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Ecommerce Essay

2085 words - 9 pages


A Paper Presented in Partial Fulfillment
Of the Requirements of
INFS-732: Electronic Commerce

The purpose of this paper is to provide descriptive evidence supporting Kenneth C. Laudon and Carol Guercio Traver’s concept that e-commerce is a relationship between business, technology, and society. This paper will also examine the idea that e-commerce is creating new markets in three distinct areas: where prices are transparent, markets are global, and trading is highly efficient. The findings analyzed in this paper will assist in determining whether these concepts are pushing the markets or if the markets are pulling these concepts.

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Laudon and Traver divide the history of e-commerce into three periods, as outlined in Table 1 below.
Table 1. Brief History of E-Commerce
Year Period | Description |
1995 – 2000 | Innovation period. Beginnings of the first significant use of the Web to advertise products. Regarded as one of the most explosive and innovative time periods in American history. Thousands of e-commerce related websites (dot-coms) were funded and established. Success for this period matured in March 2000, and the dot-com companies began to collapse at a rapid rate. Only about 10% of these website endeavors are still alive today, with an even smaller percentage being profitable (Laudon and Tarver, 2008). |
2001 – 2006 | Consolidation period. Reeling from the collapse of the dot-com era, companies focused their efforts on a more “business driven” approach to e-commerce, rather than technology driven. Extensive branding and market positioning were the primary goals of the web during this period. Venture capital became unavailable, becoming a barrier for new start-up initiatives (Laudon and Tarver, 2008). |
2006 – Present | Reinvention period. Companies are focusing on an audience, customer, and community driven approach. Referred to as a “sociological phenomenon”, this current period is dominated by social networking, search, consumer-driven content, and virtual communities (Laudon and Tarver, 2008). Google, FaceBook, MySpace, and YouTube are prime examples of successful websites today. |

types of e-commerce
Although there are varying opinions as to how many and what types of e-commerce commonly exist today, Laudon and Tarver describe five major types: Business-to-Consumer (B2C), Business-to-Business (B2B), Consumer-to-Consumer (C2C), Peer-to-Peer (P2P), and Mobile commerce (m-commerce). Table 2 below provides details for each type.
Table 2. Types of E-Commerce
Type | Description | Example(s) |
B2C – Business-to-Customer | The most common e-commerce type for consumers. Consists of businesses selling products to customers (Laudon and Tarver, 2008). | is a leading e-retailer that sells technology products to retail consumers. They are committed to becoming the most loved and trusted marketplace on the web by offering superior shopping experience, rapid delivery, and stellar customer service (, 2010). |
B2B – Business-to-Business | Largest form of e-commerce in the markets today. Consists of businesses selling goods and services to other businesses (Laudon and Tarver, 2008). | Hunts Point is the world’s largest food distribution center that sells wholesale meat, produce, seafood, and other foods over the Internet (, 2010). |
C2C – Consumer-to-Consumer | Common form of e-commerce for auction related sites. Consists of consumers selling goods to other consumers (Laudon and Tarver, 2008). | eBay, Craigslist, and Beezid |
P2P – Peer-to-Peer | Consists of consumers using the Internet to share files and resources to other...

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