all e commerce

8/3/2019 All e Commerce

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INTRODUCTION TO PHP


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Dynamic Web Sites

Dynamic Web Sites are flexible, accuratelydescribes as applicationsthan merely sites: Respond to different parameters (for example,

the time of day or the version of the visitorsWeb browser Have a memory allowing user registration &

login Involve HTML forms, so that people can perform

searches, provide feedback, etc Often have interfaces where administrators can

manage the sites content Easier to maintain, upgrade and build open


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What is PHP?

PHP stands for PHP: HypertextPreprocessor

PHP is a server-side scripting language, likeASP

PHP scripts are executed on the server PHP supports many databases (MySQL,

Informix, Oracle, Sybase, Solid,

PostgreSQL, Generic ODBC, etc.) PHP is an open source software (OSS) PHP is free to download and use


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Php.net

Figure 1: The home page for PHP


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What is a PHP File?

PHP files may contain text, HTML tagsand scripts

PHP files are returned to the browseras plain HTML

PHP files have a file extension of

".php", ".php3", or ".phtml"


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Why PHP?

PHP runs on different platforms(Windows, Linux, Unix, etc.)

PHP is compatible with almost allservers used today (Apache, IIS, etc.)

PHP is FREE to download from the

official PHP resource: www.php.net PHP is easy to learn and runs

efficiently on the server side


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Where to Start?

Install an Apache server on a Windowsor Linux machine

Install PHP on a Windows or Linuxmachine

Install MySQL on a Windows or Linux

machine Or download FoxServ/EasyPHP


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PHP Installation

Download PHP

http://www.php.net/downloads.php

Download MySQL Database

http://www.mysql.com/downloads/index.html

Download Apache Server

http://httpd.apache.org/download.cgi


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What can PHP do?

Server-side scripting. You need to run the webserver, with a connected PHP installation. You canaccess the PHP program output with a webbrowser, viewing the PHP page through the server.

Command line scripting. You can make a PHPscript to run it without any server or browser.

Writing desktop applications. Ability to writecross-platform applications this way. PHP-GTK isan extension to PHP, not available in the maindistribution.


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Basic syntax

To place PHP code within HTMLdocument, use

Save the file as .php

Run the file in web browser

http://localhost/filename.php


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Sending data to web browser

Language constructs in PHP to displaymessage echo()

print ()

For example,

Will display: This was done using PHP


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PHP, HTML & White Space

There are 3 areas where you can affectspacing :

in your PHP scripts In HTML source

In the rendered Web page

PHP is generally white space insensitive,

meaning that you can space out your codeto make your scripts more legible.


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To create white space

To alter the spacing of the finished Webpage, use the HTML tags
(line

break) and
(paragraph). To alter the spacing of the HTML source
created with PHP: Use echo() orprint() over the course of

several lines Use the newline character (\n) within the double

quotation marks.


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Writing comments in PHP

PHP supports three comment types: # This is a comment

// This is also a comment

/* This is a longer comment

that spans two lines */


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Variables

PHP syntactical rules for creatingvariables:

A variables name (identifier) must startwith a dollar sign ($), for example $name

Can contain combination of strings,numbers & underscore ($my_report1)

First character after dollar sign ($) mustbe either a letter or an underscore (itcannot be a number)


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Variables

Variable names in PHP are case-sensitive.

Variables can be assigned using theequal sign (=)


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Variables: Strings

A string is a quoted chunk of letters, numbers,spaces, punctuations, etc. E.g. Ali

In my mind 1000

9 july 1978

Strings are case sensetive so $Welcome_Text isnot the same as $welcome_text

When assigning numbers to strings you do notneed to include the quotes so:

$user_id = 987would be allowed.


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Outputting Variables

To display a variable on the screen uses exactly the samecode as to display text but in a slightly different form. Thefollowing code would display your welcome text:

As you can see, the only major difference is that you do notneed the quotation marks if you are printing a variable.

String variables are created and their values sent to the Webbrowser in this script
http://strings.txt/http://strings.txt/


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Concatenating strings

$city = Ipoh;

$state = Perak

$address = $city . $state ;Will display: IpohPerak

To improve:

$address = $city . , .$state ; Add a comma and a space


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Using numbers

Valid number-type variables can belike: 8, 3.14, 109080808, -4.524

To format the number into thousandsand round it to two decimal places:

$total = number_format ($total, 2);


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Understanding Functions

Function: subroutine/individualstatements grouped into a logical unit

that performs specific task. To execute a function, must invoke or

callit from somewhere in your script.

The statement that calls a function isreferred to as a function callandconsists of the function name followedby any data of the function needs.


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Understanding Functions(cont)

Arguments / Actual parameters: The data(which you place in parentheses following

the function name). Passing arguments:Sending data to a

called function.

Many functions generate, or return, some

sort of a value that you can use in yourscript.

E.g. round() function that rounds a

decimal value to the nearest whole number.


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round() function

You pass a number as an argument to theround()function, which calculates andreturns the nearest whole number.

The following statements calls theround()function and passes to it a value of3.556.

The round()function calculates andreturns a value of 4, which is then displayedwith an echo statement.


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round() function

Many functions can accept multiple arguments,which you separate with commas.

The following statements calls the round()

function and then passes to it a first argument of3.556 and a second argument of 2.

The round() function calculates and returns a

value of 3.56 (rounded to two decimal places)


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Constants

Constants are a specific data type in PHP,that unlike variables, retain their initial value

throughout the course of a script. You cant change the value of a constant

once it has been set.

Constants can be assigned any single value

a number or a string of characters.


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Defining Constants

A constant contains information that doesnot change during the course of program

execution. Common practice to use all uppercase

letters for constant names.

Use define( ) function to create constant. define(CONSTANT_NAME, value);

define(DEFAULT_LANGUAGE, Malay);

define(VOTING_AGE, 18);


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Defining Constants (cont)

By default, constant names are casesensitive, but you can make constant

names case insensitive by passing aBoolean value of TRUE as thirdargument to the define function.

define(DEFAULT_LANGUAGE,Malay, TRUE);


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Defining Constants (cont)

You can pass a constant name to theecho statement on the same manner

as you pass a variable name, butwithout the dollar sign.

echo

The legal voting age is ,VOTING_AGE, .
;


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Data TypesData Type Description

Integernumbers

The set of all positive and negativenumbers and zero, with no decimalplaces

Floating pointnumbers

Positive or negative numbers withdecimal places or numbers writtenusing exponential notation

Boolean A logical value of true or false

String Text such as Hello World

NULL An empty value, also referred ti as aNULL value

Numericdata types


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Loosely Typed ProgrammingLanguages

Programming languages that do not requireyou to declare the data types of variables

are called loosely typed programminglanguages.

Loose typing is also known as dynamictyping because the data types for a variable

can change after it has been declared. In PHP, you are not required to declare the

type of variables, in fact you are not allowedto do so.


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Data Types (cont)

$ChangingVar = Hello World; //

String

$ChangingVar = 8; // IntegerNumber

$ChangingVar = 5.367; // Floating

point

$ChangingVar = TRUE; // Boolean

$ChangingVar = NULL; // NULL


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Single vs Double QuotationMarks

Using double quotation marks:echo "You are purchasing $quantity

widget(s) at a cost of \$$price each.With tax, the total comes to

\$$total.\n";

Using single quotation marksecho 'You are purchasing $quantity

widget(s) at a cost of \$$price each.With tax, the total comes to

\$$total.\n';

The script to demonstrate the difference between using single anddouble quotation marks

Single vs Double Quotation Marks
http://quotes.txt/http://quotes.txt/


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cont

Single vs Double Quotation Marks


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PROGRAMMING WITH PHP


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Overview

Creating an HTML Form

Handling an HTML Form

Managing Magic Quotes

Conditionals & Operators

Validating Form Data

Arrays


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Creating an HTML Form

Managing HTML forms with PHP is a 2step process:

Create the HTML form An HTML form is created using the form tags

and various input types.

Create the corresponding script that willreceive and process the form data

Form
http://form.htm/http://form.txt/http://form.txt/http://form.htm/


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PHP Forms and User Input

PHP Form Handling The most important thing to notice when dealing with HTML forms and

PHP is that any form element in an HTML page will automatically beavailable to your PHP scripts.

Form example:

Name: Age:



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cont

The "welcome.php" file looks like this:

Welcome .

You are years old. A sample output of the above script may be:

Welcome John.You are 28 years old.

Example of PHP script to handle form

http://handleform.txt/http://handleform.txt/http://handleform.txt/http://handleform.txt/


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$_REQUEST

$_REQUEST is a special variable type

in PHP.

It stores all of the data sent to PHPpage through either the GET or POST

methods, as well as data accessible in

cookies.


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PHP $_GET Function

The built-in $_GET function is used tocollect values from a form sent with

method="get".

Information sent from a form with the

GET method is visible to everyone (itwill be displayed in the browser'saddress bar) and has limits on the

amount of information to send (max.


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Example of GET method

When the user clicks the "Submit" button, the URL sent to the server could looksomething like this:

The "welcome.php" file can now use the $_GET function to collect form data (the

names of the form fields will automatically be the keys in the $_GET array):


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When to use method=GET"?

When using method="get" in HTML forms, allvariable names and values are displayed in theURL.

Note: This method should not be used whensending passwords or other sensitive information!

However, because the variables are displayed inthe URL, it is possible to bookmark the page. Thiscan be useful in some cases.

Note: The get method is not suitable for largevariable values; the value cannot exceed 100characters.


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PHP $_POST Function

The built-in $_POST function is used to collectvalues from a form sent with method="post".

Information sent from a form with the POST method

is invisible to others and has no limits on theamount of information to send.

Note: However, there is an 8 Mb max size for thePOST method, by default (can be changed by

setting the post_max_size in the php.ini file).


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Example of $_POST Function

When the user clicks the "Submit" button, the URL will look like this:

The "welcome.php" file can now use the $_POST function to collectform data (the names of the form fields will automatically be the keys inthe $_POST array):


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When to use method="post"?

Information sent from a form with thePOST method is invisible to others and

has no limits on the amount ofinformation to send.

However, because the variables are

not displayed in the URL, it is notpossible to bookmark the page


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$_REQUEST

If the PHP scripts show blank spaceswhere the variables should have

printed out, it means that the variablehave no values. Likely causes:

Misspelled or mis-capitalized the variable

names $_REQUEST is not available because

youre using an outdated version of PHP


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When Magic Quotes is enables, it willautomatically escape single and

double quotation marks in the valuesof variables.

In PHP, there are 2 types of Magic

Quotes magic_quotes_gpc: Applies to form,

URL & cookie data (gpc stands for get,post, cookie)

ma ic uotes runtime: A lies to data


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g g g



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The apostrophe entered in the form was escaped

automatically by PHP, generating unseemly results


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To adjust Magic Quotes

Open handle_form.php

Change the first & third variable

assignment lines to$name=stripslashes($_REQUEST[nam

e]);

$comments=stripslashes($_REQUEST[comments]);
http://handle_form.txt/http://handle_form.txt/


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Conditionals & Operators

PHPs three primary terms for creatingconditionals are if, else and

elseif (which can also be written astwo words else if)

IF conditions

if (condition) {//DO something!

}


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If else

if (condition) {

//DO something!

} else }

//DO something else

}


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if elseif

if (condition) {

//DO something!

} elseif (condition2) {

//DO something else

} else {

//DO something different

}


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cont

A condition can be true in PHP for anynumber of reasons. These are

common true conditions: $var, if $var has a value other than 0, an

empty string, or NULL

isset($var),if $var has any value

other than NULL, including 0 or an emptystring

TRUE, true, True, etc


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isset($var)

This function checks if a variable isset, meaning that it has a value other

than NULL. Example:

if (isset($_REQUEST['gender'])) {

$gender = $_REQUEST['gender'];} else {

$gender = NULL;

}

Form Validation
http://isset.txt/http://isset.txt/


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Form Validation

The first aim of form validation isensuring that something was entered

or selected in form elements. The second goal is to ensure that

submitted data is of the right type

(numeric, string, etc) or a specificacceptable value (like &gender beingequal to either F or M.

Form Validation


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cont

Validating form data requires the use of conditionalsand any number of functions, operators &expressions.

One common function to be used is isset(),which tests if a variable has a value (including 0,FALSE, or an empty string, but not NULL).

One problem with isset()function is that anempty string tests as TRUE, meaning that its not

effective way to validate text inputs and text boxesfrom an HTML form.

Form Validation


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cont

To check that a user typed somethinginto textual elements like name, email,

and comments you can use theempty() function.

It checks if a variable has an empty

value: an empty string, 0, null orFALSE

Script to validate form
http://validateform.txt/http://validateform.txt/


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Array: Indexed Indexed arrays use

numbers as the keys.

Example:

Array Example1: $artists

KEY VALUE

0 Rihanna

1 Madonna

2 Sting3 Daughtry

4 Maroon5


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Array: Associative

Associative arrays

use strings as thekeys.

Array Example1: $states

KEY VALUE

KL Kuala Lumpur

PP Pulau Pinang

PRK Perak

KEL KELANTAN


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To retrieve value from an array

To retrieve a specific value from anarray, you refer to the array name first,

followed by the key, in squarebrackets:echo $artists[2];//Sting

echo $states [KL]; //Kuala Lumpur Note that array keys are used like other values in PHP:

number (e.g., 2) are never quoted, whereas strings (KL) mustbe.


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Printing array

Wrap around your array name and key in curlybraces when your array uses strings for its keys:

echo PP is the abbreviation for

{$states[PP]}.; Numerically, indexed arrays dont have this

problem, though:

echo The artist with an index of 4 is$artists[4].;


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To use arrays

Open handle_form.php

Change the assignment of the $name

and $comments variables to$name = striplashes($_POST[name])$comments= striplashes($_POST[comments]);

In the previous version of this script, the values of $name and$comments were assigned by referring to the $_REQUEST

array which will work. But since these variables come from aform that uses the post method, $_POST would be moreexact, and therefore more secure
http://handle_form.txt/http://handle_form.txt/http://handle_form.txt/


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cont

Alter the echo() statement

echo

Thank you,

$name, for thefollowing comments:

$comments

We will reply to you at {$_POST[email]}/
\n;


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Build array one by one

Example:$array[] = Tobias;

$array[] = Maeby;

$array[wife] = Lindsay; Its important to note that if you specify a key and a

value already exists indexed with that same key,the new value will overwrite the existing one. Forexample,

$array[son] = Buster;$array[son] = Michael;

Use array() function to build


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Use array() function to build

an entire array in one step

$states=array(KL => Kuala Lumpur, PP => PulauPinang);

This function can be used whether or not you explicitly set the

key$artists=array (Incubus, Coldplay, Nelly); If you set the first numeric key value, the added values will be

keyed incrementally thereafter:$days=array(1=>Sunday, Monday,Tuesday);echo $day[3];//Tuesday

If you want to create an array of sequential numbers, use therange() function:$ten = range (1,10);

Calendar: To create & access arrays
http://calendar.txt/http://calendar.txt/


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Multidimensional arrays

Multidimensional array is arrayconsisting of other arrays. Example:$states=array (MD =>Maryland, IL =>

Illinois, );$province=array(QC=>Quebec,AB=>Alberta,.);

Then, these two arrays could becombined into one multidimensional

array like: $abbr=array (UD=>$states,

Canada=>province);

Now, $abbr is a multidimensional

array


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Arrays and strings

PHP has two functions for convertingbetween strings and arrays$array=explode (separator, $string);

$string=implode (glue, $array); When turning an array into a string, you set the glue

the characters or code that will be insertedbetween the array values in the generated string.\

Conversely, when turning into an array, you specify

the separator, which is the code that delineatesbetween the different elements in the generatedarray

Arrays and strings


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cont

$string1 = Mon Tue Wed Thur Fri;

$days_array = explode( - , $string1);

The$days_arrayvariable is now a five-element

array, with Mon indexed at 0, Tue indexed at 1, etc.

$string2=implode(, , $days_array);

The$string2 variable is now a comma-separated

list of days: Mon, Tue, Wed, Thur, Fri


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The while loop

condition

Do this if TRUE

Exit looponce

condition isFALSE

A flowchart representation ofhow PHP handles awhileloop


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The for loop

The for loop syntax

for (initial expression;

condition; closing expression){

// Do something

}


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The for loop

condition

Do this if TRUE

Exit looponce

condition isFALSE

initialexpression

afterexpression


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The for loop

for ($i = 1; $i


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CREATING DYNAMICWEB SITES


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Difference between


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91

Difference betweeninclude() and require()

The functions are exactly the samewhen working properly but behave

differently when they fail. If an include()function doesnt work

(it cannot include the file for some

reason), a warning will be printed onthe Web browser, but the script willcontinue to run.

Difference between


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92

Difference betweeninclude() and require()

If require() fails, error is printed and the script ishalted.

These two functions are used to create functions,

headers, footers, or elements that can be reused onmultiple pages.

This can save the developer a considerable amountof time by creating a standard header or menu file.When the header needs to be updated, you can

only update this one include file, or when you add anew page to your site, you can simply change themenu file (instead of updating the links on all webpages).


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93

The include() Function

The include() function takes all the text ina specified file and copies it into the file thatuses the include function.

Example 1: Assume that you have astandard header file, called "header.php".To include the header file in a page, use theinclude() function, like this:

Welcome to my home page

Sometext


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*_once() function

Both functions have a *_once()version, which guarantees that the file

in question is included only onceregardless of how many times a scriptmay (presumeably inadvertently)attempt to include it.

require_once(filename.php);

include once(filename.php)


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Site structure


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96

Ease of maintenance

Using external files for holdingstandard procedures (i.e. PHP code),

CSS, JavaScript and HTML designgreatly improve the ease ofmaintaining site because commonlyedited code is placed in one centrallocation.

Site structure


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Security

Use .inc or .html file for extensiondocuments where security is not issue (suchas HTML templates)

Use .php for files containing sensitive data(such as database access information)

You can also use both .inc and .html or.php so that a file is clearly indicated as an

include of a certain type:functions.inc.php orheader.inc.html

Site structure


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Ease of user navigation

Structure your sites so that they areeasy for users to navigate, both by

clicking links and by manually typing aURL.

Try avoid creating too many nested

folders or using hard-to-copy directorynames and filenames containing upperand lowercase letters and all mannerof punctuation

Handling HTML Forms with


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99

gPHP Redux

The previous examples showed that there are twoseparate scripts for handling HTML forms: one thatdisplayed the form and another that received it.

To have the entire process in one script, use aconditional

if (/* form has been submitted */) {

//Handle it

} else {

//Display it

}


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Step 3: Validate the form

if(is_numeric($_POST['quantity

'])&&is_numeric($_POST['price']))

&&is_numeric($_POST['tax'])) {

The validation checks that three

submitted variables are all numeric


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Creating & Calling Your Own


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110

Functions

To create your own functions

Creating a function that takes

arguments Setting default argument values

Returning values from a function


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Creating & Calling Your Own Functions


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121

cont

The function can return a value(number/string) or a variable whose valuehas been created by the function.

When calling this function, assign thereturned value to a variable$my_sign = find_sign (July, 9);

Or use it as a parameter to find anotherfunction:print find_sign (July, 9);

Exercise: To have a function return a value
http://returnvalues.txt/http://returnvalues.txt/


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V i bl S (2)


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123

Variable Scope (2)

Since included files act as if they werepart of the original (including) script,variables defined before theinclude() line are available to theincluded file.

Further, variables defined within the

included file are available to the parent(including) script after the include()line.

t

Variable Scope


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124

cont

Functions have their own scope, whichmeans that variables used within a functionare not available outside of it; and variables

defined outside of a function are notavailable within it.

For this reason, a variable inside of afunction can have the same name as one

outside of it and still be an entirely differentvariable with a different value. This is aconfusing concept for most beginners.

l b l() St t t

Variable Scope


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125

global() Statement

To alter the variable scope within a function, usethe global() statementfunction function_name() {

global $var;

}$var = 20;function_name(); // Function call

In this example, $var inside the function is now thesame as $var outside of it. This means that the

function $var already has a value of 20, and if thevalue changes inside of the function, the external$vars value will also change


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D t & Ti F ti


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127

Date & Time Functions

date() function returns a string of text for acertain date and time according to a formatspecified

date (format, [timestamp]); The timestamp is an optional argument

representing the number of seconds . Itallows you to get information, like the day ofthe week, for a particular date.

If timestamp is not specified, PHP will justuse the current time on the server.


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The td t ()Array

Date & Time Functions


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132

The getdate()Array

KEY VALUE EXAMPLE

year Year 2005

mon Month 12

month Month name December

mday Day of the month 25

weekday Day of the week Tuesday

hours Hours 11minutes Minutes 56

seconds Seconds 47

Sending Email


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133

Sending Email

Usemail() function to send email inmail ($to, $subject, $body);

$to = email address or a series of

addresses, separated by commas $subject= emails subject line $body= contents of the email. Use the

newline character (\n) within the double

quotation marks when creating your body tomake the text go over multiple lines

cont

Sending Email


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134

cont

Themail() function takes a fourth,optional parameter for additionalheaders. This is where you can set the

From, Reply-To, Cc, Bccand etc. For example:

mail ([email protected],

Hello, $body, From:[email protected]);

cont

Sending Email


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135

cont

To use multiple headers of differenttypes in email, separate each with

\r\n$headers = From:[email protected] \r\n;

$headers .= Cc:

[email protected]\r\n;mail ([email protected], Hello,$body, $headers);

PHP mail() dependencies


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PHPmail() dependencies

PHPs mail function doesnt actuallysend the email itself.

Instead, it tells the mail server runningon the computer to do so.

This means, that your computer must

have a WORKING MAIL SERVER inorder for this function to work.


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(3)


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(3)

If you are running on Windows and haveISP that provides with SMTP server, thisinformation can be set in the php.ini file.

Unfortunately, this will only work if your ISPdoesnt require authentication to use theSMTP server.

Otherwise, you need to install an SMTP

server on your computer. Google for freewindows smtp server.


(4)


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(4)

If you are running on Mac OS X, youllneed to enable the built-in SMTP

server (either sendmail or postfix,depending upon the specific version ofMac OS X you are running).

You can find instructions online fordoing so google: enable sendmailMac OS X


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140


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COOKIES ANDSESSIONS

Cookies


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Cookies

A cookie is a small file that is stored onthe client computer when visiting a

website. Cookies got a bad rap a few years ago

and as a result there is a good deal ofpeople out there with their cookiesdisabled.

Cookies are harmless. Some sites willuse them to track visitor usage and

Features of a cookie


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Features of a cookie

Stored on the client computer and arethus decentralized.

Can be set to a long lifespan and/orset to expire after a period of time fromseconds to years.

They work well with large sites that

may use several web servers. Wont do you any good if the client has

set their browser to disable cookies.

Features of a cookie (cont)


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Features of a cookie (cont )

Limitations on size and number: abrowser can keep only the last 20cookies sent from a particular domain,and the values that a cookie can holdare limited to 4 KB in size.

Can be edited beyond your controlsince they reside on the client system.

Information set in the cookie is notavailable until the page is reloaded.

How to Create a Cookie?


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How to Create a Cookie?

The setcookie() function is used to

set a cookie.

Note: The setcookie() functionmust appear BEFORE the

tag.

setcookie(name, value, expire,path, domain);

setcookie() function:

Example 1


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Example 1

In the example below, we will create acookie named "user" and assign thevalue "Alex Porter" to it. We alsospecify that the cookie should expireafter one hour:

setcookie() function:

Example 2


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Example 2

You can also set the expiration time of thecookie in another way. It may be easier thanusing seconds.

In the example below the expiration time isset to a month (60 sec * 60 min * 24 hours *30 days).

How to Retrieve a CookieValue?


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Value?

The PHP $_COOKIE variable is used to

retrieve a cookie value.

In the example below, we retrieve the value

of the cookie named "user" and display it ona page:

How to Retrieve a CookieValue? (cont)


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Value? (cont )

In the following example we use the isset() function tofind out if a cookie has been set:

How to Delete a Cookie?


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How to Delete a Cookie?

When deleting a cookie you shouldassure that the expiration date is in thepast.

Delete example:


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Support Cookies?

If your application deals with browsersthat do not support cookies, you willhave to use other methods to passinformation from one page to anotherin your application.

One method is to pass the datathrough forms.

What if a Browser Does NOTSupport Cookies? (cont)


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Support Cookies? (cont )


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PHP Sessions

PHP session


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PHP session

A PHP session variable is used tostore information about, or changesettings for a user session.

Session variables hold informationabout one single user, and areavailable to all pages in oneapplication.

Features of sessions


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Features of sessions

Server-size cookie can store very largeamounts of data while regular cookies arelimited in size.

Since the client-side cookie generated by asession only contains the id reference (arandom string of 32 hexadecimal digits, such asfca17f071bbg9bf7f85ca281653499a4 called a

session id) you save on bandwidth. Much more secure than regular cookies since

the data is stored on the server and cannot beedited by the user.

Features of sessions (cont)


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Features of sessions (cont )

Only last until the user closes theirbrowser.

Wont work if client has cookiesdisabled in their browser unless someextra measures are taken.

Can be easily customized to store the

information created in the session to adatabase.

Information is available in your code assoon as it is set.

Advantages of PHP Sessions


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Advantages of PHP Sessions

Your server-side cookie can contain verylarge amounts of data with no hassle -client-side cookies are limited in size

Your client-side cookie contains nothingother than a small reference code - asthis cookie is passed each time someonevisits a page on your site, you are saving

a lot of bandwidth by not transferringlarge client-side cookies around

Session data is much more secure - onlyyou are able to manipulate it, as opposed

to client side cookies which are editable

Cookies vs Session?


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Cookies vs Session?

Cookies generally should be used for non-sensitive throw-away information like thefollowing: Displaying the users name next time they visit the

site. Simple user display preferences.

Anything small and disposable that needs to bestored for a period of time (for info like, emailaddress, contact info etc. a database should beused)

Sessions are used for more sensitive info likecontrolling user access or loading info from adatabase that expires when the session ends or

the browser window is closed


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Storing a Session Variable


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In the next example, we create asimple page-views counter.

The isset() function checks if the"views" variable has already been set.

If "views" has been set, we can

increment our counter. If "views" doesn't exist, we create a

"views" variable, and set it to 1:

Storing a Session Variable(cont)


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(cont )

Destroying a Session


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Destroying a Session

If you wish to delete some sessiondata, you can use the unset() or thesession_destroy() function.

The unset() function is used to free

the specified session variable:

Destroying a Session (cont)


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y g ( )

You can also completely destroy thesession by calling thesession_destroy() function:

Note: session_destroy() will resetyour session and you will lose all yourstored session data.


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Choosing the appropriateoption


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p

The end result? They lose their informationpart-way through their visit, and what data youdo have is fragmented across your servers.There are ways around this problem, never

fear: Use a networked file system (NFS on Unix or the

equivalent). Pretty much all operating systems allowyou to connect to other computers and read/writetheir data. If you have a shared session data source,you would be able to bypass the above problem

Write your own session implementation that storesdata in a medium you can handle and share betweenall computers. This is tricky, and error-prone.

Use a database to store your sessions.


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Testing for Cookies (cont)


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g ( )

In Firefox on Windows

Choose Tools > Options

Click Privacy

Expand the Cookies section

Select ask me every time in the KeepCookies dropdown menu

If you are using Firefox on Mac OS X,the steps are the same, but start bychoosing Firefox > Preferences

setcookie() function


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To see the effect of the setcookie() function, set your

Web browser to ask before storing cookie.

setcookie() function


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To send a cookie


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1. Create new PHP document


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( )

$query = "SELECT user_id, first_name FROMusers WHERE email='$e' ANDpassword='$p'";

$result = @mysql_query ($query);

$row = mysql_fetch_array ($result,MYSQL_NUM);

Retrieve user_id and first_name for this user

from database.

To send a cookie (cont)


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( )if ($row) { // A record was pulled from the

database.

// Set the cookies & redirect.

setcookie ('user_id', $row[0]);

setcookie ('first_name', $row[1]);

If user entered the correct information, log the userin.

The $row variable will have a value only if thepreceding query returned at least one record



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( )

$url = 'http://' . $_SERVER['HTTP_HOST'] .dirname($_SERVER['PHP_SELF']);

// Check for a trailing slash.

if ((substr($url, -1) == '/') OR(substr($url, -1) == '\\') ) {

$url = substr ($url, 0, -1); // Chopoff the slash.

}// Add the page.

$url .= '/loggedin.php';

header("Location: $url");

exit(); // Quit the script.

Redirect the user to another page



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} else { // No record matched the query.$errors[] = 'The email address and passwordentered do not match those on file.'; // Public message.

$errors[] = mysql_error() . '

Query: '. $query; // Debugging message.

}

} // End of if (empty($errors)) IF.

mysql_close(); // Close the database connection.

} else { // Form has not been submitted.

$errors = NULL;

} // End of the main Submit conditional.

Complete the $row conditional and the $errors conditional, and the

close the database connection



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// Begin the page now.

$page_title = 'Login';include ('./includes/header.html');

if (!empty($errors)) { // Print any errormessages.

echo 'Error!

The following error(s)occurred:
';

foreach ($errors as $msg) { // Print each

error.echo " - $msg
\n";

}

echo '

Please try again.
';
}

Create the form


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// Create the form.

?>

Login

Email Address:

Password:

loggedin.php


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?php # Script 9.2 -

loggedin.php

// If no cookie is present,redirect the user.

if(!isset($_COOKIE['user_id'])) {

// Start defining the URL.

$ rl 'http //'

Check thepresence of acookie

loggedin.php


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// Check for a trailing slash.

if ((substr($url, -1) == '/') OR(substr($url, -1) == '\\') ) {

$url = substr ($url, 0, -1); //Chop off the slash.

}

$url .= '/index.php'; // Add the

page.header("Location: $url");


}


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// Set the page title and include the HTMLheader.

$page_title = 'Logged In!'; include ('./includes/header.html');

// Print a customized message.

echo "Logged In!

You are now logged in,{$_COOKIE['first_name']}!

";
include ('./includes/footer.html');

?>


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Setting cookie parameters(cont)


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Expiration time is determined byadding a particular number of minutesor hours to the current moment,retrieved using the time() function.

The following line will set the expirationtime of the cookie to be 1 hour (60

seconds times 60 minutes) from thecurrent moment;

setcookie (name, value,



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The path and domain arguments areused to limit cookie to a specific folderwithin a Web site (the path) or to aspecific host.

For example, you could restrict acookie to exist only while a user is

within the adminfolder of a domain(and the adminfolders subfolders):

setcookie (name, value,


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As with all functions that takearguments, you must pass thesetcookie() values in order.

To skip any parameter, use NULL oran empty string.

The expiration and secure values areboth integers and are therefore notquote.


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Deleting cookies


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Create a new PHP document


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// Start defining the URL.

$url = 'http://' . $_SERVER['HTTP_HOST'] .dirname($_SERVER['PHP_SELF']);// Check for a trailing slash.

if ((substr($url, -1) == '/') OR (substr($url, -1) =='\\') ) {

$url = substr ($url, 0, -1); // Chop off theslash.

}

$url .= '/index.php'; // Add the page.

header("Location: $url");


} else { // Delete the cookies.

setcookie ('first_name', '', time()-300, '/', '', 0);

setcookie ('user_id', '', time()-300, '/', '', 0);

}

Deleting cookies (cont)


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// Set the page title and

include the HTML header.

$page_title = 'Logged Out!';

include

('./includes/header.html');


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Copyright 2009 PearsonEducation, Inc. Publishing asPrentice Hall

Slide 11-206

Copyright 2009 Pearson Education Inc Slide 11-206

Social Networks, Auctions, andPortals


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Social Networks and OnlineCommunities


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Slide 11-208

Internet began as community buildingtechnology for scientists, researchers

The Well

Early communities limited to bulletinboards, newsgroups

2002: Mobile Internet devices, blogs,

sharing of rich media began new era ofsocial networking

Social networking one of most common

What Is an Online Social Network? Area online where people who share common ties


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Slide 11-209

Area online where people who share common ties

can interact with one

Involve:

A group of people

Shared social interaction Common ties among members

People who share an area for some period

of time e.g. MySpace, Friendster, Flickr, Facebook

Portals and social networks moving closer together asportals add social networking features and community

it dd t l lik i


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Types of Social Networks AndTheir Business Models (contd)


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Slide 11-212

( ) Interest-based social networks:

Offer focused discussion groups based on shared interest in somespecific subject

Usually advertising supported

Affinity communities: Offer focused discussion and interaction with other people who

share same affinity (self or group identification)

Advertising and revenues from sales of products

Sponsored communities: Created by government, non-profit or for-profit organizations for

purpose of pursuing organizational goals

Social Network sites for financial &business


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Slide 11-213

LinkedIn display business profile andaccomplishment

StockTickr stock performance

Duedee users rated against theirvirtual portfolio

TradeKing to view trading styles

Motley Fool online stock investmentservices

Social network for professional


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Slide 11-214

DailyStrength for healthcare

LawLink for law practitioners

Sermo physicians INMobile wireless industry

executives

AdGabber advertising professionals

Social Network Features andTechnologies


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Slide 11-215

Profiles

Friends network

Network discovery

Favorites

E-mail

Storage

Instant messaging

Message boards

Online polling

Chat

Discussion groups

Experts online

Membership

management tools


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Online Auctions

Online auction sites among the most


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Slide 11-217

Online auction sites among the most

popular consumer-to-consumer sites onthe Internet

eBay: Market leader

Several hundred different auction sites inU.S. alone

Established portals and online retail sitesincreasingly are adding auctions to theirsites


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Defining and Measuring the Growthof Auctions and Dynamic Pricing


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Slide 11-219

Auctions Type of dynamic pricing

C2C auctions Auction house an intermediary

$25 billion gross revenue 2008

B2C auctions

Business owns assets; often used for excessgoods

$19 billion gross revenue 2008

Can be used to allocate, bundle resources

(contd)


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Risks and Costs of Auctions forConsumers and Businesses


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Slide 11-223

Delayed consumption costs Monitoring costs

Possible solutions include:

Fixed pricing

Watch lists

Proxy bidding

Equipment costs

Trust risks

Possible solutionrating systems (not always successful)

Fulfillment costs

Internet Auction Basics

Internet auctions different from traditional


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Slide 11-224

te et auct o s d e e t o t ad t o a

auctions Last much longer (usually a week)

Variable number of bidders who come and

go from auction arena Market power and bias in dynamically

priced markets

Neutral: Number of buyers and sellers is fewor equal

Seller bias: Few sellers and many buyers

Buyer bias: Many sellers and few buyers

Internet Auction Basics (contd)

Price Allocation Rules


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Slide 11-225

Price Allocation Rules

Uniform pricing rule: Multiple winners whoall pay the same price

Discriminatory pricing rule: Winners pay

different amount depending on what theybid

Public vs. private information

Prices bid may be kept secret

Bid rigging

Open markets

Bias in Dynamically Priced MarketsFigure 11.4, Page 729


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Slide 11-226

Types of Auctions

English auctions:


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Slide 11-227

g

Easiest to understand and most common

Single item up for sale to single seller

Highest bidder wins Traditional Dutch auction:

Uses a clock that displays starting price

Clock ticks down price until buyer stops it

Types of Auctions (contd)

Dutch Internet auction:


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Slide 11-228

Public ascending price, multiple units

Final price is lowest successful bid, whichsets price for all higher bidders

Name Your Own Price Auctions

Pioneered by Priceline

Users specify what they are willing to payfor goods or services and multipleproviders bid for their business

Prices do not descend and are fixed


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When to Use Auctions (And ForWhat) In Business


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Slide 11-230

Factors to consider Type of product

Product life cycle

Channel management

Type of auction

Initial pricing

Bid increments

Auction length

Number of items

Price allocation rule

Closed vs. open bidding

Seller and Consumer Behavior atAuctions


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Slide 11-231

Profit to seller: A function of arrival rate, auction length,and number of units at auction

Auction prices not necessarily the lowest

Reasons include herd behavior (tendency to gravitate toward,

and bid for, auction listing with one or more existing bids) Unintended results of participating in auctions:

Winners regret

Sellers lament

Losers lament

Consumer trust an important motivating factor inauctions

When Auction Markets Fail: Fraudand Abuse in Auctions


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Slide 11-232

Markets fail to produce socially desirableoutcomes in four situations: informationasymmetry, monopoly power, public

goods, and externalities. Auction markets prone to fraud

Most common: Failure to deliver, failure to

pay

2008 IC3 statistics:

35.7% of Internet fraud complaints

The Growth and Evolution of Portals Portals: most frequently visited sites on


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Slide 11-233

the Web Gateways to the 40 - 50 billion Web

pages

Most of top portals today began assearch engines

Today provide navigation of the Web,commerce, and content (own andothers)

Enterprise portals an importantfunction within organizations

Top 5 Portal/Search Engine Sitesin the United StatesFigure 11.6, Page 743


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Slide 11-234SOURCE: Compete.com, 2008; authors estimates

Insight on Business

Battle of the PortalsClass Discussion


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Slide 11-235

Class Discussion

How many different kinds of portals arethere?

How do portals make money? What are the strengths of the top four

portals: Yahoo, Google, MSN andAOL?

Why did Google link up with AOL whenAOL was losing audience share?

Types of Portals: General Purposeand Vertical Market


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Slide 11-236

General purpose portals: Attempt to attract very large general

audience and then retain it on-site by

providing in-depth vertical content channels E.g. Yahoo!, MSN

Vertical market portals:

Attempt to attract highly focused, loyalaudiences with specific interest

Community (affinity group); e.g. iVillage.com

Focused content; e.g. ESPN.com

Two General Types of Portals: General Purposeand Vertical Market PortalsFigure 11.7, Page 747


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Slide 11-237

Figure 11.7, Page 747

Portal Business Models ISP services (AOL, MSN)


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Slide 11-238

Provide Web access, e-mail for monthly fee

General advertising revenue

Charge for impressions delivered

Tenancy deals

Fixed charge for number of impressions, exclusivepartnerships, sole providers

Commissions on sales

Sales at site by independent providers

Subscription fees

Charging for premium content

E-commerce in Action: Yahoo! Inc. Vision: Global Internet communications, commerce and


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Slide 11-239

media company Business model: Earns money from advertising, premium

content sales, commissions and corporate services

Financial analysis: Revenues continue to grow; operating

margins positive but falling Strategic analysis

Growth through acquisition

Competition: Google, Microsoft, Time Warner/AOL

Outsources technology Future prospects dim

SUMMARYSocial NetworksGeneral communitiesPractice networks

Interest-based social networksAffinity communities

Online AuctionsDynamic pricing: Prices based on demand

characteristics of customer and supplysituation of seller

Types of dynamic pricing


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Slide 11-240

Affinity communitiesSponsored communities

yp y p g

1. Bundling2. Trigger pricing3. Utilization pricing4. Personalization pricing

Types of AuctionsEnglish auctionsTraditional Dutch auctionDutch Internet auctionName Your Own Price AuctionsGroup Buying Auctions (Demand

Aggregators)Professional Service Auctions

Auction Aggregator

Types of PortalsGeneral purpose portals

Vertical market portalsCommunity (affinity group)Focused content

Portal Business ModelsISP servicesGeneral advertising revenue

Tenancy dealsCommissions on salesSubscription fees


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Chapter 1

Overview of ElectronicCommerce

Learning Objectives


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Chapter 1 Copyright 2009 Pearson Education, Inc.Publishing as Prentice Hall

242

1. Define electronic commerce (EC) anddescribe its various categories.

2. Describe and discuss the content and

framework of EC.3. Describe the major types of EC

transactions.

4.

Describe the digital revolution as a driver ofEC.

5. Describe the business environment as adriver of EC.

Learning Objectives


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243

6. Describe some EC business models.

7. Describe the benefits of EC toorganizations, consumers, and society.

8. Describe the limitations of EC.9. Describe the contribution of EC to

organizations responding to environmentalpressures.

10. Describe online social and businessnetworks.

Electronic Commerce:Definitions and Concepts


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244

electronic commerce (EC)

The process of buying, selling,transferring, or exchanging products,services, or information via computernetworks.



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245

e-business

A broader definition of EC thatincludes not just the buying and sellingof goods and services, but alsoservicing customers, collaborating withbusiness partners, and conducting

electronic transactions within anorganization.



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246

PURE VERSUS PARTIAL EC

EC Organizations

brick-and-mortar (old economy)

organizationsOld-economy organizations (corporations)that perform their primary business off-line,selling physical products by means of

physical agents. virtual (pure-play) organizations

Organizations that conduct their businessactivities solely online.



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247

click-and-mortar (click-and-brick)organizations

Organizations that conduct some e-commerce activities, usually as an additional

marketing channel.



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248

1.1



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249

INTERNET VERSUS NON-INTERNETEC

intranet

An internal corporate or governmentnetwork that uses Internet tools, such asWeb browsers, and Internet protocols.

extranetA network that uses the Internet to linkmultiple intranets.



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250

electronic market (e-marketplace)

An online marketplace where buyersand sellers meet to exchange goods,services, money, or information.



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251

Interorganizational information systems(IOSs)

Communications systems that allow routine

transaction processing and information flowbetween two or more organizations.

intraorganizational information systems

Communication systems that enablee-commerce activities to go on withinindividual organizations.

The EC Framework,Classification, and Content


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252


CLASSIFICATION OF EC BY THE NATURE


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253

OF THE TRANSACTIONS ORINTERACTIONS

business-to-business (B2B)

E-commerce model in which all of the participantsare businesses or other organizations.

business-to-consumer (B2C)

E-commerce model in which businesses sell to

individual shoppers.



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254

e-tailing

Online retailing, usually B2C.

business-to-business-to-consumer

(B2B2C)E-commerce model in which a businessprovides some product or service to aclient business that maintains its owncustomers.



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255

consumer-to-business (C2B)

E-commerce model in which individualsuse the Internet to sell products or

services to organizations or individualswho seek sellers to bid on products orservices they need.

mobile commerce (m-commerce)

E-commerce transactions and activitiesconducted in a wireless environment.



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256

location-based commerce (l-commerce)

M-commerce transactions targeted toindividuals in specific locations, atspecific times.

intrabusiness EC

E-commerce category that includes all

internal organizational activities thatinvolve the exchange of goods, services,or information among various units andindividuals in an organization.



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257

business-to-employees (B2E)

E-commerce model in which anorganization delivers services,information, or products to its individualemployees.

collaborative commerce (c-commerce)

E-commerce model in which individuals

or groups communicate or collaborateonline.

consumer-to-consumer (C2C)

E-commerce model in which consumers



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258

peer-to-peer

Technology that enables networked peercomputers to share data and processing witheach other directly; can be used in C2C, B2B,

and B2C e-commerce. e-learning

The online delivery of information for purposesof training or education.

e-government

E-commerce model in which a governmententity buys or provides goods, services, orinformation from or to businesses or individualcitizens.



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259

exchange

A public electronic market with manybuyers and sellers.

exchange-to-exchange (E2E)E-commerce model in which electronicexchanges formally connect to oneanother for the purpose of exchanginginformation.



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260

THE INTERDISCIPLINARY NATUREOF EC

The Google Revolution

EC Failures

EC Successes



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261

Web 2.0

The second-generation of Internet-based services that let people

generate content, collaborate, andshare information online in perceivednew wayssuch as social networking

sites, wikis, communication tools, andfolksonomies.



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262

The Digital RevolutionDrives E-Commerce


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263

digital economy

An economy that is based on digitaltechnologies, including digital

communication networks, computers,software, and other related informationtechnologies; also called the Internet

economy, the new economy, or theWeb economy.

The Digital RevolutionDrives E-Commerce

C


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264

The digital revolution accelerates ECmainly by providing competitiveadvantage to organizations.

The digital revolution enables manyinnovations

The Business EnvironmentDrives E-Commerce

THE BUSINESS ENVIRONMENT


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265

THE BUSINESS ENVIRONMENT

The Business Environment Impact Model

Business Pressures and Opportunities

Organizational Response Strategies

The Business EnvironmentDrives E-Commerce


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266

EC BUSINESS MODELS

b i d l


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267

business model

A method of doing business by whicha company can generate revenue to

sustain itself.

EC BUSINESS MODELS

TYPICAL EC BUSINESS MODELS


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268

TYPICAL EC BUSINESS MODELS

Online direct marketing

Electronic tendering systems for procurement tendering (bidding) system

Model in which a buyer requests would-be sellers tosubmit bids; the lowest cost or highest value bidderwins.

name-your-own-price model

Model in which a buyer sets the price he or sheis willing to pay and invites sellers to supply thegood or service at that price.

EC BUSINESS MODELS

Fi d th b t i


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269

Find the best price also known as a search engine model

affiliate marketing

An arrangement whereby a marketing partner (a

business, an organization, or even an individual)refers consumers to the selling companys Website.

viral marketing

Word-of-mouth marketing in which customerspromote a product or service to friends orothers.

EC BUSINESS MODELS

h i


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270

group purchasing

Quantity (aggregated) purchasing thatenables groups of purchasers to obtain a

discount price on the productspurchased.

SMEs

Small-to-medium enterprises.

e-co-ops

Another name for online group purchasingorganizations.

EC BUSINESS MODELS

O li ti


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271

Online auctions

Product customization and servicepersonalization

customizationCreation of a product or service according tothe buyers specifications.

personalization

The creation of a service or informationaccording to specific customer specifications.

EC BUSINESS MODELS

El t i k t l d h


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272

Electronic marketplaces and exchanges

Information brokers (infomediaries)

Bartering

Value-chain integrators Value-chain service providers

Supply chain improvers

Social networks, communities, andblogging

Negotiation

EC BUSINESS MODELS

i t l ld


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273

virtual world

A user-defined world in which peoplecan interact, play, and do business.

The most publicized virtual world isSecond Life.

Benefits and Limitations ofEC

THE BENEFITS OF EC


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274

THE BENEFITS OF EC

Benefits to Organizations

Benefits to Consumers

Benefits to Society

Facilitating Problem Solving

Benefits and Limitations ofEC

THE LIMITATIONS AND BARRIERS OF


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275

THE LIMITATIONS AND BARRIERS OFEC Technological Limitations

Nontechnological Limitations

SOCIAL AND BUSINESS NETWORKS social networks

Web sites that connect people with specifiedinterests by providing free services such as

photo presentation, e-mail, blogging, and so on. Business-Oriented Networks

Revenue Models of Social and BusinessNetworks

The Digital Enterprise

digital enterprise


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276

digital enterprise

A new business model that uses IT in afundamental way to accomplish one or more

of three basic objectives: reach and engagecustomers more effectively, boost employeeproductivity, and improve operatingefficiency. It uses converged communication

and computing technology in a way thatimproves business processes.

The Digital Enterprise

corporate portal


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277

corporate portal

A major gateway through whichemployees, business partners, and the

public can enter a corporate Web site.

Managerial Issues

1 Is it real?


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278

1. Is it real?

2. Why is B2B e-commerce so attractive?

3. There are so many EC failureshow can

one avoid them?4. How can we exploit social/business

networking?

5.

What should be my companys strategytoward EC?

6. What are the top challenges of EC?

Summary

1 Definition of EC and description of its


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279

1. Definition of EC and description of itsvarious categories.

2. The content and framework of EC.

3. The major types of EC transactions.

4. The role of the digital revolution.

5. The role of the business environmentas an EC driver.

Summary

6 The major EC business models


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280

6. The major EC business models.

7. Benefits of EC to organizations,consumers, and society.

8. Barriers to EC.

9. Social and business online networks.


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281

All rights reserved. No part of this publication may be reproduced, stored in aretrieval system, or transmitted, in any form or by any means, electronic,

mechanical, photocopying, recording, or otherwise, without the prior writtenpermission of the publisher. Printed in the United States of America.

Copyright 2009 Pearson Education, Inc.Publishing as Prentice Hall


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Slide 2-282

Copyright 2009 Pearson Education, Inc. Slide 2-282

E-commerce BusinessModels and Concepts

E-commerce Business ModelsDefinitions Business model


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Slide 2-284

Slide 2-284

Business model

Set of planned activities designed to result in a profitin a marketplace

Business plan

Describes a firms business model

E-commerce business model

Uses/leverages unique qualities of Internet and Web

Key Ingredients of a Business ModelTable 2.1, Page 67


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Slide 2-285

Slide 2-285

Value Proposition

Defines how a companys product orservice fulfills the needs of customers


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Slide 2-286

Slide 2-286

service fulfills the needs of customers

Questions to ask: Why will customers choose to do business with

your firm instead of another? What will your firm provide that others do not or

cannot?

Examples of successful value

propositions: Personalization/customization

Reduction of product search, price discoverycosts

Revenue Model

Describes how the firm will earnre en e generate profits and prod ce


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Slide 2-287

revenue, generate profits, and producea superior return on invested capital

Major types: Advertising revenue model

Subscription revenue model

Transaction fee revenue model Sales revenue model

Affiliate revenue model

Revenue ModelRevenue

Model

Examples Revenue source


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Model

Advertising Yahoo Fees from advertisers inexchange for advertisements

Subscription WSJ.com

Consumerreports.org

Fees from subscribers in

exchange forcontent/services

Transactionfee

eBay

E*Trade

Fees (commissions) forenabling or executing atransaction

Sales Amazon, LLBean, Gap Sales of goods, informationor services

Affiliate MyPoints Fees for business referrals

Market Opportunity

Refers to a companys intendedmarketspace and overall potential


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marketspace and overall potentialfinancial opportunities available to thefirm in that marketspace

Marketspace

Area of actual or potential commercial value inwhich company intends to operate

Realistic market opportunity

Defined by revenue potential in each ofmarket niches in which company hopes to

Competitive Environment Refers to the other companies selling similar products

and operating in the same marketspace


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and operating in the same marketspace. Also refers to the presence of substitute products and

potential new entrants, as well as power of customersand suppliers

Influenced by: Number of active competitors Each competitors market share Competitors profitability

Competitors pricing

Includes both direct competitors and indirectcompetitors

Competitive Advantage

Achieved when a firm can produce asuperior product and/or bring product to


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superior product and/or bring product tomarket at a lower price than most, orall, of competitors

First mover advantage Unfair competitive advantage

Perfect market: No competitiveadvantages or asymmetries

Leverage: When a company uses itscompetitive advantage to achieve moreadvantage in surrounding markets

Market Strategy

Plan that details how a companyi t d t t k t d


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Plan that details how a companyintends to enter a new market andattract customers

Best business concepts will fail ifnot properly marketed to potentialcustomers

Organizational Development

Plan that describes how the companywill organize the work that needs to be


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will organize the work that needs to beaccomplished

Work is typically divided into functionaldepartments

Hiring moves from generalists to specialists ascompany grows

Management Team

Employees of the company responsiblef ki th b i d l k


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Employees of the company responsiblefor making the business model work

Strong management team gives instant

credibility to outside investors

Strong management team may not be

able to salvage a weak businessmodel, but should be able to changethe model and redefine the business asit becomes necessar

Categorizing E-commerceBusiness Models: Some Difficulties

No one correct way


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No one correct way

We categorize business modelsaccording to e-commerce sector (B2C,

B2B, C2C) Type of e-commerce technology used can

also affect classification of a business

model i.e., m-commerce

Some companies use multiple business

Categories of B2C

1 Portal


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1. Portal

2. E-tailer

3. Content provider

4. Transaction broker

5. Market creator

6. Service provider7. Community provider

B2C Business Models: Portal

Offers powerful search tools plus anintegrated package of content and


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Offers powerful search tools plus anintegrated package of content andservices

Typically utilizes a combinedsubscription/advertisingrevenues/transaction fee model

Today, seen as destination site ratherthan gateway

May be general (horizontal) or

all e commerce

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