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Electronic Commerce

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Electronic Commerce
Assignment #1

Stacey Cruise
3135149
Friday November 8, 2013
Part A

1. Both Google and Yahoo! can be classified under the ‘Portal’ B2C business model, as both sites offer and integrate a wide package of content including: social network services, news, e-mail, and the ability to search content. The major reason web surfers use either site is simply because these services offered to the public are free. Individuals are permitted to utilize these services free of charge because both companies receive revenues through advertisements. Google for example will only receive payment from their advertisers once a searcher “clicks” on their ad. Both companies also realize the same market opportunity and compete for the same market share with other organizations including: Bing, Ask, and AOL. One of the major distinctions between Yahoo! and Google is the competitive advantage both companies offer to the public. Although both provide a wide range of features, Google maintains their own algorithms in order to achieve the most accurate search results whereas Yahoo! concentrates more on other services they offer such as Yahoo! local or Yahoo! answers allowing them to better compete with Google for market share.

2. One of the common difficulties a company is confronted with when expanding the reach of their market is growing too quickly. Physical space may become too small, and will no longer be sufficient in supplying customer demand. It also becomes easy for a company to lose track of important business operations if expansion happens too quickly; therefore, the company should implement a recordkeeping system, allowing them to monitor cash flow, track inventory/ deliveries, and manage finances. The business may also lack expansion capital as a result of neglecting to properly plan for the future. Furthermore, partners may have different views on

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