Question 9: Define e-Business - Mithun Jadhav



Question 9: Define e-BusinessE-business (electronic business) is the conduct of business processes on the InternetIt includes buying and selling products, supplies and services; servicing customers; processing payments; managing production control; collaborating with business partners; sharing information; running automated employee services; recruiting; and moreQuestion 10: What is e-Business importance in today’s connected worldGlobal reachReduced costConvenienceHigher productivity and efficiencyCompany’s brand buildingProvide better customer support.Make information more easily available to customers.Ability to do business 24 hours.Low start-up costs. Your physical presence could be in any location.Question 11: Benefits and challenges of e-business usageCost-Effective MarketingMarketing efforts are very low cost or free, so the model allows for highly cost-effective marketing strategies.Flexible Business HoursBecause the Internet is available 24 hours a day, seven days a week, your business never closes.Eliminates Geographic BoundariesAn e-business also allows you to broaden your reach. An online business can reach customers in the four corners of the Earth.Reduces Transaction CostRunning an online business reduces the cost per transaction because it takes less manpower to complete an online transactionLow Overhead CostsRunning an e-business cut back or out most of the costs involved in running a physical location. E-businesses have less expensive phone, rent and utility bills than businesses with physical locations.ChallengesSectorial LimitationsThe main disadvantage of e-business is the lack of growth in some sectors on account of product or sector limitations. The food sector has not benefited in terms of growth of sales and consequent revenue generation because of a number of practical reasons, like food products being perishable items. Consumers do not look for food products on the Internet, since they prefer going to the supermarket to buy the necessary items as and when the need arises.Data SecurityTo carry out online transactions, the websites ask for your email address and other contact details. Customers brake at the mention of providing personal details, lest defiling of some nature occurs. Besides, certain sites have a complicated operational structure. Thanks to them, hackers have a job! They fiddle with accounts, meddle with important files, and corrupt data.This, certainly, cannot be termed ethical hacking! Viruses metastasize every second damaging the database, sometimes awarding disastrous repercussions, too.System Up gradationOnce a system is developed, the responsibility of ad hoc up gradation at intervals follows suit. If this does not happen, the site turnover would be poor. To improve site performance and tow in a good share of online customers, keeping up with the advancements is pivotal. Though, some sites may find doing this an unnecessary feature.Momentary IntangibilityNo matter what e-business may try, their chances of selling products -- like furniture and appliances -- successfully, are bleak. Unless a buyer has the liberty to splurge the kitty, the 'E' sector fights a battle, it absolutely isn't a part of. For instance, if you are planning to buy a sofa set, you would want to sit on it, get the feel of the upholstery used, the finish, and what have you! An online furniture bay, by no means, can consider a proposition like this one. It is better to accept that, there, indeed, are certain things not meant to be bought online due to the spatial creep; for the rest there is e-transaction!Costly E-business Solutions for OptimizationSubstantial resources are required for redefining product lines in order to sell online. Upgrading computer systems, training personnel, and updating websites requires substantial resources.Moreover, Electronic Data Management (EDM) and Enterprise Resource Planning (ERP), necessary for ensuring optimal internal business processes, may be looked upon, by some firms, as one of its disadvantages.Question of SafetyWith the world beguiled by the Internet, it's a fat chance that you are not one among the aficionados. The Internet is second to none, not to oxygen even, to say the least. Well, one breathes Internet. Shoppers act live wires when it comes to online pick and pay. However, with far and many pacing about, there are a few, who twitch at the mention of online payment.Instances of dupery have no intentions of nailing up anytime soon, and pseudo sites merrily mushroom. All the customer can do, is remain in a state of doubt.Question: 12. What is Revenue model of a e-business company? You can select any company of your choice from eBay, Localbanya, Paytm, Amazon, Snap deal, Flipcart etc.Five Common Revenue ModelsWhile there are many ways to earn money online, you may want to consider these five common e-commerce revenue models when planning your business.Affiliate marketing -It enables you to earn revenue by marketing or offering another product for sale on your site. For example, you may reference a book you read and recommend your customers get a copy for themselves. You could also set up an affiliate account and place a direct link to the book on the Amazon site, which will pay you a percentage of the sale. If you decide to participate in affiliate marketing, you'll need to research which companies might provide you with a financial incentive for promoting their sites on your page.When you're just starting out, the money you earn from affiliate marketing may be just a small, supplemental amount. However, as traffic to your site increases, you may enjoy more substantial income.Online advertising –It is a very popular revenue model for e-commerce businesses. In this method, companies or organizations buy advertising space on your site, provide a designed add or written message and then pay you for promoting their messages. Media sites, such as magazines, newspapers and television channels typically use online advertising.Two common types of online advertising include pay-per-click and pay-per-view, which determine how much advertisers will pay for their advertisements. While some sites charge a set fee for placing an ad, most pay a set fee for each person who clicks on a link or views a page related to the advertiser. As traffic to your site grows, and more people click on an advertiser's link or view a related page, you'll earn more advertising revenue.Transaction fees –These are the charges a company pays for using their service. If you've ever sold anything on eBay, you know there's a set price for posting a product for sale. Each time a transaction happens, you pay a small fee to eBay for marketing your product. Whether you charge a small fee for a company to list a transaction or for someone to view a video, transaction fees can be a sizable if the traffic to the website is substantial.Subscription based services –These services allow customers to access a library of information or entertainment, join a community or receive an on-going service for a set fee. Dating sites are common subscription models where members pay a set fee to interact with other members. Additionally, services like Netflix and Amazon Prime offer member-specific benefits for those who pay a monthly fee. For example, members may get free movies and books or discounts on other products.Sales Revenue Model -Wholesalers and retailers of goods and services sell their products online. The main benefits for the customer are the convenience, time savings, fast information etc. The prices are often more competitive. In terms of online sales there are different models such as market places as common entry points for various products from multiple vendors.The shops of single companies, sometimes based on web-catalogs (combines mail, online and telephone-ordering).Revenue Model of Amazon1.Amazon sells its own productsMany of the products that you can purchase on Amazon are actually owned by Amazon itself. Just like many other stores, Amazon buys products where there's high supply and low demand, and then sells them where there's low supply and high demand in order to make aprofit. Think of them as a convenience store on a grand scale: you're basically paying them for the convenience of buying an item without having to struggle with running around trying to find a store that has it in stock, comparing prices between different stores, or getting the item back home if it's heavy or bulky.2.Amazon gets a cut from third-party salesEven when other people sell their products on Amazon, Amazon still gets some of the profit. Why is that, you ask? Well, think about it: Amazon eliminates a lot of legwork forsomeone looking to sell things. It allows them to easily organize their inventory and expose it to thousands of potential customers at once. It can even take the hassle out of setting up delivery of their merchandise and collecting payment. All of that must be worth something, right?There are two types of third-party seller accounts on Amazon -- "Professional" and "Individual"-- and the amount of money Amazon makes from each varies.?Professional -- Amazon collects a $40 per month subscription fee, but does not collect additional fees from sales on a per-item basis.?Individual -- can sell on Amazon for free, but Amazon collects a $1 selling fee from each item sold.Question 13 : What are similarities and differences between eCommerce and eBusinessSimilaritiesA Service-oriented WebsiteBoth e-commerce and e-business owners maintain service-oriented websites and work to cultivate an online presence. But while the primary goal of e-commerce websites is to sell a product or service, the primary goal of an e-business website is usually to provide customers with information about a product or service to inform them and help them to make better purchasing decisions.Encouraging Customer InteractionAn e-business encourages customer or visitor interaction through the use of online feedback forms, surveys and polls. Many e-businesses also have their own online forums, allowing users to further their interaction both with the company and with one another. E-commerce websites also encourage interaction, but the opportunities for interaction that they provide are usually centered around the products and services that they sell in the form of product reviews and product ratings.Establishment of Partner RelationshipsBoth simple e-commerce websites and full-service e-businesses encourage and foster relationships between service and vendor partners. This type of interaction between businesses is often necessary to allow companies to provide their customers with additions, accessories or add-ons to the products and services that they market and sell.Similar Business ModelsSince e-commerce is a subset of e-business, it makes sense that both websites that provide e- business services, including e-commerce, and websites that focus only on the buying and selling expert of e-commerce should have similar business models. Both are focused on the idea of selling products and services and providing customer service, support and information if necessary. A straight e-commerce site, however, focuses only on buying and selling, providing the minimal amount of information to the consumer.DifferencesEcommerceEBusinessEcommerceinvolvescommercialtransactions done over internet.Ebusinessisconductofbusiness processeson the internet.Ecommerce is subset of Ebusiness.Ebusiness is superset of Ecommerce.Ecommerce is use of electronic transmission medium that caters for buying and selling of products and services.In addition, Ebusiness also includes the exchange of information directly related to buying and selling of products.Thus, Those activities which essentially involve monetary transactions are termed as “e-commerce”.In addition it includes activities like procurement of raw materials or goods, customer education, looking for suppliers etc.Ecommerce usually requires the use of just aWebsite.Ebusiness involves the use of CRM’s, ERP’s that connect different business processes.Ecommerce covers outward facing processes that touch customers, suppliers and external partners.E-business covers internal processes such as production, inventory management, product development, risk management, finance etc.Ecommerce just involves Buying and selling of products and services.Ebusiness includes all kinds of pre-sale and post-sale efforts.Ecommerceisnarrowerconceptand restricted to buying and selling.It is a broader concept that involves market surveying, supply chain and logistic management and using Data mining.It is more appropriate in B2C context.It is used in the context of B2B transactions.Ecommerce involves the mandatory use ofinternet.Ebusiness can involve the use of internet, intranet or extranet.Example-Buyingofpendrivefrom is considered Ecommerce.Example- Using of Internet by Dell, Amazon for maintain business processes like Online customer support, email marketing, supply chain management. ................
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