THE SECOND WAVE OF E-COMMERCE

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E-COMMERCE CHARACTERISTIC

First wave: Dominated by U.S companies. Second Wave: Multiple language.

ICANN ( International Corporation for assigned names and numbers): has 13 root servers which control the domain registration.

http://www.commerce.gov/ Department of Commerce of U.Shttp://www.mofcom.gov.cn Ministry of Commerce of P.R.Chinahttp://www.mit.edu/ MITwww.tsinghua.edu.cn TsingHua

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E-COMMERCE CHARACTERISTIC

First wave: Dominated by U.S companies. Second Wave: Multiple language.

IPv4: 0.0.0.0 ~ 255.255.255.255. One IP presents one domain name; how many domain names theoretical?

28 . 28 . 28 . 28 =232 about 4.2 billion IP addresses.

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E-COMMERCE CHARACTERISTIC

First wave: Dominated by U.S companies. Second Wave: Multiple language.

IPv6: 2128 : 4.2 billion to the power of 4 . (4.2 billion to the 4)Unlimited addresses.

Global business: language translation; currency conversion.

Buck : Dollar;Quid : Pound;

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E-COMMERCE CHARACTERISTIC First wave: idea can get funds from investors

anyway. Second Wave: expand business with own funds.

Furniture.com founded in 1998. out of ussiness:2000

Pets.com. Pets foods (low price-to-weight ratio).

Photopoint.com upload photos, films; edit them;

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E-COMMERCE CHARACTERISTIC First wave: idea can get funds from investors

anyway. Second Wave: expand business with own funds.

Carefully consider the opportunities.

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E-COMMERCE CHARACTERISTIC

First wave: dial-up modems. Low speed. Second Wave: broadband connections.

http ftp flashget BT （ emule ) ppstream …

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E-COMMERCE CHARACTERISTIC

First wave: Barcodes and scanners to track. Second Wave: RFID. Smartcard.

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E-COMMERCE CHARACTERISTIC First wave: e-mail ( unstructured communication ) Second Wave: e-mail ( integrated part of marketing

and customer contact strategies.)

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E-COMMERCE CHARACTERISTIC First wave: Online advertising was the main revenue Second Wave: multiple-approaches for online

advertising.

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E-COMMERCE CHARACTERISTIC

First wave: difficult to sale digital products Second Wave: iTunes. ( 99p a song)

Napster : free p2p download. Merge with TimeWarner, EMI. ( not free).

eMule: Donkey Server 1,2,3…..all have been shut down by law in Germany.

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E-COMMERCE CHARACTERISTIC

First wave: first-mover advantage. Second Wave: consider a lot

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BUSINESS MODELS, REVENUE MODELS, AND BUSINESS PROCESSES.

A business model is a set of processes that combine to yield a profit.

A good business model:

Rapid sales growth

Market dominance.

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PRODUCTS SUITABILITY TO E-COMMERCE

Sale/purchase of books and CDs Online delivery of software. Sale/purchase of travel services. Online shipment tracking. Sale/purchase of investment and insurance

products.

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PRODUCTS SUITABILITY TO E-COMMERCE

Commodity item:

Shipping profile:

Strong brand identity:

Small group of customer but geographically dispersed:

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ADVANTAGE OF E-COMMERCE

Increases sales opportunities for the seller. Increases purchasing opportunities for the

buyer. Reduces transaction costs in both sides. Provides wide range of choices 24/7. Obtains detailed information on the web. Reduces the time buyers wait. Audits and monitors payments. Makes products and services available in

remote areas ( distance education, SOHU).

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DISADVANTAGES OF E-COMMERCE

Difficult to sale perishable foods and high-cost, unique items.

Hard to calculate costs and benefits. Difficult to integrate existing databases and

transaction-processing software.

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MARKET The potential sellers of a good come into

contact with potential buyers. A medium of exchange is available.

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TRANSACTION COSTS

Are the total of all costs that a buyer and seller incur as they gather information and negotiate a purchase-sale transaction.

•Brokerage fees.•Sales commissions.•Information search and acquisition. •Equipment costs.•Hiring employees.

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INDUSTRY VALUE CHAINS

P29 Figure 1-10.

Logger Sawmill lumberyard Chair Factory Retailer Consumer Recycler

7 units in wooden chair industry.

SWOT ANALYSIS

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Internal and external environment is an important part of the strategic planning processEnvironmental factors internal to the firm usually can be classified as strengths (S) or weaknesses (W), and those external to the firm can be classified as opportunities (O) or threats (T). Such an analysis of the strategic environment is referred to as a SWOT analysis.

SWOT ANALYSIS

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StrengthsStrengths WeaknessWeakness

OpportunitiesOpportunities Threats

WAL-MART SWOT ANALYSIS

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优势 (S) －沃尔玛是著名的零售业品牌，它以物美价廉、货物繁多和一站式购物而闻名。 劣势 (W) －虽然沃尔玛拥有领先的 IT 技术，但是由于它的店铺布满全球，这种跨度会导致某些方面的控制力不够强。

机会 (O) －采取收购、合并或者战略联盟的方式与其他国际零售商合作，专注于欧洲或者大中华区等特定市场。

威胁 (T) －所有竞争对手的赶超目标。