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Questions and Answers
What is one major benefit of e-commerce for businesses?
What is one major benefit of e-commerce for businesses?
Which of the following is a common risk associated with e-commerce?
Which of the following is a common risk associated with e-commerce?
How does e-commerce increase productivity within businesses?
How does e-commerce increase productivity within businesses?
What challenge do businesses face regarding customer service in e-commerce?
What challenge do businesses face regarding customer service in e-commerce?
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What is a characteristic of e-business?
What is a characteristic of e-business?
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Why might customers exhibit low loyalty in an e-commerce environment?
Why might customers exhibit low loyalty in an e-commerce environment?
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What is included in e-business activities?
What is included in e-business activities?
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Which of these is NOT considered an activity of e-commerce?
Which of these is NOT considered an activity of e-commerce?
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What distinguishes an extranet from an intranet?
What distinguishes an extranet from an intranet?
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Which of the following is a benefit of e-business?
Which of the following is a benefit of e-business?
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What role does the internet play in e-commerce?
What role does the internet play in e-commerce?
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Which of the following is NOT true about e-commerce?
Which of the following is NOT true about e-commerce?
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Why are fake websites a concern in e-business?
Why are fake websites a concern in e-business?
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Which of the following best describes e-business?
Which of the following best describes e-business?
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What is a potential risk when transmitting business transaction information online?
What is a potential risk when transmitting business transaction information online?
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What function is typically not associated with e-business activities?
What function is typically not associated with e-business activities?
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What is one of the primary categories of e-business models?
What is one of the primary categories of e-business models?
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Which e-business model is most commonly associated with transactions between businesses and individual consumers?
Which e-business model is most commonly associated with transactions between businesses and individual consumers?
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What is a significant advantage of B2C e-commerce platforms for consumers?
What is a significant advantage of B2C e-commerce platforms for consumers?
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What differentiates the primary categories of e-business models?
What differentiates the primary categories of e-business models?
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What is a characteristic feature of the Consumer-to-Consumer (C2C) model?
What is a characteristic feature of the Consumer-to-Consumer (C2C) model?
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Why do businesses need to constantly update themselves in e-business?
Why do businesses need to constantly update themselves in e-business?
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What benefit do online marketplaces provide to shoppers?
What benefit do online marketplaces provide to shoppers?
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What impact has the transformation from simple e-commerce to complex e-business operations had?
What impact has the transformation from simple e-commerce to complex e-business operations had?
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What is a potential downside of discussions in market research?
What is a potential downside of discussions in market research?
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What is a key characteristic of observational market research?
What is a key characteristic of observational market research?
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Which of the following is true about competitive analysis in market research?
Which of the following is true about competitive analysis in market research?
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One of the drawbacks of observational research is that it is often:
One of the drawbacks of observational research is that it is often:
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What is a common challenge when interpreting observational research data?
What is a common challenge when interpreting observational research data?
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Which element is considered important for enhancing market research methodologies?
Which element is considered important for enhancing market research methodologies?
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How can researchers assess the effectiveness of their service through competitive analysis?
How can researchers assess the effectiveness of their service through competitive analysis?
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What is a significant factor that can change customer preferences over time?
What is a significant factor that can change customer preferences over time?
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What primary benefit does AI and machine learning provide in e-commerce?
What primary benefit does AI and machine learning provide in e-commerce?
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How does blockchain technology enhance supply chain management in e-commerce?
How does blockchain technology enhance supply chain management in e-commerce?
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Which of the following is NOT a business model associated with e-commerce?
Which of the following is NOT a business model associated with e-commerce?
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What role does effective e-commerce strategy development play?
What role does effective e-commerce strategy development play?
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Why is technology infrastructure critical for e-commerce operations?
Why is technology infrastructure critical for e-commerce operations?
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What advantage does blockchain provide regarding data management in e-commerce?
What advantage does blockchain provide regarding data management in e-commerce?
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How do intelligent systems within e-commerce contribute to customer service?
How do intelligent systems within e-commerce contribute to customer service?
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What does the evolution of e-commerce practices signify about modern business?
What does the evolution of e-commerce practices signify about modern business?
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What are considered intangible resources in a business?
What are considered intangible resources in a business?
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Which of the following best describes the primary difference between e-business and traditional business?
Which of the following best describes the primary difference between e-business and traditional business?
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What is the primary factor that makes capable workers vital for a successful business?
What is the primary factor that makes capable workers vital for a successful business?
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In which e-commerce model do consumers sell products to other consumers?
In which e-commerce model do consumers sell products to other consumers?
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What is a characteristic of the B2B e-commerce model?
What is a characteristic of the B2B e-commerce model?
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Which of the following is true about e-commerce platforms?
Which of the following is true about e-commerce platforms?
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What role do supporting resources play in a business?
What role do supporting resources play in a business?
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What does the term 'intermediary' refer to in the context of e-commerce models?
What does the term 'intermediary' refer to in the context of e-commerce models?
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Study Notes
E-Business Management Introduction
- E-business practice evolution has seen major developments, changing the commercial landscape.
- Initially, e-business focused on basic online transactions.
- Now, it encompasses digital processes like supply chain management, customer relationship management, and integrated digital marketing strategies.
- Technology is becoming more interactive, requiring businesses to adapt rapidly to technological trends and consumer behavior.
- The transformation from simple e-commerce to complex e-business operations highlights the dynamic nature of the field and the need for continuous innovation.
E-Business Models
- Many business models exist online, categorized as e-tailers, e-marketplaces, and content providers.
- The key differentiator is the definition of the customer (organizations, individuals, governments).
Business-to-Consumer (B2C) Model
- The B2C model is the most common e-commerce model.
- Businesses sell directly to consumers.
- This model has been altered significantly by the emergence of online marketplaces.
- Consumers now have more diverse options and businesses experience lower operating costs.
- This translates to more enticing deals and competitive pricing.
Consumer-to-Consumer (C2C) Model
- C2C models facilitate direct transactions between consumers, often through online marketplaces.
- This model allows individuals to monetize used items, often obtaining lower prices than through traditional retail outlets.
- These platforms foster a sense of community and trust via user reviews and ratings.
E-Commerce Strategies
- Many e-commerce platforms cater to various business needs.
- BigCommerce and Shopify are examples of widely used platforms, specifically designed for online sales.
- Choosing the appropriate platform is crucial for efficient business operations and scalability.
Data Privacy Regulations
- Data privacy regulations are crucial for e-business management.
- Global standards for data privacy must be adhered to, ensuring user data (customers, staff, etc.) is well-protected.
- The General Data Protection Regulation (GDPR) in the European Union is an example of mandatory data protection regulations.
- The seller/buyer relationship depends on trust and data privacy.
E-Business Future Trends
- Artificial intelligence (AI) and machine learning (ML) are transforming customer experiences and streamlining operations.
- AI can study customer behavior to forecast preferences, offer recommendations, and optimize business management.
- Blockchain technology offers improved security, transparency, and efficiency in supply chains by tracking goods and ensuring compliance.
E-Commerce Summary
- E-commerce plays a critical role in the modern business environment.
- E-commerce has led to multiple business models (B2B, B2C, C2C, etc.).
- Successful strategies involve market research, goal-setting and ongoing monitoring of the business.
- A robust technology infrastructure, including e-commerce platforms and cybersecurity measures, is essential for secure and efficient operations.
E-Commerce Strategies
- Digital marketing strategies enable reaching and engaging target audiences (SEO, social media marketing, email marketing).
- Customer relationship management tools personalize interactions, analyze data, and improve customer experiences.
- Supply chain and logistics ensure efficient inventory management, order fulfillment and timely delivery.
- Addressing legal and ethical issues, performance metrics, AI, blockchain and omnichannel retail is critical for success.
- These elements enable businesses to fully leverage the potential of e-commerce, build customer loyalty and remain competitive in the digital marketplace.
Internet
- A global network linking computers.
- Consists of network server infrastructure and communication links enabling information exchange.
- Transactions and communications enabled through mobile devices (laptops, smartphones, tablets).
WWW
- The most common technique for publishing on the internet.
- Web pages are presented using HTML/XML text and embedded graphics.
- Access is through web browsers.
First Web Site
- http://info.cern.ch
- Created by English scientist Sir Tim Berners-Lee in 1991
- Developed for communication and document sharing among scientists.
E-Commerce
- Abbreviation for electronic commerce.
- Online buying, selling, transacting, ordering and payment for goods and services over the internet.
- Allows seller/buyer interaction without face-to-face interaction.
- Examples: Online banking, shopping, ticket booking, social networks.
E-Business
- Electronic business/online presence of business.
- Business operations via internet or electronic data exchange.
- E-commerce is a subset of E-business.
E-Business and E-Commerce Differences
- E-business = broader concept encompassing all aspects of business operations over the internet, not limited to monetary transactions, may use intranet and extranet, includes all processes in business
- E-commerce = narrower concept focused on online sales of goods and services, usually carried out on a website
E-Business Model
- A company's operating approach for online services.
- Defines functions, product/service delivery methods, profit generation, adaptation to new technologies/markets.
E-Business Model Components
- E-Business Concept: Basic information (goals, vision, products, pricing).
- Value Proposition: Advantages/values offered to customers.
- Revenue Sources: Methods to generate income.
- Required activities, resources, and capabilities: activities, resources and required components to achieve goals.
Value Proposition
- The value offered by a business/organization to its customers.
- This can include aspects like reduced prices, improved service friendliness, faster delivery, greater efficiency/productivity or product variety and personalization
Sources of Revenue
- Methods for generating income online (affiliations, advertisements, agent/representative commissions, licensing, sales commissions, sponsorships, syndication, use fees, subscriptions).
Required Activities, Resources and Capabilities
- Activities: Specific business processes used to implement plans.
- Resources: Human, tangible, intangible, and supporting resources enabling essential business operations.
- "Methods of doing business" that are often patented.
Resources
- Tangible resources: Company equipment, reserves, and facilities (physical/financial possessions)
- Intangible resources: Customized software, customer data, intellectual property, and business processes that are often patented
Capabilities
- Skills and abilities of workers and employees needed for a successful business.
- E-business demands specific requirements for internet presence, broader audiences, and business operations.
Critical Factors for E-Business
- How processing works: (applications involved).
- Location of resources (databases).
- Who manages the processes/applications: (roles of staff).
- Who is the beneficiary: (the end-user).
E-Commerce Models
- B2B (Business-to-Business): Business-to-business transactions (like ordering goods wholesale).
- B2C (Business-to-Consumer): Businesses selling to customers (Amazon, e-tailers).
- C2C (Consumer-to-Consumer): Consumers selling to other consumers (eBay, classified ads).
- C2B (Consumer-to-Business): Consumers selling products/services to businesses.
- B2G (Business-to-Government): Business offering services to the government.
- G2B (Government-to-Business): Government offering services to businesses.
- G2G (Government-to-Government): Transactions between government entities in different countries
Horizontal e-commerce
- Many product groups offered for sale.
- Products and product groups can be unrelated.
- Requires significant capital for stock management, storage, and logistics.
Vertical e-commerce
- Dedicated to one product group.
- Categories do not change according to the specific product.
- Focuses on a particular category or product group with specialized services and inventory.
Marketplace model
- In sites where the marketplace model is applied, the website isn't the primary seller.
- Businesses (sellers) are represented/establish their virtual stores.
- The marketplace receives commissions/fees from transactions.
Intermediary Model
- A model that links end consumers with sellers/suppliers to the point of sale.
- The intermediary site facilitates the entire process.
Mobile e-commerce
- Online-shopping platforms/websites that function through mobile applications.
- Facilitates quick access to products/campaigns/ information.
Social commerce
- Sales made via social media platforms.
- Significant for advertising and marketing within marketplaces.
Importance of E-Commerce Models
- Understanding buyer/seller characteristics (individual or firm).
- Adapting to these differences influences the overall business model and income level.
- E-commerce business strategies must align with the chosen business model.
E-Commerce Model Elements
- Capital: Funding necessary for the e-commerce operation.
- Product Supply: Availability and supply of goods/services.
- Target Audience: Specific customer base or demographics for the business.
Strategic Analysis
- Collection/processing of information: internal and external resources, market place.
- E-business capacity analysis is a crucial part of creating a strategy aligned with business needs.
- SWOT analysis (strengths, weaknesses, opportunities, threats).
- The analyses help create a comprehensive evaluation of the organization, its internal and external environment, and competitive landscape to develop a tailored strategy.
Strategic Objectives
- Mission: Provides organization purpose, history, and founder information.
- Vision: Represents a desired future state.
- Corporate strategy determines how an organization will achieve its goals and objectives.
Strategic Definition
- The process of creating and selecting strategies to achieve goals.
- Includes strategies like e-channels, market development, positioning, and marketplace configuration, along with organizational capabilities.
Strategic Implementation
- Planning, action and control processes to meet strategic goals.
- Includes supply chain management, marketing, and change management techniques, and appropriate analysis/design.
Strategic Planning Steps
- Situation analysis (assessing current conditions, internal/external resources, and the market place).
- Defining mission/vision, objectives, and goals.
- Creating an action plan/projects.
- Ongoing monitoring/tracking of progress towards goals/outcomes.
- Evaluating and measuring performance: Evaluating performance indicators based on original strategy to make necessary changes to the strategy.
Needs Analysis
- Determining problems related to e-commerce development and finding effective solutions to those problems.
- Identifying products missing from the market (or products with underserved needs).
Market Research
- Identifying the target market (customers) through data collection and analysis.
- Analysing economic factors (feasibility research).
- Examining legal implications (legal research).
- Evaluating technological requirements (technical research).
Market Research Methods
- Surveys: Gathering opinions/information through questionnaires.
- Direct interviews: Direct interactions with target customers (e.g., one-on-one meetings).
- Focus groups: Using small, relevant groups for in-depth discussions.
- Observation: Recording data on customer behavior in natural settings.
- Competitor analysis (evaluating competitors).
- Examining sales data: Analysing sales patterns to track and predict market trends.
E-Commerce Ethics
- Adaptation of ethical rules for online commerce.
- Consideration for social/commercial implications due to internet technology.
- Issues regarding user data privacy, information security, and the need for updated legal regulations is a key focus area.
- This incorporates considerations for user choice, data security, and other complex developments within the industry.
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