Documente Academic
Documente Profesional
Documente Cultură
Steam engine
Telephone
From Traditional Commerce to
E-commerce Contd
Wire transfers - used
Electronic Funds Transfer (EFTs) by banks
Businesses transfer
electronic data
Electronic Data Interchange (EDI) - data not re-keyed
- high implementation
cost, thus excluded
small businesses
B2C
Relative Sizes of E-commerce
Categories Contd
Year B2C Sales B2B Sales
($ Billions) ($ Billions)
2005 150 4100
2000 50 60
Economic Forces
Economics is the
study of how people
allocate scare
resources
Resources are
allocated through:
Commerce
(markets)
Government actions
(e.g. taxes)
Markets
A market is a place where sellers can come into
contact with buyers and a medium of exchange
(e.g. currency) is available (e.g.the stock market)
Some hierarchal organisations (companies)
however, due to high transaction cost, choose to
replace supplier markets with its own hierarchal
structure for creating the product. This is called
vertical integration
E.g. Thomson Financial, a financial software
provider, purchased the data supplier Datastream
Hierarchical Organisations
(Firms)
Firms participate in markets to purchase raw
materials and sell finish products.
Chief Operating Officer