Blah Blah Blah in eCommerce: WeeK tHRee

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Review on Real-World Case: Google is changing everything

Today, I read the article in Turban’s textbook which titled: Google is changing everything. Google had become one of the company that brings a lot of impacts to users compared to others which implementing e-Commerce (EC) capability. This may be due to its efficient IT and EC management strategy.

I found out there is a lot of benefits that took place by implementing E commerce and all of the examples can be proved by how Google innovating their activities that help public to solve their problems. First of all, Google helps Small Medium Enterprise (SME) to compete with large enterprises by providing them suitable and specific business model. It helps to organize users’ information and publish via the web so that anyone can access it easily.

In addition, EC is providing ubiquity to users because they can shop anytime from anywhere. For example, https://www.google.com/froogle/merchants/welcome. is a website which allows users to compare the price and item with other companies. This save customer times to compare from one shopping centre to another shopping center and have more choices from varieties of products, services, vendors and styles. Users can get more information from EC than the physical stores because it helps to find what your need easily, tells you more details about the products tat you choose, demos and etc.

In the article, it tells me about Enterprise Search is a tool that helps identify and enable organization to share information with authorized users. This can improve the organization performance by offering the other applicants i.e. suppliers to access the enterprise information such as reports and business events.

An example of enterprise that succeeds by using this tool in this article is Kaiser Permanente They need to make sure there is updating knowledge is available for its doctors, nurses and other caregivers. EC can be global reach and publish updated information that help users make the best decision such as do research on diagnoses and specify treatments. More over, EC can reduce pollution and traffic jam by enabling telecommunicating and facilitate work at home. Means, there is more education, health information and etc that is available for more people even though they are at home or live at rural area.

As a conclusion, invention of e Commerce capabilities had brings huge changes in the global and it makes Google had change everything in order to compete with other competitors. What had they done is proven that, they are successful and brings usefulness to the public; therefore, they are expanding their business and gaining revenue by matching global needs.

Sources : A review on Real-World Case: Google is changing everything, from the textbook Chapter1 pg.38.

Turban, E., King, D., McKay, J., Marshall, P., Lee, J., & Viehland, (2008). Electronic Commerce: A managerial Perspective 2008. (International Edition). Upper Saddle River, NJ: Pearson-Education International.

History and Revolution of E-commerce

History of E-commerce was started since the invention of the very old notion of selling and buying, electricity, cables, computers, modems and importantly Internet. The usage of E-commerce became possible once the Internet can be commercially used. After that, thousands of transactions were generated at websites.

As far as back to early 1960, Electronic Data Interchange (EDI) was developed. It is a set of standard that allow a company’s computer system to share business information and generate transaction with another company.

In 1979, the American National Standards Institute (ANSI) came up with ASCX 12, which is stable and reliable for transferring large amounts of business documents.

Arpanet was developed in late 1960 which were connecting the four large research universities in US. Researchers developed Terminal Interface Processor (TIP) for dialing Arpanet from individual computer terminal but in 1982, Arpanet switched over to Transmission Control Protocol (TCP) and Internet Protocol (IP).

Mosaic web-browser was made available in 1992 that it was the first ‘point-and-click browser. Mosaic web-browser allows easier access to E-commerce because that browser was adapted Netscape, a downloadable browser. Netscape 1.0 which was released in 1994 contains Secure Socket Layer (SSL) which was security protocol that encrypted messages on both sending and receiving side of online transaction. It is important to ensure the personal information such as name, address, phone and credit card numbers could be encrypted as they passed over the Internet.

Digital Subscriber Line (DSL) was another development of E-commerce in 1998. DSL allows quicker access and has persistent connection to Internet.

I now end my post by presenting you a video clip, E-commerce Evolution, to make the history more understandable.

An example of an e-commerce failure and its causes

The example of an e-commerce is eToys.com. EToys.com is a retail website that sells toys through the internet. EToys was founded in 1997 and at that time it was the first online toy retailer. By 1998, eToys.com became the third largest e-commerce site in the country. EToys.com was founded by Toby Lenk. The funding is from Sequoia Capital, Highland Capital Partners and Idealab. The company went bankrupt near the end of the dotcom boom. Dot-com boom is the period marked by the founding of a group of new internet-based companies. The company that owned the eToys site filed for bankruptcy toward the end of the Internet bubble on March 7, 2001. EToys.com was then reopened by eToys Direct Inc. EToys.com changes a number of ownership and at the end it was acquired by Toys "R" Us in February 2009.

In 1999, the company was involved in a dispute with Swiss art site etoy. EToys filed a suit against Swiss art site etoy.com for trademark infringements. The domain of Swiss art site etoy.com was similar to its own domain. The suit was dropped and etoys.com in turn filed a lawsuit against eToys.com. The suit against Swiss art site etoys.com was a huge mistake. EToys had a highly successful Initial Public Offering in 1999. Shares issued at $20 rose to $76 on the first day of trading, but in February 2001, its stock went from $84 per share to 9 cents per share. EToys spent millions on advertising, marketing, and technology to compete with its competitors. All the spending incurred exceeds the company's income and investors quickly turn to other company, this leads to the failure of eToys.com. EToys.com does not have a solid infrastructure before its expansion. They had a rapid expasion and this causes them to failed. Another cause is because eToys did not deliver their product on time. Sales were low and many customers did not receive their products and this quickly spread to everyone. The customer satisfactions were low and they go to other competitors.

References:

https://share.zoho.com/preview/presentation/21397000000005003

http://en.wikipedia.org/wiki/EToys.com

Success Factors and its Causes

Nowadays, E -commerce is very common type of business in the online transaction. In this new generation, people prefer to shop online because they would like to buy whatever they want and also can search whatever they wish around the world. It is very convince to consumer to shop everything. For example, Amazon.com is a successful e-commerce and it is well known throughout the world. What is the factor tend to Amazon be a successful e commerce?

A list of top ten companies of the decade it would not be completed without Amazon.com. The company is considered one of the top in the e commerce industry and has managed to continue success.

There are the four categories tend to Amazon.com be a global acceptance and successful in e commerce. The four factors are, unique shopping experience, offering competitive prices, straightforward wed design and friendly interface, lastly Amazon has a convince payment system.

Unique shopping experience: Provide service for customers enable them to buy and to return. Sales promotion occurs in Amazon.com as well, which involve coupons, special offers and discount. Some books has provided the signature of author rather than buy books from other companies.

Competitive Price: Amazon is very differently to the other companies, because they offer the prices of a product from different companies to let buyer be able compares. Besides that, any fees for product listing and its cost will be paid by sellers until the products are sold.

Web page design and friendly interface: We can provide personal attention, to personalized web sites, give comments, purchase suggestion and personalized special offers. Just like running a self business.

Convenience payment system: For every e-commerce company, the most convenience issue of success is payment. We can pay for the shopping by credit card, otherwise it will take times for other payment method.