CHAPTER 14 - E-BUSINESS

E-commerce - the buying and selling of goods and services over the internet.

E-bsuiness - the conducting of business on the internet, not only buying and selling, but also serving customers and collaborating with business partners.

Industries Using E business

E-business Models 

E-business Model- is an approach to conducting electronic business on the internet.

Business-to-business (B2B)

Electronic marketplaces or e-marketplaces- interactive business communities providing a central market space where multiple buyers and sellers can engage in business activities.

Business-to-consumer (B2C)

Applies to any business that sells its products or services to consumers over the internet.

 E-shop - a version of a 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.

Types of Businesses

  Brick-and-mortar business- a business that operates in a physical store without an internet presence.

 Pure-play (virtual) business- a business that operates on the internet only without a physical store. Examples include Amazon.com and Expedia.com

Click-and-mortar business- a business that operates in a physical store and on the internet. Examples include REI and Barnes and Noble.

Consumer-to-business (C2B)

 Applies to any consumer that sells a product or service to a business over the internet.

 An example - Priceline.com where bidders (or customers) ser their prices for items such as airline tickets or hotel rooms, and a seller decides whether to supply them.

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- an auction that sellers use as a selling channel to many buyers and the highest bid wins.

Reverse auction- an auction that buyers use to purchase a product or service, selecting the seller with the lowest bid.

C2C Communities:

Communities of interest- people interact with each other on specific topics, such as golfing and stamp collecting.

Communities of relations- people come together to share certain life experience, 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 and challenges 

 E-business Business:

-  highly accessible

-  decreased cost

-  increase convenience

- increase global reach

Challenges :

-  protecting consumers

-  leveraging existing systems

-  increasing liability

- providing security

-  adhering to taxation rules.