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10MultinationalE-Commerce:StrategiesandStructures
LearningObjectives(1of2)Definetheformsofe-commerce.UnderstandthestructureoftheInterneteconomy.Identifythebasiccomponentsofasuccessful
e-commercestrategy.Knowthebasicmultinationale-commercebusinessmodels.
LearningObjectivesIdentifythepracticalitiesofrunningamultinational
e-commercebusiness.Understandthefunctionofenablersinmultinational
e-commerceoperations.
TheInternetEconomyAlthoughsmallincomparisontothetraditionaleconomy,theInterneteconomyis:Growingfasterthananyotherbusinesstrendinhistory;aworldwidephenomenonDrasticallychanginghowinternationalbusinessisdoneTheInternetallowsanycompanytocreateavirtualandglobalpresencetoconductoperationsworldwide.
TheInternetEconomyManyoftheissuesinvolvedinbusinessovertheWebaresimilartothosefacedbytraditionalMNCs.ThenextgenerationofMultinationalmanagersmustaddressuniquechallengesinformulatingandimplementingmultinationalstrategiesfortheInterneteconomy.
WhatIsE-Commerce?(1of2)E-Commerceisthesellingofgoodsorservicesovertheinternet,andincludesthosedeliveredonline(downloadedsoftware)andoffline(deliverybyUPS).Typesoftransactions:B2C:Business-to-ConsumertransactionsExample:buyingtoysfromeToys.B2B:Business-to-Businesstransactions75-80%oftransactions
WhatisE-Commerce?(2of2)Typesoftransactions:(cont’d)C2C:Consumer-to-ConsumertransactionsAnyonesellingonlineeBayfacilitatesC2CtransactionsC2B:Consumer-to-BusinesstransactionsExample:pricecomparisonwebsites.
Exhibit10.1:
E-CommerceValueChain
Measuring
TheInternetEconomyTwoindicatorsoftheglobalpresenceofe-commerce:SecureServer:anInternethostthatallowsuserstosendandreceiveencrypteddataInternetHosts:computersconnectedtotheInternetwiththeirownIPaddressesTheextentofe-commerceisdifficulttomeasure.Onemethodistoestima
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