Electronic Commerce Decisions
B2B and B2C refer to Internet commerce businesses that sell products or services to the end customer (B2C) or to other businesses (B2B). B2B and B2C customers should be marketed to uniquely. Organizations should find the key points in which they operate so they may effectively identify business exchanges through e-commerce. E-commerce may be implemented into organizations by using well-defined simultaneous processes for transactions.
In regards to the American Online (AOL) case study, I would recommend that AOL be prepared for the new users and workload associated with the new service. E-commerce and online transactions account for billions of dollars and activities. While it is a good opportunity for AOL, it could be overwhelming based on the numbers of expected transactions and consumer questions and concerns. This will require top-notch security measures, privacy resolutions, and excellent customer support. In addition, AOL needs to define and understand their consumer. If AOL has a user base with ages above a certain trend and demographic, it could find itself having to create and market its new business service to users practically from scratch considering disruptive technology is often influenced and adopted by younger demographics. With the expansion in services, there will be additional cost of marketing and managing. AOL should also consider making their banking service available to users via mobile devices and having it universal across web browsers and operating systems. Considering AOL is already within the net marketplace, it could have an advantage that makes it suited for the situation. As a firm that is already technology driven, they should be able to align the new service into their current business structure fluidly. Considering there are competitors within this market space, I would recommend that AOL reviews those firms for suggestions on how to make a competitive or better service.
In the case of the small office supply company; with the organization focusing on local success, it may be suitable for testing multiple methods. Benefits of e-commerce are generated based on the efficiency of the automated system. In addition, benefits include lower production and transaction cost (Duffy, & Dale, 2002), which will help resolve the organizations concern regarding their budget. Having proper stock notifications, delivery dates, and excellent customer support is key to achieving e-commerce success. The organization should respond quickly to threats and opportunities regarding the matters of management, schedules and consumer loyalty. In addition, the organization needs to be aware of the type of user they desire and market toward them appropriately.
E-commerce within a B2B setting may be ideal if the organization plans to have an on-going relationship with the consumer. E-commerce can be considered as Internet transactions or information exchanges that use information and communication technology. In regards to creating a positive experience for the consumer, the organization should be aware of their web presence and how it is integrated into information technology systems. In addition, management and strict control of revenue and expenditures should be paramount for the success of the organization. A negative of e-commerce versus brick and mortar business is that e-commerce makes it difficult to generate a sale through user interaction with the organization. To partially resolve this, the organization can monitor the effects of their e-commerce strategies by using activity and traffic tools that monitor users visiting the web site. The benefit of an e-commerce environment is that it is open 24 hours seven days a week. Because of this, the web site availability and performance is crucial.
To assist in marketing, the organization needs to determine the proper marketing mix. A marketing mix is considered tools and techniques used to help search and monitor marketing campaigns. Once the organization finds the purpose of the e-commerce integration, they may be able to select the appropriate solution. To find the proper solution for implementing e-commerce, the organization could choose to test out multiple methods and decide which is most appropriate for their organization and goals. A benefit of B2B over B2C is that B2B allows for organizations to have nearly equal benefits with less the hassle of dealing with customers. Moreover, B2C will likely have higher profit margins than B2B. While B2B may have hundreds of customers, B2C can generate thousands. Because of these numbers, business processes and customer support are crucial to providing satisfaction to customers. B2C success requires the organization to provide competitive prices, products, and marketing, in addition to excellent process flow and continuous improvements.
