E- Commerce & M- Commerce by Manoj Bhalani

E-COMMERCE & M-COMMERCE

Prepared By

Group 1

OUT LINE E-COMMERCE Definition of E-Commerce History of E-commerce Successes Player In E-commerce Fail Player In E-commerce Classification of E-Commerce• Business To Business(B2B)• Business To Business To Consumer(B2B2C)• Business To Consumer(B2C)• Consumer To Business (C2B)• Consumer To Consumer (C2C)• Government To Citizen(G2C)• Government To Business(G2B) Business Models In E-commerce Advantage of E-Commerce SWOT Analysis of E-Commerce Pestle Analysis of E-Commerce Challenges For E-Commerce Limitations of E-Commerce

OUT LINE

M-COMMERCE Introduction of M-Commerce Examples of M-Commerce Applications of M-Commerce Advantage of M-Commerce Disadvantages of M-Commerce Challenges For M-Commerce

DIFFERENCE BETWEEN E-COMMERCE & M-COMMERCE COMPARISON OF E-COMMERCE AND M-COMMERCE CONCLUSION REFERENCES

E-COMMERCE

DEFINITION OF E-COMMERCE

• E-commerce describes the process of buying, selling, transferring, or exchanging products, services, and information via computer network, including the Internet.

• EC can be defined from these perspectives• buying and selling of goods and services• servicing customers• collaborating with business partners• conducting electronic transactions within an organization

BRIEF HISTORY OF E-COMMERCE

• EC applications were developed first in the early 1970s that is electronic funds transfer(EFT).

• Than inter organizational system(IOS)• The term Electronic Commerce was coined at the

time of World Wide Web introduced in 1990.• Nowadays e-commerce is success sector because

of development of new networks, protocols, and EC software

SUCCESSE PLAYER IN E-COMMERCE

• During the last few year we have seen extremely successful virtual companies such as

• eBay• Alloy.com• Drugstore.com• Campusfood.com• Homeshop.com• Cisco• General Electric• IBM• Intel and many more

FAIL PLAYER IN E-COMMERCE Well-known B2C Failures• eToys.com• Xpeditor.com• Marchafirst.com• Drkoop.com• Wedvan.com• Boo.com

Well-known B2B Failures• Chemdex.com• Ventro.com• Verticalnet.com

CLASSIFICATION OF E-COMMERCE

• Business To Business(B2B)• Business To Business To Consumer(B2B2C)• Business To Consumer(B2C)• Consumer To Business (C2B)• Consumer To Consumer (C2C)• Government To Citizen(G2C)• Government To Business(G2B)• Business-To-Employees (B2E)• E-Learning

Business To Business(B2B)

Business To Business e-commerce refers to transaction between businesses conducted electronically over the internet; also know as eB2B(electronic B2B)

For Example• Marks & Spencer’s Applications• ingrammicro.com• Rosenbluth.com(travel services)• Garage.com(financing service)• Stamps.com(law firms)

Business To Business To Consumer(B2B2C)

In Business To Business To Consumer(B2B2C) E-commerce model in which a business provides some product or service to a client business that maintains its own customers like Wholesaler-to-retailer-To-Consumer merchandising.For Example• Qantas’ Pan Pacific(provide travel service such as

airline tickets and hotel room to business partners such as travel agencies, who sell the services to customer)

Business To Consumer(B2C)

Business To Consumer(B2C) e-commerce includes retail transactions of products and services from business to individual shoppers.• Amazon.com(for book and music shopping)• Dell.com(for computer hardware and software)• Fogdog.com(for sport goods)• Officedepot.com(for office supplies)• Mattel.com( for toys shopping)• Espn.com(entertainment)• Homeshop.com(for online shopping)

Consumer To Business (C2B)

The Consumer To Business (C2B) category includes individuals who use the internet to sell product or services to organization. For examplePriceline.com

Consumer To Consumer (C2C)

• Consumer To Consumer (C2C) E-commerce model in which individuals use the Internet to sell products or services to organizations or individuals who seek sellers to bid on products or services they need

For example AuctionsOLX.comeBay.comAuctionanything.com Buyit.comGreatshop.com Targetbarter.com

Government To Citizen(G2C)

• Government To Citizen(G2C) category includes all the interactions between a government and its citizens that can place electronically.

Foe example on site of RTO, citizens can review driver’s licenses, pay traffic tickets, and make appointments for vehicle emission inspections and driving tests.

Government To Business(G2B)

• Government To Business(G2B) category that includes interactions between Government and business.(government selling to businesses and providing them with services and businesses selling products and service to government)

• The relationship work two way: government-to-business and business-to-government.

• Gsa.gov• auctionrp.com(U.S online auctions site)

E-LEARNING

• The online delivery of information for purposes of training or education

• For example• Harvard.com• Turbolinux.com• Trainingmag.com• Irjadeja.com

BUSINESS MODELS IN E-COMMERCE

• Online direct marketing(Amazon.com)• Name your own price(Priceline.com)• Find the best price(Hotwire.com)• Group purchasing(Accompany.com)• Online auctions (ebay.com, OLX.com)• Product and services customization(Dell.com)• Information brokers(Google.com)• Bartering(BIgVine.com)• Membership(Netmarket.com)

E-COMMERCE ADVANTAGE FOR ORGANIZATION

• The Global Market• Cost Effective And Reduction• Supply Chain Improvements• Customization• Gives Freedom To Make Choice• New Business Models• Lower Communication Costs• Improved Customer Relations• Up-to Date Company Material• No City Business Permits And Fees

E-COMMERCE ADVANTAGE FOR CONSUMERS

• More Product And Services• Cheaper Product And Services• Instant Delivery• Information Availability• Participation In Auctions• Electronic Communications• No Sales Tax

E-COMMERCE ADVANTAGE FOR SOCIETY

• Higher Standard of Living• Hope For The Poor• Availably of Public Services

SWOT ANALYSIS OF E-COMMERCE

STRENGTHlower operational costs than a brick-and-mortar retailer

WEAKNESSThe customers’ inability to touch the products

OPPORTUNITIEThe online merchant needs to stay current and be willing to adopt new features as they arise

THREATSThe ease with which companies can start an e Commerce site is a constant threat

PESTLE ANALYSIS OF E-COMMERCE

Political Factors

• Number of government initiatives that promotes development and use of new technologies.

• Public policies of the Government for the support to the growth of electronic transactions and processes. For example, supporting e-filing of tax returns

Cont…Economic Factors

• Economic growth• Average income• Cost of technology (hardware and software)• Innovation in business models• Cost of access to telecommunication infrastructure• Advancement of banking in payment system• Commercial infrastructure

Cont…

Social Factors • No. of online users• Level of education• IT skills and computer literacy• Willingness to adopt new technology• Skilled workforce• culture

Cont…Technological Factors

• Internet service provider• Range of services provided • Access to new technology developments• Technological problem• Speed of development and implementation of

new technology by industry sector• Speed of internet

CHALLENGES FOR E-COMMERCE

• Security issues• Legal issues• Reliable Logistics and Supply Chain• Trust and risk• Customer Acquisition• Customer Service

LIMITATION(NON TECHNOLOGICAL)

• Security and privacy concerns deter customers from buying.

• Lake of trust in e-commerce and in unknown seller hinders buying.

• Some customer like to feel and touch product.• People do not yet sufficiently trust paperless,

faceless transactions.• There is an increasing amount of fraud on the

internet.

LIMITATIONS(TECHNOLOGICAL)

• Lack of universally accepted standards for quality/ security, and reliability.

• Software development tools are still evolving• Special web serves are needed in addition to the

network servers.• Internet accessibility is still expensive and

inconvenient

M-COMMERCE

INTRODUCTION OF M-COMMERCE

• Mobile commerce, also known as M-commerce and M-business.

• M-commerce refers to the conduct of E-commerce via wireless devices or from portable device

EXAMPLES

Room33.com(for contact information) Justdialled.com(for contact information) Mobile.yahoo.com(for information)Amazon.com(for shopping)Hdfcbank.com(for banking)Televend.com(for micropayment)Getjer.com(for application downloading)Nokia OVI(for music, software)DoCoMo i-Mode(in Japan)

APPLICATIONS OF M-COMMERCE

• Shopping Guides• Maps and Transportation• Ticketing• News and Reports• Personalized movie service• Entertainment• Dining and reservations• Additional Services (Banking, Stock trading, Dictionary service)

ADVANTAGE OF M-COMMERCE

1. Providing Wider Reach2. Reducing Transaction Cost 3. Competitive Pricing4. Reducing Time To Order5. Flexible To Access 6. Easy Connectivity 7. Convenience8. Expansive Target Audience9. Personalization10. Time Saving11. Increasing Productivity

DISADVANTAGES OF M-COMMERCE

1. Small screens of most devices still limit types of file and data transfer (i.e. streaming videos, etc.)

2. Standards guiding applications and technology development and connection

3. WAP and SMS limited to small number of characters and text.

4. Use of graphics limited 5. User interface is often difficult to learn how to

use 6. Limited bandwidth

Cont…

8. Limited roll out of higher bandwidth mobile networks and devices (i.e. 3g networks and wireless broadband networks are predominantly located in cities)

9. High Cost of establishing mobile and wireless broadband infrastructure

10. Technology constraints of mobile devices (memory, processing power, display capabilities, input methods)

11. Security of data moved across some mobile and wireless networks

CHALLENGES FOR M-COMMERCE

• When focusing more on the mobile shopping experience, many of these barriers for m-commerce can be overcome, such as..

1. Safety and security.2. Connectivity.3. Transactional issues4. Post Transaction issues5. Screen size.

DIFFERENCE BETWEEN E-COMMERCE & M-COMMERCE

• Transactions In E-commerce, transactions are done by internet using laptop and desktop while, in M-commerce, transactions are done on a cellular and mobile device.

• Requirement E-commerce not only needs internet but also electricity where

as there is no such requirement with M-commerce.

• Use We can use E-commerce to only those places where we have

net connectivity, but with M-commerce we are free from all such boundaries.

Cont…

• Charge

M-commerce is usually charged through the caller’s premium rates, charging the user’s bill or reducing the caller’s credit. While, E commerce is charged through the use of swipe machines where you swipe your credit card.

• Easy to carry

M-commerce is very handy and easy to carry while E-commerce you cannot always bring with you your computer or laptop anywhere.

Cont…

• Faster to reach consumer In E-commerce, it may possible that person may not

always have a laptop or computer with them while in m-commerce, person will always have their cell phones with them. So it allows business to reach consumer even faster compared to E-commerce.

• Costly M-commerce however is costly compared to E-commerce.

COMPARISON E-COMMERCE AND M-COMMERCE

• M-commerce and E-commerce both refer to the field of marketing- buying, selling, distributing and serving different products through commercial truncations on internet with the use of specific devices or computers.

Cont…

• M-commerce stands for mobile commerce where in commercial transaction are done using mobile phones that access to the internet.

• E-commerce stands for electronic commerce where in business transactions are done over the internet.

Cont…• M-commerce is very portable because mobile phones

are very easy to carry. You can do your business transaction anywhere you go as long as you can access the internet on your phone.

• E-commerce, you have to do your transaction on the computer. Laptop is also portable but not as light as mobile phones. Then you still have to look for a place to do your transaction because it would be uncomfortable using your laptop anywhere or while you are standing.

Cont…• M-commerce is usually changed through the caller’s

premium rates, charging the user’s bill, or reducing the caller’s credit, and also through mobile banking.

• E-commerce is charged through the use of swipe machines where you swipe your credit card. You can also transfer money through online banking and pay for the products you bought on the internet using your credit card number.

Cont…• M-commerce is available anywhere you go even if

there is no internet because the internet is available in your mobile phones.

• E-commerce is not available everywhere because not all place have internet connection.

CONCLUSION

• Compared to M-commerce, E-commerce is more limited as it requires the use of a computer and internet connection, while mobiles work on satellites. Video conferencing is now available on mobile phone with 3G and 4G networks, without the hassle of internet. M-commerce however is costly compared to E-commerce.

References

• Book References• Electronic Commerce, Efraim Turban, Pearson

Education,2004. • Management Information Systems, James A O’Brien, Seventh

Edition, TATA McGRAW HILL