The World Wide Web Case
Essay Preview: The World Wide Web Case
Report this essay
Introduction
The World Wide Web (WWW) is one of the most rebellious technology which is changing the business field and has a great influence on the electronic commerce at the next years. The coming times of the e-commerce will enable and escalate the power on the consumer, which will drive to new basic principles, on the way the organizationsbusinesses connect to their customers and contend with one another company (Slywotzky, 2000). In the last years the enormous popularity of the Internet has been powered by the expectation to improve the on-line business performances. Nowadays, the companies spend more money to install their own corporate LAN systems using intranet technology and set up Extranet and DSL connection to be connected with their suppliers, customers and partners. The internet is capable of disintegrating the physical bounds to commerce, providing smaller businesses access to markets in a global way. Furthermore, the consumers have the opportunity to purchase from new companies and conduct them. On the other hand, companies can place marketing components on their servers lining up from an advertisement to a virtual ads. For example, many companies have the opportunity to generate a virtual market in order to sell and promote their products and services.
The definition of electronic commerce can be described as buying and selling of productsservices or information through computer networks. The fundamental point for moving to e-commerce is the notion that the electronic market have the prospects to become more efficient and competent in developing new information-formed products and services, seeking for new customers in whole world. E-commerce has become very successful because of the merits which are being contained:
Cost Saving
Through a public participation substructure as internet, e-commerce systems can reduce the cost of sending information to the customers, involving mails, personnel, or printing and phone costs.
Product Promotion
Using a direct, full of information and interactive communication with customers, e-commerce improves the product promotion. Moreover, it is a mean which provides the customization and interactivity for advertisements, building on the customer profile. With that way the company enhances the promotion strategies, the branding and its market position.
Timely Information
A result of the immediate characteristics, the e-commerce assign a decreasing of the cycle time is needed to generate and deliver information and services.
Information Consistency
The e-commerce assures the constancy and the accuracy of the information via sharing it out and applying electronic forms.
Advantageous Customer Service
E-commerce has the ability to provide online answers for problems using the FAQ (Frequently Asked Questions) links, archives for the most common issues and communication by e-mails 24 hours a day. Thus, the company create customer trust and retention.
Advantageous Customer Relationship
The e-commerce allows to learn about the customers because it has the ability to log every informationevent for each customer separately. For instance, what kind of information did the customer ask about a productservice.
Product Customization
One additional characteristic of e-commerce is that allows for new productsservices to be re-produced and existing products to be customized counting on customers taste and needs.
Competitive Advantage
E-commerce activate the competitive advantages of the company which may include the cost saving because of the reduced advertising expenses, or differentiation on the products by customizing or the customer become the center of its business providing better customer services and relationships etc.
The term of “business models” very likely are belong to the misunderstand terms in e-business. Nonetheless, innovative business models are revealing in e-commerce and can become a major stake in ebusiness tactics (Bloch et al. 1996;robinson et al. 2000; Maitre and Aladjidi 1999). A business model illustrates the logical thoughts of a business system for generating value, which lies on actual processes (Petrovic et al 2001). In general the business model is a description of the companys value which provides one or more segments of clients and use its network of partners for marketing, delivering and creating in order to increase its profitability.
Different Types Of Electronic Commerce
Business to Business E-commerce
The definition of B2B e-commerce is the transaction which takes place between two companies. This is a kind of e-commerce which handles relationships between businesses or and organizations. This market (B2B) involves two primary elements: the first one is e-frastructure and the e-market. E-frastucture is the architectonics of Business-to-business and consists (Golden Sachs Investment Research, 1999):
Logistics-transportation, distribution and warehousing
Hosting and management of Packaged software from central facilities e.g. oracle, application service providers
Outsourcing of function in the e-commerce progress (e.g. Web-hosting security and customer service solutions
Auction solutions software which includes the operation and maintenance in a real time actions on the internet e.g. Opensite Technology
Web based e-commerce enablers e.g. XML-enabled purchasing automation systemssoftware
Content managing software for the facilitation of the website contents management and shipping.
E-markets are defined as all websites where the purchasers and sellers interacting with each other and carry out agreementstransactions (Idid).
Added Value
E-commerce is the physical way to generate value affiliating themselves with their suppliers, employees, customers and others. Some types of B2B electronic commerce applications may involve: electronic forms, electronic data interchanger, electronic funds transfer and shared data-base. The suppliers, employees