1. What are the major differences between pure play e-commerce and bricks-and-clicks operations? What are the benefits and limitations of each? (5 marks)
Pure play companies are companies doing only online business. They are not physically in touch with their customers, because all their business is done electronically.
Bricks-and-clicks companies conduct their business online and offline at the same time. For example a designer clothing store can have a web site and customer can either chose to buy online or go to the store
• Pure play:
Benefit: New distribution channel, large market reach, flexible structure
Limitation: Lack of physical presence
Benefit: ...view middle of the document...
An example is real states agents, etc
• Re-intermediation: new services and roles providing added value and assistance for companies to reach their customers online have been introduced. Examples include assisting buyers comparing shopping from multiple sources
• Cyber-mediation (electronic intermediation): this is a new set of functions and roles that have emerged with the introduction of information technology and internet. It refers to the use of software agents to facilitate intermediation. Example the ability for some software to recognize different customer and their taste to suggest items.
4. What are the key factors that determine e-commerce success? What factors determine its failure? (5 marks)
The major success factors of e-commerce are:
• creating a profitable and effective operational structure
• defining profitable segments and offering appropriate products
• ensuring profitability and growth
• adopting correct and viable business model(s)
• serving and offering distinctive values and services to customers
The factors that determine e-Commerce failure are:
• Failure to provide value to customers