Scribd
Upload
643 views16 pages

Evolution of E-Commerce

Uploaded by

Darshan Patil
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
643 views16 pages

Evolution of E-Commerce

Uploaded by

Darshan Patil
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
You are on page 1/ 16

Evolution of

E-commerce

Copyright © 2007 Pearson


Slide 1-1
Education, Inc.
E-commerce Developments and Themes—2006
• More and more people and businesses are using the
Internet to conduct commerce
• The e-commerce channel is deepening as more products
and services come online
• Broadband and wireless Internet access are growing
• E-commerce business models are being refined to achieve
higher levels of profitability
• At societal level, there is continued conflict over
copyrights, content regulation, taxation, privacy, and
Internet fraud and abuse.
E-commerce Defined
• E-commerce involves digitally enabled
commercial transactions between and among
organizations and individuals
• Digitally enabled transactions include all
transactions mediated by digital technology
• Commercial transactions involve the exchange
of value across organizational or individual
boundaries in return for products or services
Why Study E-commerce?
• E-commerce technology is different and more
powerful than any of the other technologies
that we have seen in the past century.
• E-commerce has challenged much traditional
business thinking
• E-commerce has a number of unique features
that help explain why we have so much
interest in e-commerce
Seven Unique Features of E-commerce Technology
and Their Significance
• Is ubiquitous (available everywhere, all the time)
• Offers global reach (across cultural/national boundaries)
• Operates according to universal standards (lowers market entry
for merchants and search costs for consumers)
• Provides information richness (more powerful selling
environment)
• Is interactive (can simulate face-to-face experience, but on a
global scale)
• Increases information density (amount and quality of
information available to all market participants)
• Permits personalization/customization
Types of E-commerce
Classified by nature of market relationship
• Business-to-Consumer (B2C)
• Business-to-Business (B2B)
• Consumer-to-Consumer (C2C)

Classified by type of technology used


• Peer-to-Peer (P2P)
• Mobile commerce (M-commerce)
Growth of the Internet
• A worldwide network of computer networks
built on common standards
• Was created in late 1960s
• Services include the Web, e-mail, file transfers,
etc.
• Can measure growth of Internet by looking at
number of Internet hosts with domain names
Growth of the Web
• The most popular service on the Internet
• Developed in early 1990s
• Provides access to Web pages (documents
created with HTML)
• Can include text, graphics, animations, music,
videos
• Web content in form of Web pages has grown
exponentially, from over 2 billion pages in
2000 to over 8 billion pages in 2005
Origins and Growth of E-commerce
• Precursors to e-commerce include
 Baxter Healthcare
 Electronic Data Interchange (EDI)
 French Minitel (1980s videotext system; still in use today)
• None of these precursor systems had the functionality of the
Internet
• For our purposes, we date the beginning of e-commerce to
1995
• Since then, has been fastest growing form of commerce in
United States
The Growth of B2C E-commerce
Figure 1.5, Page 24

SOURCE: Based on data from eMarketer, Inc., 2005a; Shop.org and Forrester Research,
2005; Forrester Research, 2004.
The Growth of B2B E-commerce
Figure 1.6, Page 25

SOURCE: Based on data from e-Marketer, Inc., 2005; U.S. Department of Commerce, 2005;
authors’ estimates.
Technology and E-commerce in Perspective
• The Internet and Web are just two of a long
list of technologies, such as automobiles and
radio, that have followed a similar historical
path.
• Although e-commerce has grown explosively,
eventually its growth will cap as it confronts
its own fundamental limitations.
Potential Limitations on the Growth of B2C E-
commerce
• Expensive technology
• Complex software interface
• Sophisticated skill set
• Persistent cultural attraction of physical
markets and traditional shopping experiences
• Persistent global inequality limiting access to
telephones and computers
The Visions and Forces Behind E-commerce: 1995–
2000
• For computer scientists, vindicated a vision of universal
communications and computing environment that could be
accessed by everyone
• For economists, vision of a perfect Bertrand market and
friction-free commerce
• For entrepreneurs, their financial backers and marketing
professionals, e-commerce represented an extraordinary
opportunity to return far above normal returns on
investment.
Predictions for the Future
• Technology of e-commerce will continue to propagate through
all commercial activity
• E-commerce prices will rise to cover the real cost of doing
business on the Web and pay investors reasonable rate of
return
• E-commerce margins and profits will rise to levels more typical
of all retailers
• In B2C and B2B, traditional Fortune 500 companies will play
growing and dominant role
• Number of successful pure online companies will decline and
most successful e-commerce firms will adopt mixed “clicks and
bricks” strategies
• Growth of regulatory activity worldwide
Understanding E-commerce: Organizing
Themes
• Technology: Development and mastery of
digital computing and communications
technology
• Business: New technologies present
businesses and entrepreneurs with new ways
of organizing production and transacting
business
• Society: Intellectual property, individual
privacy, and public policy

You might also like