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Chapter 10 E-commerce: Digital Markets, Digital Goods 441

• Explain how Internet technology supports 6. What issues must be addressed when building an
business-to-business electronic commerce. e-commerce presence?
• Define and describe Net marketplaces and • List and describe each of the factors that go
explain how they differ from private industrial into the building of an e-commerce Web site.
networks (private exchanges). • List and describe four business objectives,
5. What is the role of m-commerce in business, and four system functionalities, and four
what are the most important m-commerce appli- information requirements of a typical
cations? e-commerce Web site.
• List and describe important types of • List and describe each of the options for build-
m-commerce services and applications. ing and hosting e-commerce Web sites.

Discussion Questions

1. How does the Internet change consumer and their business models. Do you agree? Why or
supplier relationships? why not?
2. The Internet may not make corporations 3. How have social technologies changed
obsolete, but the corporations will have to change e-commerce?

Hands-On MIS Projects

The projects in this section give you hands-on experience developing e-commerce strategies for businesses,
using spreadsheet software to research the profitability of an e-commerce company, and using Web tools to
research and evaluate e-commerce hosting services.
Management Decision Problems

1. Columbiana is a small, independent island in the Caribbean that has many historical buildings, forts, and
other sites, along with rain forests and striking mountains. A few first-class hotels and several dozen
less-expensive accommodations can be found along its beautiful white sand beaches. The major airlines have
regular flights to Columbiana, as do several small airlines. Columbiana’s government wants to increase
tourism and develop new markets for the country’s tropical agricultural products. How can a Web presence
help? What Internet business model would be appropriate? What functions should the Web site perform?
2. Explore the Web sites of the following companies: Blue Nile, J.Crew, Lowe’s, and Priceline. Determine which
of these Web sites would benefit most from adding a company-sponsored blog to the Web site. List the
business benefits of the blog. Specify the intended audience for the blog. Decide who in the company should
author the blog, and select some topics for the blog.

Improving Decision Making: Using Spreadsheet Software to Analyze a
Dot-Com Business
Software skills: Spreadsheet downloading, formatting, and formulas
Business skills: Financial statement analysis
Pick one e-commerce company on the Internet, for example, Ashford, Buy.com, Yahoo, or Priceline. Study
the Web pages that describe the company and explain its purpose and structure. Use the Web to find articles
that comment on the company. Then visit the Securities and Exchange Commission’s Web site at www.
sec.gov to access the company’s 10-K (annual report) form showing income statements and balance sheets.
Select only the sections of the 10-K form containing the desired portions of financial statements that you

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