Comparative Advantage Definition - Strategic Issues For A victorious E-Commerce
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Strategic Issues For A victorious E-Commerce
1. Introduction
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Comparative Advantage Definition. You check out this article for info on an individual need to know is
Comparative Advantage Definition.
Comparative Advantage Definition
Electronic business is for the age of data Technology what mercantilism, the quest for gold and the conquest of new lands were for the age of discovery. Like the prow of a large fishing boat, it draws towards itself all other interests and elements of society, and it will leave new discoveries and changes in its wake. The vast networking of world through optic fibers, satellites and wireless transportation is creating a new global community and a new global market, in which most of the countries should participate. It is strengthening, approximately paradoxically, the identity of small groups, isolated communities and minority interests and driving them towards a less high-priced group and economic operation and widening their opportunities. And most importantly, it is empowering small businesses to compete with multinational corporations and enabling consumers to quest the world for exactly what they needed.
E-Commerce basically means using networks (Internet) to carry out all the activities involved in enterprise supervision and operation: buying and selling of products and services, technology and partner search, dealing with counterparts, selecting the most suitable transportation and insurances, performing bank transactions, paying and billing, communicating with enterprise salesmen, picking up orders, and any other activities indispensable for trading.
A enterprise will be able to post a faultless catalog of it's products and services on the Internet, which can be continuously updated to gift new or updated products, proving a large virtual showcase for potential clients, a means to recite with clients and in that way, adjusts it's offer to their requirements; while at the same time it will get passage to virtual markets where it can purchase what it needs.
Through integral systems already under development, one enterprise will connect to other clubs settled everywhere in the world, to buy and sell, selecting the products and services which best meets its needs from a huge network. And it's true that this revolution involves us all.
2. Business-To-Business (B2B)
B2B e-commerce means clubs buying from and selling to each other online. It automates and streamlines the process of buying and selling the intermediate products. It provides more reliable updating of enterprise data. B2B makes goods data available globally and updates it in real time. Hence, procuring organization can take benefit of vast estimate of goods information. [3]
Now, we must know what are the entities of B2B e-commerce & their concerns:
Selling company: with marketing supervision perspective.Buying company: with procurement supervision perspective.Electronic intermediary: A third party intermediating aid victualer (the scope of aid may be extended to contain the order fulfillment ).Deliverer: who should fulfill the Jit (Just in Time Delivery)Network platform: such as the Internet, Intranet, and Extranet.Protocols and communication: such as Edi (Electronic Data Interchange) and comparison shopping, possibly using software agents.Back-end data system: possibly implemented using the intranet and enterprise reserved supply Planning (Erp) systems.
B2B e-commerce implies that both the sellers and buyers are enterprise corporations. It covers a broad spectrum of applications that enable an enterprise or enterprise to form electronic relationship with their distributors, re-sellers, suppliers, and other partners. B2B applications will offer enterprises passage to the following sorts of information:
Product: Specifications, prices, sales history.Customer: Sales history and forecasts.Supplier: goods lines and lead times, sales terms and conditions.Product process: Capacities, commitments, goods plans. Transportation: Carries, lead-times, costs.Inventory: list levels, carrying costs, locations.Supply chain alliance: Key contacts, partners roles and responsibilities, schedules.Competitor: Benchmarking, competitive goods offering, shop share.Sales and marketing: Point of sales (Pos), promotions.Supply chain process and performance: Process descriptions, performance measures, quality, delivery time and buyer satisfaction.
2.1 How to get the best
People all the time want to get the best shot in life. To deliver a sound return on your venture you must add on time delivery and flavor of some strategies. This strategy should contain allowable marketing, channel management, solid technology, strategic partners and great products. Let us have a look on each of them.
2.1.1 Just in Time delivery (Jit)
In such a case (Jit), delivery materials and parts on time is a must. Using E-Commerce, it is highly potential to assure Jit deliveries. Just in time delivery can be realized by the co-coordinated attempt of delivery- aid enterprise and suppliers list policy.
Quick delivery does not necessarily mean Jit delivery, but the theory for quick delivery is the backbone of Jit delivery. For the B2B E-Commerce environment the expand confirmation of the delivery date at the contract stage is very important. [5][15]
2.1.2 Add strategies to your business
2.1.2.1 Direct Marketing
In a typical enterprise organization, buying decisions, especially for products over a few thousand dollars, are made by group of individuals. As a result, direct marketers need to extent the reach of their programs to distinct functional areas and possibly even distinct levels within a functional area.
There are multiple buyers and influences in any organization who play a role in the buying decision. You may know with cheap certainty who your customary target is, but secondary target can be just as leading to reach. You may have to reach enterprise buyers and influencers in three basic supervision areas (functional management, financial supervision and normal management) and do it at middle to upper managerial, as well as technical levels. To do it clubs need definite E-mail list, which they can compose by viewing clubs Websites and reviewing yearly reports and other group documents.
2.1.2.2 relationship Marketing
Business buyers are not all the time ready to buy products or services when you are ready to sell them. Factors you cannot control, such as the companies' budgeting process, the need for supplementary approvals, or purchasing procedures, may have a direct impact on plans to purchase. There may be a casual interest in the goods but not an immediate need.
The smart B2B direct marketer compensates for this uncertainty by making sure a agenda of regular, ongoing communications (often called a continuity program) is in front of prospects periodically. This can be done by direct E-mail and by placing the data on the website.
2.1.2.3 Internet Marketing
Several potential marketing strategies can be used in B2B E-Commerce marketing. These strategies can be classified into the following five categories:
Generating and qualifying leads with the Internet.Using Internet events to promote products and services.Executing instant fulfillment on the Internet.Generating orders through the Internet.Enhancing buyer relationship with the Internet.
2.1.2.4 Channel Management
The first element is coherent marketing or channel management. The true test of a successful E-Commerce implementation is how well it exploits the Internet to reach, capture and keep the right customers. selecting which products and services will be offered through which channel is also a crucial decision.
E-commerce runs over multiple sales channels, along with direct, indirect and E-marketplaces. The option of which marketplaces to use as sales channels is a crucial decision.
In expanding to marketplaces, using indirect sales channels is also an area for explosive sales opportunities. Enabling your selling partners to host your catalog, list and fulfillment databases on their systems can generate efficiency that grows their enterprise and yours. You also can continue your direct one-to-one trading relationship with long time strategic vendors by "E-enabling" the entire enterprise process from the initial request for quote through order fulfillment to automatic billing and payment.
These channels generate a situation where the E-Commerce sell side platform must transact over multi-channel selling strategies --which brings us to the next element of your strategy: technology.
2.1.2.5 Technology
Industry acceptable tools often allow a jobber to build and carry on goods catalogs and article once and use them throughout the entire multi-channel selling conduits. Evolving tools and capabilities allow you to compose buyer amiable web sites and win repeat customers by construction buyer loyalty. The front end for e-commerce selling is an leading piece of B2B success, connecting your new web systems with your existing systems. The 24*7 online marketplace means your E-business has to be continually available. It infrastructure must furnish more performance, reliability, safety and process integration than a bricks-and-mortar environment. In addition, mainframes hosting the databases and Erp (Enterprise reserved supply Planning) systems operating the supervision systems must be seamlessly integrated with the e-commerce motor to furnish the caliber of aid customers expects and to comprehend the cost efficiencies B2B E-Commerce can provide. selecting a flexible E-Commerce platforms and a theory integrator experienced with the entire enterprise process is a must for success.
2.1.2.6 Partners
Like selecting the Internet as a sales channel, it's also leading to plump the right partners, along with an integration partner who is experienced in helping to move ahead rapidly over the entire E-business process. We have to accept that any move to E-Commerce is not about incremental improvement, rather underlying redesign of the key enterprise processes.
2.1.2.7 Products
With the nearnessy on the web, we can effectively and efficiently transact enterprise with our clients 24*7. But so can our competitors. Survivals and success in E-Commerce entails more than plainly construction a storefront to sell online. [5]
3. Business-To-Consumer (B2C)
While the term E-Commerce refers to all online transactions, B2C stands for "Business-to-Consumer" and applies to any enterprise or organization that sells its products or services to consumers over the Internet for their own use.
In the late 90s, dotcoms-- which were fast gaining in size and shop capitalization -- posed a threat to customary brick and mortar businesses. In many ways, these dotcoms seemed to be rewriting the rules of enterprise -- they had the customers without the expenses of maintaining physical stores, minute inventory, unlimited passage to capital and minute concern about actual earnings. The idea was to get big fast and worry about profits later. And a beloved plan automatically comes into our mind: " Learn to swim while the tide is out. Learn from the kinds of customers that are out there now. It is a small market- play with it; learn to price enterprise in this market, learn how to assess risk. If you can do it well, the stakes will get higher and you will succeed where others may not."
3.1 What are the major challenges of B2C e-commerce
3.2 Six Keys to B2C E-Commerce success
So, what does it precisely take to capture the E-consumer and generate online guarnatee sales? Based on guarnatee & Technology's interviews with both early adopters and business analysts, there appear to be six key success factors:
Strategic Goals Assessment/Customer Needs evaluation What are your goals as a company? Who are your customers? What are their needs? These may sound like basic questions, but both insurers and analysts emphasize that a company's Web nearnessy must reflect this information. Create a Usable, Targeted and Sticky Web Site Usability and site performance are some of the key factors insurers need to keep in mind when developing their B2C E-Commerce strategies. Insurers also need to be aware of all of their discrete constituencies when developing B2C initiatives. The Web can reach multiple audiences and none should be overlooked. A good Web site will recite with consumers as well as enterprise partners, agents, suppliers and vendors. Stickiness, or the success of a Web site in attracting and holding new and returning visitors, is someone else success factor. Turning the site into more of an data portal with real-time news feeds with holding article updated and synchronized will help keep customers advent back. Integration The Internet is not a stand-alone platform or medium. To be an sufficient aid and distribution channel, it must be integrated with back-end inheritance systems, agent systems, call centers, marketing initiatives and pricing and underwriting systems. The Internet is plainly someone else buyer relationship channel and integration with other buyer aid functions is without fail a number-one priority.Innovate with Web Applications and Real-Time Transactions B2C online applications range from the relatively basic, such as updating procedure information, to the complex, such as comparative rate quoting and electronic claims submission. Regardless of the exact functions a enterprise plans to add to its Web site, they must serve the needs of the E-consumer. This means that web sites should have interactivity and immediate gratification.Partnerships Although insurers need to be selective in initiating online partnerships, such agreements have the potential to expand shop reach and add features in a relatively low-cost manner. Agreeing to a modern Gartner Group study, 46 percent of guarnatee firms active on the Web have partnerships with banks, 30 percent have partnerships with other guarnatee clubs and 22 percent have partnerships with venture firms. Partnerships with guarnatee portals furnish comparative quoting capabilities and may generate business. Put Tools in Place To Keep Learning E-consumer is a piquant target. Investor should all the time say that they are still playing and all the time capturing data from all of their channels. They must focus on groups, used third-party assessments and have hired user interface specialists. "The process is iterative: You just keep learning." [5]
4. Infrastructure Integration
In this web enabled world, customers rule. The capability to offer mass customization has come to be a practical reality. To rapidly meet these requirements, time to deployment of new or enhanced application is shrinking dramatically. These applications must be built to be easy to use, nimble, open, extensible, and available over all platforms and all these demanding characteristics must be achieved at minimal cost.
Replacement of inheritance theory application is high-priced so it is seen that habitancy started to composition data from disparate sources and couple them for seamless data flow, the inquire to recite with a wide variety of movable devices, and the shortage of skills and knowledge that are supplementary compounded by shrinking time-to-deployment requirements.
These software integration technologies lower amelioration and deployment costs by doing the following:
Supplying the transportation and integration code so application developers can couple on the value-added enterprise logic;Providing a acceptable platform on which to build, deploy, and carry on distributed applications;Reducing the It skills required to deliver difficult enterprise requirements; Providing rapid application amelioration tools to eliminate custom coding and simplify integration; andEnabling the reuse of integration components over many projects.
4.1 What is needed for Integration
RequirementsTraditional requirements definition based on the functionality desired is compliance to a definition Based on time-to-deployment and the capability to couple future technologies. New infrastructure requirements are emerging which places more importance on the task of planning the migration path to newer technologies. Technology selectionFor the best succeed the right technology should all the time be picked up. Technology should be such that the integrated explication fulfill the following criteria's: Extensibility and reusability, Flexibility, Efficiency, Interoperability and breadth, Cost effectiveness, Ease of maintenance, Deployment ease and efficiency, Ease of administration, business acceptability, enterprise integration, Technological innovation. [1]
4.2 Benefits of Integration
It has been surveyed that the end users are benefited in discrete ways after the completion of
Integration project. Benefits thus obtained are:
Simple and faultless amelioration platform,Platform independence,Network-aware amelioration and run-time platform,Technologically unified intranet, extranet and Internet,Central supervision of new software versions,Easy passage to enterprise It resources,Rich and highly functional user interface component,Simple and robust safety model. [1]
5. safety Issues
Security is a major issue in developing E-Commerce because this is probably the most leading conjecture habitancy hesitates to buy things on the Net. Buying on the Net requires your prestige card estimate and other personal information. But broadcasting your prestige card estimate through the ether? It sounds pretty dicey. So, it's a challenge for clubs to make their site fetch and safe so that habitancy can fully rely on them.
5.1 What does safety imply
Whatever the environment, paper or electronic, securing it necessarily implies the stoppage of
Destruction of data andUnauthorized availability of information.
5.2 safety issues
The issues that confront us in relation to securing electronic transaction are therefore:
ConfidentialityIntegrityAvailabilityAuthenticity/Non-reputabilityAuditability
Confidentiality:
Information should be protected from prying eyes of unauthorized internal users, external hackers and from being intercepted while transmission on transportation networks by making it unintelligible to the attacker. The article should be transformed in such a way that it is not decipherable by whatever who does not know the transformation information.
Integrity:
On retrieval or receipt at the other end of a transportation network the data should appear exactly as was stored are sent. It should be potential to generate an alert on any modification, expanding or deletion to the customary content. Integrity also precludes data "replay" i.e., a fresh copy of the data is generated or resent using the authorization features of the earlier authentic message. suitable mechanisms are required to ensure end-to end message article and copy authentication.
Availability:
The data that is being stored or transmitted over transportation networks should be available whenever required and to whatever extent as desired within pre-established time constraints. Network errors, power outages, operational errors, application software errors, hardware problems and viruses are some of the causes of unavailability of information. The mechanisms for implementation of counter measures to these threats are available but are beyond the scope of end-to-end message safety for implementing Electronic Commerce.
Authenticity:
It should be potential any person or object from masquerading as some other person or object. When a message is received it should therefore be potential to verify it has precisely been sent by the person or object claiming to be the originator. Similarly, it should also be potential to ensure that the message is sent to the person or object for whom it is meant. This implies the need for reliable identification of the originator and recipient of data.
Non-reputability:
After sending / authorizing a message, the sender should not be able to, at a later date, deny having done so. Similarly the recipient of a message should not be able to deny receipt at a later date. It should, therefore be potential to bind message acknowledgements with their originations.
Auditability;
Audit data must be recorded in such a way that all specified confidentiality and integrity requirements are met.[2]
5.3 safety solutions
Cryptography is the most widely used technique for implementing technology explication for the above mentioned safety problems. It comprises encryption -- the process of making data unintelligible to the unauthorized reader and decryption - reserving encryption to make the data readable once again. Approved cryptography uses a private code or key to encrypt information. The same private key is used by the receiver to decrypt the information.[14]Password is the most common mechanism used for authenticate people. Passwords are anticipated to be known only by the owner. The onus is on the owner to keep the password secret.Digital signature can be used not only to verify the authenticity of the message and the claimed identity of the sender, but also to verify the message integrity. The recipient, however, should not be able to use the received digital signature to falsely "sign" messages on behalf of the customary sender. Here a message is encrypted with the sender's private key to generate the 'signature'. The message is then sent to the destination along with this signature. The recipient decrypts the signature using the sender's group key, and if the succeed matches with the copy of the message received, the recipient can be sure that the message was sent by the claimed originator and that the message has not been modified while transmission, since only the originator is in ownership of the corresponding encryption key. It is a two key cryptosystems.A more sufficient explication can be obtained by using a biometric authentication device, such as a fingerprint scanner, in the e-wallet. Smart card are similar to prestige cards except that they have chips embedded in them. These cards can be used to store value and carry authentication information.
6. Conclusion
Changing shop scenario puts pressure on enterprise persons to adapt new and smart strategies to reach the pinnacle of success. New inventions are rapidly becoming part of It infrastructure. But to get sufficient feedback we need a multi functional team arrival consisting of enterprise habitancy who can correctly identify enterprise requirements, technology requirements and success criteria. habitancy can sell out the risk and time-to-deployment by inspecting the factors described above.
7. References
Aberdeen Group, Inc. "e-Business Infrastructure Integration: Practical Approaches," An administrative White Paper, Boston, Massachusetts 02108, Usa, November 2001Kamlesh K. Bajaj and Debjani Nag, "E-Commerce: The Cutting Edge of Business," Tata-McGrawHill, 1999Efraim Turban, Jae Lee, David King, H. Michael Chung, "Electronic Commerce-A Managerial Perspective," Pearson education Asia, 2001Ravi Kalakota and Andrew B. Whinston, "Frontiers of Electronic Commerce," Addison Wesley, 2001Susmita Das, Malabika Dinda, Sudipa Batabyal, Sangeeta Mishra, "A Study on discrete Aspects of E-Commerce Paradigms with One compose Implementation," B.Tech.(Honours) Thesis, Haldia compose of Technology (Vidyasagar University), 2002Simon S. Y. Shim, Vishnu S. Pendyala, Meera Sundaram, and Jerry Z. Gao, "Business to enterprise E-Commerce Frameworks," Computer, Ieee Computer Society, Volume 33, estimate 10, October 2000.Wenli Wang, Zoltan Hidvegi, Andrew D. Bailey Jr., and Andrew B. Whinston, "E-Process compose and guarnatee Using Model Checking," Computer, Ieee Computer Society, Volume 33, estimate 10, October 2000Tim Ebringer, Peter Thorne, and Yuliang Zheng, "Parasitic Authentication To safe Your E-Wallet," Computer, Ieee Computer Scciety, Volume 33, estimate 10, October 2000Abhijit Chaudhury, Debasish Mallick, and H. Raghav Rao, "Web Channels in E-Commerce," Communications of the Acm, Volume 44, estimate 1, January 2001Ted Becker, "Rating the Impact of New Technologies on Democracy," Communications of the Acm, Volume 44, estimate 1, January 2001Joe Mohen and Julia Glidden, "The Case for Internet Voting," Communications of the Acm, Volume 44, estimate 1, January 2001Deborah M. Philips and hans A. Von Spakovsky, "Gauging the Risks of Internet Elections," Communications of the Acm, Volume 44, estimate 1, January 2001Lance J. Hoffman and Lorrie Cranor, Guest Editors, " Internet Voting for group Officials," Communications of the Acm, Volume 44, estimate 1, January 2001Andrew S. Tanenbaum, "Computer Networks," Third Edition, Prentice-HallDebajyoti Mukhopadhyay and Sangeeta Mishra, "How to Meet The Challenges Of Managing E-Commerce Successfully," Journal of the Calcutta supervision Association, Volume Vii, estimate 2: August 2002
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