Assignment 1 is worth 10% of your final grade, and should be completed after Lesson 3. It has two parts.
* Part A: seven short-answer questions worth a total of 35 marks
* Part B: two case analyses worth a total of 65 marks
Part A: Short-Answer Questions (35 marks total)
Answer each question in one to two paragraphs. (5 marks each)
1. What are the major similarities and differences between the Google and Yahoo business models?
Google and Yahoo are very similar, but there are also key differences between the two companies. Each site is considered a destination and is marketed as a place where consumers can fulfil their time on the internet by utilizing ...view middle of the document...
The e-distributor model describes a single-firm retail or wholesale store. The main revenue for this business is the sale of goods. An example is the online cosmetics retailer ELF (www.eyeslipsface.com) E-procurement, also known as the seller exchange, operates with a single firm that creates digital markets where buyers and sellers engage in transactions. An example of this is Oracle, one of Ariba’s main competitors. Exchanges receive most of their revenue from fees and commissions on transactions, as they are solely independently owned vertical digital marketplaces. Examples include PaperExchange or E-Steel. Lastly, industry consortiums vertical digital markets that are industry-owned and only open to select suppliers. The best example of this is Covisint, which was created by Daimler-Chrysler, Ford and General Motors.
4. What type of features and characteristics would a large business need in its electronic commerce system?
A large business will need someone very dilligent in charge of their e-commerce system because they will have to continually update the site in order to provide customers with the most up-to-date information and products available. They will also need the ability to enter products in mass quantities, because entering them manually will take up too much time an be unfair to their customers. Shipping is very important for all sizes of e-commerce solutions. For a large company, a solid shipping plan is required to distribute all the items purchased in a timely fashion. Also, a large business will need less marketing than a smaller business online because their name should already be resonant in the minds of consumers. They can spend more money on organization than on actually marketing the website.
5. What are portals, and why do they offer an important benefit to e-commerce?
Portals not only offer users search engine tools on the Web, but also packages of content and services. These extras include news, chat, email, calendars and video streaming, to name a few. Examples of portals include Yahoo and Google. The main revenue model for most portals is advertising, subscription fees and transaction fees. The important benefit they offer to e-commerce is that they provide a destination website for consumers. They are able to go to one site and have a one-stop shop for all of their wants and needs. Also, consumers trust these portals to advise them on where to shop and what entertainment to enjoy, giving them a great deal of influence in the e-commerce market.
6. Explain why it is difficult to categorize e-commerce business models.
There are a few difficulties to categorizing e-commerce business models. The main reason it is difficult is because there are many business models, with more popping up each day. Although it is easy to describe the models, there is no one correct way to categorize all of them. The approach used by the textbook includes B2C, B2B, C2C and etc. However, some of the businesses...