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2 E-commerce
Chapter at a glance
Main topics
The e-commerce environment 57
Location of trading in the
marketplace 67
Business models for e-commerce
77
Focus on …
Auction business models 86
Internet start-up companies 88
Case studies
2.1 The impact of B2B reverse
auctions 87
2.2 lastminute.com – an
international dot-com survivor
91
2.3 Zopa launches a new lending
model 95
Web support
The following additional case studies
are available at
www.pearsoned.co.uk/chaffey
Dynamic pricing at
GlaxoSmithKline
Ahold explores new ways to reach
customers
The implications of broadband
access
Learning from the dot-coms
The site also contains a range of
study material designed to help
improve your results.
fundamentals
Learning outcomes
After completing this chapter the reader should be able to:
Complete an online marketplace analysis to assess competitor,
customer, and intermediary use of the Internet as part of strategy
development
Identify the main business and marketplace models for electronic
communications and trading
Evaluate the effectiveness of business and revenue models for
online businesses
Management issues
The fundamentals of e-commerce imply these questions for
managers:
What are the implications of changes in marketplace structures
for how we trade with customers and other partners?
Which business models and revenue models should we consider
in order to exploit the Internet?
What will be the importance of online intermediaries and market-
place hubs to our business and what actions should we take to
partner these intermediaries?
Links to other chapters
The main related chapters are:
Chapter 3 explains the hardware and software infrastructure
enabling these new business models;
Chapters 4 and 5 consider appropriate strategic responses to
these new models and paradigms;
Chapter 6 explores new models of the value chain in more detail;
Chapter 7 explores the effect of new intermediaries and
marketplaces on procurement;
Chapter 9 discusses models of online customer behaviour which
is another aspect of environment analysis.