e-business school project

8/12/2019 E-business School Project

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e-business

Redefining business with a smart click…



what is e-business?

• In simple words, e-business is all about

doing business through the world of

internet rather than in direct physical

contact.

• It is buying and selling of goods and

services electronically.

• In broader sense, it also includes day-to-

day inter office business activities being

concluded online.

•

e-business simplifies commerce and abusiness doesn’t need to have a physical

presence all over the world. With just an

online presence, it can cater to its end

consumers in any part of the world.

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what is e-business?

• e-business offers its end consumers the

facility to buy goods and services through a

click of a button on the website and from

the cool comforts of their home, office etc.

and from any parts of the world at any time

of the day or night, 7 days a week and 365

days a year.

• For the seller, it offers undue advantage of

doing away with middlemen and offers

goods and services at a lower price to its

end consumers.

• Thus it’s a win-win situation for both the

seller and the buyer.

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what is e-business?

• e-business offers its end consumers not

just a simple shopping experience but also

an online customer care centre among

other things to take care of all the end

consumer’s grievances if any.

• It also offers technical support for the end

consumers if they get stuck up for some

reason with the seller’s goods or services.

• Today, nearly every business and service

provider has realised the potentials of e-

business and hence have a presence

online.

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what is e-business?

• Social media sites such as Facebook and

Twitter has further enhanced the world e-

business functions with its innovative

marketing strategies.

• Add to it, Google’s growing clout as a

search engine provider and its advertising

strategies for its business partners and you

have a booming e-business.

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facts & figures

• According to 2012 Internet World Stats study, the

number of internet users around the world were

more than 2,405,518,376 with UAE having

5,859,118 and counting.

• According to a survey undertaken, nearly 80%

internet users access internet on their mobilephones in UAE.

• About 40% prefer to use credit cards when

shopping online as compared to 30% who prefer

Cash-on-Delivery.

• As of July 2013, the count of Active Mobile

Subscription in UAE stood at 14,930,471 nos.

• While Post Paid Subscribers stood at 1,938,966

numbers, the Pre-Paid were higher at 12,991,505

nos with most of the subscribers using smart

phones to access internet.

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e-business types

Distinctively, there are four types of e-businesses:

1. Business-to-Business (B2B)

Companies doing business with each other such

as manufacturers selling their products to

distributors and wholesalers selling theirproducts to retailers. Pricing is based on

quantity of order and is often negotiable at the

discretion of the parties involved.

2. Business-to-Consumer (B2C)

Businesses selling to the general public typicallythrough catalogs utilizing shopping cart

software. This is by far the most used platform

for e-business by both business houses and the

end consumers.

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e-business types

3. Consumer-to-Business (C2B)

In this case, a consumer posts his requirements

online and business houses review the

consumer's requirements and accordingly make

a bid such as a job posting website etc. Also

consumers can post

4. Consumer-to-Consumer (C2C)

In C2C’s case, the consumer directly deals with

another consumer through C2C based portals

such as eBay.com. Such portals offer freeclassifieds for their personal goods whether

new or second hand, auction platforms etc

where individuals can buy and sell using online

payment systems like PayPal.

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e-business types - Business-to-Business (B2B)

ge.comindiamart.com

thomsonreuters.comalibaba.com

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e-business types - Business-to-Consumer (B2C)

amazon.com

apple.com

walmart.com

dccomics.com

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e-business types - Consumer-to-Business (C2B)

monster.com

mouthshut.com

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e-business types - Consumer-to-Consumer (C2C)

ebay.com

ubid.comamazon.com

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e-business is broadly divided into 12 categories:

1. e-auction

2. e-banking

3. e-commerce

4. e-directories5. e-engineering

6. e-franchising

7. e-gambling

8. e-learning

9. e-mailing10. e-marketing

11. e-supply chain management

12. e-trading

e-business categories

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e-business categories : e-auction / e-banking

e-auction

e-auction offers trade buyers the opportunity to

participate online in a sale that closely mirrors the

process of physical auction. It is an online

negotiation tool where a bidder can bid for a

product or service and the bidder with the lowestor highest bid (depending on the criteria) wins the

auction.

e-banking

In today’s world where time is precious, e-banking

or internet banking operated by the customer’s retail or virtual bank allows the customer to

conduct financial transactions of any kind on its

secured website. The e-banking allows the

customer to transfer money to its own account or

to another customer’s account, pay bills, conduct

other financial dealings, etc. 14



e-business categories : e-commerce / e-directories

e-commerce

e-commerce largely is the act of buying and selling

of goods and services on the Internet. Lately, every

consumer product manufacturing company has

given its valued customers to buy its products

through its websites or through third party websitesincluding providing the customers quick online

customer service to receiving regular newsletters

and updates.

e-directories

e-directories maintains a hierarchical database ofinformation about network resources within a

global enterprise, including networks, users,

subgroups, servers, volumes and printers. Users log

in to the network, and e-Directory determines their

access rights.

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e-business categories : e-engineering / e-franchising

e-engineering

e-engineering is an answer for growing globalization

of manufacturing, sourcing and engineering. This is

exactly the goal of e-Engineering: to help run a

business according to the highest global standards

and best practices, by providing with up-to-date,leading-edge industrial Web applications and

customized needs fulfillment.

e-franchising

A form of online selling or promoting products or

services in continuing contractual relationship withother businesses operating under the franchisor's

trade name and usually with the franchisor's

guidance, in exchange for a fee. With its growing

popularity of online ordering, e-franchising is only

going to increase in popularity.

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e-business categories : e-gambling / e-learning

e-gamblinge-gambling is all about online gaming portals inreturn of rewards in terms of money or otherbenefits. Online gambling is always secured to avoidfraud or hacking the money transitions. There areplenty of laws and ordinances implemented to

regulate such online gambling website in thecountries where it is allowed.

e-learninge-learning stands for the delivery of a learning,training or education program by electronic means.e-learning involves the use of a computer orelectronic device (e.g. a mobile phone) in some way

to provide training, educational or learningmaterial. E-learning has bridged the distancebetween the tutor and the student across theglobe.

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e-mailing

e-mailing is a system for sending and receiving

messages electronically over a computer network,

as between personal computers. The messages can

be notes entered from the keyboard or electronic

files stored on disk. In today’s age, web based emailservice have become quite common.

e-marketing

e-marketing, web-marketing, online-marketing,

digital marketing, Search Engine Marketing (SEM) or

internet marketing is the marketing of products orservices over the Internet. By using a company’s

web site in conjunction with online promotional

techniques and partnership arrangements with

other web sites, a company can achieve

tremendous growth for its products or services.

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e- supply chain management

e- supply chain management is an optimization of

business processes and business value right from

your supplier's supplier to your customer's

customer. This strategic approach unites all the

steps in the business cycle, from initial productdesign and procurement of raw materials, through

shipping, distribution, and warehousing right up to

the point when the finished product is delivered to

the customer.

e-trading

e-trading is a method of trading securities (such as

stocks, and bonds), foreign currency, and exchange

traded derivatives electronically. It uses information

technology to bring together buyers and sellers

through electronic media to create a virtual market

place. 19



case study - amazon.com

There are people who make history and there are

companies who create history. Amazon.com is one such

dotcom company that went on to create history.

Its founder Jeff Bezos incorporated the company in

1994 and amazon.com went online in 1995 as an

exclusive online book store only to diversify later in

various other products including manufacturing.

Today, amazon.com is the biggest online store in the

world…

So in one line, what started to be this world’s biggest

bookstore has rapidly become the world’s biggest

anything store…

Today, amazon.com has its presence in more than 10countries and offers a huge variety of products and

services to its valued customers across the globe and

focused on customer experience and innovation

including massive shipping discounts.

Jeff Bezos, amazon.com founder

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amazon.com’s products & services

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the ‘amazon’ story…

• For a man who believed in the internet growth forecast of 2,300%

in 1994, Jeff Bezos has definitely come a long way with his dotcom

business. Amazon has had one of the fastest growths in the

Internet’s history… Revenues reached within first 5 years to $ 2.8

billion and went on to become the biggest online store in the world

with the 2012 revenue standing at $61 billion!

• Why? A vision… From 1994, Jeff Bezos knew he could create a retailwebsite that would not have the limitations physical businesses

encounter. One by one, Jeff Bezos carefully assessed the true

advantages the Internet would give him, and pushed them to their

boundaries.

• Jeff Bezos’ 3 big ideas – 1) Digital enables limitless inventory 2)

Digital boosts customer care 3) Digital allows high margin, lowestprices.

• Spreading its wings: from books to music (1995-1998) to the ebook

reader and digital content browser, Amazon Kindle, Amazon kept

reinventing its products and services.

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• Case study: why did Amazon.com buy Zappos for $1.2 bn in

2009? Zappos had an amazing supply chain and logistics

management. With Zappos, Amazon tries to reach a new

audience (young women) and acquires know-how.

• “Be afraid of our customers, because those are the folks who

have the money. Our competitors are never going to send us

money.” In 1997, Jeff Bezos personally delivered a package toAmazon.com’s millionth customer thus acknowledging the power

of its valued customers.

• “If you make customers unhappy on the internet, they can each

tell 6,000 friends .” “We do 90% of our customer service by email

rather than by telephone.” – Jeff Bezos.

•Customer-centric innovations: e-commerce easier thancommerce. Amazon was a first-mover for most of e-commerce’s

now ubiquitous best-practices. Very much like Google, Amazon is

always innovating to improve its users’ experience.

• Amazon.com implements all its consumers’ hidden needs to

become their first destination when thinking of buying online.

With 1-Click, Amazon revolutionised the buying process by taking

convenience to extremes. 26




• Amazon created a seamless & integrated shopping experience.

• Amazon is significantly cheaper than its competitors and hence

HIGH MARGIN, LOWEST PRICES

• Logistics is Amazon’s secret recipe. As a pure-player, Amazon

leverages its digital advantage to optimize its supply chain.

Automatically chooses the cheapest origin for the customer’s

order in real-time.

• By going public in 1997, Amazon acknowledged that only the

stock market would be able to provide the kind of financing it

was looking for.

• In 2001, for the first time in its history, Amazon implemented a

software to measure its costs for each shipped product.

• The Holy Grail: Amazon built warehouses closer to city centres toensure same-day delivery because it knew consumers are

impatient and prefer immediate delivery.

• Amazon’s long term bold vision : #1 ANYTHING #2 ANYWHERE #3

ANYTIME

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the ‘amazon’ story… conclusion

• Starting as a online book store, Amazon kept reinventing itself in its 18 year journey. It kept

adding new products and services to its catalogue and at the same time, maintaining the best

customer satisfaction quotient.

• From a revenue of $2.8 billion in the first five years to $61 billion in 2012, Amazon’s growth

has been phenonmenon!

• Keeping a watch on the customer’s pulse, Amazon has been able to provide the best

products and services including manufacture products of its own such as the Amazon Kindle,an ebook reader as well as digital content browser.

• It kept innovating with the online technology and building new strategies for a smooth

supply chain management system for both sustaining the bottom line as well as increasing

customer growth.

• No one online store has been able to leverage the power of the internet the way Amazon has

done over the years.

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some of e-business benefits

• Low cost to start an e-business than a regular business.

• Can operate from any part of the world 24x7.

• Less manpower needed.

• Faster means of communications between business suppliers and its

customers.• Secure online business transactions at a faster pace.

• Higher profit margin.

• More opportunities for e-business growth due to vast reach of the

internet.

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Thank You

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e-business school project

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