Introduction to E-commerce

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Introduction to E-commerce by Mind Map: Introduction to E-commerce

1. Advantages of E-com

1.1. Can help increase profits

1.2. Can increase sells and decrease costs

1.3. Well done advertising on the Web can be powerful

1.4. Used to reach small groups of clients that are geographically scattered

1.5. Increases purchasing opportunities of the buyer

1.6. Can be used to identify new suppliers and business partners

1.7. E-com increases speed and accuracy with which businesses can exchange info

1.8. Electronic payments can be easier to audit and monitor then non electronic payments, better security

2. Disadvantages of E-com

2.1. Newness and rapid growing pace of tech. may cause some business to be unable to keep up.

2.2. Some products are extremely hard to sell online, ie: food items

2.3. Cost to get started and to maintain tech. can be high

2.4. Many businesses can face cultural and legal barriers to conducting E-com

3. Economic Forces and E-com

3.1. Transaction costs

3.1.1. Total costs a buyer and seller incur as info. is gathered to negotiate a purchase-sale transaction

3.2. Markets and Hierarchies

3.2.1. Economic form of organization. Business channel where starting products goes through the chain to the retailer

3.3. Reducing transaction cost

3.3.1. By improving flow of info and increasing coordination of actions

4. Value Chain Management

4.1. Primary Activities

4.1.1. Identify Customers

4.1.2. Design

4.1.3. Purchase Materials and Supplies

4.1.4. Manufacture product or create service

4.1.5. Market and Sell

4.1.6. Deliver

4.2. Secondary Activities

4.2.1. Finance and Admin

4.2.2. Human Resources

4.2.3. Tech. Development

5. Identifying Business Unit Opportunities

5.1. SWOT Analysis

5.1.1. Strengths What does the co. do well? Is it strong in the market?

5.1.2. Weaknesses What does the company do poorly? What problems could be avoided?

5.1.3. Opportunities Do new markets exist for the companies products?

5.1.4. Threats What is competition doing well?

6. Internation Nature of E-com

6.1. Trust issues on the Web

6.1.1. Relying on E-com client to ensure business is being accomplished

6.2. Language Issues

6.2.1. Knowing what is expected of internation clients by means of language barriers

6.3. Cultural Issues

6.3.1. Research to build reputations will international clients can build online business

6.4. Culture and Government

6.4.1. Many different international laws may exist on an international scale

6.5. Infrastructure Issues

6.5.1. Communications in networks in which a message packet travels

7. Simple Definitions

7.1. Electronic Commerce - business trading with other businesses and internal processes that companies use to support their buying, selling, hiring, planning, and other activities.

7.2. Electronic Business - the transformation of key business processes through the use of Internet technologies.

7.3. Transaction - Exchange of value, such as a purchase or a sale

7.4. Commodity item - product/service that is hard to distinguish from the same products provided by other sellers

7.5. Strategic Business Unit - a particular combination of product, distribution channel, and customer type

7.6. Strategic Alliance - stable relations with other companies based on shared purposes

7.7. Law of Diminishing Returns - Characteristic of most activities to yield less value as amount of consumption increases

7.8. Network Effect - Increase in value of a netowrk to its participants, which occurs as more people or organizations participate in the network. Ie: what email was in terms of value and what is it today

7.9. Industry Value Chain - Larger stream of activities in which a particular business unit's value chain is embedded

8. Categories of E-com

8.1. Business-to-Consumer (B2C)

8.1.1. Consumer shopping on the Web

8.2. Business-to-Business (B2B)

8.2.1. Transactions conducted between businesses on Web, can also be called "E-producment"

8.3. Business Processes

8.3.1. Group of logical, related, and sequential activities in which businesses engage

8.4. Consumer-to-Consumer (C2C)

8.4.1. Individuals that buy and sell among themselves

8.5. Business-to-Gov. (B2G)

8.5.1. Business transactions with Gov. agencies

9. Development and Growth of E-com

9.1. Electronic Funds Transfers (EFTs)

9.1.1. Electronic transmissions of account exchange info over private communications networks

9.2. Electronic Data Interchange (EDI)

9.2.1. Process of one business transmitting computer- readable data in standard format to another bus.

10. E-com Waves

10.1. First Wave

10.1.1. E-com dominated by U.S. companies

10.1.2. Most E-com websites are in English

10.1.3. Easy access to start-up capital led to an overemphasis on creating large enterpises to exploit E-com opportunities

10.1.4. Internet technologies were slow and inexpensive

10.1.5. Bar codes and scanners were used to track inventories and production

10.2. Sceond Wave

10.2.1. Global enterprises in many countries participate in E-com

10.2.2. Websites in multiple languages

10.2.3. Rapid increase in broadband users

10.2.4. B2B E-com is increasingly integrated with radio-frequency identification