Module Title: E-Business Studies Assignment 1
Module code: 5N1369
Title: Technological Aspects to Support eBusiness
Assessment Criteria: The evolution of eBusiness, comparison of two websites, including their social payment systems used and the internet as a global network.
Student name: Thomas McDonald
PPS no: 7489333T
1. Cover page
5. History of eBusiness
6. Comparison of 2 web sites
8. Payment Methods
9. Internet as a global market
For this assignment I am going to compare, contrast and look at the history of two internet giants: Ebay and Amazon. They are two sites that I regularly use, one more so than the other and find both as user friendly as I do interesting. I will look in detail at the history of the two and also the internet as a global network. Finally I will make a brief conclusion and some recommendations.
The evolution of e-business:
The term e-business or electronic business was first coined by Microsoft’s marketing and internet team in 1996 but businesses started using websites to marketing their products in the early 1990’s shortly after graphic based web-design became available. They quickly shifted from simply using the web for providing customers with information about their products to selling them when the software to encrypt credit card data became widely available in 1994. Netscape developed Secured Socket Layer (SSL) and websites developed the ability to encrypt sessions, making credit card transactions over the Internet safer for all concerned. With an encrypted connection between a company's server and a client computer, credit numbers could be hidden so they could not be intercepted by a third party, which made the theft of card information more difficult. This security led to the birth of e-business and changed the way we shop for ever. After this period the floodgates opened for opportunities in business to trade online but many people still didn’t trust giving out their credit details over the internet and it proved too expensive to trade on line with transactions of under a dollar or its equivalent. These payments were called micro payments and many companies came and went trying to facilitate these transactions. Paypal has been the most successful business to date that operates in this area and made it fast, cheap and most importantly secure for people to pay for goods online. Even with the emergence of these secure payment businesses, popularity with on line sales was still was not hitting the heights as expected and the .com bubble burst in the early 2000’s. The collapse of the bubble took place during 2000-2001. Many companies failed completely. Others lost a large portion of their market capitalization but remained stable and profitable, e.g., Cisco, whose stock declined by 86%. Some later recovered and surpassed their dot-com-bubble peaks, e.g; Amazon.com whose stock went from 107 to 7 dollars per share, but a decade later exceeded 200. After the bubble burst, many dot-coms liquidated or were acquired by other companies; the domain names were snapped up by domain investors or businesses with more traditional business models who had survived the crash. A few of the larger dot-com companies did survive, however: Amazon and Ebay are good examples. According to some sources, about 50% of dot-coms survived. Unfortunately, there were still thousands of technical experts such as programmers and web designers who were laid off and found themselves in a highly competitive job market. The acquisition of YouTube by Google, Skype by Ebay, and others, has led to speculation that there may be a second, similar bubble on the horizon. Consolidation of websites where top ten sites buy up competition or others go bust....