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Unformatted text preview: ProFile 1 UNIT 10 Business online
From booking holidays and downloading
music, to chatting online, the Internet has had
an important impact on people’s lives.
Websites which front vast warehouses with
cut-price goods have threatened traditional
in-store retailing. Consumer goods, or the
week’s grocery shopping, can be bought at the
click of a mouse and delivered to the door.
Many retailers have blended in-store
inspection with online ordering in a ‘Clicks
and bricks’ approach. Perhaps more
importantly, the Internet has dramatically
affected the way firms do business with one
B2B – BUSINESS TO BUSINESS
Although consumer websites are the ones
which most frequently appear in the news, it
has revolutionized the business to business
relationship too. Firstly, it has allowed firms to
find out about each other – a simple search is
enough to find the names, websites and email
details of potential partners they never knew
existed. Suppliers in the same sphere can
congregate together under the umbrella of a
single website. Secondly, it permits them to
communicate directly, without having to pass
through different layers of suppliers and
middlemen. Thus, the Internet has become a
powerful tool for procurement managers who
want to source their supplies of goods and
services. Businesses are even able to tender for
contracts online or participate in auctions.
Niche retailers are able to have access to
worldwide markets. to order goods online and charge them to the
unsuspecting card holder. This is why
companies will not despatch goods unless the
cardholder’s home address corresponds to the
delivery address. Most cards also carry a
further set of numbers on the back which may
be required by the seller.
THREE KEY PLAYERS
Berners-Lee is widely credited as inventing the
Internet as a means of coordinating and
directing research while at CERN in Geneva.
By deciding not to patent the program, he
allowed HTML to become a standard.
When Jeff Bezos noticed that the Internet was
expanding at 2,300% he gave up his well-paid
job to drive to Seattle with his wife to open up
an online book store. Amazon.com is now
probably the best-known retail website in the
world. After years of losing money, and
enormous start up costs, Amazon is now
making a healthy profit.
Born in France of Iranian parents, Omidyar
grew up in the US. He founded eBay, the
online auction site, because he wanted to give
power to consumers and buyers rather than
just to sellers. He wrote the basic program over
a holiday weekend. He handed over control of
eBay to Meg Whitman, probably the most
powerful woman in US business. In 2004,
48 million users traded $42 billion of goods. THREATS TO E-BUSINESS
Security probably poses the biggest threat to
e-business. Online retailers have to invest
heavily in making their payment methods
secure. Creating firewalls and unbreakable
encryption occupy some of the most brilliant
minds in programming. Identity theft is a
fast-growing crime: credit card details on
discarded receipts allow unscrupulous people See the ProFile Student’s site: www.oup.com/elt/profile Photocopiable © Oxford University Press ...
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This note was uploaded on 12/12/2010 for the course RBS BCN taught by Professor Dekoe during the Spring '10 term at Rotterdam Business School.
- Spring '10