Ecommerce Industry effectWhat is Ecommerce?History of EcommerceIndustries EffectedTravel IndustryEcommerce Affect on Traditional Travel AgenciesEcommerce Affect on Direct Sales ChannelsEcommerce Affect on Online Travel AgenciesStock BrokerageKey WordsDiscount BrokersDiscount Brokers CharacteristicsThree primary value components:Charges: Full Service vs. DiscountBest Discount BrokersThe impact e-commerce has in the book industryWhat The Traditional Industry was Before E-commerceE-Commerce Book IndustryPros and ConsPros & ConsFuture of the Current IndustryEntertainment IndustryTraditional Entertainment IndustryMusicMoviesTelevisionEntertainment Industry ConclusionDistance EducationHistoryOnline Services and educationIndustry EconomicsEconomics ContinuedConclusionMIS 304Prof. FangSonny GarciaJustin FayBlake GiuffreRicardo LedesmaSamir HamidehWhat is Ecommerce?E-commerce is defined as “Electronic commerce or ecommerce is a term for any type of business, or commercial transaction, that involves the transfer of information across the Internet. It covers a range of different types of businesses, from consumer based retail sites, through auction or music sites, to business exchanges trading goods and services between corporations. It is currently one of the most important aspects of the Internet to emerge.”History of EcommerceYearEvent1984EDI, or electronic data interchange, was standardized through ASC X12. This guaranteed that companies would be able to complete transactions with one another reliably. 1992Compuserve offers online retail products to its customers. This gives people the first chance to buy things off their computer. 1994Netscape arrived. Providing users a simple browser to surf the Internet and a safe online transaction technology called Secure Sockets Layer.1995Two of the biggest names in e-commerce are launched: Amazon.com and eBay.com. 1998DSL, or Digital Subscriber Line, provides fast, always-on Internet service to subscribers across California. This prompts people to spend more time, and money, online. 1999Retail spending over the Internet reaches $20 billion, according to Business.com. 2000The U.S government extended the moratorium on Internet taxes until at least 2005.Industries EffectedTravelStock BrokerageBooksEntertainmentDistance EducationTravel IndustryChannels of Sale:•Traditional Travel Agencies: Brick and Mortor• Ecommerce: Direct Reservation Systems (GDS) •Direct Sales Channel•Online Travel AgentsEcommerce Affect on Traditional Travel AgenciesStruggles from Convenience Level Online Travel Booking provide Uses old technologyNon GUI Interfaces•Can only compete on 2 extremes of Income Scale•Low: Non Computer literate People•High: People who would rather pay someone to book their trip.Ecommerce Affect on Direct Sales ChannelsAbility to Dictate their own Pricing StrategyIncrease Brand Image Stronger Customer Relationship ManagementReduce CostsNo GDS or Travel Agent FeesEcommerce Affect on Online Travel Agencies •Ability to Accommodate CustomersEase and Quickness of PurchaseBundle of Air Travel, Hotel, Rental CarsWide Information about prices and schedules •Expand Market with PartnershipsStock BrokerageKey WordsBroker: An individual or firm which acts as an intermediary between a buyer and seller, usually charging a commission.Stockbroker: Broker who deals primarily with transactions involving stock.Full-Service Broker: A broker that provides a large variety of services to its clients, including research and advice, retirement planning, tax tips, and much more. Online broker: A brokerage which provides trading services to its clients over the internet.Discount BrokersOnline brokers are most often referred to as discount brokers…they allow you to:Trade securities (fixed income and equities), options, mutual funds, and forexEnter orders directly onlineTrade with other investors via ECN's (electronic communication networks)Discount Brokers CharacteristicsLow Commission FeesNo advice to clientsTrading PlatformResearch tools Real-time streaming quotes Up-to-date news releasesThree primary value components:Advice - The process of defining and implementing an appropriate investment strategy given an investor's objectives and particular constraints. Portfolio Management - The process of building and maintaining an investment portfolio that properly addresses the strategy that the advisory component has defined. Administration - All the trading, clearing and reporting functions required to effectively execute the portfolio management processes.Charges: Full Service vs. Discount Discount Brokers: We can assume an annual cost of 0.5% per year, though it could be more or less depending on account size and trading volume.An investor selecting load funds from a broker is outsourcing all three value components. Annual cost is around 2%.Best Discount BrokersZeccoTradekingOptionsXpressING DirectE-tradeScottradeFidelityVanguardCharles SchwabTD AmeritradeWhat The Traditional Industry was Before E-commerceTypical Retail system and operationCampus BookstoreInventoryemployeesCustomer orientedAdditional productsE-Commerce Book IndustryBusiness to Business (B2B) & Business to Consumer (B2C)The Mother of the Book E-CommerceAmazonOn-line bookstoreFounder.Largest online retailer SalesBarnes & Noblesebay.comHalf.comIndividualsIs still a service!!!Pros and ConsEliminated & Competedphysical-world retailers, catalog retailers, publishers, vendors, distributors & manufacturersSave timeSave MoneyCollege students & RegularsCompetitive PricesFind scarce booksReviews & FeedbackInformation on bookLinksPros & ConsShipping CostTime on OrdersStudentsWrong EditionDon’t carryReviewsAuthorsCustomers buy the book they did not wantAuthors Do not make moneyFuture of the Current IndustryKindle!!!!!!!PaperlessSubscriptionsEntertainment IndustryMusic IndustryMovies/Film IndustryTelevision IndustryTraditional Entertainment IndustryBuying musicCDsGoing to the moviesRenting moviesCassette tapesDVDsGoing to concertsWatching TV as it comes onMusicBefore Ecommerce:You would go to your local Tower Records or Wherehouse Music and buy a CD or
View Full Document