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

Simple Definitions

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

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

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

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

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

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

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

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

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

Categories of E-com

Business-to-Consumer (B2C)

Business-to-Business (B2B)

Business Processes

Consumer-to-Consumer (C2C)

Business-to-Gov. (B2G)

Development and Growth of E-com

Electronic Funds Transfers (EFTs)

Electronic Data Interchange (EDI)

E-com Waves

First Wave

Sceond Wave

Advantages of E-com

Can help increase profits

Can increase sells and decrease costs

Well done advertising on the Web can be powerful

Used to reach small groups of clients that are geographically scattered

Increases purchasing opportunities of the buyer

Can be used to identify new suppliers and business partners

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

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

Disadvantages of E-com

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

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

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

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

Economic Forces and E-com

Transaction costs

Markets and Hierarchies

Reducing transaction cost

Value Chain Management

Primary Activities

Secondary Activities

Identifying Business Unit Opportunities

SWOT Analysis

Internation Nature of E-com

Trust issues on the Web

Language Issues

Cultural Issues

Culture and Government

Infrastructure Issues