BUS 203: BUSINESS ENVIRONMENT

Section: 03

Fall 2013
Oct 22, 2013

L11

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Advance makeup being scheduled Nov 2, 16 & 30

Todays topic ecommerce

Todays topic
Ecommerce
1. Justin Paul. 2008. Business Environment, pp.215-234
2. Hand-out
3. Focus heavily on the materials we cover in class

Ecommerce Success Story

Founded in 1994; HQ in Seattle, Washington, USA

It is the world's largest online retailer

Amazon started as an online bookstore

but soon diversified, selling DVDs, VHSs, CDs, video and MP3
downloads/streaming, software, video games, electronics, apparel,
furniture, food, toys, and jewelry

Revenue

US$ 61.09 billion (2012)

Net income US$ 39 million (2012)

Employees 97,000 (June 2013)

Why did amazon succeed?

Four compelling reasons
Selection (1.1 million titles at its opening time)
Convenience (anytime, anywhere)

Price (high discounts on bestsellers)

Service (one-click shopping, automated order confirmation,
tracking, and shipping information) use of technology
First profit in the fourth quarter of 2001: $5 million

More Ecommerce Success Story

Whateverlife.com
Founder Ashley Qualls (age 20)
Launched in 2005, at age 14

Provide free MySpace layout and tutorials on how to do graphic

designs
By the end of 2007, WhateverLife would attract 7 million unique
visitors every month
According to some reports, Ashley made close to $2 million from
her website.
She reported makes $70k monthly in ad income from this site
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What is ecommerce?
Ecommerce is buying and selling goods and services over the Internet.
It involves:
Digitally enabled commercial transactions between organizations
and individuals.
Digitally enabled transactions include all transactions mediated by
digital technology
Commercial transactions involve the exchange of value across
organizational or individual boundaries in return for products or
services
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Unique Features of Ecommerce Technology

& Their Business Significance

Major Types of Ecommerce

IT Adoption in the Financial Sector

& the effect it had on ecommerce boom

IT affected the banking sector in two ways:

1.

Cost reduction and increase in efficiency

2.

Change in the ways customers access the banking services virtual or

remote banking

Remote Banking
1. Kiosk Banking (ATM Channel)

2. Telephone Banking (Phone Channel)

3. Online Banking (Internet Channel)

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IT Adoption in the Financial Sector

& the effect it had on ecommerce boom

Trend in Remote Banking:

Online banking manage rather than simple reporting
Digital signature and new ways of authentication

Growth of wireless and mobile banking and payment services

Barcode, QR Code and NFC

Diffusion of Electronic Money

Card based money
Network based money

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IT Adoption in the Financial Sector

& the effect it had on ecommerce boom
Mobile Wallet Solutions:
Mobile proximity payment is gaining a global momentum,
allowing people to use their cell phones for shopping, bus
and subway access, parking, and purchasing gas in a simple
tap.
Potential Applications:
- Transportation
- Offline payments

- Online payments
- Bill payments
- Top-up

- Staff ID
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Examples in Bangladesh
bKash
akhoni.com
chaldal.com
bdjobs.com

busbd.com

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