% Instructor’s Manual: Chapter 1 The Revolution Is Just Beginning
Teaching Objectives Define e-commerce and describe how it differs from e-business. Identify and describe the unique features of e-commerce technology and discuss their business significance. Recognize and describe Web Web 2.0 applications. Describe the maor types of e-commerce. Discuss the origins and growth of e-commerce. !"plain the e#olution of e-commerce from its early years y ears to today. Identify the factors that will define the future of e-commerce. Describe the maor themes underlying the study of e-commerce. Identify the maor academic disciplines contributing to e-commerce.
Key Ters e-commerce$ p. %2 e-business$ p. %& information asymmetry$ asymmetry$ p. %' mar(etplace$ p. %) ubiquity$ ubiquity$ p. %) mar(etspace$ p. %) reach$ p. %) uni#ersal standards$ p.%) richness$ p. %* interacti#ity$ interacti#ity$ p. %* information density$ density$ p. %* personalization$ p. %+ customization$ p. %+ Web 2.0$ p. %, business-to-consumer 2/ e-commerce$ p. 22 business-to-business 2 e-commerce$ e-commerce$ p. 22 consumer-to-consumer /2/ e-commerce$ p. 22 social e-commerce$ p. 22 mobile e-commerce m-commerce$ p. 2& local e-commerce$ p. 2& Internet$ p. 2& World Wide Web the Web$ p. 2' disintermediation$ p. &2 friction-free commerce$ p. && first mo#er$ p. && networ( effect$ p. &&
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Brie! Chapter Outline Opening Case: Pinterest: A Picture Is Worth a Thousand Words %.% !-commerce3 4he Re#olution Is 5ust eginning 4he 6irst 4hirty 7econds What Is !-commerce8 4he Difference between !-commerce and !-business Why 7tudy !-commerce8 !ight 9nique 6eatures of !-commerce 4echnology Web 2.03 lay :y ;ersion 4ypes of !-commerce
imitations on the
%.2 !-commerce3 ? rief @istory !-commerce %,,AB20003 Inno#ation !-commerce 200%B200)3 /onsolidation !-commerce 200*Bresent3 Rein#ention ?ssessing !-commerce3 7uccesses$ 7urprises$ and 6ailures Insight on Business: Is the Party Already O$er% redictions for the 6uture3 :ore 7urprises %.& 9nderstanding !-commerce3 =rganizing 4hemes 4echnology3 Infrastructure usiness3 asic /oncepts 7ociety3 4aming the 5uggernaut Insight on Society: aceboo" and the Age o& Pri$acy ?cademic Disciplines /oncerned with !-commerce %.' /ase 7tudy3 The Pirate Bay: The World's (ost )esilient Copyright In&ringer% %.A Re#iew Cey /oncepts uestions roects "igures 6igure %.% 4he Difference between !-commerce and !-business$ p. %& 6igure %.2 4he
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& 6igure %.) 7hare of Retail =nline 7ales by 4ype of /ompany$ p. &, 6igure %.* 4he Internet and the !#olution of /orporate /omputing$ p. 'A Tables 4able %.% :aor 4rends in !-commerce 20%2B20%&$ pp. %0B%% 4able %.2 !ight 9nique 6eatures of !-commerce 4echnology$ p. %A 4able %.& :aor 4ypes of !-commerce$ p. 2% 4able %.' >imitations on the
4he opening case$ Pinterest: A Picture Is Worth a Thousand Words, captures some of these changes in the foundations of e-commerce. interest is at the forefront of a mo#ement toward a more #isual social media e"perience. It illustrates many of the trends that will be impacting e-commerce o#er the new few years$ including the growing use of social media to sell goods social e-commerce$ for branding$ and to dri#e traffic to company Web sites$ as well as the growing importance of the mobile platform. Fou can also use the case as an introduction to some of the social$ legal$ and ethical issues facing e-commerce companies$ including copyright and security issues. ?s you discuss the case with your students$ you could also pose the following questions to them3 Do you use interest and if so$ how often8 What has the e"perience been li(e8 @a#e you purchased anything based on a pin or board on interest8 Why do you thin( interest lin(s dri#e more purchasing than 6aceboo( lin(s8
Key Points
7tudents are #ery interested in (nowing what the future holds for e-commerce. !-commerce is the fastest growing retail$ ser#ice$ and entertainment channel. ?lthough e-commerce re#enues were relati#ely flat during the recession in 200,$ growth resumed in 20%0$ and has continued since then$ in 20%% and 20%2$ outpacing traditional retail by a factor of two or three. 4here are thousands of ob opportunities in e-commerce as traditional firms mo#e onto the Web. Fou should let students (now that the e-commerce re#olution is still in the beginning phases. 4hey may ha#e missed the early tumultuous
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' years$ but there are many powerful$ commercial$ and technological forces that will push e-commerce along in the ne"t decades. 4o emphasize this$ you can highlight the bullet points noted in the te"t on pages *B+$ and in 4able %.%. :uch of the first chapter is aimed at getting some basic definitions straight. 4he e-commerce field is filled with language that some students might find confusing. We distinguish between e-commerce and e-business to set the focus clearly on commercial transactions o#er the Internet. ItGs also important for students to understand the differences between the #arious types of e-commerce$ such as 2/ and 2. ? short pre#iew of this topic is co#ered on pages 2%B2&. :any students and some of our colleagues may as($ HWhy study e-commerce when we generally do not ha#e courses on other types of commerce$ li(e sales o#er the tele#ision. @ereGs a good opportunity to show students ust how different Internet technology is from pre#ious technologies. ages %'B%, co#er this topic. We use a #ariation of 4able %.2 throughout the te"t in #arious conte"ts$ so itGs a good idea to familiarize students with it. ?s( students if they thin( some dimension is missing from the table$ or to compare these features with$ say$ tele#ision. ?fter illustrating the growth of the Internet and Web$ the boo( also discusses some of the potential impediments to continued e-commerce growth. 4his is a good time to introduce changes in client platforms$ operating systems$ and mobile de#ices as technologies that are spurring access to the Internet. 4he Insight on Technology: Spider Webs, Bow Ties, Scale-ree !etwor"s, and the #eep Web case debun(s some popular myths about the structure of the Web and helps e"plain why search engines miss so many pages. /lass discussion questions for this case might include3 What is the Hsmall world theory of the Web8 What is the significance of the Hbow-tie form of the Web8 Why does arabasi call the Web a Hscale-free networ( with H#ery connected super nodes8
?n important distinction in /hapter % is the contrast between the early years of e-commerce and e-commerce today. We discuss e-commerce in the conte"t of three stages3 an early period of intense inno#ation$ a period of consolidation$ and then todayGs e-commerce$ which we refer to as a period of Hrein#ention. 4able %.A describes the (ey dimensions of each of these periods. 4he discussion of the early years of e-commerce and its initial promise allows you to introduce some (ey terms such as disinter*ediation$ &irst *o$ers #ersus &ast &ollowers$ networ" e&&ects$ and H &riction &ree commerce. 4hese terms appear again and again in later chapters. 4he case Insight on Business: Is the Party Already O$er% pro#ides some perspecti#e on in#estment in dot-coms. /lass discussion questions for this case might include3 What e"plains the rapid growth in pri#ate in#estment in e-commerce firms in the period 20%%B20%28 Was this in#estment irrational8 Despite the popularity of 6aceboo($ why was its I= deemed a failure8
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Why do you thin( in#estors today are interested in in#esting in or purchasing social networ( companies8 What other types of e-commerce companies$ if any$ would you be interested in in#esting in8
Fou might also try to include in this discussion a description of the li(ely future growth of e-commerce out to 20%). ? maor theme in the boo( is that e-commerce affects and is affected by many societal forces. =n the one hand$ the Internet and e-commerce are changing our conception of shopping and entertainment. It is also true that social attitudes and #alues$ as well as new legislation$ are shaping the Internet and e-commerce. 7tudents are introduced to the technology of pri#acy in#asion and pri#acy protection in Insight on Society: aceboo" and the Age o& Pri$acy+ @ere$ students are introduced to some of the societal themes that recur throughout the boo(. Do consumers in a public mar(etplace ha#e a legitimate e"pectation of pri#acy8 Is there anything consumers can do to protect their pri#acy8 /an the Web be designed to better protect pri#acy8 Fou might point out to students that go#ernment and business sur#eillance of their online beha#ior is now commonplace. ?lthough some students might say$ H7o what$ you might ta(e this opportunity to as( students if there is any personal information that they would not li(e anyone to (now. If this fails$ as( them to close their eyes and thin( about something they ha#e done that they would not want their parents to (now about. 5ust about e#eryone has at least one of these memories. =ther class discussion questions might include the following3 Why are social networ( sites interested in collecting user information8 What types of pri#acy in#asion are described in the case8 Which is the most pri#acy-in#ading$ and why8 Is e-commerce any different than traditional mar(ets with respect to pri#acy8 DonGt merchants always want to (now their customers8 @ow do you protect your pri#acy on the Web8
4he concluding case study$ The Pirate Bay: The World's (ost )esilient Copyright In&ringer%, is a fascinating e"ample of the creati#e destruction of the traditional recorded music industry$ the interplay of technology$ law$ popular culture$ and politics$ and the role of intellectual property on the Internet. 4he case study is e"cellent for introducing the idea of intellectual property in the digital era. 4here will be little difficulty obtaining student participation when you pose the following question3 H7hould file-sharing networ(s or those who encourage sharing of copyrighted files be allowed to distribute copyrighted music on the Web without ha#ing to compensate copyright holders8 :any students belie#e music should be free online e#en if this means3 a ignoring claims by artists and record companies that they own the music$ and b #iolating the law that protects the claims of copyright holders. =n the other hand$ paying for music has become acceptable again through the de#elopment of i4unes$ subscription music ser#ices$ smartphones$ and cloud computing$ where music is streamed$ not downloaded. ?s cloud computing grows$ downloading and Howning music will be a thing of the past as most music will be streamed to users connected to the Internet. It wonGt be free$ ust con#enient.
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Case #tu$y %uestions 1. Do you think The Pirate Bay can continue to survive in a global Internet world? Why or why not? The Pirate Bay may be difficult to shut down completely, but it is doubtful that it can maintain continuous, reliable service in the next few years simply because so many Western governments are pursuing its founders and followers. If the United States passes legislation such as the IP Protect Act, Internet service providers and search engines will not help users link to The Pirate Bay. At some point its business model (advertising revenue) will fail. 2. Why is legislation like the Protect IP Act opposed by Google and civil liberties groups?
Both Google and civil liberties groups reject any move by governments to censor the results of searches or prevent users from gaining access to any information they want. In the case of Google, there is a revenue consideration as well—if millions of copyright infringers use Google, then Google makes more revenue by exposing them to ads. 3. Why does cloud computing threaten pirate sites?
Pirate sites are able to rip, burn, and post music files that can be downloaded by their users to devices with substantial hard drives. In cloud c omputing the music is streamed to millions of users is never downloaded as a single digital file, and hence cannot be redistributed. Could users simply record their streamed files and then redistribute? Yes, but so far this has not become a common practice. Changing tastes are also at work. Downloading tunes from legitimate sites, or streaming from these sites, in return for a payment, has become socially acceptable. It’s also easy and convenient.
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* &n$ o! Chapter %uestions + What is e-co**erce% ow does it di&&er &ro* e-business% Where does it intersect with e-business%
!-commerce$ in the popular sense$ can be defined as3 4he use of the Internet and the Web to conduct business transactions. ? more technical definition would be3 !-commerce in#ol#es digitally enabled commercial transactions between and among organizations and indi#iduals. !-commerce differs from e-business in that no co**ercial transaction an e"change of #alue across organizational or indi#idual boundaries ta(es place in e-business. !-business is the digital enablement of transactions and processes within a firm and therefore does not include any e"change in #alue. !-commerce and e-business intersect at the business firm boundary at the point where internal business systems lin( up with suppliers. 6or instance$ e-business turns into e-commerce when an e"change of #alue occurs across firm boundaries. .+ What is in&or*ation asy**etry%
Information asymmetry refers to any disparity in rele#ant mar(et information among the parties in#ol#ed in a transaction. It generally applies to information about price$ cost$ and hidden fees. /+ What are so*e o& the uni0ue &eatures o& e-co**erce technology%
4he unique features of e-commerce technology include3 9biquity3 It is a#ailable ust about e#erywhere and at all times.
1+ What is a *ar"etspace%
? mar(etspace is a mar(etplace that is e"tended beyond traditional boundaries because it is remo#ed from the restrictions of geography and time. 4he ubiquity of e-commerce technologies liberates the mar(et from these limitations.
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2+ What are three bene&its o& uni$ersal standards%
Reduced search costs for consumers ecomes simpler$ faster$ with more accurate price disco#ery >ower mar(et entry costs for merchants
3+ Co*pare online and traditional transactions in ter*s o& richness+
4raditional transactions can pro#ide more richness in terms of face-to-face ser#ice including #isual and aural cues. @owe#er$ traditional transactions are limited in terms of how many people can be reached at a single time. =nline transactions$ which can be global in reach$ can pro#ide content that is both comple" and rich$ o#ercoming the traditional trade-off between reach and richness. 4+ !a*e three o& the business conse0uences that can result &ro* growth in in&or*ation density+
5+ What is Web .+6% 7i$e e8a*ples o& Web .+6 sites and e8plain why you included the* in your list+
Web 2.0 is a set of applications and technologies that allows users to create$ edit$ and distribute contentK share preferences$ boo(mar(s$ and online personasK participate in #irtual li#esK and build online communities. In other words$ Web 2.0 is the set of new$ ad#anced applications that ha#e e#ol#ed along with the WebGs ability to support larger audiences and more in#ol#ed content. 7tudents may list 6aceboo($ interest$ 4witter$ Fou4ube$ Instagram$ Wi(ipedia$ 7tumble9pon$ 4umblr$ and Wordress$ among others$ as e"ample sites. 9+ 7i$e e8a*ples o& B.C, B.B, C.C, and social, *obile, and local e-co**erce besides those listed in the chapter *aterials+
4he answers to this question will #ary. ossible e"amples include3 2/3 !-tailers3 luefly.com 9ncommongoods.com
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2/3 7er#ice ro#iders3 !"pedia 4ra#elocity 2/3 ortals3 Fahoo :7L 2/3 /ontent ro#iders3 W75online.com /onsumerreports.com 23 ocal e-commerce >i#ing7ocial ocal
6+ ow are the Internet and the Web si*ilar to or di&&erent &ro* other technologies that ha$e changed co**erce in the past%
4he Internet and the Web are similar to other technologies that ha#e changed commerce in the past in that each new technological inno#ation spawns e"plosi#e growth characterized by thousands of start-up companies. :any of these fail in the period of retrenchment and consolidation that follows. ?s with other technological re#olutions$ e#entually it is the large$ already established firms who ha#e the resources to e"ploit the new technology. 4he growth of the Internet$ when compared to other electronic technologies such as radio and tele#ision$ has been much more rapid3 4he Internet and Web achie#ed a A&M share of 9.7 households in only %0 years. In comparison$ it too( &+ years for radio and %* for tele#ision to achie#e a &0M share. + #escribe the three di&&erent stages in the e$olution o& e-co**erce+
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%0 4he three stages in the e#olution of e-commerce are inno#ation$ consolidation$ and rein#ention. Inno#ation too( place from %,,AB2000 and was characterized by e"citement and idealistic #isions of mar(ets in which quality information was eq ually a#ailable to both buyers and merchants. !-commerce did not fulfill these #isions during its early years$ howe#er. ?fter 2000$ e-commerce entered its second stage of de#elopmentEconsolidation. In this stage$ more traditional firms began to use the Web to enhance their e"isting businesses. >ess emphasis was placed on creating new brands. In 200)$ though$ e-commerce entered its current stageErein#entionEas social networ(ing and Web 2.0 applications rein#igorated e-commerce and encouraged the de#elopment of new business models. .+ What are the *aor li*itations on the growth o& e-co**erce% Which is potentially the toughest to o$erco*e%
=ne maor limitation to the growth of e-commerce is the price of personal computers. ?nother limitation is the need for many people to learn complicated operating systems$ at least in comparison to other technologies such as the tele#ision or the telephone. eople must also learn a set of fairly sophisticated s(ills when compared to radio or tele#ision to ma(e effecti#e use of the Internet and e-commerce capabilities. ?nother limitation is the unli(elihood that the digital shopping e"perience will e#er replace the social and cultural e"perience that many see( from the traditional shopping en#ironment. 6inally$ persistent global income inequality will e"clude most of the worldGs population. Lew interfaces supported by new hardware technology$ especially in the form of mobile computing platforms smartphones$ has drastically reduced limitations on future growth of e-commerce. ?s Internet access technologies become cheaper to purchase and easier to use$ e-commerce should e"perience significant long-term growth. /+ What are three o& the &actors that will contribute to greater Internet penetration in ;+S+ households%
6actors that will contribute to greater Internet penetration into 9.7. h ouseholds in the ne"t decade include3 4he price of an entry-le#el computer such as a tablet computer or netboo( has fallen to around N200 to N&00. 7martphones are typically Hfree or hea#ily discounted with wireless phone plans. !nhanced capabilities$ such as integration with tele#ision and access to film libraries on a pay-per-#iew basis$ access to boo(s and newspapers$ will draw in more consumers. 4he personal computer operating systems are li(ely to e#ol#e into a simpler platform with simpler choice panels. 4he use of wireless Web technology Wi-6i and &
1+ #e&ine disinter*ediation and e8plain the bene&its to Internet users o& such a pheno*enon+ ow does disinter*ediation i*pact &riction-&ree co**erce%
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Disintermediation means the remo#al of the mar(et middlemenEthe distributors$ wholesalers$ and other intermediariesEbetween producers and consumers. 4he predicted benefits to Internet users include the decline of prices for products and ser#ices as manufacturers and content originators de#elop a direct relationship with their customers$ and the elimination of payments to these middlemen. Disintermediation of mar(ets would create intense competition. 4his$ along with lowered transaction costs$ would eliminate product brands$ e#entually resulting in the elimination of unfair competiti#e ad#antages and e"traordinary returns o n capitalE the #ision of friction-free commerce. 2+ What are so*e o& the *aor ad$antages and disad$antages o& being a &irst *o$er%
4he maor ad#antages of being a first mo#er are the ability to build a brand name early on and establish a large customer base before followers enter the mar(et$ and the ability to build switching costs into the technology or ser#ices offered so that customers will find it discomfiting to change to a late entering competitor. 4he maor disad#antage is that historically$ many first mo#ers ha#e not succeeded and are instead replaced by the fast follower$ larger firms with the financial$ mar(eting$ legal$ and production assets necessary to de#elop mature mar(ets.
4he early years of e-commerce can be considered a success because of the technological success that occurred as Web-enabled transactions grew from thousands to billions. 4he digital infrastructure pro#ed to be a solid foundation on which to build a #iable mar(eting channel. 6rom a business perspecti#e$ the early years of ecommerce were a mi"ed success with ust a tiny percentage of dot.com companies sur#i#ing. @owe#er$ the sur#i#ors ha#e benefited from the continued growth in 2/ re#enues. 4he early years of e-commerce can also be considered a success in that the transfer of information has been a huge accomplishment as consumers learned to use the Web to procure information about products they wanted to purchase Internetinfluenced commerce. 4+ What are &i$e o& the *aor di&&erences between the early years o& e-co**erce and today's e-co**erce%
4he maor differences between the early years of e-commerce the Inno#ation stage$ the period between 200% and 200) the /onsolidation stage$ and todayGs e-commerce the Rein#ention stage are as follows3 During the Inno#ation stage$ e-commerce was primarily technology-dri#en. During the /onsolidation stage$ it was primarily business-dri#en. 4odayGs
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e-commerce$ although still business-dri#en$ is also audience$ customer$ and community-dri#en. During the Inno#ation stage$ firms placed an emphasis on re#enue growth$ quic(ly achie#ing high mar(et #isibilityJmar(et share. During the /onsolidation stage$ the emphasis was on building profitable firms. 4oday$ audience and social networ( growth are being emphasized. 7tartups during the Inno#ation stage were financed by #enture capitalists$ while those in the /onsolidation stage were primarily financed by traditional methods. 4oday$ startups are once again being financed by #enture capitalists$ albeit with smaller in#estments. In addition$ many large online firms are now entering the mar(et$ and acquiring early stage firms #ia buy-outs. During the Inno#ation phase$ e-commerce was$ for the most part$ ungo#erned. In the /onsolidation stage$ there was a rise in the amount of regulation and go#ernmental controls by go#ernments worldwide. 4oday$ there is e"tensi#e go#ernment regulation and sur#eillance. 4he Inno#ation stage of e-commerce was characterized by the young entrepreneurial spirit. During the /onsolidation stage$ e-commerce was primarily dominated by the retail giants. 4oday$ large purely Web-based firms are playing a maor role. 4he Inno#ation phase was characterized by an emphasis on deconstructing traditional distribution channels and disintermediating e"isting channels. During the /onsolidation stage$ intermediaries strengthened. 4oday$ there is a proliferation of small online intermediaries that are renting the business processes of larger firms. Herfect mar(ets in which direct mar(et relationships with consumers$ the decline of intermediaries$ and lower transaction costs resulted in intense competition and the elimination of brands$ are being replaced by imperfect mar(ets. Imperfect mar(ets are characterized by a strengthening of brand name importance$ increasing information asymmetries$ price discrimination$ and networ( effects. 4he early years of e-commerce saw an infusion of pure online businesses that thought they could achie#e unassailable first mo#er ad#antages. During the /onsolidation period$ successful firms used a mi"ed Hbric(s-and-clic(s strategy$ combining traditional sales channels such as physical stores and printed catalogs with online efforts. 4oday$ there is a return of pure online strategies in new mar(ets$ as well as continuing e"tension of the Hbric(s and clic(s strategy in traditional retail mar(ets. 4he early years of e-commerce were dominated by the first mo#ers. In the /onsolidation stage$ e-commerce was dominated by the well-endowed and e"perienced 6ortune A00 and other traditional firms. 4oday$ first-mo#er ad#antages are returning in new mar(ets as traditional Web players catch up. 6aceboo( is an e"cellent e"ample of not-quite-a-first mo#er$ but close enough to build a huge online audience.
5+ What &actors will help de&ine the &uture o& e-co**erce o$er the ne8t &i$e years%
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%& 4he factors that will help define the future of e-commerce o#er the ne"t fi#e years include3 4he technology of e-commerceEthe Internet$ the Web$ and the number of mobile de#icesEwill continue to proliferate through all commercial acti#ityK o#erall re#enues will continue to rise rapidlyK and the numbers of both #isitors and products and ser#ices sold will continue to grow. rices will rise to co#er the real costs of doing business on the Web and to pay in#estors a reasonable rate of return on their capital. !-commerce margins and profits will rise to the le#el of traditional retailers. 4he difference between re#enues from sales and cost of goods sold will be equal to that of traditional firms. 4he top e-commerce sites will increasingly obtain #ery well (n own brands from strong$ older firms. 4he most successful e-commerce firms will use both traditional mar(eting channels such as physical stores$ and printed catalogs$ as well as e-commerce Web sites. 6i#e years from now we may ha#e a definiti#e answer to these questions as Walmart and ?mazon compete against one another for dominance in online retail. /learly$ Walmart is the leader in the offline traditional retailer mar(etplace.
9+ Why is a *ulti-disciplinary approach necessary i& one hopes to understand e-co**erce%
? multi-disciplinary approach is necessary in order to understand e-commerce because no single academic discipline co#ers all facets of the e-commerce phenomenon. !-commerce is primarily a technologically dri#en occurrence$ including information technologies de#eloped o#er the past fifty years$ with the Internet and the Web at the core. @owe#er$ beyond the infrastructure are the business purposes that dri#e the phenomenon3 the changing business models and strategies that will transform old companies and spawn new ones. 4o understand e-commerce$ one must understand some basic business concepts such as3 industry structures$ business models$ firm and industry #alue chains$ and consumer beha#ior. 4hey must also comprehend the nature of electronic mar(ets and information goods. 6inally$ the impact on society must be considered3 global e-commerce can ha#e consequences for indi#iduals concerning their intellectual property and pri#acy rights. ublic policy issues such as equal access$ equity$ content control$ and ta"ation will need to be addressed. 'rojects + #e&ine
? wor(ing definition of Hsocial e-commerce in#ol#es online commercial transactions that ta(e place in an online social milieu in#ol#ing friends$ acquaintances$ and others in the consumerGs social networ(. In many respects this is similar to a traditional #illage mar(et where consumers search for$ e#aluate$ and
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%' purchase products$ in the presence of their social networ( members families$ friends$ and neighbors. 4he social online e"perience can support search functionsK rather than using ta"e a screenshot o& each, i& possible? and e8plain why it &its into one o& the &i$e types o& e-co**erce+
4he purpose of this proect is for students to begin loo(ing at the Web sites they #isit from a critical perspecti#e and begin analyzing the information they can find at those sites. resentationsJreports submitted for this proect will differ depending on the e"amples selected by students. !"amples might include the following3
2/3 ?ny one of a number of 2/ companies such as e-tailers$ ser#ice pro#iders$ portals$ content pro#iders$ and community pro#iders$ might be selected. 23 ?ny one of a number of 2 companies such as !lemica consortia$ ocator 7er#ice I>7 e"change$ could be selected. /2/3 >eading e"amples of /2/ e-commerce companies include eay$ /raigslist$ !tsy$ and others that act as an intermediary between consumers see(ing to ma(e transactions. 7ocial e-commerce3 6aceboo( is at the center of social e-commerce$ both as a platform for other companies$ particularly small businesses$ and in its own right #ia its new offering$ 6aceboo( ocal e-commerce3 /ompanies that are in#ol#ed with local e-commerce include i#ing7ocial$ ocal$ among others.
6or each e"ample chosen$ the student should describe the features of the company that indicate which particular category of e-commerce it falls into. 6or e"ample$ if arnesandnoble.com is chosen as a representati#e of 2/ e-commerce$ the student might describe the features he or she sees a#ailable on the home page. 4hey should note that arnesandnoble.com focuses primarily on the sale of boo(s$ music$ software$ magazines$ prints$ posters$ and related products to indi#idual consumers.
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%A /+ Choose an e-co**erce Web site and assess it in ter*s o& the eight uni0ue &eatures o& e-co**erce technology described in Table +.+ Which o& the &eatures does the site i*ple*ent well, and which &eatures poorly, in your opinion% Prepare a short *e*o to the president o& the co*pany you ha$e chosen, detailing your &indings and any suggestions &or i*pro$e*ent you *ay ha$e+
?s with the first proect$ the purpose of this e"ercise is for students to begin loo(ing at the Web sites they #isit from a critical perspecti#e and to begin analyzing the information they can find at those sites. resentationsJreports submitted for this proect will differ depending on the e"ample selected by students. In assessing a Web site in terms of the eight unique features of e-commerce technology$ a student might focus on the following3
9biquity3 What (inds of m-commerce applications$ if any$ does the site offer8 7uch applications increase ubiquity by ma(ing e-commerce a#ailable from a wider range of de#ices.
1+ 7i$en the de$elop*ent and history o& e-co**erce in the years &ro* [email protected]., what do you predict we will see during the ne8t &i$e years o& e-co**erce% #escribe so*e o& the technological, business, and societal shi&ts that *ay occur as the Internet
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%) continues to grow and e8pand+ Prepare a brie& PowerPoint slide presentation or written report to e8plain your $ision o& what e-co**erce will loo" li"e in .63+
?lthough each studentGs answer may differ depending on their personal perspecti#e on e-commerce$ here are some possible predictions3
4echnological shifts3 4he Internet will continue to grow$ but at a slower pace. Internet usage$ howe#er$ will become more focused$ targeted$ and intense. Lew client platforms will continue to emerge. :obile de#ices such as smartphones and tablets may eclipse traditional des(top computers. usiness shifts3 >arger traditional firms will come to dominate e-commerce. 4here will be a greater emphasis on profitability for online #entures. ?lternati#ely$ as the costs of creating and running a Web site decline$ more inno#ati#e small firms will enter the mar(etplace and challenge the leaders in e-commerce. 7ocietal shifts3 4here will be a greater emphasis on regulation and co ntrol o#er the Internet and e-commerce in areas such as ta"ation$ content$ and entertainment. /onsumers will demand music$ and other media$ to be deli#ered to any of se#eral different platforms$ from des(top to smartphones.
2+ ollow up on e$ents at aceboo" and other social networ" sites since Septe*ber .6. >when the opening case was prepared?+ as aceboo" continued to challenge 7oogle as an ad$ertising and search plat&or*% as it launched any new e-co**erce initiati$es% Prepare a short report on your &indings+
earning 4rac(s that pro#ide additional co# erage of #arious topics and a collection of #ideo cases that integrate short #ideos$ supporting case study material$ and case study questions are also a#ailable for download from the boo(sG =nline Instructor Resource /enter at www.pearsonhighered.comJlaudon.
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