Question

Select any two business Net types (outlined in Introduction to Electronic Commerce by Kutz) and one example of each. Compare and contrast the two examples on commonalities and differences between them. Then discuss each type in terms of the following organizational gains that are made possible by e-commerce: • Profitability • Increased market share • Improving service • Faster delivery of product

Answer 1

TYPE	Business Web Agora	Business web aggregator
Example	E-bay	Amazon
Commonalities	Sales or product & Service	Sale of product & service
	Internet based	Internet based
	Global reach	Global reach
Differences	Negotiation	No Negotiation, fixed price
	Auctions	No auctions
	marketplace for service and goods	Digital supermar

	Organizational gain by e-commerce
Type	Business Web Agora	Business web aggregator
Example	E-bay	Amazon
Profitability	Access to more buyers because of e-commerce	increase in number of customers and hence the profitability with reduced cost of operation
Increased market share	Being the first mover, they had advantage and became very popular sites in online marketspace	Being the first mover in online supermarket in online space, they had advantage and became very popular and attracted lot of online purchases
Improving service	Improved service helped them in creating confidence among the target customer segment	Increase in order flow, more repeat purchase were the impact of improving the services
Faster delivery	Customer wanted the product asap and faster delivery made them closer to offline store experience of immediate delivery	Customer wanted the product asap and faster delivery made them closer to offline store experience of immediate delivery