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In These Days, The World Has Entered A New Generation Digital Generation.

4569 words - 18 pages

1 -- IntroductionIn these days, the world has entered a new generation-digital generation. Internet Commerce (E-Business) has grown so fast, and more and more companies have joined Internet commerce for their transaction by the technology and Internet great development. E-commerce can be formally defined as.... Technology-mediated exchanges between parties (individuals, organizations, or both) as well as the electronically based intra- or interorganizational activities that facilitate such exchanges (R. Jeffrey F & J. Bernard J, 2001).1.1 reasons for popularThere are several reasons make Internet commerce becoming popular in business.A low entry cost compared to other strategies is obvious advantage for business.A web page does not need to cost more than a few hundred dollars per annum.Of course, the payback period of Internet commerce is also very fast.It can continually work 24 hours per day.Communications with customers, supplies and staff can be greatly facilitated by the use of Web pages, e-mail and now even more advanced systems integration replacing traditional electronic data interchange (EDI) (A practical guide, 1999).Orders can be placed and accepted electronically, and an immediate payment can be made.In some businesses the product or service can be delivered over the network. More business opportunities will be obtained because of the business can face to global customers and clients through the Internet. A lot of companies have added new business type of which is e-commerce, so that expand their business opportunities and gain more profits.This essay is introducing two UK's pure online companies which are Dial-a-Phone (http://www.dialaphone.co.uk/) and Mobileshop (http://mobileshop.com/) respectively. They sell mobile phones on their Websites and over the phone. Although mobile phone market has a strong competition, there are not too many pure online companies which sell mobile phone from their website. I believe that they can reflect advantages of e-commerce in new generation.1.2 -- Business to Customer ModelsIn e-commerce, four distinct categories of electronic commerce can be identified: business-to-business (B2B), business-to-consumer (B2C), consumer-to-consumer (C2C) and consumer-to-business (C2B). In this essay, both two companies are in business-to-consumer category. B2C means that e-commerce refer to exchanges between businesses and consumers. Thus, in the every transaction, information (richness & reach) is definite important for both buyers and sellers.Information is a fundamental prerequisite for the functioning of markets. Buyers and sellers must have the enough information to make the comparison about price and quality so as to be able to engage in trade (study guide, 2001). If buyers and sellers just achieve limited information, this means that buyers and seller have not sufficient useful information to know each other, and the market cannot function efficiently.For Dial-a-Phone Company and Mobileshop Company,...

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