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  • Level: GCSE
  • Subject: ICT
  • Word count: 3294

INTERNET & EBUSINESS

Extracts from this document...

Introduction

Unit 29: Introduction to the Internet and Ebusiness Assignment Inamullhassan Madarbukus Lecture: Tomeo Paolo Introduction The use of the Internet has become a well established form of communication for businesses to take advantage of. It allows the organization to open up new markets, reduce costs and create opportunities of trade on a world wide scale. Today all large businesses, as well as many small businesses and enterprising individuals, have websites. The terms 'e-business', 'e-commerce', and 'on-line communications' have become a part of everyday life. Two businesses that will be analyzed in their trade of 'businesses to business' and 'business to consumer' have been selected, a comparison will be made on each company's electronic business and use of the net. The first company I have chosen is 'Costco Wholesale' - www.costco's.com. This corporation operates an international chain of membership warehouses. They market quality, brand name merchandise at substantially lower prices than are typically found at conventional wholesale or retail sources. The warehouses are designed to help small-to-medium-sized businesses reduce costs in purchasing for resale and for everyday business use. Individuals may also purchase for their personal needs. The second company I have researched, Dell, Inc. - www.dell.co.uk is involved in the design, development, manufacture, marketing, sale, and support of various computer systems and services to customers worldwide. They market products and services from full desktop computers, MP3 players to networking wireless servicing. As a distinction made to most other organisations, they operate trade only by the use of the Internet. Task 1 A) Distinguish between the terms E-Business and E-Commerce E-Business - Business on the internet: the conduct of business on the internet, including not only the buying and selling of goods and services but also the servicing of customers and the collaboration with business partners. E- Commerce - Involves buying and selling through the medium of the internet. Even when a business does not create a website for selling it is likely to access the internet for buying activities, because e-purchasing is such a convenient way of browsing for good deals. ...read more.

Middle

* Consumer are able to create there own account for purchase * Frequently question asked? * Allows customers to customize their own products of purchase * Show' s the latest software arrival soon * Check status of order through the site * Technical support services are available for those who or experiencing problems with there P.C, Software etc... * List of products with informative fact and figures Task 3 A) Using examples from the two businesses you have researched and from other businesses of your choice, describe how the internet can be used for selling a product, or service. The basic purpose of a commercial website is to generate revenue from sales. There are a number of business models achieving this online. Has explained below that many long - established retailers have added an online sales channel to their existing offline (Physical) stores. There are some distinguished business (Amazon being the most well known) that have established an only online presence. In other words, you won't (yet) find an Amazon shop down your road. Business to Consumer (B2C) A B2C website offers to sell or provide a service to private consumers rather than other businesses; b2c businesses service consumer demand. If you walk around any shopping areas and you will see a range of retail outlets offering goods for sale to us, private consumers. Before the development of the internet, shopping was restricted to particular times and you had to travel to them (David Dooley). By contrast, an online shop is unlimited or space and there are no limits to what an internet retailer can offer to consumer. There is big different between adding an online sales channel to an existing firm and trying to set up a completely new online retail outlets. Most of the growth in e-business is due to physical businesses adopting an e-strategy. Amazon is one of the most successful online businesses and a model for every online firm. ...read more.

Conclusion

* Opens to unwanted communication. One of the 'occupational hazards' of running an internet business is unwanted commercial email. If you post email in your site, or include it in your forms to allow legitimate customer to contact you, be prepared to receive a deluge of spam emails. * While the internet offers marketing benefits and opportunities, it also throws up many challenges. These challenges have to be prepared for, faced and overcome if a business is to successfully compete in the online world. * Traditional thinking about business activity looks at the chain of value-adding process the organization undertakes, e.g. acquiring materials, storing materials, working with materials to produce something, packaging the product, warehousing (strong)the product, marketing the product, selling it, moving it. * Just as the internet represents a new channel of opportunities, so it cases potential conflict and challenges. Internet activity is measured by the value it adds to the business. If it fails to add value, then the strategy has been either poorly thought through or it is inappropriate for the business. * Price comparison to other company which will drive customer away from business. * Might not meet customer satisfactions. * Spam or virus can effect the website if not maintain. * Information might not be clear to consumer * one problem they may encounter is the amount of other sites also selling similar products * Also lacks of good customer services- when buying something as expensive as a computer u want some advice. * Picture of product might not be clear to customer * Consumer may find browsing difficulty or may find the site hard to configured * Fact of product be not be update * Unable to feel the product * Internet broadcast could cause a faulty where as it will cause a problem to view site or even when your updating the web page it could clash with consumer from booking there order. Reference: Chaffey, D: E-Business and E-Commerce Management, Prentice Hall, 2002 http://www.e-consultancy.com/knowledge/glossary/ http://searchcio.techtarget.com/sDefinition/0,,sid19_gci212026,00.html http://en.wikipedia.org/wiki/E-business http://www1.euro.dell.com/content/topics/topic.aspx/emea/segments/odg_search_copy?c=uk&l=en&s=gen&st=Dell&dgc=ST&cid=5186&lid=121454 http://www.costco.com/ http://www.pcmag.com/encyclopedia_term/0,2542,t=e-business&i=42215,00.asp http://www.pcmag.com/encyclopedia_term/0,2542,t=e-commerce&i=42222,00.asp http://www.microsoft.com/presspass/press/2005/nov05/11-01PreviewSoftwareBasedPR.mspx Word count: 2,897 ?? ?? ?? ?? ...read more.

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