Electronic Business, Electronic Commerce, and the Emerging Digital Firm Show E-commerce refers to:
Figure 10-1
The rapid growth of e-commerce since 1995 is due to the unique features of the Internet and the Web as a commercial medium:
The Internet also shrinks information asymmetry, which occurs when one party in a transaction has more information with respect to the transactions than the other party. For instance, the Web has reduced the information asymmetries surrounding auto purchases. Digital markets are very flexible and efficient because they allow:
Figure 10-2
The Internet digital marketplace has also greatly expanded sales of digital goods, goods that can be delivered over a digital network. In comparison to traditional goods, the marginal cost of producing another unit of a digital good is about zero, delivery costs over the Internet are low, while marketing costs are about the same and pricing can be variable. E-commerce technologies have revolutionized commerce and enabled a variety of new business models. Some are pure-play models, based purely on the Internet. Others may be hybrid clicks-and-mortar models, using Web sites as an extension of a traditional business, such as LLBean.com. New business models include:
These new business models may have revenue generated from:
What impact does the Internet have on digital goods markets?The internet has made it possible for anyone to buy digital goods, which can be delivered to their doorsteps without the need for a physical store. This has made it easier for businesses to reach a wider audience and sell more products or services.
What means digital goods?A "digital good" can be any product transferred electronically to the purchaser, other than prewritten computer software. Digital goods include versions of products historically produced and transferred as articles of tangible personal property that are now produced and transferred electronically as digital files.
What is digital markets and digital goods?The Internet digital marketplace has greatly expanded sales of digital goods. Digital goods are goods that can be delivered over a digital network. Music tracks, video, Hollywood movies, software, newspapers, magazines, and books can all be expressed, stored, delivered, and sold as purely digital products.
What are the examples of digital goods?Examples are Wikipedia articles; digital media, such as e-books, downloadable music, internet radio, internet television and streaming media; fonts, logos, photos and graphics; digital subscriptions; online ads (as purchased by the advertiser); internet coupons; electronic tickets; electronically treated documentation ...
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