COM 125 - Entry #3: E-Commerce & E-Marketing

E-business is defined as "a secure, flexible, and integtrated approach to delivering differentiated business value by combining the systems and processes that run core business operations with the simplicity and reach made possible by Internet technology." (http://www.ibm.com). In short, E-business is the function of deploying technology to maximize custoemr value while E-commerce is the function of creating exchange over digital media. (Kalakota and Robinson, 1999.)

The WWW changes the traditional landscape of the business environment from that of being a Marketplace to a Marketspace. The impact of this digitization is evident in the following changes:

1. Content of transaction - information about a product often relaces the product itself.
2. Context of transaction - electronic screen replaces face-to-face transaction.
3. The enabling infrastructure of transactions is different - computers and communications infrastructure may replace physical resources.

A) The top 10 key factors why some E-Commerce businesses succeed:

1. Accessibility
2. Works at the Convenience of customers.
3. Transactions are done in real-time.
4. Products/Services offered are unique and one of a kind.
5. Ability to Customize products or tailor services to customers' needs.
6. Cost-effectiveness; Product/Service offered is the cheapest in the market.
7. Product/Service offered is the best in the market, or is the most established & reputable brand name.
8. Brand name is familiar to customers.
9. Website is user-friendly and easy to navigate.
10. Website is attractive.

B) Top 10 reasons why some E-Commerce businesses fail:

1. Issue of Fraud.
2. Internal politics within the company.
3. Channel conflict
4. Strong Competition faced within the market.
5. Copyright issues and the issue of fake or imitation goods.
6. No assurance of Secure transactions.
7. The ease with which customers can access other "online stores" and compare prices may lead to a loss in customer loyalty.
8. Expensive items sold.
9. No strong or unique edge/selling point.
10. Website is difficult to navigate.

C) How to make E-Marketing a success?

Now, with the prevalence of the online community and so many flagships stores and established brand names coming into the market and branching out into an online store as well, it gets increasingly difficult to differentiate one store from another. Products and services offered are similar and cannot vary much. Thus, the only way to create a "Competitive marketing edge" and win your competitors hands down would be stand for something unique or to offer your customers a uniqueness found only YOUR "online stores". One must also possess the aforementioned factors in order to make E-Marketing a success.

D) Security, Privacy & Legal issues for E-Business

The copyright environment of the WWW is virtually boundless. Any information published online may be susceptible to being replicated, the issue of fraud and privacy issues are also other concerns. Currently, there is no legal framework for the WWW that is binding on a global scale. As the rules governing the Internet are still being determined, hence the right of a Web entrepreneur are being defined with the develoment of the Internet itself.

As for the potential abuses of data collected on the WWW, the only consensus seems to lie in finding ways to protect data integrity while educating the various stakeholders. The one certainty that prevails today is that consumers need to be informed of the data collection activities of a firm and the use/trading of such data must be by consent of the consumer. This serves as the only consolation for consumers now while the other rules and regulations are being figured out.