20181219051855D3328_Z11700010220174022Z11700000220154009P 17-18 Revised.pptx - Course ISYS6204 E-Business Design Effective Period February 2019 Online

20181219051855D3328_Z11700010220174022Z11700000220154009P 17-18 Revised.pptx

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Online Retail and Services Session 17-18 Course : ISYS6204 E-Business Design Effective Period : February 2019
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Learning Outcomes Understand the environment in which the online retail sector operates today. Explain how to analyze the economic viability of an online firm. Identify the challenges faced by the different types of online retailers. Describe the major features of the online service sector. Discuss the trends taking place in the online financial services industry. Describe the major trends in the online travel services industry today. Identify current trends in the online career services industry.
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Acknowledgments These slides have been adapted from Kenneth C. Laudon E-Commerce 2014. 10 Edition. Pearson.
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Outline The Online Retail Sector Analyzing the Viability of Online Firms E-commerce in Action: E-tailing Business Models The Service Sector: Offline and Online Online Financial Services Online Travel Services Online Career Services
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The Online Retail Sector
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The Online Retail Sector The Retail Industry Online Retailing E-commerce Retail: The Vision The Online Retail Sector Today Multi-Channel Integration
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The Online Retail Sector Most important theme in online retailing is effort to integrate online and offline operations Personal consumption: Services: 65% Nondurable goods: 25% Durable goods: 10% “Goods” vs. “services” ambiguity
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The Retail Industry8 segments (clothing, durable goods, etc.)For each, uses of Internet may differInformation vs. direct purchasingGeneral merchandisers vs. specialty retailersMail Order/ Telephone Order (MOTO) sector most similar to online retail sectorSophisticated order entry, delivery, inventory control systems
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Composition of the U.S. Retail Industry
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The Online Retail Sector
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The Online Retail Sector
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E-commerce Retail: The Vision 1. Reduced search and transaction costs; customers able to find lowest prices 2. Lowered market entry costs, lower operating costs, higher efficiency 3. Traditional physical store merchants forced out of business 4. Some industries would be disintermediated Few of these assumptions were correct— structure of retail marketplace has not been revolutionized Internet has created new venues for multi- channel firms and supported a few pure-play merchants
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The Online Retail Sector Today Smallest segment of retail industry (5%–6%) Growing at faster rate than offline segments Revenues have resumed growth Around 72% of Internet users bought online in 2011 Primary beneficiaries: Established offline retailers with online presence (e.g., Staples) First mover dot-com companies (e.g., Amazon)
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Multi-Channel Integration Integrating Web operations with traditional physical store operations Provide integrated shopping experience Leverage value of physical store Types of integration Online order, in-store pickup
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