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40 Cards in this Set

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•Refers to the selling of goods or services over the Internet

•Includes goods or services delivered offline
- E.g., Amazon.com shipping book via UPS

•Also includes goods and services delivered online
-E.g., downloaded computer software
E-Commerce
Business-to-consumer transactions
- Buying toys from eToys
B2C
Business-to-business transactions
- Makes up 70 to 85% of current e-commerce business
B2B
Consumer-to consumer transactions
- Anyone selling online
C2C
Consumer-to-business transactions
C2B
What are the four types of E-Commerce transactions?
1. B2C
2. B2B
3. C2C
4. C2B
•Two indicators of the global presence of e-commerce
Secure server and internet hosts
An Internet host that allows users to send and receive encrypted data
Secure server
Computers connected to the Internet with their own IP addresses
Internet hosts
•Internet economy has four layers
1. The infrastructure
2. The applications infrastructure
3. The Internet intermediaries
4. The Internet commerce layer
•Refers to the selling of goods or services over the Internet

•Includes goods or services delivered offline
- E.g., Amazon.com shipping book via UPS

•Also includes goods and services delivered online
-E.g., downloaded computer software
E-Commerce
Business-to-consumer transactions
- Buying toys from eToys
B2C
Business-to-business transactions
- Makes up 70 to 85% of current e-commerce business
B2B
Consumer-to consumer transactions
- Anyone selling online
C2C
Consumer-to-business transactions
C2B
What are the four types of E-Commerce transactions?
1. B2C
2. B2B
3. C2C
4. C2B
•Two indicators of the global presence of e-commerce
Secure server and internet hosts
An Internet host that allows users to send and receive encrypted data
Secure server
Computers connected to the Internet with their own IP addresses
Internet hosts
•Internet economy has four layers
1. The infrastructure
2. The applications infrastructure
3. The Internet intermediaries
4. The Internet commerce layer
The backbone of the Internet, including the Internet service providers (ISPs), e.g.,
- Communications (Qwest, MCI, WorldCom)
- Internet service providers (Mindspring, AOL, Earthlink)
- Networking (Cisco, Lucent, 3Com)
- Hardware (Dell, Compaq, HP)
Internet infrastructure
Companies and consultants that build web systems and supporting software
Consultants (Scient)
Commerce applications (Netscape, Sun, IBM)
Web development software (Adobe, NetObjects)
Search engine software (Verity)
Web-enable databases (Oracle)
The applications infrastructure
Companies that provides linking services on the Internet and derive revenues from commissions, advertising, and membership fees
Online travel agencies (Travelweb, Travelocity.com)
Online brokerages (E*TRADE)
Content aggregators (CNET, ZDNet)
Online advertising (Yahoo!)
The internet intermediaries
Companies that conduct commercial transactions on the Web
E-retailers (wine.com, diamond.com)
Manufacturers selling directly (hpshopping.com, Dell)
Subscription-based companies (VRBO.com)
Transportation services (most airlines)
Shipping services (FedEx, UPS)
The Internet commerce layer
Traditional or non-virtual business operation
Brick-and-mortar
The independent benefits of E-Commerce structure
-Faster and more entrepreneurial
-Freed from corporate bureaucracy
The integrated benefits of E-Commerce structure
- Cross-promotion, shared information, increased quantity purchases, use of same distribution channels
What are the Additional Operational Challenges for an E-Commerce Business?
-Finding partnerships and alliances with customers or third parties

-Attracting, retaining, and developing employees in the e-commerce unit

-Inadequate e-commerce training

-E-commerce employee retention

-Deciding what e-commerce functions to outsource
Pure E-business Company Tasks to Face Challenges?
-Develop information and management systems to respond to growth

-Maintain rapid decision making, creativity, innovation, and flexibility

-Build relationships with e-commerce support companies and customers

-Attract and retain e-commerce–capable talent

-Develop an effective management team
Tasks for Traditional Companies with E-Commerce?
-Build a common vision and commitment to
e-commerce

-Change the organization structure for quick reconfiguration of assets and capabilities

-Change the organization culture to support
e-commerce

-Attract and retain e-commerce-skilled employees

-Alter HR programs to suit skill requirements of
e-commerce employees
Internet is enabling the emergence of a new form of multinational, the _____________.

_________ are able to obtain a significant portion of their revenues from sales in international markets

___________ tend to adopt a global view of markets and develop competitive advantages to succeed in the various markets.
Born-global firms
Multinational E-Commerce Strategy Formulation depends on what?
-Nature of the business

-Types of products or services offered through
e-commerce
Hierarchy of difficulty depending on infrastructure requirements for multinational e-commerce strategy formulation?
-Telecommunications infrastructure to move information

-Payment infrastructure to move money

-Physical infrastructure to deliver products
What are the attractions of E-Commerce?
Cost reduction
- Less expensive to reach international customers

Technology
- Already available

Efficiencies
- More efficient

Convenience
- Web is operating all the time regardless of location

Speed of access
- Company’s products or services can be accessed immediately from anywhere in the world
What are the E-Commerce Deterrents and Challenges?
Return/receipt burden and cost of delivery
- Expect 30-40% return rate

Costs of site construction, maintenance, upgrades

Channel conflicts

Easily copied models
-Competitors can easily see and copy business model

Cultural differences
- Web sites must be appropriate culturally

Traditional cross-border complexities remain
- Exchange rates, different taxes, and government regulations

Standard or local web sites

Customer trust and satisfaction
Requires building an appropriate organization and developing the necessary technical capabilities to conduct electronic transactions
Implementation
What are the Technical Capabilities for Multinational E-Commerce?
Ability to process multiple currencies

Ability to calculate/show purchase information on international shipping, duties, and local taxes such as VAT

Systems that check compliance with local and international laws

Ability to provide support in multilingual service centers

Fraud protection

Electronic payment models in addition to credit cards
Companies’ web sites are fairly similar in layout and design around the world
Standardized web site
Values, appeals, symbols, and even themes in the communication content is adapted to the local culture
Localized web site
What are the "Mission-Critical" Factors to Communicate to Global Audiences?
Link all Web sites to corporate Web site

Web site should contain all nonelectronic local contact information for feedback or comment

Provide a prominent list of languages used by the company’s Web site

Use different languages for downloads

Localize by language the parts of the parent company Web site that receive the most access

Provide a site map

Provide the firm’s privacy statement in all local languages

Guard against local piracy by putting your policies in local languages

Localize your graphics and written material

Localize content management