b2c & b2b
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B2C & B2B. Amazon.com. July 16, 1995 Jeff Bezos (1964) AMZN, 63 5/8 (8-3-00), P/E = 0.00!! For the nine months ended 9/30/99, revenues rose from $357M to $963.8M. Net loss totalled $396.8M, up from $78.1M Market Cap (8-3-00): 21.3 billion!!. How?. Sell Anything - PowerPoint PPT PresentationTRANSCRIPT
B2C & B2B
Amazon.com
July 16, 1995Jeff Bezos (1964)AMZN, 63 5/8 (8-3-00), P/E = 0.00!! For the nine months ended 9/30/99,
revenues rose from $357M to $963.8M.
Net loss totalled $396.8M, up from $78.1M Market Cap (8-3-00): 21.3 billion!!
How?
Sell Anything More customers, lower prices Easy to find what you want Reviews (customers’,
professionals’) Membership Club 1-Click
Amazon.comJanuary 2000 Projected net loss: US$ 350 million 750,000 sq ft warehouse at Coffeyville,
Kansas: 10% used; 90% for expansion 3 million sq. ft. total warehouse space at a cost
of US$ 200 million around U.S. low- or no-sales-tax states (not traditional warehouses)
Sales could crest US$1 billion (4-1999):Customer accounts increased by more than 2.2
million during the first quarter to a total of 8.4 million, and repeat customers made up more than 66 percent of orders during the quarter.
Warehouses(Jan. 2000)
Seattle: 93,000 Fernley, Nev: 332,650 Grand Forks, N.D.: 130,000 Coffeyville, Kans.: 750,000 New Castle, Del.: 202,000 Campbellsville, Ky.: 770,000 McDonough, Ga.: 800,000
The Anatomy of an Order Computer assigns a warehouse where your order will
be processed At the warehouse, a worker will pickup your order at
bins (where red lights are on) Into a crate your order goes riding on miles of conveyor
belts; bar codes will be scanned to maintain status Order is checked at a central point, slide down a chute
into a box, coded Personally gift wrapped if needed Boxed, taped, weighted & labelled (then goes to either
USPS or UPS with large facilities nearby; 200,000 pieces a day at McDonough plant)
Door bellTime (Asia), January 3, 2000
Competitors?
Acquired Exchange.com, which operates rare-book site www.bilbiofind.com and rare-music site www.musicfile.com, and also acquired Alexa.com and Accept.com.
Minority stakes in Drugstore.com, Pets.com, HomeGrocer.com, Gear.com & Della.com (not necessary survivors)
Wal-Mart (article)
Business Perspectives Direct Marketing versus Indirect
Marketing– I make I sell vs I make someone sells
Full Cybermarketing versus Partial Cybermarketing– Amazon.com vs Barnes & Noble
Electronic Distributor versus Electronic Broker– Delivery vs Matching
Business Perspectives Electronic Store versus Electronic Shopping
Mall Generalized versus Specialized
e-Malls/Stores Proactive versus Reactive towards
Cybermarketing– Dell is proactive: using the new channel to contact
customers
Global versus Regional Marketing Sales versus Customer Service
Four System Architechure (Hsu)
Document Connectivity– HTML, …
Applications Connectivity– CGI, Javascript, …
Database Connectivity– ODBC/JDBC, databases
Enterprise Connectivity– Java, CORBA
Five Elements of an EC System(Hsu)
Web ServerApplications ServerDatabase Server Internal Networking Internet Connection
B2C e-tailers(Tresse, chapter4)
Benefits Ability to reach a global market (marketspace:
critical mass maybe reached quickly) Reduced marketing and selling expenses
(update is easy; no re-printing) Increased efficiency of operation (specialized
personnel) Ability to target consumers more precisely Ability to convey more accurate product and
availability information
B2C e-tailers Attracts: advertising, e-coupons, sales,
promotions, frequent buyer programs, one-to-one marketing (individualized product announments)
Interact: content development and interactivity
Act: – Order processing (one-click ordering) – shopping
cart, order validation and modifications, discounts, cross-selling (this with that), taxes (not applicable), shipping & handling charges, records and receipts
Continued
Act (cont’d)– Payment: Cash, credit/debit cards, check,
e-wallets?, currencies?– Fulfillment: how? Logistics?
React: customer service – self help, discussion group, track and trace, multiple-language support.
B2B EC actual business transactions and connection
of organizations types: selling/buying between business -
company sites target other business partners types: portal sites but for businesses;
cybercash, security system integration,… B2BEC - US$43 billion in 1998; expect to hit
US$1.3 trillion by the end of 2003
B2B Models Supplier-oriented MarketplaceSupplier-oriented Marketplace: consumers
and businesses alike use the same site to complete transactions– www.cisco.com, www.dell.com,
www.ibm.com Buyer-oriented Marketplace Buyer-oriented Marketplace : Suppliers come
to the site to post bids– Tpn.geis.com
Intermediary-oriented Marketplace– Www.procure.net?
Traditional Businesses Intel/Motorola/Sun/IBM
Ftp, http, smtp, mime, Java, CGI, HTML, Javascript, …
Internet
ee-Consumers
Consumers
Internet
ee-Store
…
Selling-Chain Management CRMCRM
Enterprise Resource Planning (ERP)/IT
e-Procurement Supply Chain Management
Elements of ERP(p 169)
Sales, Distribution (Order Entry) Human Resources Accounting and Financials Integrated Logistics Production Planning Customer/Employee
Enterprise Resource Planning (ERP) To improve customer order processing To consolidate and unify business functions
such as manufacturing, finance, distribution/logistics, and human resources
To integrate disparate technologies, along with the processes they support, into a common denominator of overall functionality
To create a new foundation on which next-generation applications can be developed
E-Commerce
Example: e-Procurement(chapter nine of A)
A typical procurement process: Identify sellers/vendors Make a request Receive approval Fill up a Purchase Order Wait for Business/Procurement Office to interface
with supplier Wait for the delivery of products Receiving report to Business/Procurement Office
e-Procurement Solutions
http://www.buyingchain.com/buying_chain/default.asp
http://www.walker.com/products_services/eprocurement/
Benefits of e-Procurement
Efficiency: “lower procurement costs, faster cycle times, reduced maverick or unauthorized buying, more highly organized information, and tighter integration of the procurement function with key back-office systems” (p234)
Effective: “increased control over the supply chain, proactive management of key procurement data, and higher-quality purchasing decisions within organizations”
Other e-Procurement Solutions
Buy-side: linking the buying party with suppliers and back-office systems– Fire up browser and login– Browser products catalog– Select Products and obtain quotes– Create On-line PO– Get On-line Approval– Send PO to Supplier for fulfillment– Start order tracking and ready for receipt
CU Business Office
Browser
Quote1 Quote2 Quote3
Quote1 Quote2 Quote3
Approve and Generate P.O.
Other e-Procurement Solutions
Sell-side: Vertical product trading community
www.chemdex.com www.sciquest.com