Chapter 3 Questions
1. The web has grown so dramatically through the rapid advances in today's technology. The web is extremely easy to access and not complicated to use. It is no longer a 'mystery' and people are becoming more and more adventurous. With the development of smartphones, ipads and wireless internet it has become more of an every day tool and is now being incorporated into our every day lives.
2.
What is Web 2.0 or 'Live Web' refers to parts of the web which anyone can add to its content e.g. Facebook, Twitter etc. Web 1.0 refers to the parts of the web which can not be added to by anyone. Viewers can only read what has been posted but are not able to add.
3. Web 2.0 technology can be used within a business to allow customers to post about their experiences, e.g. A hospitality business may allow a site where people can post about their dining experience, the service, the food, the decor etc.. It could also provide up to date product updates and other company news e.g. specials etc..
4. eBusiness defines the transaction of goods and services as well as serving customers and conversing with business partners over the internet i.e. Running a business over the Internet. This differs from eCommerce which purely defines an online monetary transaction in exchange for goods or services.
5. Pure eCommerce defines a business whose transactions take place solely over the internet e.g. ITunes, where as Partial eCommerce defines a business where there is a large part of the business transactions which take place offline e.g. Amazon books where the transaction of money is over the internet, then, the book is shipped to the purchaser. This means that the books need to be stored at a specific location and purchased from another company.
6. List and describe the various eBusiness models?
- Merchant Model: Utilises the Internet to enable original retail practices to be transformed into eCommerce practices.
- Brokerage Model: Acts as a facilitator bringing together buyers and sellers, earning a profit through taking a commission of the sale.
- Advertising Model: Sites, which are free to use, earn profit by selling advertising space, e.g. Facebook.
- Mixed Model: Generates an income from a number of sources e.g. Advertising, Internet subscriptions, profits from taking a commission from sales transactions.
7. The two major B2B models include Sell-Side B2B and Buy-Side B2B. The model below outlines the differences between these two models..
8. Two opportunities faced by companies doing business online may include
- Easily accessible: Business information can be easily accessed. Can also provide customers and clients with around the clock product updates. Can also make available important statistical information to managers in real time.
- Decreased costs in services and production.
9. Two challenges faced by companies doing business online may include
- Privacy: Customer information needs to be protected (e.g. Account information) as well as company information and/or assets (e.g. Itunes need to ensure the protection of their stock to ensure the prevention of copying files/receiving goods without proper payment).
- Protection: Customers need to be protected against scams, viruses the purchase of faulty or harmful products and also against false advertising. This may result in a bad company brand reputation and / or the harm to an innocent person followed by legal action.
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