Tuesday, October 16, 2012

The Seven Features Of E-Commerce Technology


Electronic Commerce technology has changed the way traditional business is being done. Transactions’ complexity is increased due both to the huge amount of available information and also to the environment dynamics. Moreover, Electronic Commerce has enabled the arising of new economical structures, as it is the case of Virtual Organisations.

There Are The Seven Features Of E-Commerce technology:
  • Ubiquity 
  • Global Reach
  • Universal Standards
  • Richness
  • Interactivity
  • Customization
  • Information Density 
 1-Ubiquity
-Alters industry structure by creating new marketing
channels and expanding size of overall market.
-Creates new efficiencies in industry operations and
lowers cost of firms’ sales operations.

2-Global Reach
-Changes industry structure by lowering barriers to
entry, but greatly expands market at the same time.

Lowers cost of industry and firm operations through
-production and sales efficiencies.
Enables competition on global scale.
3-Universal Standards

-Changes industry structure by lowering barriers to entry
and intensifying competition within an industry.
Lowers costs of industry and firm operations by
lowering computing and communications costs.
Enables broad-scope strategies.
4-Richness

-Alters industry structure by reducing strength of
powerful distribution channels
Change industry and firm operations costs by lessening
reliance on sales force
Enhances post-sale support strategies
5-Interactivity

-Alters industry structure by reducing threat of
substitutes through enhanced customization
Reduces industry and firm costs by lessening reliance
on sales force
Enable differentiation strategies
6-Customization

-Alters industry structure by reducing threats of
substitutes, raising barriers to entry
Reduces value chain costs in industry and firm bylessening reliance on sales forces

7-Information Density

-Changes industry structure by weakening
powerful sales channels, shifting bargaining
power to consumer

Reduces industry and firm operations costs by
lowering costs of obtaining, processing, and
distributing information about suppliers and
consumers

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