Transcript hotmail com WW

Defining Your E-business Idea
Chapter 2
The Entrepreneur
• Someone who assumes the RISKS of
starting and running their own business
• An entrepreneur needs
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High energy personality
Self-confidence
High levels of organizational skills
Ability to act
The Entrepreneurial Process
E-business Success Factors
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The network effect
Scalability
Innovative Web Marketing Ideas
Ease of entry into (electronic) markets
Adaptability to change
The Network Effect
• The greater the number of nodes
(participants) the greater the value of the
network.
• Metcalf law of network power
– Power= number of nodes2
Scalability
• Scalability is the ability of your idea to
continue to function regardless of size.
• Scalability is also can refer to the ability of
a server or internet service to support
increased loads.
Innovative Web Marketing Ideas
• Use the power of the Web and Internet to
leverage new ideas.
• Hotmail gave away free e-mail accounts
that used a Web interface and was linked to
a site.
Hotmail
Ease of Entry Into Markets
• The Internet opened up access to markets by
lowering barriers to entry.
• Good ideas can be cloned.
• Advantage frequently goes to First Mover
• Ebay was a “first mover”
Ebay Auction Site
Adaptability to Change
• Internet and Web Technologies facilitate
rapid change in business models.
– New products or services
– New features
– Amazon.com added auctions to their
product/service mix.
Amazon.com
Exploiting E-Business Advantages
• Expand the Market
• Acquire greater business visibility
• Maximize customer relationships and
improve responsiveness
• Create new services
• Reduce costs
Expand the Market
• Reach more customers
• Lower location barrier
• Lower time zone barrier
Acquire Greater Visibility
• The internet allows companies to get their
name and products or services in front of
more customers that ever.
• (The problem is getting customers to look.)
• Use or outsource distribution to others.
– Fingerhut ditributes for eToys and Pier1
Maximize Customer Relationships
• Build one-on-one relationships with
customers
• Use technology to build and sustain links
with customers.
Improve Responsiveness
• Use technology to respond more quickly or
effectively to customer needs and inquiries.
– Use services such as parcel tracking and
delivery confirmation
– Allow for on-line purchases
Create New Services
• The Web allows for expansion and
refinement of tarditional business.
• Add new products quickly
Reduce Costs
• The Internet can lower costs of doing
business by lowering
– Distribution costs
– Marketing costs
Example Web Sites
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Fingerhut
Half.com
Southwest Airlines
WW Grainger
Trailmaker
Sun Micorosystems
Foodlocker
Fingerhut
Half.com
Southwest Airlines
Grainger.com
Trailmaker
Sun Microsystems
Foodlocker.com
Grocery Works.com