Business Chapter Fourteen

Aloha people! We are nearing the end now with only three more chapter including this one. Hooray!! This chapter is called E-Business. We all know or have some idea about what E-Business is all about, I'm sure everyone does. So these are a few things that we will learn about E-Business e-commerce and e-business, the four types of e-business models, the benefits and challenges associated with e-business and the differences among e-shops, e-malls, and online auctions.

What is E-Business?

The Internet is a powerful channel that presents new opportunities for an organization to, touch customers, enrich products and services with information and lastly, reduce costs. If you're wondering how do e-commerce and e-business differ? The answer is E-commerce is the buying and selling of goods and services over the Internet while E-business is the conducting of business on the Internet including, not only buying and selling, but also serving customers and collaborating with business partners. Meanwhile E-business model is an approach to conducting electronic business on the Internet.

Industries that uses E-Business

The E-Business Model

Business-to-Business (B2B)

Electronic marketplace (e-marketplace) is an interactive business communities providing a central market where multiple buyers and sellers can engage in e-business activities.

Business-to-Consumer (B2C)

Common B2C e-business models include:

• e-shop – a version of a retail store where customers can shop at any hour of the day without leaving their home or office.
• e-mall – consists of a number of e-shops; it serves as a gateway through which a visitor can access other e-shops.

Business types:

• Brick-and-mortar business
• Pure-play business
• Click-and-mortar business

Consumer-to-Business (C2B)

The demand for C2B e-business will increase over the next few years due to customer’s desire for greater convenience and lower prices. Example of e-business model is Priceline.com.

Consumer-to-Consumer (C2C)

Online auctions:

-Electronic auction (e-auction) is the sellers and buyers solicit consecutive bids from each other and prices are determined dynamically.

-Forward auction is the sellers use as a selling channel to many buyers and the highest bid wins.

-Reverse auction is when the buyers use to purchase a product or service, selecting the seller with the lowest bid.

Consumer-to-Consumer (C2C)

C2C communities include:

• Communities of interest is the people interact with each other on specific topics, such as golfing and stamp collecting.
• Communities of relations is the people come together to share certain life experiences, such as cancer patients, senior citizens, and car enthusiasts.
• Communities of fantasy is the people participate in imaginary environments, such as fantasy football teams and playing one-on-one with Michael Jordan.

E-Business Benefits and Challenges.

E-Business benefits include:

• Highly accessible 
• Increased customer loyalty
• Improved information content 
• Increased convenience
• Increased global reach 
• Decreased cost 

E-business challenges include:

• Protecting consumers
• Leveraging existing systems
• Increasing liability
• Providing security
• Adhering to taxation rules

There are numerous advantages and limitations in e-business revenue models including: 

• Transaction fees
• License fees
• Subscription fees
• Value-added fees
• Advertising fees

Mashups

Web mashup is a Web site or Web application that uses content from more than one source to create a completely new service. While Application programming interface (API) is a set of routines, protocols, and tools for building software applications. Mashup editor is WSYIWYGs (What You See Is What You Get) for mashups.

Thank you!!