Matthew Moss
BUS 381
Chapter 9
8-3-13
1.
(10 points) What is the most profound way in which e-commerce and the Internet has changed the relationship between companies and their customers? List and describe the three main categories of electronic commerce. Which do you think is ultimately the most valuable to the individual consumer? Support your answer.
E-commerce and the Internet has profoundly changed the relationship between companies and customers by allowing the ability to extend the traditional boundaries of a marketplace to a market space and make it available just about everywhere.
There are three main categories of electronic commerce. Business-to-consumer involves retailing products and services to individual shoppers, such as BarnesandNoble.com.
Business-to-business involves sales of goods and services among businesses such as
ChemConnects site for buying and selling chemicals and plastics. Consumer-to-consumer involves consumers selling directly to consumers such as ebay.com. The most valuable would be Business-to-consumer because the ability to purchase a retail item from anywhere with connection to the Internet and have it shipped to you is extremely valuable to the consumer.
2.
(10 points) List and describe at least five different Internet business models. Which of these models do you think would be the most risky for a startup business today?
"Knowledge increases exponentially" is a phrase with which we are all familiar. How does this concept apply to electronic business and the emergence of the digital firm?
Support your answer.
E-tailer is a business that sells physical products directly to consumers or to individual businesses. Transaction broker saves users money and time by processing online sales transactions and generates a fee each time a transaction occurs. Market creator provides a digital environment where buyers and sellers can meet, search, display or establish prices for products. Content provider creates revenue by providing digital content such as news, music, photos or video over the web and sell that content to consumers or create revenue by selling ad space. Community provider provides an online meeting place where people with similar interests can communicate and find useful information.
E-tailer would be the riskiest to enter into because there are so many competitors out there such as Amazon, Newegg, TigerDirect, Sears, etc.
When an electronic business has the ability to use knowledge and better itself with new technology, I feel that the statement does indeed apply.

3.
(10 points) Describe the overall process and main decisions involved in planning a new ecommerce site.
You need to first answer the question, "What do we want the e-commerce site to do for our business?". You should then identify the specific business objectives and a list of system functionalities and information requirements. You must then decide on whether it is built in-house or out-sourced, as well as whether or not it is hosted on-site or off-site.
4.
(15 points) Read the case study (Walmart, Amazon and EBay: Who Will Dominate
Internet Retailing?) on page 305. Then answer the following questions: o Analyze each of these companies using the value chain and competitive forces models.
Wal-Mart
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Amazon
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E-Bay
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Compare the three companies’ e-commerce business models. Which is strongest?
Explain your answer.
Which company is likely to have the strongest retail e-commerce growth in the future? Why?
----- o Visit the Web sites of Amazon, Wal-Mart, and eBay, Compare the range of items offered for sale and the steps required to purchase an item of your choice at each of these sites. (Do not include eBay auctions, just goods available at a fixed price.) Which site has the greatest selection? Which site has the best prices, and which is easiest to use? What options are available for shipping or picking up your merchandise?
Amazon has the greatest selection and best price. Surprisingly, Wal-Mart's website was easier to use because they have one of a product listed whereas ebay and Amazon has several listings of the same product. Wal-Mart has both in-store pickup and ship-to-home options and ebay and Amazon can only be shipped to home.