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  • Level: GCSE
  • Subject: ICT
  • Word count: 3454

Impact of E-Commerce.

Extracts from this document...

Introduction

Contents Introduction 2 Impact of E-Commerce 2 Objectives of the Web Site 3 Usability 4 Woolworths Web Design 5 Security Policy 5 Reach & Richness 6 Customers 6 Target Market 6 Designers of the Web Site 7 Suppliers 7 Examining Effective E-commerce - Literature 8 Common Aspects within E-commerce Sites 10 Conclusion 11 References 12 Books: 12 Web Sites: 12 Bibliography: 13 Appendices 14 Appendix A 14 Appendix B 14 Appendix C 15 Introduction E-Commerce has made a huge impact in society today, where retailers are now increasingly adopting a multi-channel approach to reach their customers. Rayport and Jaworski defined E-Commerce as; "...technology-mediated exchanges between parties (individuals, organisations, or both) as well as the electronically based intra - or inter-organisational activities that facilitate such exchanges." [J. Rayport 2001] On the whole, E-Commerce refers to transactions involved with selling products to an organisations' customers - electronically. i.e) via the web. Throughout this report - I will be looking and evaluating Woolworths official Web site. This is available on www.woolworths.co.uk . Woolworths have engaged in E-Commerce since 1996 and have found it to be extremely successful and a great marketing tool. There are many benefits which e-commerce organisations can take advantage of. I have outlined these below: - New sales channels to customers in all parts of the globe. - Provide detailed product information, technical support. - Open all day and everyday. - Facilitate fast and flexible responses to market opportunities. Customers can now make more informed decisions because of the rich product information available. The Web site can automatically tell customers whether particular items are in stock - reducing costs. ...read more.

Middle

By providing extremely valuable and rich information - customers gain a detailed specification of products. The information not only helps the customer, but also achieves the company's objective of showing potential customers how products work for them. Security Policy Woolworths have their own secure software that encrypts all personal information and prevents it from being accessed by any third party. Woolworths security policy is clearly stated on their front page - encouraging customers to register, as they are a reliable company. Reach & Richness Richness means the quality of the information - from the customers' perspective. Whereas Reach - means the number of people who participate in the sharing of that information. Evans & Wurster believe that; "It has been impossible to share simultaneously as much richness and reach as one would like." [Evans & Wurster 1999] I disagree with this statement, as I consider Woolworths Web site to have 'high Richness and high Reach'. (Please refer to Appendix B - for diagram of Richness & Reach). From the diagram I can see that Woolworths site is high in richness - as the products in which they sell include a detailed specification, and the reach of customers is high as they advertise to a wide range of the market. Although Woolworths only deliver products to addresses within the UK - they have begun to extend their market reach by implementing an in-store ordering system - this links in very well with e-commerce because customers who don't have access to the Internet are not singled out. If customers don't find a product they are looking for in-store - then they can order it online, in-store. ...read more.

Conclusion

Common Aspects within E-commerce Sites There are many common aspects in which companies involved in e-commerce are interested in. However, their ultimate goal is to comprise a successful Web site. The table below considers points, in order to ensure e-commerce Web sites are successful. A Vision Have a clear idea of what they want their Web site to achieve. Clear Target Market So, they project the correct image for their market. Good Structure Customers need to find what they're looking for Good Content Needs to be carefully targeted and continuously updated. Usability Ease-of-use & functionality are vital aspects Figure 4 - Common aspects in E-commerce sites. Conclusion To conclude I have found out that all e-commerce sites have their own unique set of problems to solve and issues to address, however - from the literature I gathered that they all share the following common determinants of success: - Specific goals - Clean and Clear structure - Good, rich content - Vision - A disciplined approach - User involvement I think effective communication is a key factor in the success of an e-commerce site. Features and functions always matter, but user experience has a far greater effect on customer loyalty. I would say good user experiences will most definitely return customers to their site. Woolworths unique shopping experience is popular and successful because it is focused around meeting customer needs. Woolworths has gained competitive advantage over rivals by differentiating itself on the basis of providing the best value for money for customers through the most convenient shopping experience. By embracing new technologies, Woolworths continues to provide the channels that are most appropriate to the modern retailing experience. One of the best advantages I would say about e-commerce sites is that they are open all day, everyday and can be accessed from an Internet connection anywhere in the world. ...read more.

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