BBA3331 CSU Unit 1 Components of The Online Business Model Discussion InstructionsSearch the web for an example of four of the six major types of e-commerc

BBA3331 CSU Unit 1 Components of The Online Business Model Discussion InstructionsSearch the web for an example of four of the six major types of e-commerce
companies described in Section 1.4 of your textbook. The examples that you
select should NOT include any of the ones listed in Table 1.3 of your
textbook. Create a written report that describes each e-commerce company (take a
screenshot of each, if possible), and explain why each company fits into the
category of e-commerce that you have assigned to it. Provide a short
description of the history of the company, and illustrate how it was affected
by or how it fits into the evolution of e-commerce. Describe the type of
e-business used by each company. Include an introduction to your paper. Your assignment should be a minimum of two pages in length, not counting the
title and reference pages. You should have a minimum of four sources (i.e., one
for each company), and your assignment should be formatted in APA style. All
sources used, including the textbook, must be referenced; paraphrased and
quoted material must have accompanying citations. UNIT I STUDY GUIDE
Introduction to E-commerce
Course Learning Outcomes for Unit I
Upon completion of this unit, students should be able to:
1. Discuss components of the online business model.
1.1 Classify the major types of e-commerce.
1.2 Demonstrate how e-commerce differs from e-business.
Course/Unit
Learning Outcomes
1.1
1.2
Learning Activity
Unit Lesson
Chapter 1, pp. 3–33
Unit I Web Assignment
Unit Lesson
Unit I Web Assignment
Reading Assignment
Chapter 1: The Revolution Is Just Beginning, pp. 3–33
Unit Lesson
Unit I provides a historical perspective of e-commerce and the Internet. E-commerce goes back to the early
1990s, and its beginning was a turning point in the way we use and view the Internet. Significant technological
milestones along the way have propelled e-commerce and the transformation of the Internet to new levels of
interaction between the World Wide Web and its users.
Let’s begin with a few historical facts. Stallings (1999) reported that researchers working for the Advanced
Research Project Agency (ARPA) in 1967 conceived the concept of network communications between two
computers. By 1969, researchers managed to have two computers communicate using the Transmission
Control Protocol/Internet Protocol (TCP/IP) over a 50 Kbps modem. This project gave life to what it was called
ARPANET, a military network (Stallings, 1999). By 1978, a nongovernmental network was created by the
National Science Foundation to connect to U.S. universities (Dean, 2013). Due to the fast-paced development
of nongovernmental, Internet-based networks, ARPANET was decommissioned in 1990.
The Internet should not be confused with the World Wide Web; they are two distinct concepts. These two
terms are frequently used interchangeably; however, they are two different notions. Laudon and Traver (2018)
provide a succinct distinction between the two: “The Internet is a worldwide network of computer networks,
and the Web is one of the Internet’s most popular services, providing access to billions of web pages” (p. 8).
CORE CONCEPTS
“The Internet is a worldwide network of computer networks, and the Web is one of the
Internet’s most popular services, providing access to billions of web pages” (Laudon &
Traver, 2018, p. 8).
Core concepts
(Laudon & Traver, 2018, p. 8)
BBA 3331, Introduction to E-commerce
1
The Internet is the combination of many different interconnected networks, large
andx small,
which
make up
UNIT
STUDY
GUIDE
the infrastructure that we know as the Internet. This worldwide infrastructure uses
Titlethe TCP/IP, which was
established during the early days of ARPANET. In the early days, these networks ran different protocols, but
TCP/IP proved to be effective and popular. The Internet has come a long way—from using four connected
computers used at the inception of ARPANET, to reaching over 300,000 users in 1990, and then reaching at
least three billion users by 2015 (Schneider, 2017).
The World Wide Web, or the web as it is referred to today, is the manner in which the world shares
information in many different forms including web pages, multimedia, and text-based documents. The web
offers an easy-to-use mechanism or interface, which makes it possible for individuals who are not Internet or
computer experts to use the web to access information around the world (Schneider, 2017). This user-friendly
interface is now known as the web browser. Examples of web browsers today include Microsoft Internet
Explorer, Google Chrome, and Mozilla Firefox.
The Internet of Things (IoT)
A common notion is that individuals connect to one another via the Internet using computers. However, other
devices such as mobile phones and tablets also allow users to connect to one another using the Internet.
Schneider (2017) pointed out that the connection of devices not used by individuals is increasing
exponentially. Devices such as environmental controls, lighting devices, security devices (e.g., cameras,
motion sensors) used in heavily populated urban areas, and other Internet-aware controls used in critical
sectors (e.g., the power grid, transportation systems) are now connected to the Internet. These devices talk to
other systems and to each other using the Internet. Since the Internet is used as a vehicle of communication,
this subset of the Internet has been labeled as the Internet of Things or IoT. The IoT will become an important
concept as we progress through the course.
The Birth of E-commerce
In 1995 the launch of Amazon (amazon.com) marked the unofficial birth of e-commerce (Statista, 2018).
America Online or AOL and Prodigy had been around for quite some time before that, offering online
transactions; however, it was not until Amazon arrived that anyone really took notice. Before Amazon, the
online retail market seemed to be inconsequential. It was not so threatening. In fact, Barnes & Noble and
other retailers originally used Amazon as their e-commerce platform; however, Amazon was not considered a
legitimate threat to the marketplace even though it was slowly taking over many product categories from
brick-and-mortar retailers. The impact Amazon had on traditional retailers in the early 2010s began to worry
many, and by 2014, Amazon had become the e-commerce leader of the online retail market in the United
States (Statista, 2018).
The concept of e-commerce did not catch on until many barriers were removed by technology. It took many
years for online shopping to become commonplace. In the minds of most shoppers, it was easier to visit brickand-mortar stores to purchase goods and services. Technology facilitated the reduction and, in most cases,
the elimination of shopper barriers. Concerns, such as security and reliability, and amenities, such as
simplicity and convenience, helped propel e-commerce (Wallace, 2017).
The timeline below shows the significant milestones that were noteworthy to the advancement of ecommerce.
BBA 3331, Introduction to E-commerce
2
UNIT x STUDY GUIDE
Title
Timeline of milestones for e-commerce
(Laudon & Traver, 2018)
There are various types of e-commerce, and each has a unique audience and market. Laudon and Traver
(2018) identified the types described below.
1. Business-to-consumer (B2C): The Internet has facilitated the ability for businesses to market and sell
directly to consumers without a middleman. Examples of B2C businesses include Amazon, Walmart
(walmart.com), a babysitting business, and a pet grooming service.
2. Business-to-business (B2B): This is similar to B2C but is directed to other businesses. An example of
a B2B market includes a legal business, such as LegalZoom (legalzoom.com), which sells their
services to other businesses. Many businesses out there operate as both B2C and B2B; an example
of the latter is Home Depot (homedepot.com), which sells directly to consumers but also to other
businesses such general contractors.
3. Consumer-to-consumer (C2C): This is an online business model that facilitates transactions between
consumers. This business model minimizes costs of goods and services and keeps margins high for
sellers and prices low for buyers. Examples of C2C websites are eBay (ebay.com), Craigslist
(craigslist.com), and Swappa (swappa.com). Sellers usually pay a modest fee to the providers of the
platform (websites) to use their services, usually as a flat fee or a percentage of the sale.
4. Mobile e-commerce (M-commerce): Mobile commerce enables consumers to conduct transactions
on-the-go using mobile devices such as a tablet, smartphone, or wearable device such as a smart
watch. Examples of m-commerce include mobile banking, which allows consumers to check balances
or transfer money wherever they may be. In 2015, mobile payment applications surfaced, which
allows users to pay for goods and services using their mobile devices. Mobile payment systems
include Apple Pay and Google Wallet.
5. Social e-commerce: The term social e-commerce was first coined by Yahoo. This business model is
still in its infancy, but it is expanding. This business model relies on correctly gauging consumers’
social makeup and product or service expectations. An example of social e-commerce is Kickstarter
(kickstarter.com), which is a website where consumers not only take part in the business process, but
their presence is critical for the business to function. Other social e-commerce sites include Facebook
(facebook.com) and Snapchat (app).
6. Local e-commerce: This business model is geared toward local retail marketing and takes
consumers’ geographical locations into consideration. This is possibly due to the proliferation of
mobile devices with geo-location services. As an example, a local bicycle shop’s online store can be
optimized for a web search engine (e.g., Google) to produce results based on the geographical
location of potential customers in the area.
BBA 3331, Introduction to E-commerce
3
E-Business
UNIT x STUDY GUIDE
Title
Quite often, the terms of e-commerce and e-business get used equally, but they are not the same. Laudon
and Traver (2018) define e-business as a firm’s use of Internet technology for transactions and processes for
the improvement of the business. Unlike e-commerce, where the exchange of money using digital means
takes place, e-business encompasses all aspects of running a company’s online operations, including the
sale of goods and services; marketing; procurement; and communication with vendors, partners, and
customers. E-business involves e-commerce, but e-business is a greater part of a firm’s activities. According
to Laudon and Traver (2018), “E-business applications turn into e-commerce precisely when an exchange of
value occurs” (p. 9).
Conclusion
The retail industry has seen a significant change in customer and business purchasing habits. The industry
experienced a turning point when, in 2015, the National Retail Federation (NRF) reported that 102 million
consumers purchased goods in brick-and-mortar establishments, and 103 million shopped online (Allen &
Reynolds, 2015). E-commerce is now pervasive in our society. Laudon and Traver’s (2018) research shows
that the Internet/web achieved a 53% share of U.S. households in a matter of 10 years. Today, e-commerce
has reached about 96% penetration in U.S. consumers, showing unprecedented growth (Wallace, 2017).
References
Allen, K. G., & Reynolds, T. (2015, November 29). Thanksgiving weekend shopping brings big in-store and
online crowds, according to NRF survey [Press release]. Retrieved from https://nrf.com/media/pressreleases/thanksgiving-weekend-shopping-brings-big-store-and-online-crowds-according-nrf
Dean, T. (2013). Network+ guide to networks (6th ed.). Boston, MA: Cengage Learning.
Laudon, K. C., & Traver, C. G. (2018). E-Commerce 2017: Business, technology, society (13th ed.). Boston,
MA: Pearson Education.
Schneider, G. P. (2017). Electronic commerce (12th ed.). Boston, MA: Cengage Learning.
Stallings, W. (1999). Data and computer communications (6th ed.). Upper Saddle River, NJ: Prentice Hall.
Statista. (2018). Annual revenue of Amazon web services from 2013 to 2016 (in million U.S. dollars) [Graph].
Retrieved from https://www.statista.com/statistics/233725/development-of-amazon-web-servicesrevenue/
Wallace, T. (2017, December 3). Ecommerce trends: 147 stats revealing how modern customers shop in
2017 [Blog post]. Retrieved from https://www.bigcommerce.com/blog/ecommerce-trends/
BBA 3331, Introduction to E-commerce
4

Purchase answer to see full
attachment