Part 1.


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Business exercises utilizing electronic information transmission through the World Wide Web. ... Electronic trade expands deal open doors for the vender. ...
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Slide 1

Section 1 Introduction to Electronic Commerce

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Traditional Commerce and Electronic Commerce To numerous individuals, the term electronic business implies shopping with respect to the Internet called the World Wide Web. Buyer shopping on the Web was running about $130 billion every year in 2002 Expected to surpass $500 billion by 2004 E-trade more than simply "shopping" on the web

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Electronic Commerce Business exercises utilizing electronic information transmission through the World Wide Web. Forms that bolster offering and obtaining on the Web The principle components of e-trade are: Business-to-shopper Business-to-business Consumer-to-customer Consumer-to-Government

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Electronic Commerce

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Electronic Commerce Electronic Funds Transfers (EFTs) Banks Electronic Data Interchange (EDI) One business transmits PC comprehensible information in a standard arrangement to another business. Diminishes Time Money Paperwork Errors

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Buyer Side

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Seller Side

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Activities as Business Processes Activities and exchanges in which organizations draw in, including: Promote item Placing orders Sending receipts Transferring reserves Shipping merchandise to clients Support Customers

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Comparing Traditional Commerce and Electronic Commerce

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Business Process Suitability to Type of Commerce

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Electronic Commerce Items Commodity thing – item or administration that is difficult to recognize by merchants Office item CD\'s Brand Identity – decrease danger of procurement Shipping profile –affects how effortlessly an item can be bundled and conveyed. High esteem versus low weight

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Advantages of Electronic Commerce Increase deals and lessening costs. Builds pace and exactness for data trade Reaches a lot of potential clients all through the world. The Web makes virtual groups for particular items or administrations.

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Advantages of Electronic Commerce Reduce its expenses in its business backing and request taking procedures. Electronic business expands deal open doors for the vender. Electronic business builds obtaining open doors for the purchaser.

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Disadvantages of Electronic Commerce Some business procedures are hard to be actualized through electronic trade. Rate of profitability is hard to apply Difficult to interface with existing frameworks Businesses face social and legitimate impediments to leading electronic trade. Dread, Privacy

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International Electronic Commerce About 60 percent of all electronic business destinations are in English, thusly numerous dialect obstructions should be overcome. The political structures of the world present some difficulties. Lawful, duty, and security are worries of worldwide electronic business.

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Transaction Costs Transaction Costs are the aggregate of all Costs that a purchaser and a dealer bring about Gather data Negotiate a buy deal exchange. Venture a vender makes in gear Hiring of gifted workers to supply the item and administrations to the purchaser.

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Economic Forces Market Structure

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Economic Forces Hierarchical Structure

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The Role of Electronic Commerce Reduce exchange costs. System monetary structure – organizations arrange their methodologies, assets, and expertise sets by shaping long haul, stable associations with different organizations and people in view of shared purposes.

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The Role of Electronic Commerce Virtual organizations – when vital organizations happen between organizations working on the Internet. Electronic trade can make system financial structures, which depend on data sharing, and are much less demanding to develop and keep up.

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The Role of Electronic Commerce Network Structure

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Value Chains Value-including exercises produce benefits and meet different objectives. Esteem Chains Those exercises important to work together Design Produce Promote Market Deliver Support

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Strategic Business Unit Value Chains

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Role of ECommerce Examine Value Chains to Reduce Costs Improve item Reach new clients/suppliers Create better approaches to offer items

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