E-Commerce Ch 1, 2, 3, 8
The new GDPR
(the Privacy Shield) took effect June 2016. applies across all E.U. countries, rather than the previous situation in which each member-state regulates privacy matters within its own borders. applies to any firm operating in any E.U. country, requires unambiguous consent to use personal data for purposes like tracking individuals across the Web, limits the ability to use data for purposes other than those for which it was collected, and strengthens the right to be forgotten (allowing individuals to remove personal data from social platforms) prevent them from collecting any new information
Process for analyzing ethical dilemmas:
1. Identify and clearly describe the facts 2. Define the conflict or dilemma and identify the higher-order values involved 3. Identify the stakeholders 4. Identify the options that you can reasonably take 5. Identify the potential consequences of your options
Limitations of Internet
1. bandwidth libations: insufficient capacity-- result= slow peak-hour service (congestion) and a limited ability to handle high volumes of video and voice traffic. 2. quality of service limitations: latency = delays in messages caused by the uneven flow of information packets through the network. 4. Network architecture limitations: Each request requires server to complete task, possibly completing same task for diff askers indefinitely -- slows down network performance 5. Wired Internet: Internet is still largely based on cables --copper cables use centuries-old tech, fiber-optic cable is expensive to place underground. wires restricts mobility (changing w/ wifi and cell phones)
Personal Profiles
Add a personal e-mail address, postal address, and/or phone number to behavioral data
Revenue Model
Describes how the firm will earn revenue, produce profits, and produce a superior return on invested capital
The Golden Rule
Do unto others as you would have them do unto you
Social E-commerce
E-commerce that is enabled by social networks and online social relationships
"DO Not Track" mechanism
FTC supports this-- potentially a persistent cookie on a consumer's browser that signals whether or not they want to be tracked or receive targeted advertisements
Identify and clearly describe the facts
Find out who did what to whom, and where, when, and how. In many instances, you will be surprised at the errors in the initially reported facts, and often you will find that simply getting the facts straight helps define the solution. It also helps to get the opposing parties involved in an ethical dilemma to agree on the facts.
Property Rights
How can traditional intellectual property rights be enforced in an Internet world where perfect copies of protected works can be made and easily distributed worldwide in seconds?
Domain Name
IP address expressed in natural language
Universalism
If an action is not right for all situations, then it isn not right for any specific situation "if rule is adopted in every case, could the org or society survive?"
The FCC (Federal Communications Commission)
In 2015, in the context of the controversy over net neutrality, broadband Internet service providers (ISPs) such as Verizon, Comcast, and AT&T, which own the fiber optic cables and networks that are the foundation of the Internet, were classified as being like public utility services similar to telephone compa- nies and hence subject to regulation by the FCC.
The FTC
In the U.S., taken the lead in conducting research on online privacy and recommending legislation to Congress. cabinet-level agency charged with promoting the efficient functioning of the marketplace by protecting consumers from unfair or deceptive practices and increasing consumer choice by promoting competition. enforces existing legislation by suing corporations it believes are in violation of federal trade laws, and in some cases, by imposing a federal monitor or reporting system to ensure the firm complies with agency rulings. also makes recommendations to Congress for new consumer privacy legislation.
Framing
Placing the content of other sites in a frame on the infringer's site
Keywording
Placing trademarked keywords on web pages, either visible or invisible permissibility of using trademarks as keywords on search engines depends (1) on the extent to which such use is considered to be a "use in com- merce" and causes "initial customer confusion" and (2) on the content of the search results.
Cyberpiracy
Registering domain names similar or identical to trademarks of others to divert web traffic to their own sites
Identify the potential consequences of your options
Some options may be ethically correct but disastrous from other points of view. Other options may work in this one instance but not in other similar instances. Always ask yourself, "What if I choose this option consistently over time?"
Define the conflict or dilemma and identify the higher-order values involved
The parties to a dispute all claim to be pur- suing higher values (e.g., freedom, privacy, protection of property, and the free enterprise system).
Internet of Things (IoT)
Use of the Internet to connect a wide variety of devices, machines, and sensors (spreading beyond comps, smartphones -- electric appliances cars, medical devices) builds on a foundation of existing techs -- radio frequency identification (RFID) tags enabled by availability of low-cost sensors, drop in price of data storage, development of "big data" analytics software that can work with trillions of pieces of data, as well as implementation of IPv6, which will allow Internet addresses to be assigned to all of these new devices powering the development of "smart" connected "things"— tele- visions, houses, and cars, as well as wearable technology
Metatagging
Using trademarked words in a site's metatags The use of trademarks in metatags is permitted if the use does not mislead or confuse consumers-- usually depends on content of site
Identify the options that you can reasonably take
You may find that none of the options satisfies all the interests involved, but that some options do a better job than others. Sometimes, arriving at a "good" or ethical solution may not always be a balancing of consequences to stakeholders.
Trademark
a mark used to identify and distinguish goods and indicate their source granted for a period of 10 years and can be renewed indefinitely. protects the public in the marketplace by ensuring that it gets what it pays for and wants to receive. protects the owner—who has spent time, money, and energy bringing the product to the market- place—against piracy and misappropriation single words to pictures, shapes, packaging, and colors. not accepted: common words that are merely descriptive
Packet Switching
a method of slicing digital messages into discrete units called packets, sending the packets along different communication paths as they become available, and then reassembling the packets once they arrive at their destination
Client/server computing
a model of computing in which client computers are connected in a network together with one or more servers (computers that are dedicated to performing common functions that the client computers on the network need, such as file storage, software applications, printing, and Internet access)
Differentiated quality of service (diffserv)
a technology that assigns levels of priority to packets based on the type of data being transmitted. One challenge of packet switching (data divided into chunks, chunks sent separately, meet at destination) --Internet does not differentiate between high-priority packets (video clips) and lower priority (such as self-contained e-mail messages) Because the packets cannot yet be simultaneously reassembled, the result can be distorted audio and video streams.
Internet
an interconnected network of thousands of networks and millions of computers linking businesses, educational institutions, government agencies, and individuals formally defined the as a network that uses the IP addressing scheme, supports the Transmission Control Protocol (TCP), and makes services available to users much like a telephone system makes voice and data services available to the public
Clickstream Analysis
analyzing website behavior (businesses can see what works; what doesn't, ie bounce)
Dilution
any behavior that would weaken the connection between the trademark and the product
Personally identifiable information (PII)
any data that can be used to identify, locate, or contact an individual collected by websites
Perfect Information Rule
assume that the results of your decision will matter/ be on cover of NY Times tomorrow
No Free Lunch
assume that virtually all tangible and intangible objects are owned by someone else unless there is a specific declaration otherwise if something someone else has created is useful to you, it has value and you should assume the creator wants compensation for it
FTC's Fair Information Practice (FIP) Principles
bases its assessments of how well firms are protecting consumer privacy. these principles set the ground rules for what constitutes due process privacy protection procedures at e-commerce and all other websites—including government and nonprofit websites—in the United States. guidelines NOT laws-- but often used as a basis for legislation
Linking
building hypertext links from one site to another site
Digital Image
collection of data records used to create a behavioral profile of consumers
Informed Consent
consent given with knowledge of all material facts needed to make a rational decision
The Social Contract Rule
consider if the principle you are supporting would become an organizing principle of the entire society
Transmission Control Protocol/Internet Protocol (TCP/IP)
core communications protocol for the Internet divided into four separate layers: Network Interface Layer, Internet Layer, Transport Layer, Application Layer
Anticybersquatting Consumer Protection Act (ACPA)
creates civil liabilities for anyone who attempts in bad faith to profit from an existing famous or distinctive trademark by registering an Internet domain name that is identical or confusingly similar to, or "dilutive" of, that trademark
Latency
delays in messages caused by the uneven flow of information packets through the network
Anonymous Information
demographic and behavioral info that doesn't include any personal identifiers
Intellectual Property
encompasses all the tangible and intangible products of the human mind In the Us, the creator owns it Goal is to balance two competing interests—the public and the private. The public interest is served by the creation and distribution of inventions, works of art, music, literature, and other forms of intellectual expression. The private interest is served by rewarding people for creating these works through the creation of a time-limited monopoly granting exclusive use to the creator.
TCP
establishes connections among sending and receiving computers and handles assembly and reassembly of packets
Patent
grants the owner an exclusive monopoly on the ideas behind an invention for 20 years applicant must show that the invention is new, original, novel, nonobvious, and not evident in prior arts and practice machines, man-made products, com- positions of matter, and processing methods. not accepted: laws of nature, natural phenomena, and abstract ideas. danger: stifle competition by raising barriers to entry into an industry. force new entrants to pay licensing fees to incumbents
Anonymous Profiles
identify people as belonging to highly specific and targeted groups
Slippery Slope
if an action cannot be taken repeatedly, then it is not right to take at all even if an action works in one instance to solve a problem, if repeated it would have a negative outcome
Application Layer
includes protocols used to provide user services or exchange data
Trade Secret
information that is secret, has commercial value, and has been protected by its owner Much of the value created by a firm lies not in copyrights, patents, or even trade- marks. There is a kind of intellectual property that has to do with business proce- dures, formulas, and methods of manufacture and service delivery, from which the firm derives value and which it does not want to share with others in the form of a patent application or copyright application.
Deep Linking
involves bypassing the target site's home page, and going directly to a content page
Cybersquatting
involves the registration of an infringing domain name, or other Internet use of an existing trademark, for the purpose of extorting payments from the legiti- mate owners
Cloud Computing
model of computing in which computer processing, storage, software, and other services are provided as a shared pool of virtualized resources over the Internet
Value web
networked business ecosystem that coordinates the value chains of several firms
Strategy of cost competition
offering products and services at a lower cost than competitors means a business has discovered some unique set of business processes or resources that other firms cannot obtain in the marketplace
Doctrine of Fair Use
permits teachers, writers, and others to use copyrighted materials w/o permission under certain circumstances
Identify the stakeholders
players in the game who have an interest in the outcome, who have invested in the situation, and usually who have vocal opinions. Find out the iden- tity of these groups and what they want.
Copyright
protects original forms of expression such as writings, art, drawings, photo- graphs, music, motion pictures, performances, and computer programs from being copied by others for a minimum of 70 years 95 years for corporate-owned works, and life plus 70 years of protection for works created by individuals When ideas and their expression merge (i.e., if there is only one way to express an idea), the expression cannot be copyrighted, although the method of producing the expression might be patentable
IP
provides the Internet's addressing scheme and is responsible for delivery of packets
RFID tags
radio frequency identification tags
Opt-in model
requires affirmative action by the consumer to allow collection and use of consumer information
Complementary Resources
resources and assets not directly involved in the product but required for success, such as marketing, management, financial assets, and reputation
Internet Layer
responsible for addressing, packaging, and routing messages on the Internet
Network Interface Layer
responsible for placing packets on and receiving them from the network medium
Transport Layer
responsible for providing communication with other protocols within TCP/IP suite
Information Privacy
subset of privacy that rests on four central premises, including the moral rights to control use of information collected and to know whether information is being collected, the right to personal information due process, and the right to have personal information stored in a secure manner
Domain Name System (DNS)
system for expressing numeric IP addresses in natural language
Collective Utilitarian Principle
take the action that achieves the greater value for all of society
Risk Aversion
take the action that produces the least harm, or at the least potential cost
Uniform Resource Locator (URL)
the address used by a web browser to identify the location of content on the Web
Right to be Forgotten
the claim of individuals to be able to edit and delete personal information
Net Neutrality
the concept that Internet service providers should treat all Internet traffic equally (or "neutrally")
Profiling
the creation of digital images that characterize online individual and group behavior
Opt-out model
the default to collect information unless the consumer takes affirmative action to prevent the collection of data
Digital Millennium Copyright Act (DMCA)
the first major effort to adjust the copyright laws to the Internet age
Privacy
the moral right of individuals to be left alone, free from surveillance or interference from other individuals or organizations, including the state
Clickstream Behavior
the transaction log that consumers establish as they move around the web
Government Regulation
we are in a mixed-mode policy environment where self-regulation through a variety of Internet policy and technical bodies co-exists with limited government regulation
Forward Path Analysis
what happens from a particular page (homepage; product, etc)
Backward Path Analysis
what led up to a page or action (checkout; contact request; etc)
Public Safety and Welfare
What efforts should be undertaken to ensure equi- table access to the Internet and e-commerce channels? Should governments be responsible for ensuring that schools and colleges have access to the Internet? Are certain online content and activities—such as pornography, gambling, or anony- mous tweeting of hateful language—a threat to public safety and welfare? What about connected cars? Should mobile commerce be allowed from moving vehicles?
Information Rights
Whatrightstotheirownpersonalinformationdoindividuals have in a public marketplace, or in their private homes, when Internet technologies make information collection so pervasive and efficient? What rights do individuals have to access information about business firms and other organizations?
Digital Disruption
a business model disruption that is driven by changes in information technology when technologies are at the core of a change in the way business is done and the technology is digital
E-Commerce business model
a business model that aims to use leverage and unique qualities of the internet, the wed, and the mobile platform
Subscription Revenue Model
a company offers its users content or services and charges a subscription fee for access to some or all of its offerings content offered must be perceived as high-value-added, premium offerings not offered elsewhere
Advertising Revenue Model
a company provides a forum for advertisements and receives fees from advertisers
Business model
a set of planned activities designed to result in a profit in a marketplace explicitly takes into account the competitive environment
Friction-free commerce
a vision of commerce in which information is equally distributed, transaction costs are low, prices can be dynamically adjusted to reflect actual demand, intermediaries decline, and unfair competitive advantages are eliminated
Competitive Advantage
achieved by a firm when it can produce a superior product and/or bring the product to market at a lower price than most or all of its competitors Asymmetries lead to some firms having an edge over others, permitting them to come to market with better products, faster than competitors, and sometimes at lower cost.
Transaction Brokers
process transactions for consumers that are normally handled in person, by phone, or by mail largest industries: financial services, travel services, job placement services value propositions: savings of money and time make money each time transaction occurs act as agents in larger markets and actually carry out the transactions for their customers [B2C Business model]
Mobile Platform
provides the ability to access the internet from a variety of mobile devices such as smartphones, tablets, and other ultra-lightweight laptop computers
Differentiation
refers to all the ways producers can make their products or services unique and different to distinguish them from those of competitors
Market Opportunity
refers to the company's intended market space and the overall potential financial opportunities available to the firm in that marketspace defined by the revenue potential in each of the market niches where you hope to compete.
Industry Structure
refers to the nature of players in an industry and their relative bargaining power characterized by five forces: rivalry among existing competitors, the threat of substitute products, barriers to entry into the industry, the bargaining power of suppliers, and the bargaining power of buyers
E-Business
the digital enabling of transactions and processes within a firm, involving information systems under the control of the firm. (doesn't include commercial transactions involving an exchange of value across organizational boundaries) // (infrastructure provides support for online e-commerce exchanges)
Firm Value Chain
the set of activities a firm engages in to create final products from raw inputs
Ethics
the study of principles that individuals and organizations can use to determine right and wrong courses of action four basic principles that all ethical schools of thought share: responsibility, accountability, liabitity, and due process.
8 key elements of a business model
1. Value proposition: "why should customer buy from you?" 2. Revenue model: "how will you earn money?" 3. Market opportunity: "what market space do you intend to serve, what is its size?" 4. Competitive environment: "who else occupies your market space?" 5. Competitive advantage: "what special advantages does your firm bring to the market space?" 6. Market Strategy: "how do you plan to promote your products or services to attract your target audience?" 7. Organizational development: "what types of organizational structures within the firm are necessary to carry our the business plan?" 8. Management team: "what kinds of experiences and background are important for the company's leaders to have?"
Elevator Pitch (Key elements)
1. introduction: Your name and position; your company's name, and a tagline in which you compare what your company does to a well-known company. Example: "My name is X, I am the founder of Y, and we are the Uber/Amazon of Z." 2. background: The origin of your idea and the problem you are trying to solve. 3. Industry size/market opportunity: Brief facts about the (hopefully very large) size of the market. 4. Revenue model/numbers/ growth metrics: Insight into your company's revenue model and results thus far, how fast it is growing, and early adopters, if there are any. 5. funding: The amount of funds you are seeking and what it will help you achieve. 6. Exit Strategy: How your investors will achieve a return on their investment.
Consumer to Consumer (C2C) E-Commerce
Consumers selling to other consumers (with the help of an online market maker aka platform provider)
Freemium Strategy
companies give away a certain level of product or services for free, but then charge a subscription fee for premium levels of product or service
Scope Strategy
competing in all markets around the globe, rather than just local, regional, or national markets The Internet's global reach, universal standards, and ubiquity can certainly be leveraged to assist businesses in becoming global competi- tors.
Focus/market Niche Strategy
competing within a narrow market or product segment Firms can leverage rich- ness and interactivity to create highly focused messages to different market segments; information intensity makes it possible to focus e-mail and other marketing campaigns on small market segments; personalization—and related customization—means the same product can be customized and personalized to fulfill the very focused needs of specific market segments and consumers
Business to Consumer (B2C) E-Commerce
online businesses selling to individual consumers
Sales Revenue Model
A company derives revenues by selling goods, information, or services
Management Team
Employees of the company responsible for making the business model work
E-tailor
Online retail store. come in all sizes (giant amazon to tiny local stores) some referred to as "bricks-and-clicks," are subsidiaries or divisions of existing physical stores and carry the same products. others operate only in the virtual world, without any ties to physical locations market opportunity very large-- every internet/ smartphone user = potential customer product-based, with consumers paying for the purchase of a particular idem [B2C Business model]-- extremely competitive sector (low barriers to entry)
Organizational Development
Plan that describes how the company will organize the work that needs to be accomplished work decided into functional departments (production, shipping, marketing, customer support, finance, etc)
Web 2.0
Set of applications and technologies that enable user-generated content ex: online social networks, blogs, video and photo sharing sites, and wikis
Governance
ShouldtheInternetande-commercebesubjecttopubliclaws?Andif so, what law-making bodies have jurisdiction—state, federal, and/or international?
Asymmetry
exists whenever one participant in the market has more resources-- financial backing, knowledge, information, and/or power
Elevator Pitch
short two-to-three minute presentation aimed at convincing investors to invest
Barriers to entry
the total cost of entering marketplace low for e-tailer market so tens of thousands of small e-shops have sprung up. becoming profitable and surviving is very difficult for e-tailors with no prior brand name or experience
Mobile E-Commerce (m-commerce)
the use of mobile devices to enable online transactions
E-Commerce
the use of the internet, the web, and mobile apps and browsers running on mobile devices to transact business. More formally, digitally enabled commercial transactions between and among organizations and individuals.
Venture Capital investors
typically invest funds they manage for other investors; usually later stage investors after start-up has begun attracting a large audience and generating some revenue, even if not profitable usually want to obtain a larger stake in the business and exercise more control over the operation of the business typically want a well defined "exit-strategy"
Disruptors
the entrepreneurs and their business firms that lead a business model disruption
Transaction Fee Revenue Model
A company receives a fee for enabling or executing a transaction (eBay)
Disintermediation
Displacement of market middlemen who traditionally are intermediaries between producers and consumers by a new direct relationship between producers and consumers
Ubiquity
E-commerce is characterized by this// unique feature of e-commerce; it is available just about everywhere, at all times. Liberates the market from being restricted to a physical space and makes it possible to shop anywhere using E-commerce-- resulting in a marketspace. POV of consumer-- reduces transaction costs
Local E-Commerce
E-commerce that is focused on engaging the consumer based on his or her current geographic location local merchants use a variety of online marketing techniques to drive consumers to their stores
Eight unique features of e-commerce technology
Ubiquity, Global Reach, Universal Standards, Social Technology, Personalization / Customization, Information Density, Interactivity, Richness
Affiliate Revenue Model
a company steers business to an affiliate and receives a referral fee or percentage of the revenue from any resulting sales
E-distributor
a company that supplies products and services directly to individual businesses owned by one company seeking to serve many customers the more products/services company makes available, the more attractive it is to potential customers revenue model: sale of goods [B2B Business model]
First Mover Advantage
a competitive market advantage for a firm that results from being the first into a marketplace with a serviceable product or service often lack complementary resources to needed to sustain their competitive advantage
Business plan
a document that describes a firm's business model
Liability
a feature of political systems in which a body of law is in place that permits individuals to recover the damages done to them by other actors, systems or organizations
First mover
a firm that is first to a market in a particular area and that moves quickly to gather market share establish a large customer base quickly, build brand name recogni- tion early, create an entirely new distribution channel, and then inhibit competitors (new entrants) by building in switching costs for their customers through proprietary interface designs and features available only at one site.
Perfect Market
a market in which there are no competitive advantages or asymmetries because all firms have equal access to all the factors of production
Marketspace
a marketplace extended beyond traditional boundaries and removed from a temporal and geographic location the area of actual or potential commercial value in which a company intends to operate
Marketplace
a physical place you visit in order to transact
Due Process
a process in which laws are known and understood and their is an ability to appeal to a higher authority to ensure that the laws have been correctly applied
Business Strategy
a set of plans for achieving superior long-term returns on the capital invested in a business firm a plan for making profits in a competitive environment over the long term 1. Product/service differentiation (unique selling points [USPs] -- need to be able to differentiate your product from others) 2. Cost competition (cost advantage) 3. Scope (going global/larger markets) 4. Focus/ market niche (identify niche to dominate) 5. Customer intimacy (increase switching costs)
Dilemma
a situation in which there are at least two diametrically opposed actions, each of which supports a desirable outcome
Commoditization
a situation where there are no differences among products or services, and the only basis of choosing is the price
Exchange
an independent digital marketplace where suppliers and commercial purchasers can conduct transactions revenue model: charging a commission or fee based on the size of the transaction usually serve single vertical industry (steel), focus on exchange of direct inputs to production and short-term contracts or spot purchasing
World Wide Web (the Web)
an information system running on internet infrastructure that provides access to billions of web pages
Information Asymmetry
any disparity in relevant market information among parties in a transaction
Responsibility
as free moral agents, individuals, organizations and societies are responsible for the actions they take
Market Creator
builds a digital environment where buyers and sellers can meet, display products, search for products, and establish a price for products ex: eBay -- has no inventory or production costs ex: über, airbnb (can also be categorized as service providers) make money by charging % of every transaction made or charging merchants to access the market [B2C Business model]
Business to Business (B2B) E-Commerce
businesses focus on selling to other businesses largest form of e-commerce
Community Provider
creates an online environment where people with similar interests can transact (buy and sell goods); share interests, photos, and videos; communicate with like-minded people; and receive interest-related info The basic value proposition is to create a fast, convenient, one-stop site where users can focus on their most important concerns and interests, share the experience with friends, and learn more about their own interests. Typically rely on a hybrid revenue model that includes subscription fees, sales revenues, transaction fees, affiliate fees, and advertising fees from other firms that are attracted by a tightly focused audience. [B2C Business model]
Value proposition
defines how a company's product or service fulfills the needs of consumers the heart of its business model From the consumer point of view include personalization and customization of product offerings, reduction of product search costs, reduction of price discovery costs, and facilitation of transactions by managing product delivery. value proposition defines how a company's product or service fulfills the needs of customers
Content Provider
distributes information content, such as digital news, music, photos, video, and artwork Can make money via a variety of different revenue models, including advertising, subscription fees, and sales of digital goods. key to becoming successful in this field is owning the content not all own content, but syndicate (aggregate) and then distribute content produced by others [B2C Business model]
Scale Economies
efficiencies that arise from increasing the size of a business ie when large fixed-cost production systems can be operated at full capacity with no idle time
Customer Intimacy
focuses on developing strong ties with customers in order to increase switching costs
Accountability
individuals, organizations and societies should be held accountable to others for the consequences of their actions
Industry Consortia
industry owned vertical marketplaces that serve specified industries ex: automobile, aerospace Vertical marketplaces supply a smaller number of companies with prod- ucts and services of specific interest to their industry
Crowdfunding
involves using the internet to enable individuals to collectively contribute money to support a project
Unfair competitive advantage
occurs when one firm develops an advantage based on a factor other firms cannot purchase
Network Effect
occurs where users receive value from the fact that everyone else uses the same tool or product EX: a common operating system, telephone system, or software application such as a proprietary instant messaging standard or an operating system such as Windows -- all of which increase in value as more people adopt them
Service Provider
offers services online (vs e-tailors who sell products online) revenue models: charge fees, monthly subscriptions, advertising, collecting personal info; freemium revenue model in which some basic services are free but others require payment of additional charges basic value proposition: offer consumers valuable, convenient, time-saving, and low-cost alternatives to traditional service providers or provide services that are truly unique. [B2C Business model]
Portal
offers users powerful search tools as well as an integrated package of content and services all in one place ex: google/ gmail with package of news, email, instant messaging, calendars all in one place do not sell anything directly (present themselves as unbiased generate revenue primarily by charging advertisers for ad placement, collecting referral fees for steering customers to other sites, and charging for premium services [B2C Business model]
Competitive Environment
refers to the other companies operating in the same marketspace selling similar products also refers to presence of substitute products and potential new entrants to the market, as well as the power of customers and suppliers over your business influenced by several factors: how many competitors are active, how large their operations are, what the market share of each competitor is, how profitable these firms are, and how they price their products. existence of large # of competitors may be a sign that the market is saturated and that it may be difficult to become profitable
B2B Service Provider
sells business services to other firms under business model of e-procurement firm make money through transaction fees, fees based on the number of workstations using the service, or annual licensing fees.
E-Procurement Firm
single firm creating digital markets where sellers and buyers transact for indirect inputs revenue model: Fees for market-making services, supply chain management, and fulfillment services [B2B Business model] -- B2B service provider
Sustaining Technologies
technologies that enable the incremental improvement of products and services helps companies to cope with competitive pressures and improve their products, and serve their customers with less expensive, more powerful, or unique products.
Disruptive technologies
technologies that underpin a business model disruption when technologies are at the core of a change in the way business is done the disruption occurs when an innovative firm applies the technology to pursue a different business model and strategy than existing firms
Profit
the difference between the price a firm is able to charge for its products and the cost of producing and distributing goods represents economic value-- econ value created any time customers are willing to pay more for a product than it costs to produce
Market strategy
the plan you put together that details exactly how you intend to enter a new market and attract new customers
Value Chain
the set of activities performed in an industry or in a firm that transforms raw inputs into final products and services each of these activities adds economic value to the final product generic players: suppliers, manufacturers, transporters, distributors, retailers, and customers
Incubators
typically provide a small amount of funding and also an array of services to start-up companies that they select to participate in their programs, such as business, technical, and marketing assistance, as well as introductions to other sources of capital.
Angel Investors
typically wealthy individuals or a group of individuals who invest their own money in exchange for an equity share in the stork of a business; often are the first outside investors in a start-up In general, make smaller investments (typically $1 million or less) than venture capital firms, are interested in helping a company grow and succeed, and invest on relatively favorable terms compared to later stage investors.
Seed Capital
typically, an entrepreneur's personal funds derived from savings, credit card advances, home equity loans, or from family and friends
Social Technology
unique feature of e-commerce. User-generated content and social networks. many-to-many model of communication
Customization
unique feature of e-commerce. changing the delivered product or service based on a user's preferences or prior behavior
Richness
unique feature of e-commerce. the complexity and content of a message. ie, retail stores when they provide personal, face-to-face service using aural and visual cues when making a sale. E-commerce techs are interactive and can adjust message to individual users video, audio, and text marketing messages are integrated into a single marketing message and consuming experience
Personalization
unique feature of e-commerce. the targeting of marketing messages to specific individuals by adjusting the message to a person's name, interests, and past purchases
Global Reach
unique feature of e-commerce. the technical standards of the internet / the technical standards for conducting e-commerce are shared by all nations around the world common, inexpensive, global tech foundation for businesses to use
Interactivity
unique feature of e-commerce. technology that allows for two-way communication between merchant and consumer and among consumers Consumers are engaged in a dialog that dynamically adjusts the experience to the individual, and makes the consumer a co-participant in the process of delivering goods to the market.
Information Density
unique feature of e-commerce. the total amount and quality of information available to all market participants, consumers and merchants alike. Information processing, storage, and communication costs drop dramatically, while currency, accuracy, and timeliness improve greatly. Information becomes plentiful, cheap, and accurate.
Reach
unique feature of e-commerce. the total number of users or customers an e-commerce business can obtain
Leverage
when a company uses its competitive advantages to achieve more advantage in surrounding markets
Internet
worldwide network of computer networks built on common standards
