BAEB 2203 E-Commerce for Business Homework- NIZWA COLLEGE OF TECHNOLOGY
Case I:
E-Bay, one of the most famous online companies was established nearly 25 years ago. e-Bay describes its purpose as to develop new communities around the world built on commerce, based on trust and inspired by opportunity. E- Bay consists of 2 major businesses: The e-Bay marketplaces which offer auctions and fixed-price product listings. The mission of it was to create the world's online marketplace. The second one PayPal, the mission of which was to create a new global standard for online payments.
The vast majority of e-Bay's revenue is from the listing of products and commission on completed sales. For PayPal purchases an additional commission fee is charged. The e-Bay marketplace is well known for its core service which enables sellers to list items for sale on an auction or fixed price basis, giving buyers opportunity to bid for and purchase items of interest.
E-Bay's business is based upon trust, value, selection and convenience for buyers and access to broad global markets, efficient marketing and distribution and opportunity to increase sales for sellers.
E-Bay faces a lot of completion from both direct and indirect competitors. It states that the major competitive factors for the marketplace business include ability to attract, retain and engage buyers and sellers, price and selection of goods, trust in seller and transaction, customer service etc.
The marketplace growth was due to improve performance in few areas. Firstly, number of size and categories in the marketplace for example Antiques, Art, Books etc... Secondly formats of interaction. E-bay developed many ways for the sellers to sell their products like, online auctioning, fixed price selling etc. Finally, marketplace growth was achieved through delivering specific sites for different countries. But there is still more scope for localising based on a particular country. e-Bay believes that it has improved these factors, but its competitors still have opportunities for improving in some areas.
Answer the following questions:
i. Discuss how the usage of technology along with strategic decisions supported eBay's continued growth.
ii. Suggest opportunities for the competitors in Oman to improve their online business.
Case II:
Maha Al toubi was looking for best price for a toy for her son. Searching the web, she discovered that people were buying toys and reselling them online at a huge profit. So she built a simple online store using free templates and started selling educational and other toys. The business grew fast and later she switched to yahoo store front. She needed a professional look and also some support services. By using Yahoo store Maha has complete control over her site with regards to product descriptions, prices, orders and so on at a minimal cost with limited computer knowledge.
Mr and Mrs. Abdullah retired in 2012. While surfing the internet, they discovered how easy it was to go into e- commerce. The couple decided to sell online products related to their favorite football team. Using Yahoo's web hosting services and templates, they built their store and generated RO 35,000 in sales. Their store ships orders within an hour.
Answer the following questions:
i. Do you think it is easy to start an online business? Why or why not? Justify your answer with appropriate reasons and examples from the above case.
ii. What benefits are people enjoying in an online business?
Case III:
What does globalization actually mean? Coming from the application of free market principles it has created the belief that the world is small and that consumers are becoming more and more alike, thus allowing companies to use the same advertising and marketing across regions and countries. Such a policy has enabled companies to act global and think global. Indeed, in 1985 it was Friends of the Earth that create the motto ‘think global, act local' in order to oppose global forces - particularly with regard to environmental issues.
However, such ‘glocalisation' [global localization] makes a lot of sense for multinational companies operating today and planning new market entry, for a number of reasons. Firstly, the term globalization for many countries means ‘Americanization'. For some this have negative implication of greed, loss of native culture and the intrusion of the English language. At its extreme, it drives many of the anti-globalization activists. Thus there is real risk that companies will damage their brand and reputation if they don't recognize the importance of localization when considering market entry.
Secondly, consumers are as different as they are similar - local and regional cultures have a deep effect in shaping consumer demand. These differences are more interesting than the similarities, in that they can allow product and service differentiation as well as new approaches to segmentation and marketing communications. To take advantage of such opportunities, businesses have to have a clear insight into how and why consumers in one market may differ from ones in another.
It is also seen that global brands come under threat from local brands which are gaining in currency. We would expect this to continue. This is not to say that there is no room for global brands! Many global brands have successfully tapped into local culture and tastes and recognized the need to either modify the product/ service completely or change different elements of the offer and how it is ultimately marketed. Thus companies expanding into new geographic markets have to ensure that their strategies are based on a real understanding of regional and local markets.
Businesses wanting to expand their geographic reach have to consider at a strategic level what level of understanding of consumer needs they require. Generalizations are important and are a good place to start. Differences, rather than similarities, have to be considered, and interrogated in terms of how these will impact customer needs.
Answer the following questions:
i. Explain the difference between globalization and glocalization with appropriate reasons and examples.
ii. How can you relate e-Commerce to globalization?
Scenario Based Questions:
i. Think about the innovation that you have seen during the time you have used the Internet and World Wide Web. What do you think are the main sites in Oman which have changed the way you spend your time or buy online? State and explain any 5. (Answer the question in minimum 300 words)
ii. Currently there is limited private sector e-commerce activity in Oman. The government however, is actively promoting a "digital society" and "e-government" services.
• Describe four ways in which the government is promoting a digital society in Oman. (Answer the question in minimum 300 words)
Format your homework according to the following formatting requirements:
i) The answer should be typed, using Times New Roman font (size 12), double spaced, with one-inch margins on all sides.
ii) The response also includes a cover page containing the title of the homework, the student's name, the course title, and the date. The cover page is not included in the required page length.
iii) Also include a reference page. The Citations and references must follow APA format. The reference page is not included in the required page length.