Transcript Document

FRAMEWORK OF E-COMMERCE
STRATEGIES
(and the case in Greece)
Dimitrios Xanthidis
Lecturer at City Liberal Studies
PhD Research City University London
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Traditional definition of
E-commerce
The notion of utilizing devices constructed, or
working by principles of electronics for the
exchange or buying and selling of commodities
on a large scale
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The Debate
The exact process and devices utilized during
that process are irrelevant and still
considered E-commerce as long as any
part of the process relates to the
technology of Internet.
The flow of information is that matters and
that is what E-commerce is all about.
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Framework of Activities for the strategic
planning of the integration of an E-business
1. Building and maintaining the technical
Infrastructure
2. Advertising
3. Taking care of the customers – visitors
4. Channel transparency
5. Security, privacy, spam
6. Globalisation and Legal issues
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1. Building & maintaining the technical
infrastructure
• ISPs’ (Internet Service Provider) view:
– Available bandwidth
– Internet pricing scheme and rates
– Service stability
• Company’s perspective
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Processing speed and power
Server efficiency and availability
Dedicated expert personnel
Site sophistication and system maintenance
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2. Advertising
• Affiliate programs – sites
– Pay per click
– Pay per lead
– Pay per sale
• Stickiness
• Integrated online and offline advertising campaign
• Marketing and product research
• Buy the intellectual rights (copyrights, trademarks)
of old and/ or bankrupt well-known companies
with good reputation
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3. Taking care of the customers – visitors
• Internet marketing metrics:
– Number of people responded,
– Number of new vs. repeat visitors,
– Visitor interest areas,
– Media with best clickthrough rate for a particular cost,
– Time spent on site,
– Cost vs. benefit analysis
• CRM (Customer Relationship Management)
– Customisation (cookies, customers’ ids),
– Information about product availability and features,
– Payment methods,
– Availability of different communications media (online, offline)
(Jere King, Vice President of WorldWide Marketing Communications, Cisco Systems)
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4. Channel Transparency
• Channel transparency
– Ability/ availability to close sales/ deals online/ offline,
– Processes independent of place, time and
communications media,
• Collaboration
– Business deals with other companies,
– Sell products through small subsidiaries/ chain stores,
• Consolidation
– Getting together with other companies under the same
“roof ” when needed
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5. Security issues and technologies
• Security concerns:
– Privacy/spam
– Integrity,
– Authentication,
– Non-repudiation,
– Network availability and stability
• Methods, techniques and systems to secure
communications
– Secret-key cryptography, public-key cryptography,
– Digital envelope, digital signatures,
– SSL protocol, SET protocol
– Certificates, certification authorities
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5. Security breach incidents from 1998 to 2001
Source: CERN
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6. Globalisation & Legal Issues
• What is globalisation
• Globalisation issues
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Languages,
Politics,
Colors,
Wording
• Import – export issues
• Taxation
• International trade law
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Internet and E-commerce in Greece
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Total population about 10,500,000 people
Average personal income in Greece is $11,740
Standard of living at 67% of E.U. average (January 2001)
Online population:
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33% of the population are simply computer users
800,000 Internet users by the end of 2000
1,330,000 Internet users by the end of 2001
2,000,000 Internet users by the end of 2002 (Ministry of Economics)
Projection of at least 3,500,000 users by the end of 2004 as a result of
Greek government’s initiatives and the Olympic Games
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19% of Internet penetration
Source: The Economist Intelligence Unit, (www.eiu.com)
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Internet and E-commerce in Greece
(cont.)
• Ages between 15 and 24 are using computers and the Internet the
most
• Average use of computers/week is 14.2 hours, average usage of
the Internet/week is 6.3 hours
• 20% uses the Internet for communication purposes i.e. email, chat,
20% to search for products or services (not to buy), 13% for
entertainment or to be informed, and only 1.6% uses it for ecommerce or e-banking or e-taxiing activities,
• 60% rejects the use of the Internet,
• 78.4% is connected with a dial-up connection, 19.4% with some
type of ISDN connection and only 0.7% are using ADSL
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Internet and E-commerce in Greece
(cont.)
• 29% Greek companies with even basic web
sites vs. 46% of the average in E.U.
• 6% Greek business transactions done through
the Internet vs. 19 percent of selling and 26
percent of buying in the E.U.
• No planning and cost vs. benefit analysis
• No human resources assigned to the task of
taking care of, maintaining and responding to
the activities through their Web sites
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Categorization of Countries based on the
penetration of Internet in their population
• Total world population about 6,200 million people
(www.global-reach.biz/globstats)
• 560 million Internet users around the world, only less than
10%
• Countries could be divided into four categories:
– Category 1: high Internet penetration > 40%
– Category 2: high projected growth, now > 10% online
– Category 3: low Internet penetration, high potential
– Category 4: no significant Internet penetration and no
expectations for the foreseeable future.
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Categories and Countries
• Category 1: Singapore, Hong Kong, Canada, Sweden, U.S., Denmark,
Netherlands, Australia, Norway, New Zealand, U.K., South Korea,
Finland, Switzerland, Austria, Japan
• Category 2: Germany, Portugal, Ireland, Israel, Belgium, Italy,
Slovenia Rep., U.A.E., France, Spain, Estonia Rep., Czech Rep.,
Malaysia, Poland Rep., Panama, Slovak Rep., Greece, Chile, Hungary,
Kuwait.
• Category 3: Uruguay, Latvia Rep., Lebanon, Russian Fed., Mexico,
Argentina, Brazil, Bulgaria, Lithuania, Turkey, Puerto Rico, Croatia,
South Africa, Costa Rica, Venezuela, Thailand, China, Oman,
Romania, Saudi Arabia, Tunisia, Philippines, Yugoslavia, Iran, Jordan,
Bolivia, Ukraine, Indonesia.
• Category 4: many South American, several East Asian, African
(below Sahara desert), most of Arab nations, etc.
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Total Population vs. Total Online Population shares of
the Countries from the four categories
Total Population Share of Four
Categories
627.478;
10%
384.555; 6%
2.900.000;
47%
2.329.243;
37%
Category 1
Category 2
Category 3
Category 4
•Countries of Category 3 (like
China) are growing fast in
Internet penetration.
•Countries of Category 4 (like
most Arab nations, and SubSaharan African countries are not
developing)
Countries of Categories 1 & 2
(U.S.A., Europe, Far East Asia,
Australia and a few others)
<20% of the total world
population but >80% of the
Internet worldwide
Total Online Population Share of Four
Categories
8.694; 2%
95.910; 17%
110.038;
19%
Category 1
356.836;
62%
Category 2
Category 3
Category 17
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Reasons explaining the irregular spreading of the
Internet and E-commerce technology around the
Globe
Personal Income
Education
Technological Infrastructure
Economic motivation
Political stability
Social (and/ or religious) acceptance
Existence of Legal framework
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Difficulties in Measuring E-commerce Growth
(or shrinking)
1. No real business data proving either growth or downturn,
2. Laying off employees. What does it mean?
3. Jobs are added in fields related to e-commerce,
4. Dot-coms are out and E-commerce is in; no more startups,
pure virtual dot-coms,
5. Analysts measure E-Commerce growth in times of
economic slowdown and still the outcome of their results is
positive,
6. Bad business practices, misleading, miscalculations,
7. There is still a lot of uncovered territory,
8. A huge population of Internet users still stays away from
buying online.
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Projections of Worldwide eCommerce Growth ($B)
% of total
2004 sales in 2004
2000
2001
2002
2003
509,3
908,6
1.498,2
2.339,0
3.456,4
50,9%
Asia Pacific
53,7
117,2
286,6
724,2
1.649,8
24,3%
Western
Europe
87,4
194,8
422,1
853,3
1.533,2
22,6%
Latin America
3,6
6,8
13,7
31,8
81,8
1,2%
Other
3,0
6,2
10,6
31,4
68,6
1,0%
657,0
1.233,6
2.231,2
3.979,7
6.789,8
100,0%
North America
Total ($B)
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Conclusion and Projections about Ecommerce
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E-Commerce is growing up,
The statistics underestimate the effect of ecommerce to the overall business of a retail
company,
E-Commerce will continue to grow as ebusinesses adopt new ways of doing business
more efficiently using the Internet.
E-Commerce will continue to grow as new
market sectors enter the digital world
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Useful Links
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www.ecommercetimes.com
www.eiu.com
http://Btobonline.com
www.ypan.gr
www.forthnet.gr
www.hostmaster.gr
www.ypetho.gr/ypourgeio/ereuna_ktp_2002.pdf
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