Thus, in a world where technology is changing every day and the transformation of consumers has happened from “Price Takers” to “Price Makers” as they are armed with more options and information; the companies that control more and more customer relationships will be the ones that hold the power in an industry and reap the lion's share of the profits. E-commerce or e-business is an important tool that enables companies to reach out to the global market at low cost and provides abundant information about the consumers’ requirements and preferences easily which was not so easy earlier.
Following figure is a glimpse of the promising future that the ecommerce industry holds. The US E-commerce has seen a 40% increase in the sales over the past 5 years as a percentage of the total retail sales in US. Source: http://ycharts.com
Now when thinks about e-commerce, the first name that comes to everyone’s mind is that of Amazon.com. Not only most of the people have heard about it but there are many people who have actually used its services. Amazon was not only one of the few of the companies that thrived throughout the period in which many dot-com companies struggled to survive but has been constantly performing exceptionally well in terms of revenue per visitor which is one of the key parameters for any commercial website.
Amazon has had one of the fastest growths in the internet’s history with revenues reaching $2, 8 billion in the first five years with Google’s revenue reaching only $15bn in the first five years.
Now, just like any other traditional business in order to clearly understand an e-business one needs to have information on the following components:
a) Business Strategy which determines the products and service offerings by the firm, the firms targeted customers and the firms value proposition. It also helps firms decide on the choices and the tradeoffs that the firm needs to make. b) Organizational form or structure
c) Business processes which refer to the unique ways in which organizations coordinate and organize...