Page 28 - Electronic Commerce

CHAPTER1

INTRODUCTION TO

ELECTRONIC COMMERCE

LE AR N I NG OB JE CT IV ES

In this chapter, you will learn about:
• What electronic commerce is and how it has evolved
• Why companies concentrate on revenue models and the analysis of
business processes instead of business models when they undertake
electronic commerce initiatives
• How economic forces have created a business environment that is
fostering the continued growth of electronic commerce
• How businesses use value chains and SWOT analysis to identify
electronic commerce opportunities
• The international nature of electronic commerce and the challenges that
arise in engaging in electronic commerce on a global scale

INTRODUCTION

In the late 1990s, electronic commerce was still emerging as a new way to do business; at that time,

most companies were doing very little buying or selling online. They still were selling products in

physical stores or taking orders over the telephone and by mail. However, a few companies had

established solid footholds online. Amazon.com was a rapidly growing bookseller and eBay had

taken the lead as a profitable auction site. The business of providing search tools for finding informa-

tion online was dominated by a few well-established sites, including AltaVista, HotBot, Lycos, and

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