Page 43 - Electronic Commerce

Chapter 1

18 Electronic
Commerce
Characteristic First Wave Second Wave Third Wave
International Dominated by U.S. Global enterprises in many Emergence of China, India, Brazil,
Character of companies countries participating in and other countries as major
Electronic electronic commerce centers of electronic commerce
Commerce activity

Languages Most electronic commerce Many electronic commerce English is no longer the
Web sites in Englis Web sites available in multiple dominant language on Web
languages sites worldwide
Funding Many new companies Established companies funding Wide variety of funding
started with outside investor electronic commerce initiatives sources available, including
money with their own capital crowdsourcing
Connection Many electronic commerce Rapidly increasing use of High bandwidth mobile telephone
Technologies participants used slow broadband technologies for networks become an additional
Internet connections Internet connections important connection technology
Contact with Unstructured e-mail Customized e-mail strategies Social networking tools are
Customers communication with are integral to customer important additions to e-mail
customers contact contact
Advertising and Reliance on simple forms Use of multiple sophisticated Increasingly, advertising and
Electronic of online advertising as advertising approaches and marketing strategies are driven by
Commerce main revenue source better integration of electronic available online communication
Integration commerce with existing technologies
business processes and
strategies

Distribution of Widespread piracy due to New approaches to the sale Sale and distribution of digital
Digital Products ineffective distribution and distribution of digital products becomes commonplace
Learning
of digital products products
First-mover Rely on first-mover Realize that first-mover First-mover advantage no longer
Advantage advantage to ensure advantage leads to success seen as a key element in Cengage
success in all types of only for some companies in electronic commerce initiatives
markets and industries certain specific markets and 2015
industries
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FIGURE 1-4 Key characteristics of the first three waves of electronic commerce

Not all of the future of electronic commerce is based on second- and third-wave
developments. Some of the most successful first-wave companies, such as Amazon.com,
eBay, and Yahoo!, continue to grow by offering increasingly innovative products and
services. However, the third wave of electronic commerce will provide new opportunities
for these businesses, too.

BUSINESS MODELS, R EVENUE MODELS,
AND B USI NESS P ROCESSES
A business model is a set of processes that combine to achieve a company’s primary goal,
which is typically to yield a profit. In the first wave of electronic commerce, many
investors tried to find start-up companies that had new, Internet-driven business models.

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