear Competition in the Internet Ecosystem (cont.) EC supports efficient markets and could result in almost perfect competition with these characteristics: Many buyers and sellers must be able to enter the market at no entry cost Large buyers or sellers are not able to individually influence the market The products must be homogeneous Buyers and sellers must have comprehensive information about the products and about the market participants’ demands, supplies, and conditions Porter’s Competitive Analysis Porter’s competitive forces model applied to an industry views 5 major forces of competition that determine the industry’s structural attractiveness These forces, in combination, determine how the economic value created in an industry is divided among the players in the industry Such an industry analysis helps companies develop their competitive strategy Exhibit 2.6: Porter’s Competitive Forces Model Liquidity Liquidity—the need for a critical mass of buyers and sellers The fixed cost of deploying EC can be very high Without a large number of buyers, sellers will not make money Early liquidity—achieving a critical mass of buyers and sellers as fast as possible, before the market-maker’s cash disappears Quality Uncertainty & Assurance Quality uncertainty—the uncertainty of online buyers about the quality of products that they have never seen, especially from an unknown vendor Provide free samples Return if not satisfied Microproduct—a small digital product costing a few cents Insurance, escrow, and other services E-Market Success Factors Contributors to e-market success Product characteristics Type Price Availability of standards and product information Industry characteristics Brokers currently necessary Intelligent systems may replace brokers Seller characteristics Consumers find sellers with the lowest prices Low-volume, higherprofit-margin transactions Consumer characteristics Impulse buyers Patient buyers Analytical buyers Electronic Catalogs Electronic catalogs—the presentation of product information in an electronic form; the backbone of most e-selling sites Evolution of electronic catalogs Merchants—advertise and promote Customers—source of information and price comparisons Consist of product database, directory and search capability and presentation function Replication of text that appears in paper catalogs More dynamic, customized, and integrated Electronic catalog: The presentation of product information in an electronic form; the backbone of most e-selling sites. Electronic catalog can be classified to 3 dimensions: 1. 2. 3. The dynamics of the information presentation. The degree of customization. Integration with business processes. Customized catalog: 1. 2. Is a catalog assembled specifically for a company, usually a customer of the catalog owner. 2 approaches: 1st approach is to let customers identify the interesting parts. 2nd approach is to let system identify it automatically. Search engine: A computer program that can access a database of internet resources, search for specific information or keywords, and report the results. Software (intelligent) agent: software that can perform routine tasks that require intelligence. E-shopping cart An order-processing technology that allows customers to accumulate items they wish to buy while they continue to shop. Electronic auction: Electronic auction: auctions conducted online. Dynamic Pricing: prices that change based on supply and demand relationship at any given time. Types of auctions: Forward auction. (Most common) English auction. Yankee auction. Dutch auction. Free-fall auction. (Declining auction) Benefits of auction: Seller → ex. optimal price setting, more buyers than regular auction. Buyers → ex. Convenience, buyers conduct trade from anywhere even with a cell phone. E-auctioner (e-Bay) → ex. Research has proven that auction sites such as eBay tend to have higher repeat purchase rates than ordinary e-commerce sites. Limitation of E-commerce: Possibility of fraud. Limited participation. Lack of security. Limited software. Bartering and negotiating online Bartering: An exchange of goods and services. E-bartering: Bartering conducted online, usually by a bartering exchange. Bartering exchange: A marketplace in which an intermediary arranges barter transactions. Advantages of e- bartering The commission by the third party is much lower. (5%10%) It may take short time to arrange a transactions in ebartering. Online negotiating Online negotiating: electronic negotiation, usually supported by software (intelligent) agents that perform searches and comparisons; improves bundling and customization of products and services. 3 factors may facilitate online negotiation: 1. 2. 3. Products and service that are bundled and customized. Computer technology. Software. Mobile computing This is fully portable and permits real time access to information, application and tools that, until recently, were accessible only from a desktop computer. What is m-commerce (mobile commerce)? It is E-commerce conducted via wireless devices. it is also called some times mbusiness which is the broadest definition of m-commerce in which e-business is conducted in a wireless environment. Example of m-commerce DoCoMo is the world’s largest mobile portal, which is most used by customers in Japan. It offers many services via its Imode services. Some applications of I-mode: Shopping guide: addresses and telephone numbers of the favorite shops. Users can purchase online. Maps and transportation: digital maps show detailed guides of local routes and stops of the major public transportation system. Some applications of I-mode: Ticketing: airline and movie tickets can be purchased online. News and reports: fast access to global news, traffic conditions and weather reports. Personalized movie service: updates on the latest movies. Some applications of I-mode: Entertainment: up-to-date personalized entertainment such as, playing favorite games, online chatting, sending and receiving photos. Dining and reservations: the exact location of a selected restaurant Reservations and discount coupons are available online. Additional services: such as banking, stock trading, telephone directory. Impacts of e-markets on business process and organizations 1. 2. 3. Bloch’s et al.model divided to: Improving direct marketing. Transforming organizations. Redefining organizations. Improving direct marketing. 1. 2. 3. 4. 5. Bloch et al. suggested the following impacts of e-markets on B2C direct marketing: Product promotion. New sales channel. Direct saving. Reduced cycle time. Customer service. Impacts of e-markets on B2C direct marketing: 6. 7. 8. 9. 10. Brand or corporate image. Customization. Advertising. Ordering system. Market operations. Transforming organizations. 1. 2. 2 organizational transformations: Technology and organizational learning. The changing nature of work. Redefining organizations. 1. 2. 3. 4. Ways in which e-markets will redefine organizations: New and improved product capabilities. New business models. Improving the supply chain. Impacts on manufacturing. Virtual manufacturing: 5. 6. Running global manufacturing plants as though they were one location, by a single company electronically controlling the entire manufacturing process. Impacts on finance and accounting. Impacts on human resources management and training.