Introduction to Internet and E Business
Introduction to Internet and E-business
Electronic business (e-business) is a general concept covering any form of a business transaction or information exchange executed using information and communication technologies (Whiteley, 2000). E-business may take place between firms (B2B), between firms and their customers (B2C), or between firms and the government (B2G). Task 1 – The Scope of E-Business a. Differentiate between business to consumer (b2c) and business to business (b2b) transactions.
B2B (business to business): a business that sells primarily to other business, such as Cummins providing engines for vehicle and computer part manufacture such as Dell. In the online world, b2b is reported to be bigger than b2c. Transactions between businesses may be less frequent over the internet, but they account for more in terms of money value. Furthermore, the business is buying either for its own internal maintenance, repair and operations purposes, or for items used as part of what is sold to another business in a supply chain. The reason b2b Internet trade become so significant is that there are many more opportunities for big-deal transactions between businesses than there are for transactions with private customers (Healey and Samtani, 2002). Business organizations are likely to have several suppliers and the suppliers themselves will have suppliers. Moreover, online markets places for components are becoming more common. For example, Ford and General Motors have joined forces and moved their US$300 billion and US$500 billion supply chain online (www.convisint.net).
B2C (business to consumer): related to the sale of product for personal consumption. The buyer may be an individual, family or other group, buying to use the product themselves, or for end use by another individual. A B2C businesses service the consumer demand. If you walk around any shopping areas and you will see a range of retail outlets offering goods for sale to us, private consumers.
Electronic business (e-business) is a general concept covering any form of a business transaction or information exchange executed using information and communication technologies (Whiteley, 2000). E-business may take place between firms (B2B), between firms and their customers (B2C), or between firms and the government (B2G). Task 1 – The Scope of E-Business a. Differentiate between business to consumer (b2c) and business to business (b2b) transactions.
B2B (business to business): a business that sells primarily to other business, such as Cummins providing engines for vehicle and computer part manufacture such as Dell. In the online world, b2b is reported to be bigger than b2c. Transactions between businesses may be less frequent over the internet, but they account for more in terms of money value. Furthermore, the business is buying either for its own internal maintenance, repair and operations purposes, or for items used as part of what is sold to another business in a supply chain. The reason b2b Internet trade become so significant is that there are many more opportunities for big-deal transactions between businesses than there are for transactions with private customers (Healey and Samtani, 2002). Business organizations are likely to have several suppliers and the suppliers themselves will have suppliers. Moreover, online markets places for components are becoming more common. For example, Ford and General Motors have joined forces and moved their US$300 billion and US$500 billion supply chain online (www.convisint.net).
B2C (business to consumer): related to the sale of product for personal consumption. The buyer may be an individual, family or other group, buying to use the product themselves, or for end use by another individual. A B2C businesses service the consumer demand. If you walk around any shopping areas and you will see a range of retail outlets offering goods for sale to us, private consumers.
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