1) E-Commerce

The process of buying, selling or exchanging products, services or information

via computer.
E-Business
A broad definition of e-commerce. E-Business is not just buying and selling of
goods and services, but also servicing customers, collaborating with partners
and exchanging information within an organisation.
2) Differentiate
3) Old Economy
1) Stable
2) National
3) Manufacturing
4) Physical capital
5) Hierarchy structure
6) Mass production
7) Capital and Labour
8) Machineries
9) Large volume Low cost
10)
Independent
New Economy
1. Dynamic and Complex
2. International and Global
3. Service sector
4. Human capital
5. Network
6. Customised
7. Innovation and Knowledge
8. Digital and electronic
9. Speed and Quality
10.Collaboration
3) Advantages of using internet
Ans. Firms Perspective
1. Access to wider market
2. Potential economies of scale
3. Marketing economies
4. Improved logistics
5. Automated processes

6. Improved customer knowledge

7. Lower costs
8. Increased efficiency.
1.
2.
3.
4.
5.
6.
7.
8.

Customers Perspective
Access to market information
Convenience
Lower prices
Personalization
Customization
One-to-one customer service
Access to internet community
Empowerment

4) Learning from Beijing Olympics 2008

Superfish victory by .01 second was broadcasted live
42 events in 7 different cities has to be broadcasted to televisions, internet,
public display screens and even millions of mobile users
Logistics of 100 million tourists
300,000 participants from 200 countries
5) Development of the Computer, internet and www
Development of the Computer

First attempt for computer- early 20th century

1913- Vannever Bush invented Prolific Tracer- to measure distance on uneven

ground.

1919- Bush created Differential analyzer- solve mathematical equations

World war brought more investment to technology and computers become

more sophisticated.
Development of internet

The Enigma code-breaking computer- Alan Turing-UK

USA- National Science Foundation(NSF)- 1944 started research on computer

technology

1958- President Eisenhower set up Advanced Research Project Agency (ARPA)

Mid 1970s ARPANET across university sector.

Late 1980s application of business activities via internet.

Emergence of independent network companies who set up international links

for the electronic transfer of information

Early 1990s marked the wide use of internet.

World Wide Web (www)

Most significant development in the history of internet

HTTP developed by Tim Berners in 1993 at Switzerland

Through which HTML was possible to design webpages.

www brought together information on a common platform to ease the

process and speed of searching.

1993 National Centre for Super Computing Applications developed a

windows-based graphical user interface- Web browser.

Mac Andreeson and team developed browser called Mosaic. 1994 Netscape.
A browser with search engine.

Later Internet Explorer gained the market.

Then Google, Lycos, Yahoo! And Alta Vista

1995- Jim Clark and team of NCSA Netscape Navigator.

Mid 1990s business across the globe began using internet.

6) Business to Business (B2B)

E-commerce transactions where goods and services are exchanged between
one business to another is called B2B business model
Eg: Lenovo computers sourcing products from its suppliers and selling
hardware's to other companies

Business to Consumer (B2C)

B2C includes retail transaction of products or services from business to
individual shoppers. The typical shopper at flipkart.com is a B2C business
model. This can be also called as E-tailing model.
Consumer to consumer (C2C)
Consumer transacts directly with other consumer through internet. Individual
sells residential property, cars and so on in online classifieds. Eg: e-bay.com

7) A Framework for EC
EC Applications

Search engines
Online banking, online shopping
E-ticket etc

EC Support services
IT engineers
Market researchers
Payment services, Logistics

Infrastructure
Network, Smart cards, hardware
Programming languages etc

8)

Characteristics of perfect competition

Many buyers and sellers
Freedom of entry and exit
Perfect mobility of factors of production
Perfect knowledge of market
Homogeneous product

Effect of internet on competitive environment

Ease of entry and exit of firms

No geographical or time constraints

Diversified products available

Price comparison easier

Abundance of information

Good and bad for customers

9) Disintermediation
10)
Short tail of traditional sellers

Qty/ Time
3.5
3
2.5
2
1.5
1
0.5
0

0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9

Long tail of online markets

Quantity/ Time
3.5
3
2.5
2
1.5
1
0.5
0

0.5

1.5

2.5