Chapter 1 Flashcards
Why is B2B e-commerce so essential and successful?
B2B EC is essential for several reasons. First, some B2B models
are easier to implement than B2C models. The volume and value of transactions are much larger in B2B than in B2C,
and the potential savings are larger and easier to justify. In contrast with B2C, which has several major problems, rang-
ing from channel conflict with existing distributors to fraud to a lack of a critical mass of buyers, there are much fewer
problems in these areas. Many companies can start B2B by simply buying from existing online stores and B2B exchanges
or by selling electronically joining existing marketplaces or an auction house. The problem is determining what and
where to buy or sell online.
Which EC business projects work best?
Beginning in the early 2000s, the news was awash with stories about the failure
of many dot-coms and EC projects. Industry consolidation often occurs after a “gold rush.” About 100 years ago, hundreds
of companies tried to manufacture cars, following Ford’s success in the United States; however, only three survived. The
important thing is to learn from the successes and failures of others and discover the right business model for each endeavor.
How can we exploit social commerce?
There are major possibilities here. Some companies even open their own social
networks. Advertising is probably the first thing to consider. Recruiting can be a promising avenue as well. Offering dis-
counted products and services should also be considered. Providing customer service and conducting market research can
be a useful activity as well. Making customers and selling to them can be beneficial. Finally, the ultimate goal is associat-ing the social network with commerce so that revenue can be created.
What are the top challenges of EC today?
The top ten technical issues for EC (in order of their importance) are security,
adequate infrastructure, virtualization, back-end systems integration, more intelligent software, cloud computing, data
warehousing and mining, scalability, and content distribution. The top ten managerial issues for EC are justification,
budgets, project deadlines, keeping up with technology, privacy issues, unrealistic management expectations, training,
reaching new customers, improving customer services, and finding qualified EC employees. Most of these issues are
discussed throughout this book.
