: Facilitate sales between third parties (Brokerage) Travel : Sells travel tickets and tours (Merchant, Brokerage, Co-operatitive) Special Interest or Services : Provide information, product sales and support, and contacts between visitors (Community, Merchant, Affiliate, Infomediary, Advertising) 5.2 The E-Commerce Advantage This advantage is often referred to as frictionless transactions – the ability of the consumer to move from thought to action. (i.e. buying to instantly fulfilling the product) creates new opportunities for businesses to operate at lower costs by easing the burden of the supply chain electronically. Marketplace has become marketspace ; 1.5 billion potential customers as of June 2009, people around the world now have Internet access to varying degrees (smartphones, etc..) Information Clutter The expansion of global e-commerce has produced global competition with sellers being able to reach any potential buyer worldwide Information Density : the quality and quantity of information about products and services of interest to them. Customers can obtain product guides, reviews, and prices from a number of websites due to online advertising and search engine optimization. All search engines use a technology called spiders to crawl the Web and catalogue its content. Partnering and Traffic Trading Once you have managed to get a potential customer ( prospect ) to your site, you must find a way to capture his or her interest and, hopefully, encourage a purchase. One response to information density is to create business value based on a customization approach to e-commerce Two approaches to customization are mass customization and personalization Mass customization is the ability to create custom products or services on demand, (e.g., Dell Computer)
Personalization is a personalized marketing message for each potential customer based on searching, browsing, or buying habits (e.g., Amazon.ca) E-Commerce Competitive Advantage E-commerce is having a dramatic effect on competition between organizations in a number of ways: Reducing barriers to entry Preventing any company from “owning” the market Enhanced collaboration/alliances Multiplying market niches Changing marketplace drivers E-Commerce and Business Strategy E-Commerce strategy is a general term for how a business intends to use computer Web- based networks and information systems to compete in its global marketplace. Building a meaningful e-commerce strategy requires two different views of an organization’s strategy: What it wants to do (conceptual strategy) and how it will do it (technology strategy). An important strategy that many companies are using is to connect their online Web strategy to their existing CRM to create an integrated one-to-one marketing experience for their customers.
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