essay questions
what are browsing the Web on your tablet computer. Describe the path that the Web page data takes to get from its storage point on a distant computer to your tablet
Web page information starts from where it is hosted on a Web server and travels through the host company's network to the Internet. On the Internet, the data will pass through the ISP's network to regional and national backbones, and finally to the network of the ISP that is serving my personal network, and through an access point or hot spot to be delivered wirelessly to my tablet.
why is the management team such an important element of a business model?
a strong management team gives a model instant credibility to outside investors, immediate market-specific knowledge, and experience in implementing business plans. A strong management team may not be able to salvage a weak business model, but the team should be able to change the model and redefine the business as it becomes necessary.
define value chain and explain the difference between a firm value chain, an industry value chain, and a value web
a value chain is the set of activities performed that transforms raw inputs into final products and services. A firm value chain is the set of activities a firm engages in to create final products from raw inputs. The key steps and support activities in a firm's value chain are inbound logistics, operations, outbound logistics, sales and marketing, and after sales service. With an industry value chain, the chain broadens to include six generic players: suppliers, manufacturers, transporters, distributors, retailers, and customers. A value web coordinates a firm's suppliers with its own production needs using an Internet-based supply chain management system. It is a networked transbusiness system that coordinates the value chains of several firms
what is a B2B exchange, and what benefits do they offer? Given those benefits, why are they today only a small part of the overall B2B picture?
an exchange is an independent digital marketplace where hundreds of suppliers meet a smaller number of very large commercial purchasers. Exchanges are owned by independent, usually entrepreneurial startup firms whose business is making a market, and they generate revenue by charging a commission or fee based on the size of the transactions conducted among trading parties. They usually serve a single vertical industry, and focus on the exchange of direct inputs to production and short-term contracts or spot purchasing. For buyers, B2B exchanges make it possible to gather information, check out suppliers, collect prices, and keep up to date on the latest happenings all in one place. Sellers, on the other hand, benefit from expanded access to buyers. The greater the number of sellers and buyers, the lower the sales cost and the higher the chances of making a sale. In theory, exchanges make it significantly less expensive and time-consuming to identify potential suppliers, customers, and partners, and to do business with each other. As a result, they can lower transaction costs-the cost of making a sale or purchase. Exchanges can also lower product costs and inventory-carrying costs-the cost of keeping a product on hand in a warehouse. In reality, however, B2B exchanges have had a difficult time convincing thousands of suppliers to move into singular digital markets where they face powerful price competition, and an equally difficult time convincing businesses to change their purchasing behavior away from trusted long-term trading partners. As a result, the number of exchanges has fallen significantly.
what are the implications of cloud computing for e- commerce?
cloud computing has many significant implications for e-commerce. For e-commerce firms, cloud computing radically reduces the cost of building and operating Web sites because the necessary hardware infrastructure and software can be licensed as a service from cloud service providers at a fraction of the cost of purchasing these services as products. This means firms can adopt "pay-as-you-go" and "pay-as-you-grow" strategies when building out their Web sites. For instance, according to Amazon, hundreds of thousands of customers use Amazon Web Services. For individuals, cloud computing means you no longer need a powerful laptop or desktop computer to engage in e-commerce or other activities. Instead, you can use much less-expensive tablet computers or smartphones that cost a few hundred dollars. For corporations, cloud computing means that a significant part of hardware and software costs (infrastructure costs) can be reduced because firms can obtain these services online for a fraction of the cost of owning, and they do not have to hire an IT staff to support the infrastructure.
discuss some of the unique features that must be taken into account when designing a mobile Web presence
designing a mobile Web presence is somewhat different from designing a Web site that will be accessed via a traditional desktop computer. For instance, mobile hardware is smaller, and there are more resource constraints on data storage and processing power. The mobile platform is also constrained by slower connection speeds than provided by traditional desktop computers. As a result, file sizes should be kept smaller, and the number of files sent to the user reduced. Mobile displays are much smaller and require simplification, and some screens are not as easily visible in sunlight. Touch screen technology also introduces new interaction routines that are different from the traditional mouse and keyboard. The mobile platform is not as easy to use as a data entry tool, and therefore choice boxes and lists should be used more frequently so that the user can easily scroll and touch-select options, rather than type them in. You will also want to determine whether to create a mobile-friendly version of your e- commerce site or implement responsive Web design or adaptive Web design, or create an entirely new mobile app. You can choose to build a mobile Web app, a native app, or a hybrid app. Building a mobile Web app that uses the mobile device's browser requires more effort and cost than developing a mobile Web site, suffers from the same limitations as any browser-based application, but does offer some advantages such as better graphics, more interactivity, and faster local calculations. Building a native app, which is programmed for specific mobile operating systems, requires much more programming; however, it will allow you much greater creative rein in making a unique customer experience. You can also choose to create a hybrid, cross-platform mobile app with various low-cost or open source app development toolkits
describe the four stages involved in business model disruption
first disruptive stage, disruptors, often funded by new sources of finance, introduce new products that are less expensive, less capable, and of poorer quality. These early products nevertheless find a niche in a market that incumbents do not serve or are unaware of. In the second stage, disruptors improve their products at a rapid pace, taking advantage of newer technologies at a faster pace than incumbents, expanding their niche market, and eventually attracting a larger customer base from the incumbents' market. In the third stage, the new products and business model become good enough, and even superior to products offered by incumbents. In the fourth stage, incumbent companies lose market share, and either go out of business or are consolidated into other more successful firms that serve a much more limited customer base. Some incumbents survive by finding new customers for their existing product, adopting some of the newer products and business models in separate divisions of their firms, or moving into other often nearby markets.
what is a first mover? Why was being a first mover considered to be important during the early years of e-commerce?
first movers are firms who are first to market in a particular area and who move quickly to gather market share. First movers hoped to establish a large customer base quickly, build brand name recognition early, and inhibit competitors by building in switching costs for their customers through proprietary interface designs and features. The thinking was that once customers became accustomed to using a company's unique Web interface and feature set, they could not easily be switched to competitors. In the best case, the entrepreneurial firm would invent proprietary technologies and techniques that almost everyone adopted, creating a network effect, which occurs where all participants receive value from the fact that everyone else uses the same tool or product.
who are the e-commerce enablers and why are they important?
no discussion of e-commerce business models would be complete without mention of a group of companies whose business model is focused on providing the infrastructure necessary for e- commerce companies to exist, grow, and prosper. E-commerce enablers provide the hardware, operating system software, networks and communications technology, applications software, Web design, consulting services, and other tools required for e-commerce. While these firms may not be conducting e-commerce per se (although in many instances, e-commerce in its traditional sense is in fact one of their sales channels), as a group they have perhaps profited the most from the development of e-commerce.
what are the essential characteristics of cloud computing?
the U.S. National Institute of Standards and Technology (NIST) defines cloud computing as having the following essential characteristics: on-demand self-service (consumers can obtain computing capabilities such as server time or network storage as needed automatically on their own); ubiquitous network access (cloud resources can be accessed using standard network and Internet devices, including mobile platforms; Location-independent resource pooling): the pooling of computing resources to serve multiple users, with different virtual resources dynamically assigned according to user demand; rapid elasticity (computing resources can be rapidly provisioned, increased, or decreased to meet changing user demand); and measured service (charges for cloud resources are based on the amount of resources actually used)
list and describe the eight most important factors in successful e-commerce site design. (5 to get full points, more to get extra points
the eight most important factors in successful e-commerce site design include functionality (pages that work, load quickly, and point the customer toward product offerings); being informational (including links that customers can easily find to discover more about the firm and its products); ease of use (simple foolproof navigation); providing redundant navigation (alternative navigation to the same content); ease of purchase (one or two clicks to purchase); multi-browser functionality (site works with most popular browsers); simple graphics (avoiding distracting graphics and sounds that the user cannot control); and legible text (avoiding backgrounds that distort text or make it illegible).
list and describe the eight most important factors in successful e-commerce site design
the eight most important factors in successful e-commerce site design include functionality (pages that work, load quickly, and point the customer toward product offerings); being informational (including links that customers can easily find to discover more about the firm and its products); ease of use (simple foolproof navigation); providing redundant navigation (alternative navigation to the same content); ease of purchase (one or two clicks to purchase); multi- browser functionality (site works with most popular browsers); simple graphics (avoiding distracting graphics and sounds that the user cannot control); and legible text (avoiding backgrounds that distort text or make it illegible).
what kind of problems does the global nature of e- commerce pose?
the global nature of e-commerce also poses public policy issues of equity, equal access, content regulation, and taxation. For instance, in the United States, public telephone utilities are required under public utility and public accommodation laws to make basic service available at affordable rates so everyone can have telephone service. Should these laws be extended to the Internet and the Web? If goods are purchased by a New York State resident from a Web site in California, shipped from a center in Illinois, and delivered to New York, what state has the right to collect a sales tax? Should some heavy Internet users who consume extraordinary amounts of bandwidth by streaming endless movies be charged extra for service, or should the Internet be neutral with respect to usage? What rights do nation-states and their citizens have with respect to the Internet, the web and e-commerce
list andd briefly explain the main types of e-commerce.
the main types of e-commerce are Business-to-Consumer (B2C), in which online businesses attempt to reach individual consumers; Business-to-Business (B2B), in which businesses focus on selling to other businesses; Consumer-to-Consumer (C2C), which provides a market in which consumers can sell goods to each other; mobile e-commerce (m-commerce), which refers to the use of wireless digital devices to enable Web transactions; social e-commerce, which is commerce enabled by social networks and online social relationships; and local e-commerce, which is e-commerce that is focused on engaging the customer based on his or her geographical location.
ne and describe the transaction broker business model and discuss the eight components of the business model for this type of B2C firm. (four
the transaction broker business model is most commonly found in the financial services, travel services, and job placement services industries. The eight elements of a business model are value proposition, revenue model, market opportunity, competitive environment, competitive advantage, market strategy, organizational development, and management team. The primary value proposition for a transaction broker is the saving of time and money. These sites also often provide timely information and opinion. They offer the consumer the opportunity to increase their individual productivity by helping them to get things done faster and more cheaply. The revenue model for these firms is based upon receiving commissions or transaction fees when a successful business deal is completed. Online stock trading firms receive either a flat fee for each transaction or a fee based on a sliding scale according to the size of the transaction. Job sites charge the employers a listing fee up front, rather than when the position is filled as traditional "head hunter" firms have done. The market opportunity for transaction brokers in financial services appears to be large due to the rising interest in receiving financial planning advice and conducting stock transactions online. Demand is also increasing for job placement help that is national and even global in nature and for purchasing travel services quickly and easily online. However, there is some market resistance due to consumers' fear of loss of privacy and loss of control over their personal financial information. The competitive environment for financial services has become fierce as new entrants, including the traditional brokerage firms that have now entered the online marketspace, have flooded the market. In order to compete effectively, online traders must convince consumers that they have superior security and privacy procedures. The number of job placement sites has also multiplied, and the largest sites such as Monster, which have the greatest number of job listings, are the most likely to survive. Consolidation in all of the transaction broker markets is presently occurring, making the market opportunity and competitive environment for new firms looking to enter the marketspace bleak. The market strategies for such firms typically include expensive marketing campaigns to convince consumers to switch from their current provider or to choose their company over other more well- established competitors, also a daunting task in the present economic environment. Achieving a competitive advantage is crucial to firms trying to enter these industries. Possible strategies are to lure well-known names in the industry away from their present positions to head a new endeavor, giving the firm instant credibility in the market. Experienced, knowledgeable, and well-known employees may be able to give a new firm a competitive edge. New companies may have to start out recruiting a specialized highly skilled staff, with an organizational development plan that is far more advanced than the typical startup. A strong management team will attract investors and convince investors and consumers alike that a new firm has plenty of market-specific knowledge and the experience necessary to implement the business plan
in developing an e-commerce presence, what questions must be asked and answered about the firm's target audience?
without a clear understanding of a firm's target audience, it is difficult to develop a successful e-commerce presence. There are two primary questions: who is the target audience and where can they best be reached? A target audience can be described in a number of ways: demographics, behavior patterns (lifestyle), current consumption patterns (online vs. offline purchasing), digital usage patterns, content creation preferences (blogs, social networks, sites like Pinterest), and buyer personas (profiles of your customer). Understanding the demographics of the firm's target audience is usually the first step. Demographic information includes age, income, gender, and location
