COMMERCE.pptx complete.pptx see it read it
- 1. COMMERCE: Commerce is a division of trade or production which deals with the exchange of goods and services from producer to final consumer
- 2. E-COMMERCE: It is commonly known as electronic marketing. It consist of buying and selling goods and services over an electronic system such as the internet. E-commerce is the purchasing , selling & exchanging goods and services over computer network or internet through which transactions or terms of sale are performed electronically.
- 3. E-commerce vs. E-business: We use the term e-business to refer primarily to the digital enablement of transactions and processes within a firm, involving information systems under the control of the firm. E-commerce include commercial transactions involving an exchange of value across organizational boundaries
- 4. The process of E-commerce
- 5. The process of E-commerce cont.. A consumer uses Web browser to connect to the home page of a merchant's Web site on the Internet. The consumer browses the catalog of products featured on the site and selects items to purchase. The selected items are placed in the electronic equivalent of a shopping cart. When the consumer is ready to complete the purchase of selected items, she provides a bill-to and ship-to address for purchase and delivery
- 6. The process of E-commerce cont.. When the credit card number is validated and the order is completed at the Commerce Server site, the merchant's site displays a receipt confirming the customer's purchase. The Commerce Server site then forwards the order to a Processing Network for payment processing and fulfilment.
- 7. ADVANTAGES OF E-COMMERCE: Faster buying/selling procedure, as well as easy to find products. Buying/selling 24/7. More reach to customers, there is no theoretical geographic limitations. Low operational costs and better quality of services. No need of physical company set-ups. Easy to start and manage a business. Customers can easily select products from different providers without moving around physically.
- 8. DISADVANTAGES OF E-COMMERCE : Unable to examine products personally Not everyone is connected to the Internet There is the possibility of credit card number theft Mechanical failures can cause unpredictable effects on the total processes.
- 9. SCOPE OF E-COMMERCE: Selling can be focused to the global customer Pre-sales, subcontracts, supply Financing and insurance Commercial transactions: ordering, delivery, payment Product service and maintenance Co-operative product development Distributed co-operative working Use of public and private services Business-to-administrations (e.g. customs, etc.) Transport and logistics Public procurement Automatic trading of digital goods Accounting Dispute resolution
- 10. Features of e commerce: Non-Cash Payment: 24x7 Service availability: Advertising / Marketing: Improved Sales: Support: Inventory Management: Communication improvement
- 11. Non-Cash Payment: E-Commerce enables use of credit cards, debit cards, smart cards, electronic fund transfer via bank's website and other modes of electronics payment. 24x7 Service availability E-commerce automates business of enterprises and services provided by them to customers are available anytime, anywhere. Here 24x7 refers to 24 hours of each seven days of a week. Advertising / Marketing: E-commerce increases the reach of advertising of products and services of businesses. It helps in better marketing management of products / services. Improved Sales: Using E-Commerce, orders for the products can be generated any time, any where without any human intervention. By this way, dependencies to buy a product reduce at large and sales increases. Support: E-Commerce provides various ways to provide pre sales and post sales assistance to provide better services to customers.
- 12. Inventory Management: Using E-Commerce, inventory management of products becomes automated. Reports get generated instantly when required. Product inventory management becomes very efficient and easy to maintain. Communication improvement: E-Commerce provides ways for faster, efficient, reliable communication with customers and partners.
- 13. Traditional Commerce v/s E-Commerce Traditional Commerce Heavy dependency on information exchange from person to person. Communication/ transaction are done in synchronous way. Manual intervention is required for each Communication or transaction. E-Commerce Information sharing is made easy via electronic communication channels making little dependency on person to person information exchange. Communication or transaction can be done in asynchronous way. Electronics system automatically handles when to pass communication to required person or do the transactions.
- 14. Traditional Commerce v/s E-Commerce Traditional Commerce It is difficult to establish and maintain standard practices in traditional commerce Communications of business depends upon individual skills. Unavailability of a uniform platform as traditional commerce depends heavily on personal communication. No uniform platform for information sharing as it depends heavily on personal communication. E-Commerce A uniform strategy can be easily established and maintain in e- commerce In e-Commerce or Electronic Market, there is no human intervention. E-Commerce website provides user a platform where al l information is available at one place. E-Commerce provides a universal platform to support commercial / business activities across the g lobe.
- 15. Types of e commerce Business - to - Business (B2B) Business - to - Consumer (B2C) Consumer - to - Consumer (C2C) Consumer - to - Business (C2B)
- 16. Business - to - Business (B2B) Website following B2B business model sells its product to an intermediate buyer who then sells the product to the final customer. As an example, a wholesaler places an order from a company's website and after receiving the consignment, sells the end product to final customer who comes to buy the product at wholesaler's retail outlet. Business-to-Business
- 17. B2B
- 18. Business - to - Consumer (B2C) Common notion about e-commerce is that it is a business selling something through an online interface to a consumer. And this is the Business- to-Consumer (B2C) model. The most widely known ecommerce businesses, such as Flip kart, Amazon, etc. are ones where a retailer sells directly to a consumer.
- 19. B2C
- 20. Consumer - to - Consumer (C2C) the ecommerce website serves to facilitate the transaction between two consumers. Auction sites such as eBay (specifically when items are sold by individuals, rather than businesses listing products for auction) is a classic example of C2C e- commerce model. Consumer-to-Consumer (C2C)
- 21. C2C
- 22. Consumer - to - Business (C2B) In a consumer-to-business (C2B) model, consumers sell products and services to businesses, instead of it being the other way around. Example - Freelancer websites elance.com, where the end-user lists jobs that businesses (either individual or larger businesses) can buy from them. In a way, job portals are also C2B as here, the ‘end-user’ (the prospective employee) lists their ‘product’ (resume) to attract businesses to hire them
- 23. C2B
- 24. SUPPLY CHAINS: The flow of material, information, money, and services from raw material suppliers through factories and warehouse to end customer What is Supply Chain Warehouse Factory End Customer Supplier Distribution. Electronic supply chain management is most commonly referred to as e-supply chain management. It combines the concepts of electronic business (e-business) and supply chain management (SCM), and depicts how trade channel members are working together to optimize resources and opportunities
- 25. SUPPLY CHAINS
- 26. Benefits of supply chain in e commerce Order taking Order fulfilment Electronic payment Electronic payment Managing risk Inventories can be minimised Collaborative commerce
- 27. Porter’s value chain model A value chain is a set of activities that a firm operating in a specific industry performs in order to deliver a valuable product or service for the market. It is a set of activities that an organization carries out to create value for its customers. The concept comes from business management and was first described and popularized by Michael Porter in his 1985 best-seller, Competitive Advantage: Creating and Sustaining Superior Performance. The idea of the value chain is based on the process view of organizations, the idea of seeing a manufacturing (or service) organization as a system, made up of subsystems each with inputs, transformation processes and outputs. Inputs, transformation processes, and outputs involve the acquisition and consumption of resources – money, labor, materials, equipment, buildings, land, administration and management. How value chain activities are carried out determines costs and affects profits.
- 28. Porter’s value chain model cont..
- 29. Primary Activities Primary activities relate directly to the physical creation, sale, maintenance and support of a product or service. They consist of the following: 1) Inbound logistics – These are all the processes related to receiving, storing, and distributing inputs internally. Your supplier relationships are a key factor in creating value here. 2) Operations – These are the transformation activities that change inputs into outputs that are sold to customers. Here, your operational systems create value. 3) Outbound logistics – These activities deliver your product or service to your customer. These are things like collection, storage, and distribution systems, and they may be internal or external to your organization. 4) Marketing and sales – These are the processes you use to persuade clients to purchase from you instead of your competitors. The benefits you offer, and how well you communicate them, are sources of value here. 5) Service – These are the activities related to maintaining the value of your product or service to your customers, once it's been purchased.
- 30. Support Activities These activities support the primary functions above. In our diagram, the dotted lines show that each support, or secondary, activity can play a role in each primary activity. For example, procurement supports operations with certain activities, but it also supports marketing and sales with other activities. 1) Procurement (purchasing) – This is what the organization does to get the resources it needs to operate. This includes finding vendors and negotiating best prices. 2) Human resource management – This is how well a company recruits, hires, trains, motivates, rewards, and retains its workers. People are a significant source of value, so businesses can create a clear advantage with good HR practices. 3) Technological development – These activities relate to managing and processing information, as well as protecting a company's knowledge base. Minimizing information technology costs, staying current with technological advances, and maintaining technical excellence are sources of value creation. 4) Infrastructure – These are a company's support systems, and the functions that allow it to maintain daily operations. Accounting, legal, administrative, and general management are examples of necessary infrastructure that businesses can use to their advantage.
- 31. Competitive advantages Competitive strategy refers to how a company competes in a particular business overall strategy for diversified firms is referred to as corporate strategy competitive strategy is concerned with how a company can gain a competitive advantage through a distinctive way of competing porter’s model: 1.Threat of new entrants 2.Threat of substitution 3.Bargaining power of buyers 4.Bargaining power of supplier 5.Competition between existing player
- 32. Business strategy : A business strategy is a set of plans for achieving superior long term return on the capital invested in a business firm it is therefore a plan for making profits in a competitive environment over the long term E commerce implementation: Technical implementation Business implementation E commerce evaluation: 1. Improve it 2. Revise it 3. Update it