ecom-sga.ppt

04/12/23

Electronic Commerce

Training Program for Entrepreneurs

VIT Business School

Learning Points

Foundations of EcommerceInternet as an enabling technologyBusiness Models EConsumer Behaviour

What’s Ecommerce?

A comprehensive business

practice that has embraced

information and communication

technology to facilitate economic

activity

Drivers of Ecommerce

Competitive Forces and Organizational Responses

Factor Mobility (in terms of knowledge) Logistic synergies enhancing internal

economies Lower transaction costs Effective governance Presence of ICT

World wide Internet Usage

Region Internet Usage

Usage% of

World

Usage Growth

2000-2006

Penetration

% of Populati

on

Africa 32,765,700

3.0 % 625.8 %

3.6 %

Asia 394,872,213

36.4 % 245.5 %

10.8 %

Europe 308,712,903

28.4 % 193.7 %

38.2 %

Middle East 19,028,400

1.8 % 479.3 %

10.0 %

North America 229,138,706

21.1 % 112.0 %

69.1 %

L America/ Carribean

83,368,209

7.7 % 361.4 %

15.1 %

Oceania/ Australia

18,364,772

1.7 % 141.0 %

54.1 %

World Total 1,086,250,903

100 200.9 16.7 %

Source: www.internetworldstats.com/stats.htm

Growth of Internet in India

Year Internet Subscriber

s

Internet Users

1997 25 45

1998 150 200

1999 359 1000

2000 650 2000

2001 1130 6668

2002 1769 10684

2003 3661 29000

2004 4403 31723

2005 (Projected)

6674 52875

(in thousands)

Source: www.nasscom.org

Internet Users

"Active user" is defined as someone who has used the internet at least one in the last 30 days

"Ever user" is someone who has used the internet at least once

Mon-YY

Active User

Ever User

Sept 2006

37 mn 25

* Mar 2007

42 mn 28

* Mar 2008

54 mn 43* Estimated

Source: Internet and Mobile Association of India

Average Time Spent by Users on the Internet

User Type Minutes / Week

School Children 322

College goers 433

Older Men 580

Working Women 535

Non-working Women 334

Source: Internet and Mobile Association of India

Total Ecommerce Transactions in India

0

500

1000

1500

2000

2500

1998-99 1999-2000 2000-2002 * 2006

* Expected

INR Crs

Source: www.nasscom.org

Category of products bought over the Internet

Electronic gadgets Consumer electronics Books Apparel and accessories Railway tickets and airline tickets Music Home appliances Hotel bookings Magazines Jewelry

Ecommerce Opportunities for Indian

Industries

Financial ServiceStock TradingBankingLegal and Professional ServicesTour and TravelHealthcare

Benefits

Global reach

24 X 7 advantage

Disintermediation

Improved operational efficiencies

Effective Communication between parties

Evolution of Extended Enterprises

Challenges & Weaknesses Facing Ecommerce Efforts

Internet and computer literacy

Technology limitations

Cultural barriers

Legal aspects

Dimensions of ECommerce

Source: Choi et al. (1997), p. 18.

Business Models

Based on the relationship of transaction parties

Based on the relationship of transaction types

Summary of Transaction Models

Model

Description Examples

B2C Sells products or services directly to consumers

Fabmall.com

B2B Sells products or services to other businesses or brings multiple buyers and sellers together in a central marketplace

Metalsite.com

B2G Businesses selling to local, state and central governments

iGOV.com

C2C Consumers sell directly to consumers

Ebay.com

C2B Consumers fix price on their own, which businesses accept or decline

Makemytrip.com

Summary of Transaction Types

Aggregator

Brokerage Value Chain

Manufacturer

Info-mediary

Advertising

Subscription

Affiliate Community

Con

trol

Value Integration

Case Studies

ITC EchoupalFabmallAndhra Pradesh GovernmentM S Swaminathan Foundation

Ecommerce Consumer Behaviour

Source: Zinezone, c/o GMCI Co.

Buyer Types and Experiences

2 dimensions of shopping experiencesUtilitarian—to achieve a goalHedonic—because it’s fun

3 categories of consumersImpulsive buyers—purchase quicklyPatient buyers—make some

comparisons firstAnalytical buyers—do substantial

research before buying

Web Advertisement

Banners - Keyword, Random, Swapping, Exchange

Standard PopupsEmailMobileSplash ScreenSpot LeasingChat and Community spaces

Further Readings

http://www.ecommercetimes.comhttp://www.echoupal.com/http://www.mssrf.org/http://www.oecd.org/http://google.com