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©: Nikunj Patel

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 April 2010

 nikunjrpatel1986@yahoo.co.in

 ô DR.Uma Mohan

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1. Introduction.............................................................. 3

2. Advantage of E-commerce...................................... 3

3. Disadvantage of E-commerce.................................. 4

4. E-procurement......................................................... 5

5. E-marketing............................................................. 9

6. E-marketing planning.............................................. 10

7. Demand analysis..................................................... 11

8. Competitor analysis................................................. 12

9. Reference and Bibliography.................................... 13

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E commerce also recognized as e commerce or E-commerce. Consists of the buying and
selling of the product or services online. With this E commerce all trading conducted by
automatically has grown surprising with extensive internet usage. Ecommerce also used
in different way of spurring and creating on innovations in electronic funds transfer,
supply chain management, internet marketing ,online transaction processing, electronic
data transaction, inventory management system and automated data collection system.E-
commerce conducted totally business on electronically based for fundamental item such
as admittance to website. But most of E commerce supported to transportation of
physical items in some way online retailers are know some time E-tailers and E-tail as
well. Most of E commerce existence on the world wide web.E-business and E-commerce
management is to catch full improvement of business opportunities while managing risk.
Different types of E-business benefit arising from increased use of electronic
communication such as World Wide Web, internet and wireless communication. In short
E-commerce is frequently simply thought refer to buying and selling using via internet,
people instantly think about shopping to online on such as Amazon¶s-commerce
supported more than electronically mediated financial transactions between organisation
and customers.kalakota and whinstone (1997)refer to different type of perspective. Like a
communication perspective, business perspective, service perspective, an online
perspective.

With the internet using in the terms of electronic commerce supported their buying,
selling, hiring, planning, and other activities. When they are taking about electronic
commerce in this level sense. For example.IBM defines electronic business as the
conversion of key business processes throughout the use of internet technologies. The
five general electronics commerce categories are business-to-business, business-to-
consumer, business processes, consumer-to-consumer, and business-to-government.the
three categorise that are most commonly used are:

º buyer shopping on the web, often called business-to-consumer.(B2C)

º communication conducted between businesses on the web, regularly called
business-to-business.(B2B)
º Transactions and business processes that companies, government, and other
organisations assume on the internet to support selling and purchasing activities.

 
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E-commerce can increase sales and decrease costs.. Negotiating price and delivery
conditions is easier in electronic commerce as the internet can help companies
powerfully get aggressive bid information.e-commerce increase the speed accuracy with
which business can exchange information, which reduces costs on both sides of
transactions.E-commerce provides buyers with a wider range of choices than traditions

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commerce because buyers can consider many different products and services from a
wider every day. Also E-commerce helps in payments of tax refunds, public giving up
work and welfare holds cost less to issue and pull in strongly and speedily when
transmitted over the internet. Electronic payments can be easier to audit and monitor than
payments made by check. And also providing against deception and pilfering losses.
Also E-commerce enables to people to communicate to each other in the way of business
perspective, and reduction in computer based traffic and pollution.E-commerce can also
create commodities and forces available in isolated areas. For example. Distance
education is making it possible for people to learn skills and earn degree no matter where
they live or which hours they have available for study.


 
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Some business processes may never lend themselves to electronic commerce. Most of
disadvantage of E-commerce today, however, stem from the newness and rapidly
developing pace of the underlying technologies. These disadvantages will disappear as
electronic commerce matures and becomes more available to and accepted by the general
population. Many products and services need that a important mass of likely buyers be
able to and enthusiastic to purchase through the internet. For example. TESCO and
ASDA online grocery shop. They invite to people shopping online and getting the better
benefits from store. They build the chain of customer relationship management.tesco
started operation in London, which offers to urban area as well. And also Tesco
expanded its operation to selected rural areas that are near a Tesco supermarket or giant
Tesco extra store. Online grocer that has successful implemented an updated version of
the web-van and home grocer operational approach is fresh direct. They covered all rural
and urban area near the New York City. They started company in 2002 and achieved
profit in 2004 $90 million. This is much smaller than sales amount than whichever web-
van or Home grocer would have needed to be beneficial. Businesses repeatedly compute
arrival on investment numbers before committing to any new equipment. And also very
tricky to investment in E-commerce because the costs and benefits have been measure.
Many time new technology changing fastely during short lives E-commerce functioning
projects because the underlying employees with the technological, plan, and business
practice skills needed to generate an effective electronic commerce existence. Another
problem facing in Retail business internet is the tricky if integrating existing databases
and transaction processing software plan for traditional commerce.

In addition technology and software matter, many business expression cultural and legal;
obstacles to conducting E-commerce.the legal environment in which electronic
commerce is conducted is full of unclear and conflicting laws. In many case government
regulators have not kept up with technologies.

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 ô© 
Procurement is the one type of link that connection is to the management. It is comprised
by marketing and strategy-business has the variety of savings and other benefits. There
are the directly impact on the customer.kalakota and Robinson (2000) says that
procurement is the process which is done by supplier and supplier is included purchasing,
transportation and goods in warehouse before used.

Procurement is the terms of used to describe the tendering of good and services.
company decide that needed some goods, say a fleet of cars for its sales force. It would
after publicize this publicly and encourage a number of auto companies to tender for the
business.

E-procurement is not latest; there have been many attempts to computerize the
process of procurement for the buyers using electronic procurement system.
Workflow system and links with suppliers¶ through-procurement. These involved
online entry, authorization and introduction of orders via a arrangement of data
entry forms, scanned documents and e-mall based workflow. Suppliers doing
some key procurement activities while processing. When supplier get the
purchase orders than supplier make invoice and delivery note. Than later on
suppliers receive payments.

TYPES OF PROCUREMENT:

To easily get idea of e-procurement, and also to underline some of the practical
consideration with introducing e-procurement. We need to different type of items that are
obtained by procurement and type of ordering. We have to discussion on what is bought
by business. The B2B company for example. Buying most of steel from fabricate
company through equipment to help piece of tools item for consumption, to paper clips
and pens for office use. That type of business production related procurement and non-
production procurement affected. That help to business and also office suppliers,
furniture, information system, product and service from catering, buying a travel and
professional service as a consulting and training.

We turn to how items are bought businesses tend to buy one of two methods:

r Systematic sourcing: negotiated contact with normal suppliers, classically

to maintain long term relationship with them.
r Spot sourcing: implementation of an instant need, classically of a
commoditized item for which it is less important to know the reliability of
the suppliers.

Turban et al. (2000) recap the benefits of e-procurement as follows:

º Reducing purchasing cycle time and cost.

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 º improved budgetary organize
º Removal of organizational errors.
º rising buyers yield
º recovering the payment method
º ñetting better information management.

ESTIMATINñ E-PROCUREMENT COST SAVINñS:

In this terms cost savings commonly affected to e-procurement.and easily to get benefits
of e-procurement.lot of companies in the tranmit (1999) did not know the e- procurement
cost of their business. Cost is not calculating directly, but it is the main part of the cost-
justification of introducing an e-procurement system.

To calculate cost savings from e-procurement as a follow:

Savings = No. Of requisitions X (original cost ±New cost)

RISK AND IMPACT OF E-PROCUREMENT:

The Tranmit (1999) report says point to that in the U.K and Europe; taking on of e-
procurement is low. And large company take over the technology. Low taking on
company consideration of the risk and impacts involved with e-procurement. A
pricewaterhouse coopers examination of 400 business chief level executive better idea
with security concerns and short of the faith trading partners are the most helpful factors
investment back of e-procurement.

 !"# $%$: in this terms may be achieved to be required to redeploy staff, or
in the most unpleasant case create them laid off. For example, small sectors wise
company Cambridge consultant recruiting team of five people was reduced to four. The
risk of redundancy or redeployment is expected to guide to conflict to introduce the
system and this required to managed. Cost of savings of e-procurement are achieved the
business directly buy their own items rather than through a buying department there is a
risk that some originators may take benefits of this. This is recognized as ³Maverick or
Off-contract purchasing´, it has at all times happened to some scope.

&'( ##) $%$ : Tranmit (1999) has to search biggest obstacle to automation of e-
procurement as addition with active financial systems, according to 60 per cent
respondents¶. A different type of e-procurement role play to different activities. The
models changing in fast, so it is very difficult to know which best one is. And also
different type of marketplace. Many of which have not to reach important accumulation.
Problem created by large scale of ERP system may also not arrange organizations to e-
procurement.

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IMPLEMENTINñ E-PROCUREMENT:

Hildebrand (2002) the challenges of implementing e-procurement when he cites a 2002

Forrester research poll of 50 global 3,500 companies. For this large scale companies to
problem was rated as:

º Training and change management

º record management
º project management
º Suppliers¶ relationship management.

These all problem also pointed by Carrie Ericson, consultant at e- procurement

supplier at Kearney (www.ebreviate..com)in an interview (logistic. About, 2003).

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Above diagram show how different type of system are as follow:

º Stock control system: this system related with mainly production oriented
procurement. The system indicates when reordering required when the number in
stock falls after order thresholds.
º Cd/web based catalogue: paper catalogue replace by electronic forms so much
easier to get suppliers.
º Order entry on web site: the buyers get opportunity to order on direct supplier
web site. So no headache between communication process and saving the
timeframe.
º Accounting system: network accounting system allow to staff in the purchasing
department to enter an order which can then be used by accounting staff to create
payment when the invoice comes up. They used in this system quick book
account or SEZ accounting system.
º E mail or database workflow system: entry of the order by the creator, wait for
decision by managers and placement by buyers. The order is routed from one
person to another one will be wail in their box auctioning-mail generated by an
electronic procurement system as part of a workflow.

There are another seven type of E-procurement role to play between suppliers and
buyers.web based ERP, e-sourcing-tendering-reverse auctioning,e-informing,e-
marktsites.

THE FUTURE OF E-PROCUREMENT:

According to gatarski and lundkvist (1998).implications of the agent and technology

on marketing are explored. Should be agent technology create a new software its
covered by artificial consumer who will take on suppliers search, product evaluation
and product selection functions. The author suggest in a suppliers to consumer
conversation will behave in a more understanding way their human being equivalents
and active market theories may not apply.

According to tucker and jones (2000) they used intelligent agent of out sourcing on
the basis of assessment possible supplier based on quantitative assortment criteria
including price, availability and delivery. They know technology already we got but
we need to change in future making investment in financial markets. Also software
will consider reliability of suppliers or their ability as a business patens or correlate.

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©

Internet marketing also identified to as i-marketing, web-marketing, online marketing, e-
marketing, search engine marketing, is the introduced products and services via internet.
In the term of internet marketing is ³achieving marketing objectives through applying
digital technologies´. These digital instruments included such as internet media, websites
and e-mail as well as digital media, such as mobile wireless for delivering digital tube
such as cable and satellite. Internet brings media in worldwide global listeners. The
interactive scenery of internet marketing in the term of given that urgent comeback and
eliciting responses also it built-in marketing through management of digital customer
data and electronic customer relationship management (ECRM) system. Digital
marketing is old by online marketing agencies and the organization of direct marketing
which offers qualification in digital marketing.

Chaffey et.all (2006) describes the extent and approaches used for digital marketing:

 Digital marketing involves: applying these technologies which form online

channels to market.-web,email,databases,plus mobile/wireless and digital TV
 Online advertising, affiliate marketing, sponsorship, and online PR.same like
RSS, including blogs, and viral marketing.
 To achieved these objective: Help to marketing department vision at
achieving profitable and preservation of customers in the term the process of
buying and selling through customer life cycle.

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The e-marketing planning may be incorporate business and marketing strategy and e-
marketing planning is the base of the e-business or business strategy there is overlie
between the essentials of each approach, how e-marketing performance role take part in
in the term of e-business strategy which in rotate will bring up to date the e- marketing
plan. The resulting plans will outline what the website will offer in terms of corporate
and product information and in same manner how to convert web site visitors to
customers. Strategy process representation for e-marketing planning developed by Smith
(1999) and this all step indicate in marketing strategy from strategy improvement to
performance. The step mixed up can be brief as:

º Situation-where are we now? And where we want to go to achieved motive?

º Objectives-we want mission and aims for our project.
º Strategy-how do we get there? And how to create better plan to get it.
º Tactics-how accurately do we get there?
º Action-what is our project plan? And how it will be success.
º Control-did we get there? Reducing cost in business plan.

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©  

A key feature powerful e-marketing and e-business strategy main purpose future safety
of the customer demand for e- commerce services in different market segments.damand
analysis examines latest and projected customer use of each digital channel within
different target market. It can be indicated by:

º What percentages of customer businesses have access to the internet?

º How many customers ready to shopping online?
º How many customer prepare to access to the internet via buying online, but are
unfair by web-based information to shopped product offline?
º What are the doors to acceptance against customer demand and how can we give
confidence taking on?

In the world wide e-marketers using the instruments provided by look for device as
ñoogle (www.google.com) Yahoo (www.yahoo.com) and Miva (www.miva.com) to
all this device to weigh up demand for their products or services based on the volume
of different type of instruments users.

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Competitor analysis or the monitoring of competitor use of e- commerce to get and
retain customer is mainly significant in the e-marketplace due to the active nature of
the internet standard.benchmarketing is used to evaluate e-commerce services within
a market. For a retailer, conducting a benchmarking audit of competitors of internet
based competitors may be more tricky than a traditional review of competitors. Also
usually competitors will be fit recognized. Companies need to change internet based
presentation of both active and new players. Companies should reconsider.

º Well know local competitors.U.K and European competitors for British

companies.
º Well know international competitors.
º New internet companies close by and worldwide.

ONLINE BRANDINñ:

In the term branding of e-commerce comprises of successful online high level of

interchange. Branding seems to be a concept of that is difficult to grip since it is often
used in slight brains. Brands identify such as the name or logo associated with company
or products. Brand is described by Leslie de Chernatony and Malcolm McDonald in their
classic 1992 book creating powerful brand as:

³A particular products or service increased in such way that the buyers or a user
perceives relevant unique added values which match their needs most closely. Also, its
success results from being able to maintain these added values in the face of
competition.´

On the basis of this definition three characteristics identified:

º Brand is depending upon customer observation.

º Awareness is subjective by the added value description of the products.
º The added value descriptions need to be sustainable.

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Brandnewworld (2004) AOL Research Published at www.brandnewworld.co.uk

Baily, p, farmer, D, Jessop, D.and Jones, D (1994).purchasing principles and

management. Pitman, London.

Computer world (2001a) B2B outlook still ominous. By ñary Kadet, 23 April Available
online at www.computerworld.com.

Chase, L. (1998) Essential business tactics for the net.Wiley,New York.

De kare-silver, M (2000) Eshoch (2000).the electronic shopping revolution: strategies for

retailers and manufactures.mcmillan, London

Dave Chaffey. E-Business and E-commerce management. Third edition companion

website with grade tracker at www.pearsoned.co.uk/chaffey .

ñrary p.Schneider.sixth annual edition Electronic Commerce .university of san Diego

Kalalota, R and Robbison, M (2000) E-business .Roadmap for success.addison-Wesley,

reading, MA.

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Clickz (www.clickz.com) has columns on e-mail marketing optimization and email

marketing case studies.

Conspectus (www.conspectus.com) Articles on different aspects of e-business including

supply chain management.

E-consultancy (www.e-consultancy.com) best practice sections on different e-

communication tools and newsletters features interviews with e-commerce practitioners.

Ebreviate (www.ebreviate.com) Articles on e-procurement best practice from solutions

provider AT Kearney.

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