Week 4- Chapter 3 Questions

1.       Why has the web grown so dramatically?

-     The microcomputer revolution made it possible for an average person to own a computer

-     Advancements in networking hardware, software and media made it possible for business PCs to be inexpensively connected to larger networks

-     Browser software such as Microsoft’s internet explorer gave computer users an easy-to-use interface to find, download and display web pages

-     The speed, convenience and low cost of email have made it an indispensible tool for business and personal communications

-    Basic web pages are easy to create and extremely flexible

2.       What is Web 2.0, how does it differ from 1.0?

Web 2.0 is referred to as the Live Web. Users can collaborate and build their own content. Businesses are using Web 2.0 to enable access to critical business application for employees and customers. e.g. – travellers can share experiences about their experiences; they can recommend or warn others.

It differs from web 1.0 as it is a transformative force that is propelling companies across all industries towards a new way of doing business. Those who act on the web 2.0 opportunity stand to gain an early mover advantage in their markets.

3.       How could a web 2.0 technology be used in business?

Web 2.0 can be used in business when:

-     CEO’s use Blogs to enhance communication, builds trust, supplement press releases and talk from the heart. A content rich blog can enhance the positive image of the company.

-    RSS Feed provide website statistics to managers in real time.

-   RSS could also update potential customers with product updates and company news

4.       What is eBusiness, how does it differ from eCommerce?

e-Business  is the conducting of business on the Internet including, not only buying and selling, but also serving customers and collaborating with business partners where as ecommerce is the buying and selling of goods and services over the Internet.

5.       What is pure and partial eCommerce

In traditional commerce all three dimensions are physical. Purely physical organisations are referred to as bricks-and-mortar organisations. In Pure EC all dimensions are digital. Companies engaged only in EC are considered viral (or pure-play) organisations; all other combinations that include a mix of digital and physical dimensions are considered partial EC.

6.       List and describe the various eBusiness models?

B2B-business to business applies to businesses buying from and selling to each other over the internet

B2C-business to consumer applies to any business that sells its products or servies to consumers over the internet.

C2B-Conumer to business applies to any consumer that sells a product or service to a business over the internet

C2C-consumer to business applies to sites primarily offering goods and services to assist consumers interacting with each other over the internet.

7.       List and describe the major B2B models
-     Sell-side-b2b- A Web-based niche marketplace in which one company sells to many business buyers from e-catalogs or auctions, frequently over an extranet
-     Buy-side b2b- A corporate-based acquisition site that uses reverse auctions, negotiations, group purchasing, or any other e-procurement method

8.       Outline 2 opportunities and 2 challenges faced by companies doing business online

Two opportunities faced by companies doing business online are the high accessibility and increased consumer loyalty of online businesses. Businesses can operate 24/7 36 days a year, and additional channels for contacting, responding to and accessing customers help contribute to customer loyalty.  Protecting consumers would be a challenge, as consumers must be protected against unsolicited goods and communication, illegal or harmful goods, insufficient information about their goods, invasion of privacy and cyber fraud. Another challenge would be the increasing liability as e business exposes suppliers to unknown liabilities because internet commerce law is vaguely defined and differs from country to country.