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E-commerce Environment

E-commerce Environment. Lecture 2 Sue Stocking. Objectives. To understand the e-commerce environment Understand the on-line market place To identify changes in businesses due to electronic trading. The Business Environment. All organisations operate within an environment

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E-commerce Environment

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  1. E-commerce Environment Lecture 2 Sue Stocking

  2. Objectives • To understand the e-commerce environment • Understand the on-line market place • To identify changes in businesses due to electronic trading

  3. The Business Environment • All organisations operate within an environment • The environment influences the way they work • The environment influences the strategy of the business • Business environments are turbulent

  4. Aspects of the Business environment • Customer expectations are always increasing • Customer sophistication is increasing • Customers expect a multi-channel interaction with businesses (the martini effect, anytime, anyplace, anywhere) • Increasing competition and industry change • Disaggregation of the value chain • Globalisation • Changing role of government • Nature and roles of channels are changing • Technology changes • Market structure • The value of businesses is volatile • Disenfranchisement

  5. The environment in which e-business services are provided (Chaffey,02) Organisations • International • Economic factors • Legal constraints • Cultural factors Macro-environment Micro-environment • Society • Public opinion • Moral constraints • Ethical constraints • Technology • Innovation • Trends Organisation • Country specific • Economic factors • Legal constraints • Cultural factors Supplier Competitors Intermediates Customers

  6. Influences on e-commerce strategy • Needs of customers • How services are provided to customers through competitors, intermediates and via suppliers • Local and international economic conditions • Legislation • What business practices are acceptable • Technological innovations

  7. These influences vary rapidly • The environment must be monitored • Future trends anticipated • This is the role of knowledge management

  8. The e-commerce marketplace • Electronic communications have changed relationships between the different parties of commercial transactions • This change depends on whether the transaction is B2B or B2C

  9. Comparison of B2B and B2C markets (Rowley,02)

  10. B2B Interactions Channel Partners (suppliers) Channel Partners (organisations) Supplier Organisation Business customers B2B transactions

  11. B2C Interactions Channel Partners (organisations) Consumer customers Organisation B2C transactions

  12. Summary of transaction alternatives between businesses and consumers

  13. Summary This lecture has aimed to explain that all business operate in an environment. To identify the differences in trading patterns and marketplace models enabled by e-commerce.

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