Professional Documents
Culture Documents
Chapter 9 Electronic Commerce Systems
Chapter 9 Electronic Commerce Systems
Commerce Systems
Learning Objectives
Identify the major categories and trends of
e-commerce applications
Identify the essential processes of an e-commerce
system, and give examples of how they are
implemented in e-commerce applications
Identify and give examples of several key factors
and Web store requirements need to succeed in e-
commerce
Identify and explain the business value of several
types of e-commerce marketplaces
Discuss the benefits and trade-offs of several e-
commerce clicks and bricks alternatives
Chapter 9 Electronic Commerce Systems 2
Introduction to e-Commerce
Electronic commerce encompasses the entire
online process of
Developing
Marketing
Selling
Delivering
Servicing
Paying for products and services
It relies on the Internet and other information
technologies to support every step of the
process
Chapter 9 Electronic Commerce Systems 3
Case 1 eBay, Running the
Right Play
eBay is one of the fastest-growing companies in
history, and business is surging
31 sites around the world
$1.1 billion in international sales in 2004, and
growing twice as fast as the domestic market
Half of their 125 million registered users are
outside of the United States
eBay keeps a playbook
Several hundred pages of wisdom collected
from worldwide managers
Chapter 9 Electronic Commerce Systems 4
Case Study Questions
Why has eBay become such a successful and
diverse online marketplace?
What do you think of eBay’s playbook concept?
Why do they call it a playbook?
Is eBay’s move into the international arena a
good long-term strategy?
efficiencies
Chapter 9 Electronic Commerce Systems 38
Other Clicks and Bricks Strategies
Partial e-commerce integration
Joint ventures and strategic partnerships
Complete separation
Spin-off of an independent e-commerce
company
Barnes and Noble’s experience
Spun off independent e-commerce company
Gained venture capital, entrepreneurial
culture, and flexibility
Attracted quality management
Accelerated decision making
Failed to gain market share
Chapter 9 Electronic Commerce Systems 39
E-Commerce Channel Choices
An e-commerce channel is the marketing or
sales channel created by a company for its e-
commerce activities
There is no universal strategy or e-commerce
channel choice
Both e-commerce integration and separation
have major business benefits and shortcoming
Most businesses are implementing some
measure of clicks and bricks integration