information technology project report.docx

8/17/2019 INFORMATION TECHNOLOGY PROJECT REPORT.docx

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A

PROJECT REPORT

ON

A COMPARATIVE ANALYSIS ON E – BUSINESS IN ONLINE SHOPPING

WITH SPECIAL REFERENCE TO FLIPKART AND AMAZON

Submitted in partial fulfillment of the requirementFor the award of the degree of

MASTERS OF BUSINESS ADMINISTRATION.

DEPARTMENT OF BUSINESS ADMINISTRATIONSESSION (2014-2016)

Under the guidance of : Submitted By:SHRUSTHI BA!AI "HA#"HA$ SI#%H&ASSISTA#T !R'F(SS'R) Roll #o*+,-,./--0/

Batch MBA !"#$%#&

1A2A#A#1 A"A1(32 'F 3A#A%(3(#T STU1I(S4 5A#!UR AFFI$IAT(1 T' A*!**AB1U$ 5A$A3 T("H#I"A$ U#I6(RSIT24 $U"5#'7

Ac'()*+,-,/,(t

I would li8e to e9pre my incere gratitude and regard to my internal guide MS.SHRUSHTI BAJPAI for her contant inpiration4 uper;iion and in;aluableguidance for ma8ing the pro


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Signature of Student

E2ECUTIVE SUMMARY OF E%BUSINESSES

In loo8ing o;er the challenge identified abo;e4 one certainly could a84 =So what

i really different about e>buine?@ ';erall4 the anwer that firm ha;e faced

mot of the challenge identified in the pat4 and that thi imply repreent the

latet iteration of thee challenge*

'rganiation ha;e faced the challenge of integrating autonomou buinee* A

"oniderable literature ha grown up around all of the problem in managing

probaed firm mut deal with de;eloping people 8ill among their

Technical manager4 be they engineer4 financial analyt4 or oftware de;eloper*

3anaging acro generation i certainly not a new iue* And both the

buine today from managing in a bric8 and mortar buine*


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The firt factor ditinguihing e>buine from traditional buine i the

comple9ity of the problem*

7hat eem different about managing e>buinee today tem from the

Interaction of facing all of thee challenge imultaneouly*

7hile organiation may ha;e faced each of thee challenge before4 they ha;e

probably ne;er faced o many challenge at the ame time*

Thi create a le;el of comple9ity eldom e9perienced before*

A econd4 more important et of factor wa noted e9plicitly by the repondent* In

fact4 when preed on thee iue4 repondent agreed a to the ditincti;ene of

two of the challenge: Uncertainty and peed* 6irtually e;ery peron we

inter;iewed firt noted that the bigget change in mo;ing to e>buine i the

peed* Thing happen o much more quic8ly4

Requiring fater organiational repone than they had e;er faced before* Second4

while fewer noted it pecifically4 the uncertainty challenge wa at leat implicit if

not e9plicit*

They noted the concern with not 8nowing for ure how to manage in the preent

en;ironment that wa accentuated by uncertainty regarding what might happen

ne9t* It eem that the combination of uncertainty regarding the way in which

certain factor will change in the future with the !eople in the (>Buine 7! -->

++ increaing peed at which they will change preent the mot formidablemanagement challenge unique to an e>buine*

Thu4 managing an e>buine today require dealing with an unuual amount of

comple9ity4 uncertainty4 and dynamicity* Thi certainly require a new paradigm

for organiing in term of how the tructure4 procee4 and people of the firm are


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managed* Howe;er4 before dicuing thi new paradigm4 we will firt e9amine the

different e;olutionary path ta8en by different e>buine*

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(9ecuti;e SummaryCCCCCCCCCCCCCCCCCCCCCCC*IIAc8nowledgement CCCCCCCCCCCCCCCCCCCCCCC**III"ollege "ertificate***********************************************************************************************I6#%I(t5)-6ct7)(

+*+ %eneral Introduction about the ector***************************4*************************+>>D+*E $iterature Re;iew**********************************************************************************/>>++*0 ( GBuine *****************************************************************************************+>>ED

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7ebliography*******************************************************************************************************+E-


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INTRODUCTION

Thi turn toward Internet baed technologie generated a new tatu quo in the

buine world* (>buine wa defined by IB3 bac8 in +/4 a =the

transformation of key business processes through the use of Internet technologies@*

According to Chaffey (2002)4 e>buine i decribed a =all the electronically

mediated information exchanges, both within an organization and with external

stakeholders, supporting the range of business processes*@

(>Buine enable an enterprie to pread it wing to the global cutomer* To

e9tend the ale platform to a futuritic dimenion4 buine houe ha;e


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incorporated oftware that can run on platform offered by the 7orld 7ide 7eb*

(>buine ha now penetrated into conumer good and other production and

er;ice baed indutrie* I!SR olutionJ 7eb Application 1i;iion ha pro;en

e9pertie in creating cutomied olution that can manage web baed Buine

$ogitic perfectly*

+SHORT HISTORY OF E%BUSINESS

1epite the fact that e>buine i a relati;ely new trend in the buine ector4 it

brief hitory i filled with contro;erial e;ent* The rapid growth of the popularity

of the 7eb from + wa accompanied by a highly profitable period for e>

buine companie* Setting up a fully functional e>Buine webite wa ;ery eay

and cot efficient and at that time it wa thought to guarantee ucce and profit

&!Connor and "al#in, $%%&' anenko, 200)* The number of e>buinee 8eptgrowing in an attempt for e;erybody to ha;e a hare from the profit pie* 'n the

turn of the century4 their number reached it pea8 and their profit opportunitie and

potential financial growth wa capped* Thi led to the huge toc8 mar8et collape

of many e>buine companie which i 8nown a dot*com but* After a fi;e year

period where companie had to re;aluated their trategic approach toward e>

commerce4 growth of e>buinee tarted to increae again4 reaching double digit

le;el through the current period.

LIMITATIONS OF E%BUSINESS SYSTEM%The limitation of e>buine can be claified a two factor which area below>

+) Technological


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E) #on>technological*

E

TECHNICAL LIMITATIONS OF ELECTRONIC OMMERCE

• $ac8 of ufficient ytem i tandard4 reliability4 ecurity and

communication protocol

•

• #ot enough telecommunication bandwidth*

• KThe oftware de;elopment tool are till e;ol;ing and changing rapidlyK

• Integrating the Internet and electronic commerce oftware with current

databae and application difficultly

• Additional cot to requet pecial 7eb er;er and other infratructure4 in

addition to the networ8 er;er

• !oible problem of interoperability4 that mean ome e>buine oftware

or application doe not fit with ome hardware4 or i incompatible withome operating ytem or other component

NON%TECHNICAL LIMITATIONS


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• $ac8 of feel and touch online

• 3any complicated legal iue

•

• Rapidly changing and e;ol;ing e>buine

0

•

$ac8 of upport er;ice

• Inufficiently large enough number of eller and buyer

• Brea8down of human relationhip

Incon;enient and e9peni;e acceibility to the Internet

OBJECTIVE OF E%BUSINESS%

• Impro;e er;ice*

• Sa;e time*

>Time ta8en by cutomer*>(laped time for proce

• Reduce proce error*

• Reduce the cot of core er;ice pro;iion*

• Free taff to pro;ide ;alue added er;ice*


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• Impro;e morale

>gi;e people the tool and time they need

,

ADVANTAGES%

The benefit of implementing (>Buine tool i not o much in the ue of

technology4 a in the treamlining of buine procee and the eae in finding

new mar8et* Some of the ad;antage include:

• quic8er and eaier communication*

• trengthened mar8eting capabilitie and reach

• increaed hour of operation &a webite pro;ide E, hour / day information

to e9iting and potential cutomer)

• acce to broader information through reearch

• reducing the cot of doing buine by lowering tranaction cot and

increaing efficient method for payment4 uch a uing online ban8ing and

reducing tationery and potage cot*


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• the opportunitie to adopt new buine model and de;elop tailored cutomer

upport*

SCOPE AND FOCUS OF THE REPORT%

The cope of (>Buine i a wide a an ocean there by the implementation

hurdle* 7hen one thin8 of the (lectronic Buine e;en through final goal

remain the ame a that of the traditional buine4 but the way in which they

function in order to impro;e the performance i different*

A information haring i the maBuine*

Thi change in ;iew>point ha opened door for new opportunitie*

#ationalied and !ri;ate ban8 agree that adopting e>buine a a trategy i one

of the important tep the ban8 ha ta8en in it de;elopment due to thetremendou benefit e>buine adoption pro;ide* According to them their

percei;ed benefit include con;enience to cutomer4 peed and quality of er;ice4

reduction of queue in ban8ing hall and reduction in the total o;erhead cot uch

a reduction in employee recruitment and reduction in pace for client and

cutomer *Thee factor that puhed their dri;e to adopt e>buine*

A) The reearch pro;ide powerful4 real time (>Buine reporting to help

(>Buine manager impro;e merchandiing and increae ale*

B) The reearch i ;ery much ueful to get the lifetime ;alue of your

cutomer baed upon their acquiition ource4 and increae your

e9penditure on ource that generate the bet cutomer o;er lifetime*


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") It trac8 the performance of all your online mar8eting initiati;e4

including !ay > per> clic8 8eyword buy4 doing tranaction online4 paying

bill uing net ban8ing4 banner ad4 e>mail and affiliate program and

alo how it i effecti;e to implement*

1) It help the (>Buinee to con;ert ;iitor into cutomer

D

() It help to determine whether online competitor can ignificantly

Harm your buine by pro;iding ome of the ;alue you currently

'ffer cutomer in the traditional way* It help the manager to impro;e

the buine by enhancing their functionalitie a compared with their

competitor*

LITERATURE REVIEW

INFORMATION IS POWER

Thi i one of the mot widely accepted tatement and applie for e;ery apect of

human acti;ity* Internet i an unlimited pool of information and benefit anyone

who ue it properly*


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According to *orter and +illar ($%&) information gi;e competiti;e ad;antage to

a company in three different way:

a) By changing indutry tructure and changing the rule of competition*

b) By pro;iding companie with new way to outperform their competitor*

c) By creating new buinee4 e;en from within a company e9iting operation*

/

The author continue by dicuing the trategic ignificance that Information

Technology ha obtained for companie4 by affecting the ;alue chain4 thu the

technological and economic acti;itie that a company perform to do buine* #ot

only it tranform the ;alue chain4 but alo tranform the product or the er;ice

that the company produce* Additionally4 author ugget fi;e way for

Information Technology to be uccefully implemented in buine procee*

Thi can be done by:

a) Aeing the intenity of information*

b) 1etermining the role that Information Technology will ha;e in the indutry

tructure*

c) Undertanding the way that it can create competiti;e ad;antage for their

companie*

d) In;etigating the poibilitie of new buinee*

e) 1e;eloping a trategic plan to ta8e ad;antage of Information Technology*


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SUCCESS AND FAILURE FACTORS OF E%BUSINESS

=(>buine and (>er;ice will mo;e to the forefront of technology prioritie* To

ta8e full ad;antage of the (>er;ice4 you need to loo8 at your organiation from an

alternati;e perpecti;e* The quetion i how to deal with thee change4 at what

cot4 and at what peed* Thi i not the time to worry about KdiintermediationK* It

i the time for cooperation4 integration4 and the conideration of cutomer loyalty4

profitability and competition ad;antage*@.

A we ha;e een4 e>Buine ha noticed remar8able growth and ucce o;er the

lat year* 1epite the numerou e9ample of ucceful e>Buinee there are

many e9ample where e>Buine failed to ucceed* By loo8ing at thoe

characteritic e9ample4 thi report trie to undertand the factor that lead to a

ucceful e>Buine but alo to figure out the danger that may lead to failure*

Thee factor would form a helpful guideline4 which would help in ma8ing the IT

employment webite a ucceful a poible*

HYPOTHESIS

(>buine offer buyer and eller a new form of communication and pro;ide an

opportunity to create new mar8etplace*

Theoretical tudie ugget in general that the de;elopment of e>buine reult in

higher firm performance a a reult of lower earch and head>to>head comparion

cot*


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Howe;er4 there are a number of recent theoretical tudie4 which demontrate that

the growth of e>commerce may lead to monopolitic pricing beha;iour o that

firm engaging in e>commerce need not perform better compared to more

Traditional enterprie*

To date4 there e9it little empirical e;idence on the impact of information

technology on economic performance* Thi paper i the firt that ue a large

repreentati;e data et of Belgian firm to tudy empirically the impact of e>

buine on corporate performance*

COLLECTION OF DATA PRIMARY SECONDARY DATA

Data 8)65c,

P57/a5? S,c)(-a5?

6,8t7)((a75,

S65,?

O38,5at7)(

E@=,57/,(ta+

I(t,5(a+

E@t,5(a+

Sa+,8 5,c)5-8

Ma5',t7( act77t7,8

C)8t 7(4)5/at7)(

4,,-3ac' P63+78h,- -ata

I(t,5(,t

E+,ct5)(7c=57(t,-

N,*8=a=,5

B))'8

P57at, 8t6-7,8


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E%BUSINESS – TRANSACTION MEDIUM

3ot e>commerce i done o;er the Internet* But (" can alo be conducted on

pri;ate networ84 uch a #alue-added networks &./s, networks that add

communication ser#ices to existing common carriers)4 on local area networ8

&$A#) or wide area networ8 &7A#)*

E%BUSINESS – TRANSACTION TYPES


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&(>commerce tranaction can be done between ;ariou partie*)

B687(,88%t)%3687(,88 B!B

C)++a3)5at7, c)//,5c, c%c)//,5c,

B687(,88%t)%c)(86/,58 B!C

C)(86/,58%t)%3687(,88,8 C!B

C)(86/,5%t)%c)(86/,5 C!C

I(t5a%3687(,88 7(t5a%)5a(79at7)(a+ c)//,5c,

G),5(/,(t%t)%c7t79,(8 G!C

M)37+, c)//,5c, /%c)//,5c,

+EHOW IS E%BUSINESS DIFFERENT

Reduction in phyical boundarie and ditance*

Ser;e larger cutomer bae more efficiently*

Target pecific cutomer group*

The Internet i an interacti;e mar8eting medium*

3ore detailed information on cutomer tranaction*


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Impro;ed tranaction efficiency*

13

CONSUMERS TO CONSUMERS C!C

Abbre;iation for conumer>to>conumer commerceL that i4 commerce with no

middle buine people The mot notable e9ample are 7eb>baed auction and

claified a ite* 3ot large ;enue for uch model &for e9ample4 eBay and

"laifiedE---) are quic8ly permeated by conumer who participate o acti;ely

and regularly that they become mall buinee for them*

"E" tand for conumer to conumer electronic commerce* The Internet ha

facilitated new type of "E" although it i important to note that thi 8ind of

commerce >> in the form of barter4 yard ale4 flea mar8et4 wap meet4 and the


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li8e >> ha e9ited ince time immemorial* #otably4 mot of the highly ucceful

"E" e9ample uing the Internet actually ue ome type of corporate intermediary

and are thu not trictly Kpure playK e9ample of "E"*

14WHAT IS BUSINESS TO BUSINESS B!B

BEB tand for Kbuine>to>buine4K a in buinee doing buine with other

buinee* The term i mot commonly ued in connection with e>commerce and

ad;ertiing4 when you are targeting buinee a oppoed to conumer*

'n the Internet4 BEB &buine>to>buine)4 i the e9change of product4 er;ice4

or information between buinee* BEB i e>commerce between buinee* BEB

"ommunication uing M3$ o;er HTT! BEB > the baic

Buine>to>buine electronic commerce &BEB) typically ta8e the form of

automated procee between trading partner and i performed in much higher

;olume than buine>to>conumer &BE") application*

+

WHAT IS BUSINESS TO CONSUMERS B!C


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Refer to buinee elling product or er;ice to end>uer conumer*

BEB tand for tranaction acti;itie in;ol;ing two buine entitie &buine>to>

buine tranaction)* BE" tand for tranaction acti;itie in;ol;ing a buine

and a conumer &buine>to>conumer tranaction)*

(lectronic commerce comprie commercial tranaction4 in;ol;ing both

organiation and indi;idual* From the technical point of ;iew e>commerce i the

proceing and tranmiion of digitied data* (>commerce decreae the ditance

between producer and conumer* "onumer can ma8e their purchae without

entering a traditional hop*

E%BUSINESS CATEGORY

E%3a('8E%t5a-,

E%c)(86+t7(

E%,(7(,,5

E%+,a5(7(

E%/a7+


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E%/a5',t7(

E%t5a(8act7)(8

+/HOW SAFE ARE E%BUSINESS FINANCIAL TRANSACTIONS

#ew ecurity technology li8e +E.>bit SS$ encryption enure the afety and pri;acy of both you and your cutomer4 and i built into the latet e>Buineoftware tool* 2our ecurity and pri;acy i a top priority with all e>Buine

pro;ider*


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+.

CAN MY BUSINESS BENEFIT FROM E%BUSINESS

• Reduce adminitrati;e and operating cot*

• Reduce in;entory cot*

• Reduce the cot of procurement*

• Impro;e cutomer er;ice and atifaction*

• Streamline procurement procedure*

•

Increae communication efficiency and interaction with employee4;endor4 cutomer and trategic partner*

• Increae re;enue and profit margin*


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+

E%COMMERCE E%BUSINESS WHO E%CARE

Some analyt and on>line buine people ha;e decided that e>buine iinfinitely

uperior a a moni8er to e>commerce* That mileading and ditract u from the

buine goal at hand* The effort to eparate the (>commerce and (>buine

concept appear to ha;e been dri;en by mar8eting moti;e and i dreadfully thin

in ubtance*

AN E%DISTINCTION

For the purpoe of clarity4 the ditinction between e>commerce and e>buine in

thi boo8 i baed on the repecti;e term commerce and buine*

"ommerce i defined a embracing the concept of trade4 Ne9change of merchandie

on a large cale between different countrie*++ By aociation4 e>commerce can be

een to include the electronic medium for thi e9change* Thu electronic commerce

can be broadly defined a the e9change of merchandie &whether tangible or


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intangible) on a large cale between different countrie uing an electronic medium

G namely the Internet*

The implication of thi are that e>commerce incorporate a whole ocio>economic4

telecommunication technology and commercial infratructure at the macro>

en;ironmental le;el*

All thee element interact together to pro;ide the fundamental of e>commerce*

E-

Buine4 on the other hand4 i defined a Na commercial enterprie a a going

concern*+E (>buine can broadly be defined a the procee or area in;ol;ed

in the running and operation of an organiation that are electronic or digital in

nature*

Thee include direct buine acti;itie uch a mar8eting4 ale and human

reource management but alo indirect acti;itie uch a buine proce re>

engineering and change management4 which impact on the impro;ement in

efficiency and integration of buine procee and acti;itie

*


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E+

WHAT ARE THE KEY DRIVERS%

It i important to identify the 8ey dri;er of e>commerce to allow a comparion

between different countrie* It i often claimed that e>commerce i more ad;anced

in the USA than in (urope*

Thee 8ey dri;er can be meaured by a number of criteria that can highlight the

tage of ad;ancement of e>commerce in each of the repecti;e countrie*

The criteria that can determine the le;el of ad;ancement of e>commerce *


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# T("H#'$'%I"A$ FA"T'RS 1 The degree of ad;ancement of the

telecommunication infratructure which pro;ide acce to the new technology for

buine and conumer*

! !'$ITI"A$ FA"T'RS 1 including the role of go;ernment in creating

go;ernment legilation4 initiati;e and funding to upport the ue and de;elopment

of e>commerce and information technology*

< S'"IA$ FA"T'RS G incorporating the le;el and ad;ancement in IT education

and training which will enable both potential buyer and the wor8force to

undertand and ue the new technology*

$ ("'#'3I" FA"T'RS 1 including the general wealth and commercial health

of the nation and the element that contribute to it* Since a ditinction ha been

made in thi boo8 between e>commerce and e>buine for conitency4 the 8ey

dri;er of e>buine are alo identified* Thee are mainly at the le;el of the firm

and are influenced by the macro>en;ironment and e>commerce4 which include:

KEY DRIVERS OF E%BUSINESS%


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'R%A#ISATI'#A$ "U$TUR( G attitude to reearch and de;elopment &R1)L

it willingne to inno;ate and ue technology to achie;e ob


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"'3!(TITI'# 1 enuring the organiation tay ahead of or at leat 8eep up

with competitor and indutry leader*

24

DEMAND FOR PEOPLE WITH SKILLS IN E%BUSINESS

INTRODUCTION

Thi chapter introduce an =e>Buine S8ill Triangle@ framewor84 reflecting the

importance to e>Buine of three main type of 8ill G buine4 creati;e and

technical*

It argue that e>Buine predominantly need people with a mi9 of type of 8ill4 a

proportion of them with a fairly e;en balance between two or all three type of


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8ill* It goe on to loo8 in more detail at the 8ill and wor8 content aociated with

the main type of 8ill*

Baed on the analyi4 four main e>Buine occupation are identified4 and the

demand for new people and re 8illing of e9iting member of the wor8force i

e9plored for each one*

5ey finding are that:

P Buine Studie programmed hould ha;e a ignificant Information Technology

content*

P Buine Studie programmed hould ha;e an e>Buine orientation that

permeate all ubBuine*

P (;ery buine with a web ite will need a webmater*

P (>Buine ha booted demand for people with technical IT 8ill*

P There i a need to update the 8ill of technical people uing dated technology*

P There i a ma


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P 3any of thoe already wor8ing in print deign need to acquire web deign 8ill4

P A a;ailable bandwidth increae4 the requirement for people to produce li;e

action and animated content will increae*

P (;eryone entering employment hould ha;e IT 8ill*

P Third le;el graduate hould ideally ha;e an undertanding of the buine ue

of

Information technology*

P Indutry need to ma8e e9iting employee IT literate4 perhap at an o;erall rate

of about EQ of employment per annum*

ED

INTRODUCTION

Ever since inerne !"s #een inr$%&ce% $ !e '$r% i !"s *"%e" !&+e i*,"c $n i*,"c,e$,e #&siness is $ne $. s&c! e/"*,e'!ere inerne !"s *"%e !e %ierence In & 15 A*"$nc$*


30/124


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reaon4 one being that online boo8eller would ha;e ;irtually unlimited helf

pace to =tore@ their ware* U*S* boo8eller were relying on large upertore to

do mot of their elling but e;en then4 they were limited in what they could carry at

any one time* Amaon realied that it could offer a much larger election of boo84

in fact all of the boo8 in print4 and not ha;e to worry about o;er>toc8ing or any

torage iue* 7ith agreement with other boo8eller4 Amaon could offer the

boo8 and then get them from third>party reeller to hip to their cutomer* The

cutting down of torage and purchaing cot could allow Amaon to pro;ide

lower cot to their cutomer*

Another lower cot would be in ad;ertiing* The traditional ad;ertiing a;enue4

print and ;iual media4 would till be a;ailable but Amaon4 being online4 could

ha;e webite ad;ertiing with lin8 directly to their webite or the product

themel;e* Amaon would get it name out there in the world of boo8elling a

well a ha;e a place for other to ell their boo8* Amaon alo aw an opportunity

and offered their baic webite tructure and procee to pri;ate indi;idual and

other boo8eller4 uch a Border* Border cutomer could arri;e at a webite for

Border4 ee that it i run by Amaon and then ha;e another a;enue for purchaing

boo8* Amaon would than be paid either a a web pace pro;ider or a a

boo8eller*

Amaon alo ha an ad;antage o;er bric8>and>mortar boo8eller i that they can

offer it e9teni;e product lineup at the time it con;enient to the cutomer*

Amaon webite i open E, hour a day4 / day a wee8* #o one need to go to a

tore to loo8 for boo8 and order them if not in toc8* The cutomer can eaily

loo8 for and order a boo8 at +- am or at 0 am4 a the need or deire tri8e them*

7ith the eae of ordering come the eae of payment* Amaon ta8e credit card4

chec84 money order and e;en purchae order from companie and intitution*

'nce you et up an account4 mot boo8 and other product are but a moue>clic8


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away*

Unli8e other 3ail 'rder or "atalog retail companie4 Amaon can ta8e

ad;antage of the Internet and ue email a a form of communication4 both to

confirm order and purchae a well a to contact cutomer with deli;ery

information* Being an online retailer4 Amaon ha ta8en ad;antage of the eae of

ue of the Internet in it buine dealing* Intead of relying on the mail er;ice to

end out catalog4 Amaon can let cutomer arri;e at it home through word of

mouth and can alo contact former cutomer ;ia email to entice them bac8 to

purchaing* The Internet i certainly the way for catalog elling to mo;e4 becaue

it ha many ad;antage and can till maintain it character of eae and

con;enience* In creating a databae for Amaon4 we need to 8eep thi eae and

con;enience in mind a we deign and create a fle9ible4 eay to ue4 adaptable

databae*

E

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'ne of the ma


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ubtitute productL the bargaining power of upplierL and the bargaining power of

buyer* 'ur ne9t ta8 will include pinpointing thee force and determining how

trong each force i4 wea8 being ;ery minimal in e9erting preure on the

organiation and fierce illutrating a great amount of preure from player in the

mar8et* Analying the information gathered by thi model may er;e to pinpoint

whether opportunitie e9it within an indutry and furthermore what power

command it* 7hile Amaon mut deal with all of thee force it ha thu far been

able to withtand them uccefully and profitably*

R7a+5?. Ri;alry among competing eller i trong* There are ome maand>mortar ha;e followed Amaon lead and ta8en their buinee online

in hope of imilar ucce and increaed mar8et hare* 7hile ri;alry in thi

indutry i trong4 Amaon to a large degree ha built up uch a =collection@ of

boo8 that many mall>cale boo8eller cannot compete gi;en the required

economie of cale* ';erall4 Amaon ha et out to offer acce to all boo8 that

are in print and ha ucceeded in doing be competitor uch a Border onboard to

hare in a trategy which ha pro;ed effecti;e in competing within the indutry*

Amaon4 by tarting in the - to ell online4 ha created a large upply chain4

which ha earned a trong pace in the boo8 retail mar8et4 a trong brand name4

and a loyal cutomer bae*


34/124

N,* E(t5a(t8. The threat of new entrant i trong due to low barrier to entry* It

i important to note howe;er that while many indi;idual and mall buinee can

conduct ale online with ;ery little tart>up cot they cannot e9pect to compete

with a large player uch a Amaon* "ompanie who do poe a threat to Amaon

are candidate who ha;e reource4 which allow them to adequately compete if

they choe to ta8e the buine online* In uch cae4 low barrier to entry may

caue concern when indutry member are loo8ing to e9pand their mar8et but

ta8ing approache4 which ha;e allowed Amaon*com ucce in thi particular

indutry*

S638t7t6t,8. The threat of ubtitute product offered by firm in other indutrie

i fierce* "on;enient and deirable ubtitute product e9it and offer cutomer

many incenti;e if choen in lieu of online hopping* Buying product through

online mar8etplace warrant acceptance by cutomer while traditional practice

are readily a;ailable and more widely accepted* In addition4 many good ubtitute

offer attracti;ely priced item and immediate gratification for buyer who may not

wih to wait for an order to arri;e* Amaon ha combated thi threat by

maintaining it focu on it brand name while trengthening it image by meeting

cutomer e9pectation* 7hile online hopping i continually gaining acceptance

worldwide4 the threat of ubtitute will continue to e9ert preure on the

organiation to pro;ide better incenti;e4 fater turnaround4 and o;erall cutomer

atifaction*

S6==+7,58. "ompetiti;e preure from upplier bargaining and upplier>eller

collaboration are relati;ely wea8* 7hile in many cae upplier can create a

challenge for a company by forcing them to accept higher cot for material4

Amaon began mall and built up it upply chain to wor8 with multiple upplier*


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7ith multiple upplier4 each upplier trength wea8en againt that of

Amaon* For e9ample4 if one boo8 upplier want to get a >cent charge on each

boo8 ordered but Amaon can get mot of the ame boo8 from upplier E for

only 0 cent per boo84 upplier + wont get a contract with Amaon* Amaon ha

created a broad upply chain to 8eep it upplier from acquiring too much trength

and forcing price too high* Therefore4 Amaon ha been able to pa thoe a;ing

on to the cutomer4 creating a bargaining chip againt indutry ri;al and creating a

hedge againt upplier dependency*

B6?,58. Buyer power i relati;ely trong within thi indutry* %i;en that

witching cot between competing brand or ubtitute i generally low4

conumer may4 without incurring any lo4 chooe one er;ice o;er another if

deired* Additionally4 buyer may potpone purchae from online eller uch a

Amaon if they do not agree with the price a;ailable at the preent time* Such

preure require Amaon to dico;er new way of paing on a;ing to their

cutomer without decreaing the profit neceary to maintaining their current

economic tanding and mar8et poition* Therefore4 while the power of buyer in

thi indutry i trong Amaon ha found effecti;e method to retain attracti;e

price for conumer*


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A ;iual model of !orter Force 3odel

(>commerce offer product and er;ice through webite4 a cutomer imply ha

to ;iit an e>commerce webite and browe ;ariou offering through browercatalog4 a cutomer can elect multiple offering and can add them to the hoppingcart4 once the hopping i done the cutomer can chec8out and proceed to paymentection where ;ariou online payment option are a;ailable li8e internet ban8ing4credit card4 debit card etc* 'nce the payment i done the cutomer i notified aboutthe order and order i hipped on the potal addre pro;ided by the cutomer*

00 REVIEW OF LITERATURE The firt approach on how to upport query operation on encrypted data with

buc8etiation4 after the data i encrypted4 the cipherte9t i concatenated to a buc8etnumber4 which i aigned to a pecific range that include the data* 7hen a uerrequet a query operation4 the er;er ue the buc8et number to e9ecute the queryoperation* For e9ample4 if a client program want to Abhi"ommerce in India>A Re;iew@4 International ournal of 3ar8eting4 FinancialSer;ice 3anagement Reearch* "oncluded that The (>"ommerce ha bro8enthe geographical limitation and it i a re;olution>commerce will impro;e


37/124

tremendouly in ne9t fi;e year in India* 1*5*%angehwar* &E-+0)4@ (>"ommerce or Internet 3ar8eting: A Buine Re;iew from Indian "onte9t@4International ournal of u> and e> Ser;ice4 Science and Technology* "oncluded thatthe (>commerce ha a ;ery bright future in India although ecurity4 pri;acy anddependency on technology are ome of the drawbac8 of (>commerce but tillthere i a bright future to (>commerce* 3artin 1odge* &+)4@Finding theource of Amaon*com: e9amining the hype of the earth bigget boo8 tore@4"enter for Ad;anced Spatial Analyi* "oncluded that Amaon*com ha been oneof the mot promiing (>commerce companie and ha grown rapidly by pro;idingquality er;ice*

E%COMMERCE IN INDIA

The e>commerce introduced to India in mid>+-4 many of them were eithermatrimonial or commerce progreed ;ery lowly in Indianmar8et* In mid>E--- the e>commerce indutry in India grown rapidly offeringonline er;ice li8e tra;elling4 many airline companie tarted pro;iding the tra;eler;ice online to cutomer4 e;en today online tra;el boo8ing hold a maemployee of Amaon*com* Flip8art i an e>commerce company

baed in Singapore4 it operate in India* According to ale9ia internet4 Flip8art ione of the mot popular webite ;iited in India* Flip8art ell good in Indiathrough a company called 7S retail* The other third>party trader or companie


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can alo ell good through the platform of Flip8art* Initially in E--. Flip8art old boo8 but oon it etablihed itelf wide and tarted elling product li8e conumerelectronic4 clothing4 home decoration product4 appliance4 beauty and fahion

product etc* 1ue to the powerful networ8 all o;er India and effecti;e cutomerrelationhip management4 Flip8art ha earned a topmot poition in India* Flip8artallow payment method uch a cah on deli;ery4 net ban8ing4 debit or credit cardtranaction4 e>gift ;oucher and card wipe on deli;ery The founder of Flip8artSachin and Binny Banal4 now ha ta8en the combined net worth in e9ce of +

billion4 reaching cloer to that of #arayana 3urthy and #andan #ile8ani ofInfoy*The ;alue of Banal combined ta8e ha croed o;er R* D--- due to the freh+ billion fund raie* The 3urthy family ha a net worth of near R* .4/-- crore

being India econd larget it er;ice company4 while the #ile8ani familyJ networth hold at R D4-- crore* Infoy too8 about four decade to reach mar8et cap

of about 0- billion while Flip8art raied the ;aluation of / in billion e>commerce "ompany* 0

BUSINESS STRUCTURE

In a report dated #o;ember E4 E-+,4 a leading media outlet reported that Flip8art

were operating through a comple9 buine tructure which included nine firm4

ome regitered in Singapore and ome in India* In E-+E Flip8art co>founder old

7S Retail to a conortium of in;etor *

ACUISITIONS

• E-+-: 7eRead4 a ocial boo8 dico;ery tool*

•

E-++: 3ime0D-4 a digital content platform company*

• E-++: "ha8pa8*com4 a Bollywood new ite that offer update4 new4

photo and ;ideo* Flip8art acquired the right to "ha8pa8J digital catalogue

which include ,-4--- filmographie4 +-4--- mo;ie and cloe to -4---

rating* Flip8art ha categorically aid that it will not be in;ol;ed with the

original ite and will not ue the brand name*

https://en.wikipedia.org/wiki/WeReadhttps://en.wikipedia.org/wiki/WeRead


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• E-+E: $etbuy*com4 an Indian e>retailer in electronic* Flip8art ha bought

the company for an etimated USE million*$etbuy*com wa cloed down

and all traffic to $etbuy ha been di;erted to Flip8art*

•

E-+,: Acquired 3yntra*com in an etimated₹

E- billion &E4--- crore4about US0+ million) deal*

• E-+: Flip8art acquired a mobile mar8eting tart>up Appiterate a to

trengthen it mobile platform*

INVESTMENTS

• In E-+4 Flip8art bought a minority ta8e in a #a;igation and routeoptimiation tartup 3apmyIndia to help impro;e it deli;ery uing

3apmyIndia aet*

0D

FINANCE

Initially4 they had pent ₹ ,--4--- only for ma8ing webite to et up the

buine*Flip8art ha later raied funding from ;enture capital fund Accel

India &US+ million in E--)and Tiger %lobal &US+- million in E-+- and USE-

million in une E-++)* 'n E, Augut E-+E4 Flip8art announced the completion of

it ,th round of +- million funding from 3IH &part of #aper %roup) and

I"'#IO "apital* The company announced4 on +- uly E-+04 that it ha raied an

additional E-- million from e9iting in;etor including Tiger %lobal4 #aper4 Accel !artner and Iconiq "apital*

Flip8artJ reported ale were ,- million in F2 E--.GE--4 E-- million

in F2 E--GE-+- and /- million for F2 E-+-GE-++ In F2 E-++GE-+E4 Flip8art i

et to cro the billion &US+-- million) mar8 a Internet uage in the country

increae and people get accutomed to ma8ing purchae online* Flip8art pro


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it ale to reach +- billion by year E-+,* 'n a;erage4 Flip8art ell nearly +-

product per minute and i aiming at generating a re;enue of - billion &US-*.+

billion) by E-+*

'n #o;ember E-+E4 Flip8art became one of the companie being probed for alleged ;iolation of F1I regulation of the Foreign (9change 3anagement Act4

+

Flip8art reported a lo of E.+ crore for the F2 E-+E>+0* In uly E-+04 Flip8art

raied US1 +D- million from pri;ate equity in;etor*

In 'ctober E-+04 it wa reported that Flip8art had raied an additional +D- million

from new in;etor 1ragoneer In;etment %roup4 3organ Stanley 7ealth

3anagement4Sofina SA and 6ulcan Inc* with participation from e9iting in;etor

Tiger %lobal*

'n ED 3ay E-+,4 Flip8art announced that it ha raied E+- million from 2uri

3ilner 1ST %lobal and it e9iting in;etor Tiger %lobal4 #aper and Iconiq

"apital*

In early uly E-+,4 it wa alo highly peculated that Flip8art wa in negotiation to

raie at leat -- million4 for a li8ely liting in the US for E-+D*

0/

'n E uly E-+,4 Flip8art announced that it raied + billion from Tiger %lobal

3anagement $$"4 Accel !artner4 and 3organ Stanley In;etment 3anagement

and a new in;etor Singapore o;ereign>wealth fund %I"*

'n D 'ctober E-+,4 Flip8art old product worth I#R D-"rore in +- hour in a

pecial one>day e;ent > KThe Big Billion 1ayK4 claiming they had created e>

commerce hitory4 but their hard>won reputation for good cutomer er;iceuffered becaue of technical problem4 and angry reaction on ocial media from

buyer diappointed with the pricing and a;ailability of product* It claimed to ell

a whopping la8h mobile handet4 fi;e>la8h clothe and hoe and E4---

tele;iion et within hour of opening it dicounted ale at . A3* In 1ecember

E-+,4 After it recei;ed /-- million from another funding4 Flip8art had a mar8et

cap of ++ billion or R*DD--- crore* In 3ay E-+ Flip8art ha raied - million

https://en.wikipedia.org/wiki/Morgan_Stanley_Wealth_Managementhttps://en.wikipedia.org/wiki/Morgan_Stanley_Wealth_Managementhttps://en.wikipedia.org/wiki/Sofinahttps://en.wikipedia.org/wiki/Vulcan_Inc.https://en.wikipedia.org/wiki/Yuri_Milnerhttps://en.wikipedia.org/wiki/Yuri_Milnerhttps://en.wikipedia.org/wiki/Indian_rupeehttps://en.wikipedia.org/wiki/Crorehttps://en.wikipedia.org/wiki/Morgan_Stanley_Wealth_Managementhttps://en.wikipedia.org/wiki/Morgan_Stanley_Wealth_Managementhttps://en.wikipedia.org/wiki/Sofinahttps://en.wikipedia.org/wiki/Vulcan_Inc.https://en.wikipedia.org/wiki/Yuri_Milnerhttps://en.wikipedia.org/wiki/Yuri_Milnerhttps://en.wikipedia.org/wiki/Indian_rupeehttps://en.wikipedia.org/wiki/Crore


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from ome of it e9iting in;etor4 in a deal that raie the ;aluation of the

pri;ately held Indian tartup to about + billion or R* -4--- crore

'n E- 1ecember E-+,4 Flip8art announced filing application with Singapore>baed

companieJ regulator A"RA to become a public company after raiing US1 /--million for long term trategic in;etment in India following which it number of

in;etor e9ceeded -* The US1 /-- million fund raied by Flip8art added new

in;etor > Baillie %ifford4 %reenoa8 "apital4 Stead;iew "apital4 T* Rowe !rice

Aociate and Oatar In;etment Authority > on companyJ board*It e9iting

in;etor 1ST %lobal4 %I"4 I"'#IO "apital and Tiger %lobal alo participated in

thi latet financing round*

By Augut E-+4 after raiing /-- million4 Flip8art had already raied a total of

0 billion4 o;er +E round and +D in;etor*

REGULATORY ACTION AND LAWSUITS

The %o;ernment 'f India informed the parliament in E-+E4 that it had a8ed the

(nforcement 1irectorate to in;etigate Flip8art 'nline Ser;ice* In Augut E-+,4

the (nforcement 1irectorate claimed that it had found Flip8art to be in ;iolation of

the Foreign (9change 3anagement Act*

0.

'n #o;ember 0-4 E-+E4 Flip8art office were raided by the (nforcement

1irectorate* 1ocument and computer hard dri;e were eied by the regulatory

agency*

1elhi High "ourt ober;ed ;iolation of foreign in;etment regulation by (>"ommerce firm including Flip8art*

In anuary E-+D4 a public interet litigation came up for hearing which allege

Flip8art of contra;ention of foreign in;etment norm* The court a8ed the Reer;e

Ban8 of India to pro;ide the latet circular on foreign in;etment policy*


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In anuary4 E-+D4 the 1epartment of Indutrial !olicy and !romotion &1I!!)

clarified that it doe not recognie the mar8etplace model of online retail*

In February E-+D4 Health 3initer4 ! #adda4 informed that the 3aharahtra F1A

had ta8en action againt Flip8art4 among other4 for elling drug without ;alidlicene*

FLYTE DIGITAL MUSIC STORE

In 'ctober and #o;ember E-++4 Flip8art acquired the webite 3ime0D-*com and

"ha8pa8*com* $ater4 in February E-+E4 the company re;ealed it new Flyte 1igital

3uic Store*Flyte4 a legal muic download er;ice in the ;einof iTune and Amaon*com4 offered 1R3>free 3!0 download* But it wa hut

down on +/ une E-+0 a paid ong download did not get popular in India due to

the ad;ent of free muic treaming ite*

E2CLUSIVE PRODUCT LAUNCHES

3otorola 3obility4 pre;iouly owned by %oogle but then old to $eno;o4 in an

e9clui;e tie up with Flip8art launched it budget martphone 3oto % in India on

February E-+,L more than E-4--- unit were old within hour of launch on

Flip8art* After thi Flip8art wa loo8ing for a long term tie up with 3otorola

3obility4They alo launched their Android martphone4 the 3oto M4 on + 3arch

E-+,* Flip8art later old the 3oto (4 cheaper than 3oto %4 from +0 3ay E-+,*

The ale of high>end martphone Miaomi 3i0 produced by Miaomi Tech wa

launched in India on an e9clui;e tie>up with Flip8art* The firt batch wa old outwithin 0 minute on EE uly E-+,4 the econd in econd on E uly E-+,* The

ale wa proceeded on pre>regitration mode where more than +-4--- buyer

boo8ed for the Augut E-+, ale* Thi got old off in le than E

econd*Following thi Miaomi Tech old E-4--- unit in the ne9t ale on +E

Augut E-+,* 'n E September E-+, Flip8art held a flah ale of the Miaomi Redmi

+S budget Android martphone which wa launched in India in uly E-+,* ,-4 ---

https://en.wikipedia.org/wiki/Music_downloadhttps://en.wikipedia.org/wiki/ITuneshttps://en.wikipedia.org/wiki/Amazon.comhttps://en.wikipedia.org/wiki/Digital_rights_managementhttps://en.wikipedia.org/wiki/Motorola_Mobilityhttps://en.wikipedia.org/wiki/Googlehttps://en.wikipedia.org/wiki/Lenovohttps://en.wikipedia.org/wiki/Moto_Ghttps://en.wikipedia.org/wiki/Motorola_Mobilityhttps://en.wikipedia.org/wiki/Motorola_Mobilityhttps://en.wikipedia.org/wiki/Android_(operating_system)https://en.wikipedia.org/wiki/Smartphonehttps://en.wikipedia.org/wiki/Moto_Xhttps://en.wikipedia.org/wiki/High-endhttps://en.wikipedia.org/wiki/Xiaomi_Mi3https://en.wikipedia.org/wiki/Xiaomi_Techhttps://en.wikipedia.org/wiki/Redmi_1Shttps://en.wikipedia.org/wiki/Redmi_1Shttps://en.wikipedia.org/wiki/Music_downloadhttps://en.wikipedia.org/wiki/ITuneshttps://en.wikipedia.org/wiki/Amazon.comhttps://en.wikipedia.org/wiki/Digital_rights_managementhttps://en.wikipedia.org/wiki/Motorola_Mobilityhttps://en.wikipedia.org/wiki/Googlehttps://en.wikipedia.org/wiki/Lenovohttps://en.wikipedia.org/wiki/Moto_Ghttps://en.wikipedia.org/wiki/Motorola_Mobilityhttps://en.wikipedia.org/wiki/Motorola_Mobilityhttps://en.wikipedia.org/wiki/Android_(operating_system)https://en.wikipedia.org/wiki/Smartphonehttps://en.wikipedia.org/wiki/Moto_Xhttps://en.wikipedia.org/wiki/High-endhttps://en.wikipedia.org/wiki/Xiaomi_Mi3https://en.wikipedia.org/wiki/Xiaomi_Techhttps://en.wikipedia.org/wiki/Redmi_1Shttps://en.wikipedia.org/wiki/Redmi_1S


43/124

unit priced at R each were old within econd*A further ,-4--- unit were

old within ,* econd on Sept 4 E-+,*The third Redmi +S ale on Sept +D4 E-+,

old ,-4--- unit in 0*, econdL In the ,th round of ale of Redmi +S4 D-4--- unit

old in *E econd on Sept E04 E-+,*'n 0- September E-+, D-4--- unit old in

+0* econd* Redmi #ote in India e9clui;ely through Flip8artL -4--- unit oldin D econd on E 1ecember E-+,*

IN%HOUSE PRODUCTS

• In uly E-+, Flip8art launched it own et of tablet4 mobile phone

!hablet* The firt among thee erie of tablet phone wa 1igiflip !ro MT

/+E Tablet*

• In uly E-+, Flip8art launched it firt networ8ing router4 under it own

brand name named 1igiFlip 7R--+ 0-- 3bit 7irele # Router*

• In September E-+, Flip8art launched it in>houe home appliance and

peronal healthcare brand "itron* The label include a wide range of coo8ing

utilitie and grooming product*

CRITICISM

'n +0 September E-+,4 a Flip8art deli;ery boy moleted a houe maid in

Hyderabad*The houe maidJ employer ha been fighting againt Flip8art for


44/124

load and error which led to frutration among cutomer*3any uer who placed

order recei;ed email tating that their order were cancelled* 3ot of the

product were old for le than cot price4 and Flip8art wa accued of 8illing

competition* 3a


45/124

The war between e>commerce companie in India i in pea84 Flip8art i facingtrong competition from Amaon India4 ebay4 unglee*com4 abong*com4Snapdeal*com and 3yntra*com li8e companie* Among the abo;e companieAmaon*com i the tronget competitor of Flip8art* Recently Flip8art ha won aneconomical battle againt Amaon*com by purchaing one of it ri;al myntra*com*Flip8art ha acquired online fahion retailer 3yntra*com in appro9* R* E4--- croredeal4 thi deal i conidered to be the big miletone in the ucce of Flip8art*Flip8art mainly face trong competition from Amaon*com a Amaon ha

declared that it will in;et E billion in it Indian* Following are data comparion between Amaon*com and Flip8art*com collected during E+>'ct>E-+, to +.>#o;>E-+,* a) Stoc8 5eeping Unit: 7hen the Stoc8 5eeping Unit &S5U) of bothFlip8art and Amaon compared for four popular electronic product mobile4laptop4 tablet4 camera* Following reult were obtained from the data*Flip8art hold total +/-D S5U under the abo;e four category while Amaon hold

only +0 S5U for the ame product* E* Flip8art ha ,+/E offer for the +/-D

S5U while Amaon ha EE,, offer for the +0 S5U b) 'nline !roduct

"ategorie and Sub>"ategorie: !reently Amaon*com offer +D main categorie

of product online while thee +D main categorie can be further di;ided in to +.D

ub>categorie* 'n the other hand flip8art*com offer .D main categorie of

offering which are e9panded into a huge ,EE ubcategorie much more than

amaon*com pro;iding a wide range of product which are quite eay to acce

through webite* c) "omparion of 3anpower 3anagement and 7or8


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Satifaction : "onidering the gender wie ditribution of employee in both

Amaon*in and Flip8art*com4 following information i obtained

"ompanie Se9 Ratio 3ale Female Flip8art*com .-Q E-Q Amaon India ./Q

+0Q Sr* #o* 1ecription Flip8art*com Amaon India + ob 7or8$ife Balance 0*0* E Salary Benefit 0 , 0 ob Security 0* 0 , 3anagement 0* 0 ob "ulture ,, Total +/* +/* W 1ata Showing 7or8 atifaction*

•

43

THE E%BUSINESS MODEL


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The e>Buine model4 li8e any buine model4 decribe how a company

functionL how it pro;ide a product or er;ice4 how it generate re;enue4 and how

it will create and adapt to new mar8et and technologie* It ha four traditional

component a hown in the figure4 The e>Buine 3odel* Thee are the e>

buine concept4 ;alue propoition4 ource of re;enue4 and the required acti;itie4

reource4 and capabilitie* In a ucceful buine4 all of it buine model

component wor8 together in a cooperati;e and upporti;e fahion*

44

(>BUSI#(SS "'#"(!T:


48/124

The -345I55 CC*6 decribe the rationale of the buine4 it goal and

;iion4 and product or offering from which it will earn re;enue* A ucceful

concept i baed on a mar8et analyi that identifie cutomer li8ely to purchae

the product and how much they are willing to pay for it

%'A$S A#1 'B("TI6(S:

The e>Buine concept hould be baed4 in part4 on )a+8 uch a Kbecome a

ma8nown firm in each of thee indutrie*K

'b


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(mbedded in the e>Buine concept are trategie that decribe how the buine

concept will be implemented* Thee are 8nown a C7*7/6 567/6"I5

becaue they etablih how the buine i intended to function* Thee trategie

can be modified to impro;e the performance of the buine* (n;ironmental

trategie4 dicued in a following ection4 decribe how the company will addre

e9ternal en;ironmental factor4 o;er which it ha no control*

TH( (>BUSI#(SS "'#"(!T A#1 3AR5(T R(S(AR"H

The election and refinement of the buine concept hould be integrally tied into

8nowledge of the mar8et it er;e* In performing /a5',t 5,8,a5ch care mut be

ta8en to account for the global reach of the Internet for both cutomer and

competitor* It i alo important to remember that mar8et hift4 and can hift

rapidly under certain condition* But mot important i to truly undertand what the

mar8et i4 who comprie it4 and what do they want*

,D

TH( (>BUSI#(SS "'#"(!T

http://www.prudens.com/patens/ebusiness/busmodel.html#p1http://www.prudens.com/patens/ebusiness/busmodel.html#p1


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!RI"(

!ricing i an important part of the e>buine concept and hould be etablihed on

the bai of mar8et reearch* !rice i often et with an eye on the competition andcan ha;e a direct effect on mar8et hare* In traditional commerce in the U*S*4 the

eller et the price* 'nline pricing4 on the other hand4 may include negotiation or

auction pricing4 where the interaction of eller and buyer can affect the price*

5nowledge of competing price i alo readily a;ailable online4 and will 8eep

downward preure on price*

,/

7hen i it '5 to increae price? It depend on the buine* If a company ha

high fi9ed to ;ariable cot4 price hould be changed cautiouly* If cutomer are

Kloc8ed>inK4 and the product or er;ice i le eniti;e to price4 then price may be


51/124

changed4 to a degree4 with le ri8* But all change hould be chec8ed beforehand

with mar8et reearch and financial analyi*

A potential problem for ome product i that the mar8et may change fater than

the eller can change the product or er;ice* 'ne way to ur;i;e in thi

en;ironment i to ell at the minimum price that allow a profit4 a;oid price

change and continuouly upgrade the product* Thi approach i often ued in

computer hardware and oftware ale* At the ame time the eller hould in;et in

finding how to horten the de;elopment cycle4 and put in place a mar8et reearch

program that will quic8ly identify trend and change*

The teady de;elopment of a product ha other ad;antage* It e;en out the

re;enue tream rather than ha;ing the Kboom or butK cycle of a ingle product* It

alo how that the company i teadily de;eloping and upgrading product for the

cutomer who hould begin to buy into the companyJ ;iion* And cutomer4

analyt4 and in;etor will de;elop confidence that the company i going to be

around for the long>term*

The price mut alo pro;ide real ;alue to the cutomer4 that i the cutomer mut be

pleaed with the purchae of the product or er;ice* In addition to price4 the buyer

may alo be intereted in how the product can be of aitance to hi company* In

thi cae4 comparion of price and R'I may be ued to how that the offering add

more ;alue than a competitorJ* The price can alo be a bai for building long>term

cutomer relation4 which can lead to multiple ale*

For e9ample4 a retail cutomer become more comfortable hopping on a ite4 it

hould be eaier to get them to migrate to higher margin product*

6A$U( !R'!'SITI'#


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The ./84 *7*5I6I decribe the ;alue that the company will pro;ide to

it cutomer and4 ometime4 to other a well* 7ith a ;alue propoition the

company attempt to offer better ;alue than competitor o that the buyer will

benefit mot with thi product*

• Reduced price

• Impro;ed er;ice or con;enience uch a the K+ clic8K chec8out

• Speed of deli;ery and aitance

• !roduct that lead to increaed efficiency and producti;ity

• Acce to a large and a;ailable in;entory that preent option for the buyer

!ro;iding ;alue in an e>buine ue the ame approach a pro;iding ;alue in any

buine4 although it may require different capabilitie* But common to both are the

cutomer who ee8 out ;alue in a buine tranaction* The ;alue propoition

help focu the buine on the well>being of the cutomer4 where it remain in

ucceful companie*

,

VALUE DELIVERY THROUGH INTEGRATION OF

ACTIVITIES


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I#T(%RATI'# 'F 'R%A#IVATI'# 'R (#T(R!RIS( '!(RATI'#S

The integration of ytem inide and outide the organiation can pro;ide ;alue

for both cutomer and the organiation* 'ne of the requirement for e>buine i

to lin8 front>end with bac8>end ytem in order automate the online operation of the organiation*

Front>end acti;itie deal directly with the cutomer while bac8>end ytem

include all of the internal upport acti;itie that do not deal directly with the

cutomer* Some enterprie ha;e different geographic location for 45)(t%,(- a(-

3ac'%,(- office acti;itie and rely on the integration of the aociated computer

and networ8 ytem for ucceful corporate operation*

FRONT-END > BA?=-END OPERATIONS@

50

(9ample of acti;itie that require integrated ytem are:

• 'rder placement through point>of>ale ytem

• "utomiation of product baed on uer requirement

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• !roduction trac8ing

• "utomer order fulfillment

(MT(R#A$ I#T(%RATI'#: TH( SU!!$2 "HAI#

'peration on the 7eb can alo e9tend to cooperating firm uch a partner in a

86==+? cha7( 4 alo 8nown a a K6alue 7ebK* The 6alue 7eb may include a wide

range of participant a well a the poible ue of a -77ta+ ,@cha(, to procure

or ell product* 3any firm ha;e participated in a upply chain for year uingE+,ct5)(7c Data I(t,5cha(, EDI technology to buy and ell component and

product*

Succeful upply chain are ;ital for manufacturing operation ince the

timeline4 cot and ucce of the final product may depend on a component part

made by a ingle upplier* The competence of upplier may now be demontrated

through the IS' --- qualification proce4 which i critical when uing upplier

from foreign countrie or when the final product are e9ported*

51

SU!!$2 "HAI# I#T(%RATI'#

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7hen the upply chain tranaction of the partner can be automated and

integrated o;er the 7eb into the bac8>end ytem of each other4 then the reource

of all the chain partner can be planned and managed for an efficient operation* An

emerging approach to automate tranaction with partner i to lin8 ytem

through the corporate =)5ta+ 4 which greatly reduce the integration requirement*

!ortal oftware now ha potential connection4 or hoo84 where the ytem of

different enterprie can be lin8ed to ecurely tranfer data*

In addition to good technology4 it ta8e a trategy4 time4 reource and4 mot

importantly4 trut between partner4 for the upply chain to function uccefully*

52

STRUCTURAL CONCEPTS TO DELIVER VALUE

The effecti;e deli;ery of ;alue to a cutomer4 require that a company organie it

tructure and function according to the type of product or offering deli;ered* The



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./84 C9/I 4 a popularied by 3ichael !orter #4 decribe a linear et of tep4

which could be acti;itie or buine procee uch a deign4 production and

ale4 whereby a manufacturing company deli;er ;alue* Thi ;alue chain deli;ery

model tri;e for o;erall efficiency and cot reduction by increaing the efficiency

and reducing the cot of each buine proce* (ach tep i independent and

eparable4 and can be 46547C:4 or contracted out to another company* The

;alue chain become a upply chain when a company ue the input and acti;itie

of other companie in it manufacturing proce*

Howe;er4 the ;alue chain doenJt appear to decribe how many er;ice>oriented

buinee operate* Stabell and Fbuine et up a a ;alue hop wor8 directly with the cutomer to pro;ide a

neceary4 often unique4 olution*

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The ;alue hop i geared to ol;e pecific client problem rather than to ma8e a

common olution more efficient* Some ;alue hop4 uch a large conulting

companie4 will attempt to duplicate olution among client by introducing buine* 3any online buinee will ha;e a three or four of thee ource* A

mi9 of re;enue ource i often referred to a a re#enue model but may be

mita8enly called a buine model* Some of thee ource of re;enue are:

,

• Ad;ertiing


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• Affiliation

• Agent commiion

• $icening

• Sale commiion

• Sale profit

• Sponorhip

• Subcription

• Syndication

• Ue Fee

For large public>pri;ate or go;ernment progrowing companie uch a e>Buine tartup4 in;etor often

trac8 e9pected re;enue and re;enue growth and may ma8e change to increae

re;enue* Howe;er4 after the D)t%C)/ boom ended4 more traditional meaure uch

a cah flow and earning ha;e came bac8 into fa;or a mean of e;aluation*



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A"TI6ITI(S4 R(S'UR"(S A#1 "A!ABI$ITI(S

The acti;itie4 reource and capabilitie of a buine are ometime 8nown a it

requirement* In order to perform the acti;itie required to carry out the /7887)( of

the buine4 certain reource are neededL for e9ample4 employee with certain

8ill4 or capabilitie4 are needed to perform acti;itie correctly and efficiently*

Alo4 in;ention4 procee and other 7(t,++,ct6a+ =5)=,5t? may add to the

indi;idual 8nowledge of an employee to de;elop a competence in the performance

of the required acti;itie*

A"TI6ITI(S

Acti;itie are pecific buine procee or group of procee uch a deign4 production and ale that implement the buine concept* The operational buine

model identifie the cot and output of each acti;ity*

Acti;itie dri;e the need for reource* (9iting acti;itie hould be carefully

crutinied in order to coner;e reource and reduce cot* Acti;itie left o;er

from pre;iou initiati;e4 but not currently neceary hould be curtailed* Thi may

ound elementary but buinee tart many acti;itie o;er time4 epecially if it

buine concept change* But one doenJt often hear of a large buine curtailing

it acti;itie in order to focu on it current miion*

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D

(>BUSI#(SS !R'"(SS(S:

Some fundamental e>buine acti;itie may infringe on patent* Buine

procee4 or the Kmethod of doing buineK may be patented4 o that a buine

model may unwittingly include the de;elopment or ue of intellectual property

owned by another party* !atent ha;e been freely awarded for e;en the mot

traight forward buine procee*

• Amaon*com ha a patent for Kone clic8K purchaing technology and it

KAffiliateK program*

• "yber%old ha a patent for pay>per>;iew ad where the cutomer en


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•

/

• !riceline*com wa iued a patent for it re;ere auction method4 that i4

Kname your priceK auction*

• Sightound*com ha a patent for elling digital content &e*g* downloading

film) on the 7eb*

• "I Software ha a patent for (1I on the Internet

• 'ne of the mot widely renowned patent infringement cae wa

Amaon*comJ patent for Kone clic8K technology for purchaing item4 which

wa at the center of it dipute with Barne and #oble* 'ne>clic8 hopping

allow the propecti;e buyer to bypa the ue of a Khopping cartK4 which i

cumberome for many uer*

• Amaon*com alo ha a patent for it KAffiliateK program4 which allow the

company to mar8et the product of other companie in return for a

commiion* Thi buine proce ha been ued freely by traditional

buinee ince the beginning of recorded hitory and the fact that thi

proce ha been patented i ;ery contro;erial* Alo contro;erial i

!riceline*comJ patent for a re;ere auction method4 which it ue to ell

airline tic8et*

• In effect4 a few companie ha;e patented Internet buine model4 which

are being ued by many other companie* If thee patent can be eaily

licened at reaonable rate then there wonJt be a problem in the future


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de;elopment of e>buine* But if not4 the reulting chao will inhibit the

growth of the online buine world*

.

(>BUSI#(SS (#6IR'#3(#T A#1 STRAT(%I(S

The rate of change in e>buine preent an enormou challenge to manager*

Buine on the Internet i buine*

The en;ironment of any organiation conit of all of the factor that are beyond

it control4 but influence it in one way or another* (9ample of thee factor are

hown in the figure4 (>Buine (n;ironment and Strategie* To counter the

potential ad;ere affect of thee factor4 the e>buine can repond with

trategie*

An e9ternal trategy i an approach to deal with factor in the e9ternal buine

en;ironment uch a competitor4 mar8et4 and technological de;elopment4 that

are beyond the companyJ direct control* Thi i different from a corporate trategy4

which addree factor under the companyJ control uch a the approach to

mar8eting4 ale4 and pricing* 'ther component of the buine model uch a the

;alue propoition and ource of re;enue may alo include trategie*

The teady de;elopment of a product ha other ad;antage* It e;en out the

re;enue tream rather than ha;ing the Kboom or butK cycle of a ingle product* It

alo how that the company i teadily de;eloping and upgrading product for the

cutomer who hould begin to buy into the companyJ ;iion* And cutomer4

analyt4 and in;etor will de;elop confidence that the company i going to be

around for the long>term*


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The price mut alo pro;ide real ;alue to the cutomer4 that i the cutomer mut be

pleaed with the purchae of the product or er;ice* In addition to price4 the buyer

may alo be intereted in how the product can be of aitance to hi company* In

thi cae4 comparion of price and R'I may be ued to how that the offering add

more ;alue than a competitorJ* The price can alo be a bai for building long>term

cutomer relation4 which can lead to multiple ale* For e9ample4 a retail

cutomer become more comfortable hopping on a ite4 it hould be eaier to get

them to migrate to higher margin product*

TH( (>BUSI#(SS (#6IR'#3(#T A#1 STRAT(%I(S

60


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(9ternal trategie may be dri;en by component of the buine model4 uch a

finding wor8er with certain capabilitie to taff acti;itie* If the required wor8

force i not a;ailable locally4 the buine concept may ha;e to change4 andwor8er brought in4 or the wor8 outourced* (;en though trategie may be

implicit in the buine model4 uch a hire wor8er at the indutry wage4 it i

important to recognie them e9plicitly becaue they may ha;e to change a the

buine en;ironment change*

TH( "'3!(TITI6( (#6IR'#3(#T A#1 STRAT(%I(S

The competiti;e en;ironment4 ometime 8nown a the indutry en;ironment4

reult from relationhip with other firm* Thee relationhip are with upplier4

cutomer4 producer of ubtitute product4 potential new entrant4 competitor4

KcomplementaryK4 and trategic partner4 which are decribed by !orter*

7hen upplier are limited4 they may 8eep price high and reduce the profit of a

firm that buy from them* A trategy for the buyer i to find new upplier4 or

producer of ubtitute product* 'n the other hand4 if there are only a few buyer4

they can 8eep price low4 but a trategy for the eller i to find more cutomer to

compete for product in order to raie price4 or to find a more profitable of their

indutrial capacity*

D+


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Therefore the Internet er;e to increae the 8nowledge of price4 find producer of

ubtitute input4 and ubequently caue downward preure on price*

!otential new entrant to a mar8et may alo dirupt price* (ither they enter the

mar8et with low price to gain mar8et hare4 or they caue the e9iting firm to

lower it price in order to create a entry barrier to the new firm* "ompetitor may

alo caue price to drop through price war4 but can alo contribute to tability in

the mar8etplace* Finally4 complementary4 firm that ma8e product that need the

firmJ product to add ;alue &e*g* oftware de;eloper for particular !" operating

ytem)4 a well a trategic partner can create demand for the firmJ product* In

each cae the Internet may be ued to the ad;antage or diad;antage of the e>

buine* The point i that an e>buine mut ha;e an Internet trategy to be

ucceful*

3AI#TAI# A#1 I3!R'6( "'3!(T(#"I(S

'ne ob;iou trategy i to de;elop the capabilitie4 and to build and maintain

competencie in order to 8eep an ad;antage o;er other firm* To do thi4 one mut

undertand mar8et condition and the firmJ trength and wea8nee*

'ther trategie to maintain competencie include:

• 3lock : The Kbloc8K trategy ma8e it difficult for other companie to copy

buine procee and intellectual property* Bloc8 can be achie;ed by

limiting 8nowledge tranfer about critical feature or by reducing or

indicating a reduction in price*

DE


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• 7un: The KrunK trategy mean the buine inno;ate fater than potential

competitor* To pull it off the company need competencie in critical area*

•

• 5trategic /lliance: The e>buine wor8 with other firm that are not

uually direct competitor* For mall e>buinee4 alliance may be eential

ince e;ery facet of growth can be facilitated through aociation with a

well>8nown and capable partner* Strategic alliance can ol;e immediate

problem of de;eloping capabilitie in ditribution4 hipping4 and billing4

and will allow the company to be Kup and runningK ;ery quic8ly* Howe;er4

the mall company hould be concerned about loing it autonomy and

intellectual property to it larger partner*

•

TH( T("H#'$'%2 (#6IR'#3(#T A#1 STRAT(%I(S

Tec!n$$+ ,"s "n i*,$r"n r$e in e-#&siness "n% *&s #e

r"c7e% c$se I c"n s!i. ver 8&ic7 "n% +re" %isr&, "n

&n,re,"re% c$*,"n

1ISRU!TI6( T("H#'$'%I(S

7hen a new technology create a different approach to performing a ta8 that i

le cotly4 more efficient4 or otherwie relati;ely ad;antageou and diplace

e9iting technology4 it i 8nown a a :I574*6I. 6C98"= * Thee


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technical diruption can caue buinee to fail4 particularly in thoe

organiation unprepared to change their buine model*

&<

E@a/=+,8 )4 -7856=t7, t,ch()+)7,8 a5,

• Alternati;e (nergy %eneration at low cot*

• Artificial Intelligence including Autonomou Sytem*

• (mergent "omputing: Biocomputing4 1#A "omputing4 'ptical "omputing4

3olecular or "hemical "omputing4 and Ouantum "omputing*

• %lobal e>"ommerce with the (lectronic !roduct "ode &(!") and RFI1*

• %rid "omputing4 including Bioinformatic %rid and (conomic

1e;elopment %rid*

• Human>3achine Interaction: Intelligent "ollaboration4 Intelligent 1eign4

and Intelligent Training Sytem*

• #anotechnology*

• 'pen "oureware*

• 'pen 1eign !roblem Sol;ing*

• !arallel "omputing*

• 5nowledge Repreentation and the Semantic 7eb*

• Superconducti;ity*


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• 6oice4 Sight and Haptic &i*e* touch) Repone Sytem*

• 7irele Internet*

D,

T("H#'$'%2 STRAT(%I(S

(;ery e>buine concept baed on a technology brea8>through run the ri8 of

being replaced by a company with a newer technology* Therefore4 a trategy to

maintain technological leaderhip4 or to ha;e acce to the leading applicable

technologie4 i eential for the long>term ur;i;al of a technology>baed e>

buine*

A technical inno;ation trategy can be a imple a outourcing the technical ide

of an e>buine rather than trying to maintain the competency in>houe* If it i

large enough4 a firm can de;elop new technologie* But for mot firm4 an R1

program i too e9peni;e* 'ne option i to partner with an organiation 8nown for

de;eloping new technologie4 o that they become a;ailable a they are de;eloped*

"o>de;eloping and licening technologie are alo option* The ue of a trategic

alliance can er;e a a technology trategy4 a well a a competiti;e trategy*


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To a;oid falling ;ictim to a new technology4 a firm mut try to 8eep abreat of

technological de;elopment that may affect it indutry* Any company that i

technology>dependent mut ha;e omeone in>houe who i 8nowledgeable about

the latet technical de;elopment* But more importantly4 the company mut be

willing to ta8e action when it appear that a mabuine4 epecially in

the area of pri;acy4 patent and other intellectual property* (>Buine leader

hould undertand regulation and the rational for local ta9e4 including how ta9

re;enue are pent* Unfair ta9 brea8 hould not be e9pected by an e>buineL

neither hould buinee e9pect to compete unfairly with other buinee*

("'#'3I" "$I3AT(

Sound financial trategie will help maintain cah flow and ol;ency during an

economic downturn* 3any mall buinee imply run out of money before product begin to generate re;enue* (>buine hould ue the coner;ati;e

accounting practice preferred by mot in;etor*

7'R5(R A6AI$ABI$IT2


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The a;ailability of qualified employee i one of the bigget problem for an e>

buine attempting to grow from a tartup into a mall or medium ied enterprie*

Although technical wor8er became a;ailable in the economic downturn after the

1ot>"om crah4 the a;ailability of foreign wor8er decreaed ignificantly after the

terrorit attac8 of September ++4 E--+* $arger technical companie4 who hadaugmented their wor8 force through hire of foreign wor8er prior to K++K now

feel that mut outource large number of


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D/

it implet form4 e>buine in;ol;e incorporating the Internet or it technologie

to upport a basic buine proce* For e9ample4 your order entry ytem4

connected directly to the in;entory databae4 i typically acceed from the field by

ale rep calling their product a#ailability inquirie in to an order entry

adminitrator*

The ale rep call in through a tatic %UI program or by e>mail to an order entry

cler84 who procee each inquiry by order of receipt*


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The proce wor8 but may bog down during pea8 period of the day or when the

taff i hort>handed* Beide4 the main function of the order entry taff i to

proce actual order*

!ro;iding product a;ailability information to the field i a related reponibility

that i often uper ceded by higher prioritie*

!roceing lat minute requet in preparation for a meeting i too often out of the

quetion*

To complicate matter4 you alo ha;e independent dealer and affiliate requiring

product a;ailability tatu report a well a inquirie on an ongoing bai*

After deciding that the product a;ailability inquiry acti;ity i uitable for an e>

buine application4 the ne9t tep i identifying the information aet&) the

proce generate*

D.

The mapping of information aet with the procee that upport them i a critical

requirement in e>buine application de;elopment*

PRODUCT INUIRY FULFILLMENT PROCESS


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Intead of field peronnel interacting with a character>baed4 tatic %UI or other

generic front end to generate the inquiry requet4 they would acce a front end that

i capable of running in their brower4 a peronal digital aitant &!1A)4 or

wirele hand de;ice* The front endX7eb er;erXmut be able to perform the

function pro;ided by the order entry taff*

D

That i4 it mut be able to acce the in;entory databae4 gather the information

required by the inquiry4 format the repone4 and feed it bac8 ;ia the Internet to the

appropriate place &field) in the uer brower4 which i running the application on

a laptop4 home office computer4 !1A4 and o on* The application alo doe ome

houe8eeping chore by clearing the inquirie from the front end and the remote

databae call from the bac8 end4 or in;entory databae*


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CROSSING THE DIGITAL CHASM WITH MIDDLEWARE

/-3ot li8ely4 the front>end 7eb application4 or what the uer ee and interact with

in the brower4 i de;eloped with Internet>enabled technologie4 uch a a;a or

HT3$ application tool* The bac8 end could be4 for intance4 a legacy U#IM

databae that ha been a miion>critical application for ome time*

To accomplih the interconnecti#ity between the front>end brower application and

the bac8>end U#IM databae4 yet another application ytem4 typically referred to

a middleware, mut be ued to pro;ide the interconnection4 or compatibility4


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between the diimilar front> and bac8>end application* (9ample of middleware

are ytem de;eloped with E(( &a;a E !latform (nterprie (dition)*

1e;eloped by Sun 3icroytem4 E(( i more popular in 7eb applicationde;elopment than "'RBA &common ob


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(>buine i a forging of a new economy of in>time buine model4

whereby phyical procee are being upplanted by ;irtual operating dynamic*

2e4 e>buine i all thi*

THE E%BUSINESS SUPPLY CHAIN

Typically4 e>buine i decribed and dicued with more emotion than other

buine area4 and rightfully o* After all4 we are witnee to an e9citing

re;olution*

To gain true inight and a conceptual undertanding of e>buine4 it need to be

defined from both the BE" and the BEB perpecti;e*

Thi ection alo introduce Internet4 or digital4 upply chain and re;eal their

underlying ignificance to both the BE" and BEB e>buine channel*

/E

THE B!C SUPPLY CHAIN STREAMLINES PROCESSES OF

THE PHYSICAL WORLD


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THE BUSINESS%TO%CONSUMER PHENOMENON

7hen conumer purchae good and certain clae of er;ice directly from the

Internet4 online retailer are er;icing them* In other word4 online retailer4 or e>

tailer4 ha;e initiated a conumer>oriented upply4 or ;alue4 chain for the benefit of

Internet conumer* Thi form of Internet>baed acti;ity i 8nown a buine>to>

conumer &BE")*

/0

Supply chain i ued interchangeably with ;alue chain* Howe;er4 upply chain4 in

the traditional ene4 refer to the upply and ditribution of raw material4 capital

good4 and o on4 that are purchased by a gi;en enterprie to ue in manufacturing

or de;eloping the product and er;ice for cutomer or in regular buine

operation*


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In BE" ditribution mode4 upply4 or ;alue4 chain refer to the ytem4 or

infratructure4 that deli;er good or er;ice directly to conumer through

Internet>baed channel*

BE" e>buine i a rich4 comple9 upply chain that bear no direct analogy to the

phyical world* In fact4 no supply chain in the phyical world compare to BE"

;alue chain uch that an apple>to>apple comparion can be made* Thu4 BE" e>

channel are unique becaue they are pro;iding upply chain that streamline and

enhance processes of the phyical world*

Internet>dri;en upply chain depend hea;ily on the coordination of information

flow4 automated financial flow4 and integrated information procee rather than

on the phyical procee that traditionally mo;e good and er;ice from producer

to conumer*

/,

THREE CLASSES OF B!C VALUE CHAINS MAKE POSSIBLE

THE FOLLOWING E%BUSINESS REALITIES

+) 1eli;ery of the uni#erse, or an unlimited numberXpotentially

millionXof good and er;ice within etablihed mar8et4 by

operating under a ingle brand identity or a a uperefficient

intermediary*


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E)* "reation of new market channels by le;eraging the Internet*

0)* (limination of middlemen while treamlining traditional buine

procee

E%BUSINESS THE SHAPING AND DYNAMICS OF A NEW

ECONOMY

Amaon*com and "1 #ow are e9cellent e9ample of the BE" cla indicated in

cla +* Amaon ha ucceeded by producing an efficient conumer product

deli;ery ytem*

The ;alue in thi e>buine channel i the uniting of many bac8treet dealer under

the banner of one popular brand name* "1 #ow i alo attempting to implement a

imilar trategy* Furthermore4 no one boo8tore or muic tore in the phyical

world offer +- million title li8e Amaon*com doe or 0E4--- "1 li8e "1 #owdoe*

/

Traditional boo8 or "1 retailer in etablihed mar8et could ne;er offer thi ;at

array of merchandie4 becaue of helf pace and in;entory contraint* For

e9ample4 the typical uper boo8tore or muic

"1 tore toc8 only +-4--- or D-4--- title4 repecti;ely*

An e9ample of BE" cla E i eBay4 which created a new mar8et channel in

etablihing an online auction facility* Through thi e>buine channel4 buyer and

information technology project report.docx

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