Edexcel Business eCommerce
- Created by: ellaalevel
- Created on: 08-01-19 19:19
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- The Internet and Business
- E-commerce- involves digitally enabled commercial transactions between and among organisations and individuals.
- Porter's Five Forces Model.
- Threat of entry
- Bargaining power of suppliers
- Threat of Substitutes
- Bargaining power of buyers.
- Pure Play- no physical shops, company only online.
- Advantages
- Lower costs
- No rents
- Lower operating costs
- Organisational Culture - aligned to operating and developing solely as a eCommerce business.
- Access to finance - significant venture capital available for pure play.
- Advantages
- Pros of Online Retailing
- Potential customers expand
- Shop is open all the time
- Order taken automatically so left staff needed.
- No need for shop premises.
- Easier to set up.
- Stock can easily be withdrawn or updated to keep up with dynamic markets.
- Cons of Online Retailing
- Must have a stable network to keep websites running
- Technician costs
- Online security worries
- Very competitive markets.
- Issues with sending goods back, may put customers off.
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