Premium Essay

Explain Growth of E-Business

In: Business and Management

Submitted By Bsv0572
Words 2496
Pages 10
E-business (Electronic Business), derived from such terms as ‘e-mail’, ‘e-commerce’, is the conduct of business on the internet, not only buying and selling but also servicing customers and collaborating with business partners.

History of ecommerce dates back to the invention of the very old notion of "sell and buy", electricity, cables, computers, modems, and the Internet. Ecommerce became possible in 1991 when the Internet was opened to commercial use. Since that date thousands of businesses have taken up residence at web sites.

At first, the term ecommerce meant the process of execution of commercial transactions electronically with the help of the leading technologies such as Electronic Data Interchange (EDI) and Electronic Funds Transfer (EFT) which gave an opportunity for users to exchange business information and do electronic transactions. The ability to use these technologies appeared in the late 1970s and allowed business companies and organizations to send commercial documentation electronically.

Although the Internet began to advance in popularity among the general public in 1994, it took approximately four years to develop the security protocols (for example, HTTP) and DSL which allowed rapid access and a persistent connection to the Internet. In 2000 a great number of business companies in the United States and Western Europe represented their services in the World Wide Web. At this time the meaning of the word ecommerce was changed. People began to define the term ecommerce as the process of purchasing of available goods and services over the Internet using secure connections and electronic payment services.

Although the dot-com collapse in 2000 led to unfortunate results and many of ecommerce companies disappeared, the "brick and mortar" retailers recognized the advantages of electronic commerce and began to add such capabilities to…...

Similar Documents

Premium Essay

Principle of Marketing Chapter 2

...changing marketing opportunities. A) Benchmarking B) SWOT analysis C) Market segmentation D) Strategic planning E) Diversification Answer: D AACSB: Analytical thinking Skill: Concept Objective: LO 2.1: Explain company-wide strategic planning and its four steps. Difficulty: Easy 2) Which of the following is true with regard to strategic planning? A) At the corporate level, the company starts the strategic planning process by determining what portfolio of businesses and products is best for the company. B) A strategic plan deals with a company's short-term goals. C) The focus of strategic planning is to define a game plan for long-run survival and growth. D) The strategic plan is a statement of an organization's purpose. E) Strategic planning involves identifying segments of consumers with identical preferences. Answer: C AACSB: Analytical thinking Skill: Concept Objective: LO 2.1: Explain company-wide strategic planning and its four steps. Difficulty: Moderate 3) Which of the following is the first step in strategic planning? A) setting short-term goals B) developing the business portfolio C) defining the organizational mission D) formulating the key marketing strategies E) identifying the organization's weaknesses and the threats it faces Answer: C AACSB: Analytical thinking Skill: Concept Objective: LO 2.1: Explain company-wide strategic planning and its four steps. Difficulty: Easy 4) Which of the following is NOT a......

Words: 10966 - Pages: 44

Premium Essay

The Importance of Strategic Management

...CHAPTER SUMMARY – CHAPTER 8 The Importance of Strategic Management ✓ Define strategic management, strategy, and business model. ✓ Explain why strategic management is important. Strategic management is what managers do to develop the organization’s strategies. Strategies are the decisions and actions that determine the long-run performance of the organization. A business model is a strategic design for how a company intends to profit from its strategies, work processes, and work activities. Strategic management is important for four reasons. First, it makes a difference in how well organizations perform. Second, it’s important for helping managers cope with continually changing situations. Third, strategic management helps coordinate diverse divisions, departments, functions, and work activities, and keeps all focused on achieving the organization’s goals. Finally, it’s important because it’s involved in many of the decisions that managers make. The Strategic Management Process ✓ List the six steps in the strategic management process. ✓ Describe what managers do during external and internal analyses. ✓ Explain the role of resources, capabilities, and core competencies. ✓ Define strengths, weaknesses, opportunities, and threats. The six steps in the strategic management process are: (1) identify the current mission, goals, and strategies; (2) do an external analysis; (3) do an internal analysis – steps 2 and 3 collectively are......

Words: 855 - Pages: 4

Premium Essay

Customer Relationship Management

...perceive the business as a single entity, despite often interacting with a number of employees in different roles and departments. CRM is a combination of policies, processes, and strategies implemented by an organization to unify its customer interactions and provide a means to track customer information. It involves the use of technology in attracting new and profitable customers, while forming tighter bonds with existing ones. CRM includes many aspects which relate directly to one another: * Front office operations — Direct interaction with customers, e.g. face to face meetings, phone calls, e-mail, online services etc. * Back office operations — Operations that ultimately affect the activities of the front office (e.g., billing, maintenance, planning, marketing, advertising, finance, manufacturing, etc.) * Business relationships — Interaction with other companies and partners, such as suppliers/vendors and retail outlets/distributors, industry networks (lobbying groups, trade associations). This external network supports front and back office activities. * Analysis — Key CRM data can be analyzed in order to plan target-marketing campaigns, conceive business strategies, and judge the success of CRM activities (e.g., market share, number and types of customers, revenue, profitability). Proponents of CRM software claim that it doesn't only allow more effective ways of managing customer relationships, but also more customer-centric ways of doing......

Words: 1456 - Pages: 6

Premium Essay


...L & Vida, D 2013 “Influence of Information Systems on Business Performance” Science:Future of Lithuania, Vol. 5, issue1, p38-45 This article examines the influence of information system on business performance. The author gather the data through the use analysis of scientific literature and research synthesis in order to identify benefits of information system and the influence of business performance. The authors explain that information system can be viewed differently however system in most cases are most often grouped in five categories; office information systems, transaction processing systems, management information systems, decision support systems, and executive support systems. (Dmitrij & Vida, 2013) 1.1Justification This article will be useful as it clearly define what an information system is and explain how it is crucial for any business in the modern society. Furthermore it discusses the five classifications of information systems and explains how these system are interconnected with data and information flow. The articles also explain how each system covers a specific are of the business specific area and it is crucial that these system are connected to meet business needs. (Dmitrij & Vida, 2013) One limitation of this article is that the authors give multiple definitions of what information is. Question 2 Malhotra, R & Temponi C (2010) “Critical decisions for ERP integration: Small business issues” International Journal of Information......

Words: 1376 - Pages: 6

Premium Essay

E-Commerce Understanding

... Define e-commerce and describe how it differs from e-business.  Identify and describe the unique features of e-commerce technology and discuss their business significance.  Recognize and describe Web 2.0 applications.  Describe the major types of e-commerce.  Discuss the origins and growth of e-commerce.  Explain the evolution of e-commerce from its early years to today.  Identify the factors that will define the future of e-commerce.  Describe the major themes underlying the study of e-commerce.  Identify the major academic disciplines contributing to e-commerce. Key Terms e-commerce, p. 12 e-business, p. 13 information asymmetry, p. 14 marketplace, p. 16 ubiquity, p. 16 marketspace, p. 16 reach, p. 16 universal standards, p.16 richness, p. 17 interactivity, p. 17 information density, p. 17 personalization, p. 18 customization, p. 18 Web 2.0, p. 19 business-to-consumer (B2C) e-commerce, p. 22 business-to-business (B2B) e-commerce, p. 22 consumer-to-consumer (C2C) e-commerce, p. 22 social e-commerce, p. 22 mobile e-commerce (m-commerce), p. 23 local e-commerce, p. 23 Internet, p. 23 World Wide Web (the Web), p. 24 disintermediation, p. 32 friction-free commerce, p. 33 first mover, p. 33 network effect, p. 33 Copyright © 2013 Pearson Education, Inc. 2 Brief Chapter Outline Opening Case: Pinterest: A Picture Is Worth a Thousand Words 1.1 E-commerce: The Revolution Is Just Beginning The First Thirty Seconds What Is E-commerce? The Difference between......

Words: 6285 - Pages: 26

Premium Essay


...UNIVERSITY SCHOOL OF BUSINESS Course Syllabus - FALL 2011 ECON 201-ALL SECTIONS PRINCIPLES OF ECONOMICS (MACRO) SEC | CRN | DAYS | TIME | CLASSROOM | INSTRUCTOR | 201-HR | 21507 | TR | 12:30-1:45PM | ST-321 | Sarki, A | 201-02 | 21509 | MWF | 9:00-9:50AM | BU-122 | Ferdnance, T | 201-03 | 21512 | TR | 11:00-12:15PM | BU-101 | Toney, S | 201-05 | 21513 | TR | 9:30-10:45AM | ST-336 | Sarki, A | 201-07 | 21514 | TR | 2:00-3:15PM | BU-101 | Toney, S | 201-09 | 21516 | MWF | 1:00-1:50PM | BU-122 | Ferdnance, T | PROFESSORS OFFICES OFFICE HOURS PHONE Dr. Ayuba J. Sarki Science & Tech (301C) TBA (757) 727-5868 Dr. Tyrone Ferdnance Buckman (107B) TBA (757) 727-5134 Dr. Susanne Toney Buckman (214C) TBA (757) 727-5760 REQUIRED TEXTS: Case, Karl E., Fair, Ray C., & Oster, Sharon M; Principles of ECONOMICS 10th Edition, Pearson/Prentice-Hall, 2012 ISBN-10: 0132552914; ISBN-13: 9780132552912 0132744856 OR Case, Karl E., Fair, Ray C., & Oster, Sharon M; Principles of Macroeconomics 10th Edition, Pearson/Prentice-Hall, 2012 ISBN-10: 0131391402; ISBN-13: 978-0131391406 AND MyEconLab (Required) (Note that all the required materials can be purchased from Hampton University Virtual Bookstore). CATALOG DESCRIPTION: A first course on modern market economies. Emphasizes the determination of national income, fluctuations, and growth;......

Words: 4002 - Pages: 17

Premium Essay


...per share. E (g) = the constant growth rate = 5% = 0.05 per year. R (Re) = Investors rate of return on the stock = 15% = 0.15 Formula used E (P) = D x (1 + E (g)) / (R (Re)-E (g)) E (P) = $2.00 x (1+ 0.05) / (0.15- 0.05) E (P) = $2.00 x (1.05) / (.1) E (P) = $2.10 / .1 E (P) = $ 21.00 The stock value is $21.00. 2. Suppose the riskiness of the stock decreases, which causes the required rate of return to fall to 13%. Under these conditions, what is the stock’s value? D = the most resent dividend which is = $2.00 per share. E (g) = the constant growth rate = 5% = 0.05 per year. R (Re) = Investors rate of return on the stock = 13% = 0.13 Formula used E (P) = D x (1 + E (g)) / (R (Re)-E (g)) E (P) = $2.00 x (1+ 0.05) / (0.13- 0.05) E (P) = $2.00 x (1.05) / (.08) E (P) = $2.10 / .08 E (P) =$ 26.75 The stock value is $26.75. 3. Return to the original 15% required rate of return and assume a dividend growth rate estimate increase to 7% per year, what is the stock value? Formula used E (P) = D x (1 + E (g)) / (R (Re)-E (g)) E (P) = $2.00 x (1+ 0.07) / (0.15- 0.07) E (P) = $2.00 x (1.07) / (.08) E (P) =......

Words: 930 - Pages: 4

Premium Essay

Review 9

...Questions 9 1.) What are the unique features of e-commerce, digital markets, and digital goods? * Name and describe four business trends and three technology trends shaping e-commerce today. * E-commerce today is being shaped by not only new technology but also new business trends. In today’s business world small businesses are aided a lot more with bigger companies such as Google and Amazon providing a medium for them to work through. Another business trend is digital everything such as ebooks, ecoupons and instant stream digital movies. Ecommerce is also transforming the way industries function. As with the digital everything trend, marketing firms are now inclined to focus heavily on digitals ads as opposed to billboards and other tangible forms of advertising. * However, the driving force behind all of these trends and the enabler is the rapid expansion and growth in technology in recent years. Wireless technology and the ability to access the internet from anywhere due to wireless hotspots has to be one of the biggest reasons why ecommerce has emerged as such a huge force. Other technology such as mobile devices that allow for the use of the internet and the ability to use ebooks is also huge. Social networking sites have also been a huge catalyst for the growth of ecommerce as it is a great way to expose the public and consumers to products and services. * List and describe the eight unique features of e-commerce. * Ubiquity –......

Words: 1159 - Pages: 5

Premium Essay

6 Hat

...CASE STUDY 1 - Facebook Questions 1. As an investor in a social network such as Facebook, which financial and customer-related metrics would you use to assess and benchmark the current business success and future growth potential of the company? From comments in the case study, the main revenue model is ad-based advertising (CPC and CPM). Facebook has said it will not sell customer data and there is no indication of affiliaterelated models. Customer-related metrics are related to engagement which indicates capability to sell ad space – not simply users, but active returning users and the number of pages viewed per day. The proportion of ad inventory sold is also important. A basic answer will provide • Understanding of financial metrics. Revenue, Costs, Growth. • Clear framework of different metrics types – efficiency vs effectiveness. • Audience Engagement and satisfaction metrics such as those mentioned in the case. A more competent answer will reference elements of profitability (e.g. ad revenue, alternative models, e.g. subscription (although clear data not sold) costs (e.g. R&D, Development) Operational costs of managing business (on a per active user basis). 2. Complete a situation analysis for Facebook focusing on an assessment of the main businessrisks which could damage the future growth potential of the social network. Typical risks are: • Ad revenue limited because of difficulty of engaging audience in ads. • Major privacy problem as with Beacon. • Intellectual......

Words: 880 - Pages: 4

Free Essay


...CARIBBEAN EXAMINATIONS COUNCIL Caribbean Secondary Education Certificate CSEC ® PRINCIPLES OF BUSINESS SYLLABUS Effective for examinations from May/June 2008 Including 2009 amendments CXC 08/G/SYLL 06 Published by the Caribbean Examinations Council. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form, or by any means electronic, photocopying, recording or otherwise without prior permission of the author or publisher. Correspondence related to the syllabus should be addressed to: The Pro-Registrar Caribbean Examinations Council Caenwood Centre 37 Arnold Road, Kingston 5, Jamaica, W.I. Telephone: (876) 630-5200 Facsimile Number: (876) 967-4972 E-mail address: Website: Copyright © 2006, by Caribbean Examinations Council The Garrison, St Michael BB14038, Barbados CXC 08/G/SYLL 06 2 Contents RATIONALE...........................................................................................................................................................1 AIMS ........................................................................................................................................................................1 GENERAL OBJECTIVES ......................................................................................................................................2 SKILLS AND ABILLITIES TO BE ASSESSED ........................

Words: 8268 - Pages: 34

Premium Essay


...strategic plan of an organization that concern the financial managers. For example, there are many aspects of a business plan (to be discussed later under Corporate Strategy): marketing and sales plan, production plan, personnel plan, capital expenditure plan, etc. All these plans have far-reaching financial implications for the financial managers of an organization as they will be expressed in financial terms for the purpose of evaluating the overall performance of the organization; which, itself, is measured in financial terms. There are two broad categories of strategic decisions that are normally made by financial managers of an organization: (a) the most appropriate level and mix of the assets. (b) Financed: the optimum level and mix of funding requirements for the assets. The above main decisions will focus on providing answers to the following questions: (a) Should a new factory be built for the purpose of producing (and selling) a new product or should a company already involved in the production of such a product be acquired? (b) Should an organization make a particular component in-house or should it buy it from outside? (c) In financing the investments, should the company rely solely on funds from owners or should it mix these funds with those from lenders? (d) If a mix of funds is the option taken, what proportion of each source should be used? (e) How should the funds be made available and at what cost? (f) Should dividends be paid now or should earnings......

Words: 5662 - Pages: 23

Premium Essay


...Answer each question in one to two paragraphs. 1. What are the major differences between pure play e-commerce and bricks-and-clicks operations? What are the benefits and limitations of each? (5 marks) Pure play e-commerce is when companies only have web presence and no stores, it saves the companies from spending on expensive commercial property needed to built a store, the downside is that they might not already have the money to start the website. Bricks and clicks is when the company has physical presence in form of store or stores and also a website. 2. One of the key motivations for developing an e-commerce site is immediate access to a much larger market. Explain why an increased market reach may have benefits, and describe its limitations. (5 marks) A much larger market has numerous benefits because it can give a sudden boost to sales as a lot more people have access to the goods sold by the site. The limitations can be when the the company cannot keep up with the orders or when due to limited warehouses delivery takes a lot of time, leaving the customers unhappy. 3. What are the three most important mediation issues in e-commerce? Give an example of each. (5 marks) 4. What are the key factors that determine e-commerce success? What factors determine its failure? (5 marks) Some of the key factors that determine an e-commerce success are- requirement of a niche market, a good layout for the website which is......

Words: 1912 - Pages: 8

Premium Essay

Finance Questions and Answers

...examples to explain your points. Four attributes are: • return or yield • risk • liquidity • time-pattern of the cash flows Examples: 1. Term deposit with a bank: • generally pays a fixed interest rate until maturity • guaranteed by the bank—low risk (low return) • funds usually are not available until maturity (less liquidity) • interest paid periodically; principal repaid at maturity 2. Shares in a corporation: • generally pay a dividend twice a year—amount determined by board • no performance guarantees—higher risk (expect higher return) • usually easy to sell shares at current price through the stock exchange • dividends received half-yearly, if declared 4. The major financial institutions within the international markets fall into five classifications. Identify and briefly explain each of these classifications. Give an example of different types of institution that operate within a classification. • depository financial institutions. They attract savings from depositors and investors and provide loans to borrowers. Examples, commercial banks, building societies, credit unions • contractual savings institutions. Their liabilities (sources of funds) are contracts that generate periodic cash flows, such as insurance contracts and superannuation savings. Their accumulated funds are used to purchase both real and financial assets. Includes insurance offices and superannuation funds • finance companies. Provide loans mainly to small business and......

Words: 6275 - Pages: 26

Premium Essay

Fin 550 Discussion Questions Week 1-11 We have all assignments, quizzes, exams, homework problems and discussion for FIN 550. Email us FIN 550 Week 1-11 Discussion Questions Solved Week 1 DQ 1 "Investment Performance" Please respond to the following: • From the e-Activity, predict the performance of the DOW for the next two years. Provide support for your prediction. • Given your predictions, recommend whether or not a risk-adverse person should invest in the DOW index fund. Explain your rationale. Week 1 DQ 2 "Investment Decisions" Please respond to the following: • Analyze the factors that influence investment decisions at different stages in an investor’s life cycle, and make a recommendation at which stage the average investor should consider financial investments. Provide support for your recommendation. • Assess how cultural differences in foreign countries impact investor asset allocations. Week 2 DQ 1 "Globalization" Please respond to the following: • From the e-Activity, analyze how national exchanges around the world are linked and suggest which exchange most significantly impacts the U.S. markets. Explain your rationale. • Assess the factor(s) contributing to the global consolidation of stock, bonds, and derivative exchange. Predict the impact to these exchanges in the future. Week 2 DQ 2 "Efficient Markets" Please respond to the following: • Analyze the most significant driver......

Words: 1373 - Pages: 6

Premium Essay

California Clinics

...constant value. The value fluctuates based on the number of factors which includes dividends, investment growth, and the conditions of economy and financial markets. The stock value is $21.00. A B $2.00 D0 5% E(g) 15% R(Rs) $21.00 E(P0)= $2.00x 1.05 = $2.10 = $21.00 0.15-0.05 0.1 2. Suppose the riskiness of the stock decreases, which causes the required rate of return to fall to 13%. Under these conditions, what is the stock’s value? There are numerous financial risk factors within the stocks and marketing industry. If the stock decreased rate of return fell to 13%, the stock value would be as follow: E(P0)= $2.00x 1.05 = $2.10 = $26.25 0.13-0.05 .08 The stock value would be $26.25. 3. Return to the original 15% required rate of return and assume a dividend growth rate estimate increase to 7% per year, what is the stock value? Dividend growth investing is a lesson in the power of compounding returns. The chart equation below shows the new stock value with an increase of dividend growth rate. A B $2.00 D0 7% E(g) 15% R(Rs) $21.00 E(P0)= $2.00x 1.07 = $2.14 = $21.40 0.15-0.05 0.1 Assuming that the dividend rate increased to 7%, the stock value jumped from $21.00 to $21.40. This is a 0.40 increase. 4. Explain how each of the four (4) fundamental factors that affect the supply and demand for investment......

Words: 808 - Pages: 4