CHAPTER 1: OVERVIEW OF E-COMMERCEConcept and characteristics of E-commerceWhat Is E-commerce?
Use of Internet and Web to transact business
Digitally enabled commercial transactions between and among organizations and individuals
Characteristics E-commerce market is a market without borders.
The parties conducting transactions in e-commerce is not in direct contact with each other. Most transactions conducted through electronic devices.
E-commerce activities are the participation of at least three entities, which are indispensable network service providers, certification bodies.
Limitations, benefits and impact of E-commerce
Benefits For society:
Restoration of habitats.
Improving the living standards of the people.
Increased access to products and services of developing countries to poorer countries.
Promote the provision of public services.
Expanding global markets
Cut down the costs
Strengthening relations custumers
Improved distribution system
Other benefits: facilitates launch new business projects and improve business reputation, promoting specialization and help SMEs overcome these disadvantages ...
Offered products and services varied, abundant, exceeding the limit of space and time.
Reduced spending, saving time shopping.
Conditional impact and support each other in the community of e-commerce business
Limitations Technical Limitations:
- The reliability and safety of the whole system.- Internet connection .- E-commerce servers, tools, software development.- Combining e-commerce software and other application software.
Commerce limitations:- Difficulties in changing consumer habits.- Laws, policies, taxes have not been finalized. -Safety and security is not absolute, increasing fraud.- The number of people involved in e-commerce is not large enough to achieve advantages of scale.
Impact of E-commerce Altering market nature.
Impact on production and business operations and administration.
Especially impact on marketing activities..
Levels and types of E-commerce transactions
Levels of E-commerceLevel 1: I-Commerce: Information commerceLevel 2: t-commerce: Transaction Commerce
Level 3: c-business c=collaborating, connecting
Types of E-commerce transations The parties in E-commerce: G (Government)
Main types of E-commerce transationsB2B (Business-to-Business)
The development of E-commerce in Viet Nam
E-commerce applications of business achieved good results.
E-commerce has grown in all localities of the country.
Online public services continue to be a positive development.
Online training has been formed and developed.
CHAPTER 2: E-COMMERCE BUSINESS MODELSE-commerce Business ModelsBusiness modelSet of planned activities designed to result in a profit in a marketplace
Business planDescribes a firms business model
E-commerce business modelUses/leverages unique qualities of Internet and Web
Eight Key Elements of a Business Model
Value PropositionHow does the product or service fulfill customer needs?
E-commerce value propositions:
Price/No shipping cost
Revenue Model How will the company earn money
Major types of revenue models:
Advertising revenue model- Facebook
Subscription revenue model Consumer Reports
Transaction fee revenue model- ebay
Sales revenue model AmazonMP3
Affiliate revenue model airlines/car rentals/hotels
Market Opportunity The intended Marketspace of the company
Marketspace: Area of actual or potential commercial value in which company intends to operate
Realistic market opportunity: Defined by revenue potential in each market niche in which company hopes to compete
Market opportunity typically divided into smaller niches
Competitive Environment Who else occupies your intended marketspace?
Other companies selling similar products in the same marketspace
Includes both direct and indirect competitors
Number and size of active competitors
Each competitors market share
Competitive Advantage The special advantages of a firm
Superior product or cheaper product than competitors
What makes a product superior?
Asymmetries exist when one competitor has more resources than the others
First-mover advantage, complementary resources
Unfair competitive advantage results from factors that are hard to duplicate or acquire (brands, natural resources, capital investments)
Leverage using your vast resources to move in other markets leveraging a large customer base
Market Strategy How do you plan to promote your products or services to attract the target audience
Details how a company intends to enter market and attract customers
Best business concepts will fail if not properly marketed to potential customers.
Organizational Development The types of organizational structures within the firm necessary to carry out the business plan
Describes how firm will organize work
Typically, divided into functional departments
As company grows, hiring moves from generalists to specialists
Management Team What kind of backgrounds should the companys leaders have?
A strong management team:
Can make the business model work
Can give credibility to outside investors
Has market-specific knowledge
Has experience in implementing business plans
Categorizing E-commerceBusiness Models No one correct way (explained on upcoming slides)
Text categorizes according to:
E-commerce sector (e.g., B2B)
E-commerce technology (e.g., m-commerce)
Similar business models appear in more than one sector
Some companies use multiple business models (e.g., eBay)
B2C Business Models
E-tailer: Amazon.com, Walmart.com, Dell.com Portal: Yahoo.com, msn.com, ZING.vn Community Provider: Facebook.com, twitter.com, cyworld.vn
Content provider: CNN.com, vnexpress.net, bbc.com Service provider: VisaNow.com, dropbox.com Transaction broker: Hotels.com, monster.com, vietnamhotels.vn
Market creator: Priceline.com, ebay.com, vatgia.com
B2B Business Models Net marketplaces
Private industrial network
Single firm Industry wide
Others EC Business Models Customer-to-business(C2B) Business-to-business-to-consumer (B2B2C) Customer-to-customer (C2C) Business-to-employees (B2E) Collaborative commerce (c-commerce) E-government M-commerce F-commerce
CHAPTER 3: BUILDING E-COMMERCE BUSINESS PLAN
Analyzing the factors affecting the integration of e-commerceAnalysis environmentalThe micro-environment: business areas, products, competitors, customersThe macro-environment : technology, economic factors, political and legal, cultural, social, geographic ...
The elements inside and outside the enterpriseInside: organizational structure, human resources, products, culture within businesses ...
Outside: pressure from buyers, suppliers, the role of government, other related organizations
Building e-commerce business plan
Identifying the business premises of the enterprise
Business purposes: startup, business reforms under the e-commerce business model or builds more e-commerce model Business objectives: the number of website visitors, market share, revenue ...
Business areas, products: the group in line with the online business (products, services), specialized product or combination of products ...
Markets and customers: domestic, international, target audience (age, gender, occupation, income)
Business capabilities: human resources, organizational structure, financial capabilities, IT infrastructure (Web server, sales software, support services software, security technology ...)
Technology Solutions: hire external services or self-designed and managed ...
( FORMING A BUSINESS PLAN
The basic components and requirements of e-commerce business plan:
Business models and revenue
Make a difference and brand positioning
Product development and market
Supply Chain Management
The evaluation criteria
Things to note in building business plan Using the advice of experts in e-commerce
Must have the participation of business leaders
Plans and results of research, market analysis, decision to buy / sell and customer credibility
Consider cost, price issues
Considering the human resources, management and training
Focus on marketing
Assessment and evaluation:
Economic Social perspective : contributing to GDP growth, the state budget revenues, create jobs, promote the development of other sectors ...
Investor perspective: safety for capital and financial efficiency, promote the br