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Information Technology Assignment Question
GOGAL Designs currently has branches in shopping centres in 50 cities around the country from which they sell their designer range of clothing. GOGAL Designs' marketing research team has established that the majority of its customers are between the ages of 18 and 45 and are regular users of the Web. In recent times, the business has received feedback from many of them that they enjoy the convenience of online purchasing and would appreciate GOGAL Designs having an online presence.
GOGAL Designs has contacted your consulting company, Moose Consulting, to provide them with more information about conducting business online. They have asked for the following information to be provided to them:
1. Provide GOGAL Designs with a real world example of each of the major types of e-commerce (as described in Laudon & Traver, e-Commerce 2013: Section 1.1). For each type, describe the Web site – including a screenshot – and provide an explanation of why it fits into the category of e-commerce it has been assigned. (500 words)
2. Advise GOGAL Designs on their options for building their online business in-house with existing staff or outsourcing the entire operation. Outline for them which strategy you believe is in the company's best interest; explain why you chose that approach; and outline the estimated associated costs, compared with the alternative. (500 words)
3. During the early days of e-commerce, first mover advantage was touted as one way to success. On the other hand, some suggest that being a market follower can yield rewards as well.
Identify to GOGAL Designs which approach has proven to be more successful – first mover or follower? Explain why and provide two e-commerce companies as supporting examples on your position. (500 words)
Information Technology Assignment Solution on E Commerce Essay on GOGAL Designs
This document is prepared exclusively for GOGAL Designs so as to provide the requested information to the company on e-commerce. E-commerce includes various online commercial activities that focus on commodity exchange through electronic methods such as computer network and are used by customers, companies, factories and industries (Qin, 2009). The document shall discuss the various components of e-commerce, types of e-commerce, the advantage of the first mover versus follower approach for businesses and the decision to outsource e-commerce activities or develop in-house facilities.
1. Types of E-commerce Models
Business models include the technologies, operations, and policies that are used to define a business. One way e-commerce models can be divided on the basis of types of entities used (such as customers, business or government), buying and selling of goods and services.
B2B: These websites involve transactions between two or more businesses (Morley & Parker, 2014). Ricoh.com website has a B2B e-commerce business model as the website sells products such as printers and other imagery products to other businesses. Since the e-commerce involves the exchange of products and services between one business to another, it is a B2B e-commerce model.
B2C: These websites sell products and services from business to customers (Morley & Parker, 2014). An example of a popular B2C e-commerce platform is that of Dell Computers. The transactions are made between the Dell computers and the consumers that are largely individuals. Since this website involves a business transaction between a business organization and a customer (a customer buys a computer or related product directly from Dell).
C2C: These e-commerce websites involve buying and selling between one consumer and the other (Morley & Parker, 2014). Ebay is an example of a C2C e-commerce model as the individual customers sell their products to other consumers that are the buyers. This buying and selling transactions take place between the various customers that may act as buyers or sellers on the auction website.
B2G: These e-commerce websites involve transactions between businesses and government (Morley & Parker, 2014). B2gmarket.com is a B2G e-commerce website as it involves the business transactions between the government/government agencies and the businesses. The government projects are awarded to business organizations on the basis of the bids made by the businesses in response to government tenders. Since the transfer of goods and services take place between the government and business houses, this is a B2G e-commerce model.
Social E-commerce: Social e-commerce websites are the e-commerce websites that are enabled by the social media networks and social relationships (Laudon & Traver, 2013). The examples of such sites are Facebook and Twitter. Facebook website involves social interactions between people on a global platform. The various people from diverse backgrounds have their profiles on Facebook. The interactions take place between the various people in the form of likes and comments that are forms of social interactions. Even Facebook advertisements involve Facebook likes are one of the deliverables.
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