Self Study Journal Week 1 (Japolim - 10348454)

There are several important aspects that I can learn from week 1 lecture, and they are as follows:

The unique features of e-commerce technology include:

1. Ubiquity: It is available just about everywhere and at all times.
2. Global Reach: The potential market size is roughly equal to the size of the online population of the world.
3. Universal standards: The technical standards of the Internet and therefore of conducting e-commerce, are shared by all of the nations in the world.
4. Richness: Information that is complex and content-rich can be delivered without sacrificing reach.
5. Interactivity: E-commerce technologies allow two-way communication between the merchant and the consumer.
6. Information density: The total amount and quality of information available to all market participants is vastly increased and is cheaper to deliver.
7. Personalization/Customization: E-commerce technologies enable merchants to target their marketing messages to a person’s name, interests and past purchases. They allow a merchant to change the product or service to suit the purchasing behavior and preferences of a consumer.

The definition of " Disintermediation " :

Displacement of market middleman who traditionally are intermediaries between producers and consumers by a new direct relationship between manufacturers and content originators with their customers. Such as: wholesalers and distributors

The definition of " friction-free commerce ":

A vision of commerce in which information is equally distributed, transaction costs are low, prices can be dynamically adjusted to reflect actual demand, intermediaries decline, and unfair competitive advantages are eliminated.

Types of E-Commerce:

Classified by nature of market relationship:

• B2C (Business-to-Consumer) example: Amazon.com
• B2B (Business-to -Business) example: ChemConnect.com
• C2C (Consumer-to-Consumer) example: eBay.com
  

Classified by type of technology used:

• P2P (Peer-to-Peer) example: BT (BitTorrent), Kazaa, etc.
• M-Commerce (Mobile Commerce) --> refers to the use of wireless digital devices (handphones, handheld devices, Blackberry) to enable transactions on the web.

Limitations in B2C:

• Expensive technology
• Complex software interface
• Sophisticated skill set
• Persistent Cultural Attraction of physical markets and traditional shopping experiences
• Persistent global inequality limiting access to telephones and computers

Definition of First Mover:
a firm that is first to market in a particular area and that moves quickly to gather market share


The advantages to be First Mover:

• Gather more profits
• Gather market share
• Establish a large customer base
• Build brand name recognition early
• Create an entirely new distribution channel

Disadvantages of First Mover:

Many first movers have not succeeded and are instead replaced by fast followers, larger firms with the financial, marketing, legal, and production assets necessary to develop mature markets.