ABC: AN INTRODUCTION TO E-COMMERCE

소개글

E-COMMERCE에 대한 도입 시기에 대한 경영자, 회사의 입장을 경영학, 회계학의 입장에서 어떻게 접근해야 하는지에 대한 고찰 요약 보고서입니다.

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ABC: AN INTRODUCTION TO E-COMMERCE

1. Why was there so much hype surrounding B2C e-commerce when it got its start in the late 1990s?
2.How should companies organize their B2C initiative?
3.Works Consulted

본문내용

Why was there so much hype surrounding B2C e-commerce when it got its start in the late 1990s?
In the late 1990s, companies including Amazon.com and eBay that offered business-to-consumer (B2C) online transactions were rapidly becoming popular among consumers. Companies such as this conduct business with customers solely as an online transaction. Customers are unable to make their purchases face to face in a physical store or over the phone. This model became very popular among the x-generation of individuals in the mid to late 1990s. The stock prices of these companies reflected this unique business model and their customer base rapidly increased. Upon learning about the increased popularity of the stock of companies similar to Amazon.com and eBay, we conducted additional research regarding the historical stock prices in the late 1990s for these two companies. The results are as follows and were obtained from finance.yahoo.com:
COMPANY: AMAZON.COM EBAY
DATE/STOCK PRICE 04/1998 @ $8/SHARE 10/1998 @ $1/SHARE
DATE/STOCK PRICE 04/1999 @ $106/SHARE 04/1999 @ $26/SHARE

Amazon.com gained almost $100 per share in market value in only one year. The increasing popularity of these companies posed a significant threat to the traditional store-front business models, also known as a brick and mortar business model. However, many of these companies were primarily focused on business growth and not on making profits. The idea behind this business model for many companies was to become really big as quick as possible and worry about profits in the future when a strong customer base was built.
There were several advantages to using B2C e-commerce as a business strategy in the late 1990s. A B2C e-commerce initiative allowed companies to obtain unlimited access to customers via the internet. Due to the structure of these companies, they did not incur the normal expenses of a traditional business with a physical store-front. These advantages included not being required to maintain large amounts of inventory on hand, not incurring the expenses of purchasing or renting expensive space for a store to be placed, and other expenses incurred when running a traditional store. Additionally, B2C e-commerce companies were provided ultimate market penetration from the internet without having to continually build new stores in different geographic areas to access more customers. This aided in the rapid expansion of these companies. In the article, Business-to-Consumer-Underlying Strength, recounted statistics from the U.S. Census Bureau regarding online shopping in the late 1990s. The results of the article are stratified below:

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An Introduction to E-Commerce.pptx
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