Page 54 - E-Bussiness and E-Commerce Management Strategy, Implementation, and Practice

M01_CHAF9601_04_SE_C01.QXD:D01_CHAF7409_04_SE_C01.QXD 16/4/09 11:02 Page 21

Chapter 1 Introduction to e-business and e-commerce 21

are connected direct to a new Virginia data centre when-
ever they’re browsing the site and not making any Questions
changes otherwise users are connected to California. 1 As an investor in a social network such as Face-
book, which financial and customer-related
Facebook expands internationally – metrics would you use to assess and bench-
February 2008 mark the current business success and future
growth potential of the company?
Despite the hype generated amongst English speakers,
2 Complete a situation analysis for Facebook
Facebook only announced the launch of a Spanish site
focusing on an assessment of the main busi-
in February 2008 with local language versions planned
ness risks which could damage the future
for Germany and France. It seems that Facebook will
growth potential of the social network.
inevitably follow the path taken by other social networks
3 For the main business risks to Facebook identi-
such as MySpace in launching many local language
fied in Question 2, suggest approaches the
versions.
company could use to minimize these risks.
Sources: Facebook (www.facebook.com), Facebook press room
(www.facebook.com/press.php), Facebook blog
(http://blog.facebook.com), Wikipedia (2008)
Wikipedia (2008) Wikipedia Pages for Facebook
(http://en.wikipedia.org/wiki/Facebook) and Mark Zuckerberg
(http://en.wikipedia.org/wiki/Mark_Zuckerberg).

SMS (Short Mobile services adoption is increasing rapidly as users purchase the latest models. Table 1.2
Message Services) shows how more advanced devices with improved functionality and download speed
The formal name for text encourage adoption of services. For example, the majority of iPhone users browse the
messaging.
mobile web compared to a minority in the market for all handsets.
Multi-channel As an example, an online bank can potentially use many of these technologies to com-
marketing
municate with its customers according to the customers’ preferences – some prefer to use
Customer
communications and the web, others mobile banking or SMS alerts, others wireless or interactive TV and others
product distribution are traditional channels. Bank First Direct (www.firstdirect.com) which is part of the HSBC
supported by a
combination of digital and banking group has a strategy of innovation and showcases its latest approaches in First
traditional channels at Direct Interactive (Figure 1.5). It uses SMS short codes as direct response from TV or print
different points in the advertising to integrate traditional and digital media channels and also uses SMS periodi-
buying cycle
cally to deliver relevant related product offers to customers.
Multi-channel
marketing strategy
Defines how different
marketing channels Internet usage habits among smartphone subscribers, three-month
should integrate and Table 1.2 average ending May 2008, mobile phone subscribers in France, Germany
support each other in and the United Kingdom
terms of their proposition
development and
communications based
on their relative merits for Percentage of subscribers
the customer and the
company.
Internet service accessed via phone iPhone Smartphone* Market
Customer journey
A description of modern Any news of information via browser 80.4 32.2 10.7
multi-channel buyer
behaviour as consumers Accessed web search 56.6 18.3 5.0
use different media to Watched any mobile TV and/or video 32.0 14.6 7.4
select suppliers, make
purchases and gain Accessed a social networking site or blog 42.4 10.3 3.2
customer support.
Listened to music on mobile phone 70.0 32.5 18.4
Used e-mail (work or personal) 69.5 25.6 7.6

*Smartphone defined as a device running the Windows, Palm or Symbian operating system
Source: comScore M:Metrics (2008)