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Lecture # 5

Electronic Commerce
Advertisement Techniques Business to Business EC Communication Mediums

Advertisement Techniques: Passive Pull Strategy Active Push Strategy Passive Pull Strategy:The strategy when web pages are waiting for a customers passive access is referred to as Passive pull strategy. This strategy is affective and economical when advertising to open, unidentified potential customers world wide. The typical internet format involves pull format; users must seek out information through a search engine and pull the information out to them.

Active Push Strategy:Push Strategy allows for the direct delivery of information to an individuals computer desktop. Push technology allows for the direct delivery of the contents to the end user.

Business to Business EC:


B2C EC implies that the buyers are individual consumers while B2B EC implies that both sellers and buyers are business corporations. Business-to-Business EC covers a broad spectrum of applications that enables an enterprise or business to form electronic relationships with their distributors, resellers, suppliers and other partners.

Entities of B2B EC: Selling Company Buying Company Electronic Intermediary Deliverer Network Platform Internet, Intranet, Extranet Protocols and Communications Such as EDI etc Back end Information System

Supply Chain:
The supply chain encompasses all the activities associated with transformation and flow of goods from the raw materials stage all the way to the end user. The supply chain can be broken into three parts Upstream activities - involves material and service input from suppliers Internal activities involves manufacturing and packaging of goods Downstream activities involves distribution and sale of products to distributors and customers

Supply Chain Management:Supply chain management encompasses the coordination of order generation, order fulfillment/ distribution of products, services or information

Models of B2B EC: Supplier Oriented Marketplace Buyer Oriented Marketplace Intermediary Oriented Marketplace

Supplier Oriented Marketplace:2

The most common B2B model is supplier-oriented marketplace. Most of the manufacturer driven electronic stores belong to this category. In this model both individual consumers and business buyers use the same supplier provided marketplace.

Consume r

Business Customer

Suppliers Electronic Store

Suppliers Product Catalog

Customer Order information

Buyer Oriented Marketplace:Under this model a buyer opens an electronic market on its own server and invites potential suppliers to bid on the announced RFQs. Consume r

Business Supplier

Buyers Electronic Store

Buyers Requested Product Catalog

Suppliers Bid Information

Intermediary Oriented Marketplace:3

The third business model is establishing an electronic intermediary company, which runs a marketplace where business buyers and sellers can meet. Intermediaries Electronic Store

Business Supplier

Business Customer

Customers Order Information

Shared Product Catalog

Suppliers Product Information

Virtual Corporation:A virtual corporation is an organization composed of several business partners sharing costs and resources for the purpose of producing a product and services.

Communication Mediums:The Internet:The internet is a public and global communication network that provides the direct connectivity to anyone over the local are network or internet service provider.

The Intranet:An intranet is a corporate LAN or wide area network WAN that uses the internet technology and is secured behind companys firewall.

The Extranet:An extranet or extended intranet uses the TCP/IP protocol networks of the internet to link intranets in different locations.

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