1. Why has the web grown so dramatically?
The web has grown so dramatically as it is easy to use, non-technical, and a personalised web. There is also very easy access to the web as it runs on an open source.
2. What is Web 2.0, how does it differ from 1.0?
Web 2.0 is two way communication. Users are able to reply back to the composers of a blog etc where as on web 1.0 this was not the case. Web 1.0 was read only data where users were unable to contribute and thus was a one way push of information. An example of Web 2.0 is Facebook as you are able to post comments, blogs, pictures and tag people as well as private message people and ‘poke’ people.
3. How could a web 2.0 technology be used in business?
The most common ways to use Web 2.0 in business is through social media. This includes: Facebook, Twitter, Myspace, YouTube, Blogger and Linked In. One example is NAB’s ‘Break up’ Campaign as NAB tweeted that it was going through a very hard break up. On Valentines Day - it launched the break-up campaign, followed by a number of marketing, advertising and PR stunts. CD's full of break-up songs were handed out at railway stations, signs on footpaths, and actors performed mock break-ups around the country.NAB had started the campaign by tweeting and immediately reached the younger customers NAB wanted to attract. They used YouTube to send the campaign viral. Without the internet, this could not have happened and it could not have reached the target consumer and ultimately increased their profits.
Appliances online is another company who had used social media to increase revenue. They had introduced a campaign on Facebook where you would receive “mates rates” if a certain amount of people joined their fan page. Everyone who had joined the page received this. This is important as more people would follow their page and each time Appliances online updated their page, all the fans would be updated on the news feed. This was in a sense free advertising for them.
Levis also used twitter to create awareness for their brand as an employee would walk around Sydney tweeting where they were and their followers would get a free pair of jeans if they found them. This has to do with online advertising.
Darrel lea is also in the process of creating a “check in for chocolates” campaign on Facebook where you would check in to their store and receive a free rocky road.
Banner ads are generally ads which run horizontally on a page or vertically and also contain a link to the advertisers website. It also allows for statistics to be made as it can track the amount of users who click on the banner ad. Other online ads include the ads seen on Youtube before you watch a clip. Pop-up ads are the ads which are on a small webpage outside of the current loaded website.
Viral Marketing is a technique where website users pass on a marketing message to others. It can also be seen on youtube when an ad is posted and it spreads like wild fire. Associate programs refers to when organisation (a) allows organisation (b) to generate commissions from another company. Eg. Amazon pays commissions to other organisations when they use banner ads or codes on another website to generate sales.
Mass Customisation is when a company tailors its products to their customers specifications. E.g. A customer can order a Louis Vuitton bag over the internet with their initials on the handles. Personalisation is when a website can detect what a person likes and dislikes and automatically offers products which the customer is likely to buy.
Social bookmarking allows for an increase in funds as consumers can find websites, put them on their profile and share that website. This can increase customer awareness and thus increase profits. One example of this is Digg and Reddit.
RSS feeds allow you to add a number of websites into an RSS reader and get all the news from your favourite websites.
Podcasting is the distribution of subscribed audio or video files over the internet to be played on mobiles. Search engine optimisation is a method used to improve the ranking of a website in search engine listings. This will ultimately increase the amount of traffic flow to that website resulting in higher profit. Emailing target markets for upcoming events will also increase revenue. One example is the Myer VIP days.
There are different types of portals. These include corporate portals, government portals and also personalised portals. The types of corporate portals include:
- Supplier portals which helps with inventory control
- Customer portals which allows customers to view, manage and track purchases
- Employee portals allows employees to share files and information easily
- Mobile portals which is built for mobile technologies
4. What is eBusiness, how does it differ from eCommerce?
E-Commerce refers to buying and selling online, where as eBusiness includes logistics, audit tracking, transportation and delivery of the product.
5. What is pure and partial eCommerce
Pure eCommerce is a business which in entirely online and is completely digital for example there is no physical product such as iTunes or an online accountant. Partial eCommerce on the other hand does have physical characteristic such as a physical product. One example is amazon.com or thebookdepository.com. Although the transaction is online there is still the physical element which exists.
6. List and describe the various eBusiness models?
Business to business
- This refers to businesses who buy from a different business over the internet.
- They are also able to access data such as online shipping dates, delivery dates and the status of the shipment
- E-marketplaces are thus formed where businesses can trade, sell and buy at a central market.
- Structures are made for commercial exchange, consolidating supply chains and creating new channels for selling.
- The goal is to increase market efficiency by improving the relationship between buyers and sellers.
Business to Consumer
- Refers to a business selling goods to a consumer over the internet.
- Thus e-shops are created where a consumer can shop any hour of the day without leaving the luxuries of their own home.
- E-malls are also created which consists of a collaboration of e-shops.
- Some examples include Amazon and Book Depository www.bookdepository.com
- Types of e-shops include:
Brick-and-mortar business: physical store without an internet
Pure-play (virtual) business: internet based business without a physical store
Click-and-mortar business: both on the internet and a physical store
Consumer to Business
This applies to any consumer selling goods to a business over the internet.
This will become more popular in the next few years as there is a demand for lower prices and greater convenience
One example is a photographer selling their photographs to businesses through istockphoto.com
Consumer to Consumer
This refers to consumers selling products to other consumers
Ebay is the most successful C2C online website and charges a small commission from each sale www.ebay.com.au
Types of online auctions
E-auctions: an online auction
Forward auction: a selling channel to many buyers and the highest bid wins
Reverse auction: buyers use this to purchase a product selecting the seller with the lowest bid.
Business to government
This is a derivative of B2B
Here, Businesses sell products or services to governments and are usually in the form of a reversed auction.
7. List and describe the major B2B models?
The 'sell-side' e-market place model is a major B2B model as it refers to one company who sells to many organisations and buyers over the internet.
The three basic pricing methods include electronic catalogs, auctions and one-to-one selling.
The 'buy-side' model refers to an organisation buying products from multiple organisations
8. Outline 2 opportunities and 2 challenges faced by companies doing business online?
Two opportunities would include the idea that the business is high accessible. Consumers are able to shop and buy at any time of the day and the online business will be able to process that payment without many delays. Another opportunity includes that the business can reach a broader market and can customise their products to the consumer as Amazon.com does with their suggestions.
Consumers may be wary in regards to using their credit cards online de to identity theft and cyberfraud. This would impact businesses online as it may stop many consumers buying products from the company. Thus protecting the customers can be a challenge. Another challenge for businesses online is increasing liabilities as suppliers are exposed to these as the internet commerce law is not clearly defined and changes depending on the country of origin.
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