E-Commerce Notes # 1-5

FTP - File transfer Protocol
ISP - Internet Service Provider
DNS - Domain Name Server

Revolution Change
Digital Enabled Transaction -All transactions that are mediated by digital technologies

Commercial
Exchange of value between or across organizational or individual boundaries in return of a product or service for a commercial transactions

What is the difference between E-Commerce & E-Business

E-Business
Digital enablement of transaction & process within a firm involving information system under control of firm. e.g. : online inventory control, LMS - Leave Management System, EMS - Employee Management System.

E-Business turns into E-Business when there is a commercial value added to it.

<<DIAGRAM>>

Information Asymmetry
Geographical Boundaries
Information about price/cost/fees are hidden from consumers creating a profitable hidden information asymmetry. This creates a disparity in relevant market information that confuses the customers.

The traditional system is trapped by social, geographical boundaries. We can say that selling is conducted in well insulated channels.

Why E-Commerce ?
    1- Geographical Trapping
    2- Information Asymmetry
   
Unique features of E-Commerce:
    - Ubiquity
    - Global Reach
    - Universal Standards
    - Richness
    - Interactivity
    - Information Density
    - Personalization / Customization

Ubiquity - Anytime / Anywhere availability
E-Commerce is ubiquitous because it is available almost everywhere internet web technology can be freely used at employee. So it liberates market from physical countries that exist in the traditional media.

// Market Space is market place extended beyond traditional boundaries.

Reduces transaction cost
    - Cost of participants in the market
    - To transact it's no more necessary to spend time travelling in the marketplace.
    - It lowers the cognitive energy required to transact in the marketplace.
   
E-Commerce permits commercial transaction across boundaries both conveniently & cost effectively.

Global Reach
Measure of reach is defined as number of users a business can entertain.

Market space of E-Commerce can be expanded easily.

Universal Standards
Its benefits :
    - Lowers entry cost - Cost a merchant needs to pay to bring these goods in the market.
    - Reduces search cost - Effort required to search a suitable product.
    - Creates a market space where prices and products can be inexpensively be displayed
    - Price discovery in faster & more accurate
    - Easy to find supplier's prices, delivery terms of a specific product in the world.
   

Five C2C web sites :-
    - Ebay
    - 99acres
    - Sulekha
    - Magicbricks
   
P2P - Enables internet users to share files & computer resources directly without going through a central web server. No intermediaries are required

Example :-
Gnutella - It's a P2P application that permits users to directly exchange musical tracks, without any change. Since 1999 entrepreneurs had been adopting P2P technologies to earn online. Napster had been a very popular P2P application for sharing music files online. Partially P2P as it uses a central database of users sharing files

M-Commerce :- Is facilitated by the users of wireless, digital devices. Once connected, mobile can conduct many types of transaction including trading, shopping, banking & more.

Limitations of E-Commerce :-
    1) Requires internet connection, digital devices, etc.
    2) Security vulnerability
    3) Lack of awareness
    4) Attraction of traditional shopping