Contents

L1. Scope of E-business and E-commerce....................................................................................................1

L2. Fundamentals of E-Commerce...............................................................................................................4
L3. Introduction to Web Design.................................................................................................................11
L4. Fundamentals of Web Design..............................................................................................................12
L5. E-business Strategy..............................................................................................................................15
L6. E-business Strategy..............................................................................................................................18
L7. E-Marketing..........................................................................................................................................25
L8. Customer Relationship Management...................................................................................................27
L9. E –PROCUREMENT...............................................................................................................................32
Learning Outcomes....................................................................................................................................39

L1. Scope of E-business and E-

commerce
E-commerce refers specifically to the buying and selling of goods and
Distinguish between E-commerce and E- services over the Internet. It involves online transactions, such as
business: purchasing products from an online store or making payments
electronically.

E-business is a broader concept that encompasses the use of Internet

technologies to transform key business processes. E-business includes
not only online transactions but also other management functions like
planning, organizing, marketing, and production that are carried out
electronically. It involves the integration of digital technology into
various aspects of a business, beyond just the buying and selling
process.

Different perspectives for e-commerce  A communications perspective –the delivery of information,

products or services or payment by electronic means.
 A business process perspective –the application of technology
towards the automation of business transactions and
 workflows.
 A service perspective –enabling cost cutting at the same time as
increasing the speed and quality of service delivery.
 An online perspective –the buying and selling of products and
information online.

Briefly describe what are the advantages Advantages of E-commerce:

and disadvantages of e-commerce and e-  Increased reach and access to a global market.
business.  Lower overhead costs compared to brick-and-mortar stores.
 24/7 availability and convenience for customers.
 Ability to target specific customer segments through
personalized marketing.
 Faster and more efficient transaction processing.

Disadvantages of E-commerce:
 Security concerns and the risk of data breaches.
 Lack of physical interaction with products before purchase.
 Dependency on technology and technical issues can lead to
downtime.
 Increased competition in the online marketplace.
 Potential challenges with order fulfillment and shipping.

Advantages of E-business:
 Streamlined business processes and increased efficiency.
 Improved communication and collaboration among teams and
departments.
 Access to real-time data for better decision-making.
 Automation of repetitive tasks, reducing human errors.
 Enhanced customer service through various digital channels.

Disadvantages of E-business:
 Initial implementation costs can be high.
 Resistance to change and adoption of new technologies by
employees.
 Dependence on reliable internet connectivity and IT
infrastructure.
 Potential security risks and the need for robust cybersecurity
measures.
  Continuous updates and maintenance required for digital
systems.

Describe what kind of services that can be  Online shopping with various payment options.
offered to the customers via web presence?  Customer support and service through live chat, email, or
chatbots.
 Access to product information, specifications, and reviews.
 Personalized recommendations based on past purchases and
browsing history.
 Order tracking and status updates.
 Subscription services for regular deliveries.
 Digital content distribution, such as e-books, music, or video
streaming.

Describe 3 reasons why company may wish Cost Reduction: Operating online can significantly reduce expenses
to introduce e-commerce? associated with physical stores, including rent, utilities, and in-store
staff, leading to cost savings.

Competitive Advantage: Businesses that provide seamless online

shopping experiences and faster delivery options can attract more
customers and stay ahead of competitors who are slower to adopt
digital strategies.

Expanded Market Reach: E-commerce allows companies to reach a

global audience, breaking geographical boundaries and accessing a
larger customer base.

5. Describe some barriers to adoption of e-  Poor customer experience leading to the loss of customer base.
commerce.  Technical challenges like website failures during high traffic
periods.
 Security concerns, such as hackers stealing credit card details.
 Legal and regulatory issues, such as privacy and data protection
compliance.
 Fulfillment problems, such as delayed or missing orders.

6. Briefly describe what are the internal 1. Adopting digital technologies to automate and optimize
changes a company need to make when business processes.
introducing e-business. 2. Training employees to effectively use the new digital tools and
systems.
3. Establishing a robust cybersecurity infrastructure to protect data
and transactions.
4. Enhancing communication and collaboration between
departments and teams.
5. Integrating online customer support channels to provide timely
assistance.
6. Gathering and analyzing data for informed decision-making and
customer insights.

7. Identify and understand what the sell Sell-side e-commerce refers to the online selling process where a
side e-commerce and buy-side e- company offers products or services to customers through its website
commerce. or other digital platforms. It focuses on optimizing the customer
experience to attract and convert visitors into buyers.

Buy-side e-commerce, on the other hand, is the online purchasing

process for businesses. It involves companies procuring goods and
services from suppliers or vendors through digital channels. Buy-side e-
commerce streamlines procurement, sourcing, and supplier
management, leading to cost savings and efficiency improvements.

L2. Fundamentals of E-Commerce

“E-commerce can be considered as a Disruptive Yes, I agree with this statement. E-commerce can be considered a
Technology”. Are you agree with this statement and disruptive technology because it has significantly transformed the way
briefly describe why? business is conducted and how products and services are bought and
sold. Before the rise of e-commerce, traditional brick-and-mortar
 businesses dominated the market. However, with the advent of e-
commerce, businesses shifted from physical locations to virtual ones,
changing the industry structure and business models.
E-commerce introduced new ways of doing things, such as online
shopping, which disrupted the existing market and challenged
traditional business practices. It allowed businesses to reach a global
audience, reduced time to customers, and provided customers with
more personalized experiences, thus changing human behaviors and
activities related to shopping. Moreover, e-commerce facilitated
disintermediation, eliminating intermediaries in the supply chain, and
introduced new revenue models like subscription-based services and
commission-based sales. These changes have had a profound impact on
various industries and have reshaped the marketplace landscape.

What are the changes that businesses can experience a. Virtual Locations: Businesses can shift from physical locations to
with an E-commerce? virtual ones, reducing the need for physical storefronts and
expanding their reach to a global audience.

b. Reduced Time to Customers: E-commerce enables businesses to

provide products and services faster and more efficiently,
eliminating geographical barriers.

c. Diversification: E-commerce allows businesses to explore new

markets and customer segments, offering new products and
services beyond their traditional offerings.

d. Customer Sophistication: With increased access to information,

customers are more knowledgeable and demand innovative
and unique offerings from businesses.

e. Cultural Changes: E-commerce requires businesses to adapt to

digital culture and embrace technological advancements.

What are the changes in consumers with an E- a. Convenience: Consumers can shop anywhere and at any time,
commerce? no longer restricted by physical store hours.

b. Personalized Experiences: Consumers expect tailored

recommendations and personalized interactions with
businesses.

c. Social Shopping: Shopping has become a social activity, with

 consumers sharing their purchases and experiences on social
media.

d. Empowered Consumers: Consumers have access to a vast

amount of information, allowing them to make informed
decisions and become their own salespeople.

Describe what is Disintermediation and Re- Disintermediation refers to the elimination of intermediaries in the
intermediation. supply chain, cutting out middlemen or brokers between producers and
consumers. With e-commerce, businesses can directly sell their
products or services to customers without the need for traditional
distribution channels or retail outlets. This can lead to cost savings,
increased efficiency, and the ability to offer products at lower prices.

Re-intermediation: Re-intermediation occurs when a company

reintroduces intermediaries into the supply chain after having
previously adopted a disintermediation strategy. This decision may be
driven by various factors, such as the need for specialized expertise,
expanding into new markets, or improving customer service.

Why is "online marketplace analysis" important Online marketplace analysis is crucial before entering the digital market
before entering the digital market? because it helps businesses understand their potential audience,
customers, competitors, and partners in the online space. By conducting
a comprehensive analysis, businesses can gain valuable insights that
inform their digital marketing strategy and overall approach to e-
commerce. The main areas to consider during online marketplace
analysis are:
Potential Online Audience: Understanding the characteristics,
behaviors, needs, and wants of the target audience helps tailor
marketing efforts and product offerings accordingly.
Customers: Gaining feedback from existing customers about
their views on the current online presence can help identify
areas for improvement and customer preferences.
Competitors: Analyzing direct competitors' capabilities and
other successful websites provides benchmarks and insights
into industry best practices.
Online Intermediaries, Influencers, and Partners: Identifying
potential partners and influencers in the digital space can help
expand reach and build strategic collaborations.

Describe what is a competitive advantage for a A competitive advantage is a unique aspect or set of characteristics that
business and how to achieve a competitive advantage allows a business to outperform its competitors, leading to superior
over competitors in the market? performance and market success. It is a distinctive edge that makes a
business stand out and provides value to its target customers. A
competitive advantage can be achieved by leveraging various factors,
such as:
A. Differentiation: Offering uniqu
e products, services, or features that set the business
B. apart from competitors. Cost Leadership: Providing
products or services at a lower cost than competitors
while maintaining acceptable quality.

C. Innovation: Introducing new and innovative products,

processes, or business models that capture customer
attention.

D. Brand Reputation: Building a strong and positive brand

image that fosters trust and loyalty among customers.

E. Customer Service: Providing exceptional customer

service and support, which leads to higher customer
satisfaction and retention.

Briefly describe how the organization can analyze 1. Identify Competitors: Identify direct and indirect competitors
their competitors to win competitive advantage. operating in the same industry or offering similar
products/services.
2. Competitor SWOT Analysis: Conduct a SWOT (Strengths,
Weaknesses, Opportunities, Threats) analysis of each
competitor to understand their market position and key
attributes.
3. Market Research: Gather data on competitors' pricing
strategies, product offerings, marketing tactics, and customer
feedback.
4. Benchmarking: Compare the organization's performance
metrics with those of the competitors to identify areas for
improvement.
5. Customer Feedback: Gather customer feedback to understand
pain points with competitors' offerings and improve the
organization's products or services accordingly.

Briefly describe what are the revenue models that can  Advertising (CPM and CPC): Facebook generates significant
be used to earn revenue by the Facebook social revenue through advertising. Advertisers can choose between
media platform? Cost Per Thousand (CPM) impressions, where they pay based
on the number of times their ads are displayed, and Cost Per
Click (CPC), where they pay based on the number of clicks their
ads receive.

 Sponsored Posts and Promoted Content: Businesses and

influencers can pay Facebook to promote their posts.

eight key elements of a business model that investors typically look for:

1. Value Proposition: describes the unique value your product or service brings to customers. It explains what
problem your product or service solves, what benefits it offers, and why customers should choose it over
competitors.

2. Market or Audience: This element defines the target market or audience for your business. It identifies the
specific group of customers you aim to serve and highlights their characteristics, needs, and preferences.

3. Revenue Models: This part outlines the different ways your business intends to generate revenue. It clarifies
the pricing strategy, payment methods, and any other sources of income, such as subscriptions, one-time
sales, advertising, or licensing fees.

4. Competitive Environment: Here, you analyze the competitive landscape in which your business operates.
Identify your main competitors, their strengths and weaknesses, and your competitive advantages that set you
apart in the market.

5. Value Chain and Marketplace Positioning: The value chain outlines the series of activities that your business
goes through to deliver its product or service to customers. It helps identify key partners, resources, and
activities needed for your business to function effectively. Marketplace positioning refers to where your
business stands in relation to competitors and how it positions itself to attract customers.

6. Representation in the Physical and Virtual Environment: This element relates to your business's presence
both in the physical world (e.g., brick-and-mortar stores, distribution centers) and the virtual world (e.g.,
online platforms, websites, mobile apps). It clarifies how customers interact with your business in both realms.

7. Organizational Structure: The organizational structure describes how your business is organized internally. It
includes details about departments, roles, reporting lines, and decision-making processes. This element helps
investors understand the operational efficiency and scalability of your business.
 8. Management: This element refers to the key individuals responsible for running the business, including their
qualifications, experience, and roles. Investors want to know that the management team has the expertise and
skills needed to execute the business model successfully.

 Seller control sites These sites are the main home page of
Different Places for Online Representation the company and are e-commerce-enabled. They are
basically vendor sites, home sites of organizations selling
products. This is the most common type for both
consumers and businesses. Amazon.com

 Seller-oriented sites are controlled by third parties but

represent the seller rather than providing a full range of
options. eBay Stores

 Neutral sites are independent evaluator intermediaries

that enable price and product comparison and will result
in the purchase being fulfilled on the target site. Kayak
travel bookings

 Buyer-oriented sites are controlled by third parties on

behalf of the buyer. government agencies and large
corporations These platforms allow buyers to post their
procurement needs, receive bids from suppliers, and
initiate the purchase process.

 Buyer-controlled sites usually involve either procurement

posting on buyer-company sites or those of intermediaries
that have been set up in such a way that it is the buyer
who initiates the market making. Alibaba.com

Revenue Models –Online Publisher

 CPM (Cost Per Thousand) –Site owners charge a fee for advertising.
 CPC (Cost Per Click) -Advertisers are charged not simply for the number of times their ads are displayed, but
according to the number of times they are clicked upon.
 Affiliate revenue –Affiliate revenue is a commission-based revenue.
 Pay-per-view access.
Aspects to achieve competitive advantage online.

 Reach How many customers a business can connect, how many products it can offer to a customer. Reach can
be increased by moving from a single site to representation with many different intermediaries. Reach refers
to the range of products and services that can be offered since this will increase the number of people the
company can appeal to.

 Richness This is the depth or detail of information which is both collected about the customer and provided
to the customer. Richness of product information and how well it can be personalized to be relevant to
individual needs.

 Affiliation This refers to choosing whether a company represents the interests of consumers or suppliers and
building the right partnerships, which is especially important for retailers.

L3. Introduction to Web Design

Low Fidelity Representation:
Low-fidelity prototyping is an initial stage of application design using rough concepts to validate ideas
quickly.

1. Two main tools used are sketches and wireframing.

 Sketches:
 Raw freehand drawings on paper provide low-fidelity representations of websites or apps.
 Fast way to prepare application ideas for brainstorming and problem-solving.

 Wireframes:
 Website wireframes are visual guides representing the skeletal framework of a site.
 Used to arrange elements for specific functions and navigation paths.
  Describes content, features, and interface interaction.
 Represents every essential aspect of the final product.

Medium Fidelity Representation:

 The main output of this stage is a mockup.
 Adds colors, fonts, text, images, and logos to the wireframe.
 Creates a static map of the website or app.
 Encourages review of the visual side of the project.

When to use a Mockup:

 Collect early feedback from clients due to quicker creation and less resistance compared to low-
fidelity deliverables.
 Wireframes focus on structure, function, and content, while mockups add style and color with
the right content.

High-Fidelity Representation – Prototypes:

 Prototypes offer a high-fidelity representation of the app.
 Enriched mockup with UX elements, interactions, and animations to illustrate button functions.

Prototypes:

 Developed for usability testing and user feedback sessions.

 Like mockups but include interactive elements using UX tools like InVision and Sketch.
 Elements are interactive enough to validate core concepts, though not fully functional.

When to use a Prototype:

 Use for user testing to check interface usability before actual development.
 Serve as engaging design documentation for developers, making the interface tangible and
straightforward.

In conclusion, web design starts with low-fidelity representations, such as sketches and wireframes,
to validate concepts quickly. Medium-fidelity representations, like mockups, add visual elements to the
wireframes and encourage project review. High-fidelity prototypes enrich mockups with interactivity,
making them suitable for usability testing and communicating design concepts to developers. Each stage
plays a crucial role in the web design process, ensuring the final product meets user expectations and
fulfills its purpose effectively.
 L4. Fundamentals of Web Design
What is web presence and is it critical? Web presence refers to an organization's appearance and activities on the
World Wide Web. It encompasses a website, social media profiles, online
content, and interactions with users on the internet. In today's digital age,
having a strong web presence is critical for businesses because the internet
has transformed how people communicate, shop, and seek information.
Adaptation to these changes is essential for organizations to remain
competitive and effectively engage with their target audience.

Determinants for Good Web Presence: Good web presence is determined by factors such as alignment with the
purpose of the business and its web visitors, clear identification of the
business, understanding of the target audience, and a user-friendly design that
meets users' needs and expectations. It involves ensuring that the website's
goals match the organization's goals and that the content and design cater to
the intended audience.

Introduction to User-Centric Design (UCD) and User-Centric Design (UCD) focuses on placing the user at the center of the
its Goal: design process. The goal of UCD is to optimize the user's experience with a
product, system, or process. It seeks to understand what is important to users,
their tasks, problems, expectations, and desired functionality. By incorporating
user feedback and insights, UCD aims to create designs that enhance usability
and overall satisfaction.

User-Centric Design (UCD) / User Experience The UCD process involves several stages:
(UX) Process in Brief:  Research and Understanding: Gathering user insights, needs, and
preferences.
 Design and Ideation: Generating design concepts based on user
research.
 Prototyping: Creating interactive prototypes to test design concepts.
 Testing and Iteration: Collecting user feedback on prototypes and
refining designs.
 Implementation: Developing the final product based on refined
designs.
 Evaluation: Assessing the product's usability and effectiveness after
 launch.

What are User Stories and Examples: User stories are concise descriptions of a user's requirement, including who the
user is, what they need, and why they need it.

"As a Student, I want to enroll in 2nd-year 1st-semester modules so that I can

access relevant study materials."

"As a Lecturer, I want to publish student assessment marks in the Learning

Management System (LMS) so that students can easily view their continuous
marks."

E-Business Infrastructure and Its Layers: E-business infrastructure refers to the combination of hardware, network, and
software used to deliver services to employees, partners, and customers. The
layers include:
1. Transport or Network Layer: The network infrastructure that connects
devices and facilitates data transmission.
2. Storage Layer: The hardware and systems for storing and managing
data and content.
3. Content and Data Layer: The digital information and content
presented to users.
4. Application Layer: The software applications used to provide services.
5. User Interface Layer: The point of interaction between users and the
system.

Explanation of Internet, Intranet, and Extranet: Internet: A global network connecting millions of computers worldwide. Users
access information stored on servers via client-server communication. It's open
to everyone.

Intranet: A private network within an organization for secure information

sharing among employees. It's like the internet but limited to authorized users.

Extranet: An extended intranet that includes external parties like partners,

suppliers, and customers. It facilitates data exchange and collaboration while
maintaining security.

Advantages, Disadvantages, and Uses of Internet: Advantages: Global reach, vast information access, communication,
Internet, Intranet, and Extranet: e-commerce. Disadvantages: Security risks, misinformation, privacy concerns.
Use: Information sharing, communication, online services.

Intranet: Advantages: Secure communication, centralized information,

 collaboration. Disadvantages: Limited access, implementation costs. Use:
Internal communication, knowledge sharing, document management.

Extranet: Advantages: Collaborative partnerships, streamlined communication.

Disadvantages: Security challenges, data sharing complexities. Use: Supplier
collaboration, customer interaction, joint project management.

LAN (Local Area Network) and WAN (Wide LAN (Local Area Network): LAN connects devices within a limited geographic
Area Network) Explained: area, like a single building or campus. It's characterized by high data transfer
rates and low latency, making it suitable for internal communications and
sharing resources among nearby devices.

WAN (Wide Area Network): WAN spans larger geographic areas, connecting
devices across cities, countries, or continents. It's designed to transmit data
over longer distances and can include technologies like leased lines, satellite
links, and public networks (like the internet). WAN offers lower data transfer
rates compared to LAN but covers greater distances.

L5. E-business Strategy

Definition of E-business Strategy: E-business strategy is the plan an organization creates to

effectively use digital communication, both internally and externally, to support and shape its
overall strategy. It involves harnessing electronic tools and platforms to achieve its long-term
goals within a changing market environment, meeting market needs, and fulfilling stakeholder
expectations.

Purpose and Levels of Strategy: E-business strategy is essential for guiding a company's digital
efforts. It shares similarities with corporate, business, and marketing strategies. It's not just
about intentions; actionable plans are crucial.

1. Business Unit Strategy: Focuses on succeeding in specific markets.

2. Operational Strategy: Deals with implementing higher-level strategies.
 3. Functional Strategy: Details plans for various business processes.

Place of E-business Strategy: Determining where e-business strategy fits can vary by
organization. It's often seen within functional strategies like marketing or logistics, and it can be
part of information systems strategy.

Importance of Clear E-business Strategy: Without a clear e-business strategy, several problems
can arise:

 Missed Opportunities: Failing to explore or invest in e-business initiatives can lead to

competitors gaining an edge.
 Inappropriate Direction: Poorly defined objectives can steer e-business efforts in the
wrong direction.
 Limited Integration: Poor technical integration can lead to isolated pockets of
information across the organization.
 Resource Waste: Duplication of e-business development across functions can lead to
inefficiencies.

Strategy Process Model for E-business Strategy: A framework for strategy development, this
model guides the logical sequence of activities, ensuring a comprehensive approach and room
for continuous improvement.

Formulating E-business Strategy: To create an effective e-business strategy, three factors need
evaluation:

1. Nature of Organization: Whether it's a born-digital entity or a traditional business

transitioning online.
2. Nature of Product: Whether it offers services, products, or a combination.
3. Online Model Adopted: Whether the e-business model is B2B, B2C, or other.

A Generic Strategy Process Model

Strategic Analysis/Situation Analysis: This involves evaluating internal processes, resources,
and the external marketplace. Key techniques include:

1. Resource Analysis: Resource analysis involves assessing both tangible and intangible
resources that an organization possesses. These resources play a crucial role in enabling
the organization to carry out its operations effectively. Tangible resources include
physical assets like IT infrastructure, equipment, buildings, and financial capital.
 Intangible resources encompass non-physical assets such as brand reputation,
intellectual property, patents, employee knowledge, and organizational culture. By
evaluating these resources, an organization can identify its strengths and weaknesses,
and determine how to best leverage them for its e-business strategy.

2. Portfolio Analysis: Portfolio analysis refers to the examination of the organization's

current business application portfolio. It involves categorizing and evaluating the various
applications, software, and technologies used within the organization. This analysis helps
identify which applications are contributing to the organization's objectives, which may
need improvement or replacement, and which may be redundant or obsolete. By
understanding the strengths and weaknesses of the current portfolio, the organization
can make informed decisions about optimizing its digital resources.

3. SWOT Analysis: SWOT analysis is a widely used framework for understanding an

organization's strategic position. It involves identifying the internal strengths and
weaknesses of the organization (Strengths and Weaknesses) and external opportunities
and threats in the market (Opportunities and Threats). Strengths and weaknesses are
aspects within the organization's control, such as skilled workforce, efficient processes,
or outdated technology. Opportunities and threats are external factors that the
organization must navigate, like emerging technologies, changing customer preferences,
or increased competition. By analyzing these four dimensions, organizations can develop
strategies that capitalize on strengths, address weaknesses, seize opportunities, and
mitigate threats.
 4. Demand Analysis: Demand analysis focuses on understanding the needs and
preferences of customers for e-commerce services. This analysis helps the organization
determine the level of interest and potential market size for its digital offerings. It Can be
done by asking for each market - percentage of customers with internet access, the
percentage of customers willing to make online purchases, and the percentage of
customers who are likely to be influenced by e-commerce services. By gaining insights
into customer behavior and preferences, the organization can tailor its e-business
strategy to meet customer demands effectively.

5. Competitor Analysis: Competitor analysis involves studying the e-business services and
strategies of rival organizations operating in the same market. This analysis provides
insights into what competitors are doing well, where they may be falling short, and how
they are attracting and retaining customers. Organizations can learn from competitors'
successes and mistakes, which can guide their own strategic decisions. By understanding
how competitors are adopting e-business practices and capturing customer adoption,
organizations can identify gaps and opportunities in the market that they can exploit to
gain a competitive advantage. One Method is – Resource Advantage Mapping

Resource Advantage Mapping: This process helps match internal strengths with external
opportunities, highlighting areas where competitors are weak. Core competencies (To identify
internal strengths), distinct resources providing customer value, play a role here.
E-business strategies use digital tools to achieve long-term goals by utilizing technology, digital
media, and the internet. To create an effective strategy, an organization must analyze its internal
strengths, weaknesses, external opportunities, and threats. This analysis helps align the
organization's resources with its goals, fostering a competitive edge in the digital landscape.

 Core Competencies: Core competencies are unique strengths, skills, or resources that
distinguish a company from its competitors. They drive innovation, set a business apart,
and contribute to a competitive advantage.
 Customer Value: Customer value is the benefit customers perceive from a product or
service. It includes quality, price, convenience, and meeting needs. Providing high
customer value boosts loyalty and competitiveness.
 L6. E-business Strategy
What is the purpose of defining and Defining and communicating an organization's strategic objectives in e-
communicating an organization's strategic business serves as a roadmap for the company. It aligns the entire team
objectives in e-business? towards a common vision and mission, ensuring everyone understands
their role in achieving it. This clarity is essential in the fast-paced world
of e-business, where adaptability and focus are crucial. Moreover, it
helps in assessing the success of the strategy by providing clear
benchmarks for measuring progress.

Explain the difference between a vision A vision statement paints a picture of what an e-business aspires to be
statement and a mission statement for an e- in the future. It's the North Star that guides all actions and decisions.
business.
mission statement defines the business scope, unique competencies,
and values, providing a clear understanding of how the organization will
operate in the present to achieve that future vision.

What are the components typically included  Business Scope: This outlines the markets, products, customer
in a mission statement for an e-business? segments, and geographies where the company intends to
compete online.
 Unique Competencies: It highlights how the company will
position and differentiate itself in terms of e-business products
or services.
 Values: Though less common, this component reflects what
inspires the organization or its business initiatives, giving insight
into its core principles.

What are some disadvantages of brief vision Vision statements can sometimes be generic. To make them more
statements, and how can organizations make specific, organizations should incorporate key business strategies and
them more specific? industry goals. They should also reference aspects of online customer
acquisition, conversion, and retention, and link these to high-level
objectives and strategies.

List and briefly explain the four ways e- 1. Adding Value: Adding value means enhancing your products or
business can create value. services in ways that make them more attractive to customers.
This could involve improving quality, adding features, or
providing exceptional customer service.
 2. Reduce Cost involves finding ways to operate more efficiently,
minimize waste, and cut unnecessary expenses. This can be
achieved through process optimization, automation, or
negotiating better deals with suppliers.

3. Manage Risk: Managing risk means identifying potential threats

to your business and taking steps to mitigate them. Risks can
include economic downturns, supply chain disruptions, or
regulatory changes. Strategies might involve diversifying
suppliers, creating contingency plans, or investing in insurance.

4. Create New Reality: Creating a new reality is about leveraging

information and cutting-edge technologies to innovate and
develop entirely new products, services, or business models. It's
pushing the boundaries to change the way things are done.

What does SMART stand for in the context of  Specific: This means that your objective should be clear and
objective setting, and why is it important in e- well-defined. It should answer the questions: What needs to be
business strategy? done? Why is it important? Who is involved? Where will it
happen? And which resources or constraints are involved? The
more specific, the easier it is to understand and work toward.
 Measurable: Your objective should be quantifiable, meaning you
can measure it with numbers or specific criteria. This helps you
track your progress and know when you've achieved the
objective.
 Actionable: An actionable objective is one that can lead to
concrete actions and improvements. It should be realistic and
within your control. You should be able to take steps to achieve
it.
 Relevant: The objective should be relevant or meaningful to
your overall goals and the specific problem or situation you're
addressing. It should align with your larger purpose or strategy.
 Time-Related: Setting a timeframe or deadline is important. It
helps create a sense of urgency and keeps you on track. You
should specify when the objective needs to be achieved.

Describe the process of strategy definition in The process of defining a strategy in e-business is a structured
e-business and its relationship with vision approach to outline how a company will achieve its goals and fulfill its
and objectives. mission. This process involves several steps and closely relates to an
organization's vision and objectives. Here's a breakdown of the process
and its relationship with vision and objectives:

The strategy must closely align with the company's vision and
objectives. It should be designed to move the organization toward the
desired future state (vision) and should be a road map for achieving
specific goals (objectives).

Explain the concept of "right-channeling" in Right-channeling involves prioritizing communication channels to

e-business strategy. Why is it important? achieve e-business objectives effectively. This approach integrates
various channels, technology, and relevant messaging to reach the right
audience at the right time.

What are the 8 key e-business strategic E-business Channel Priorities: E-business channel priorities involve
decisions? deciding how your business will interact with customers and where
you'll have a presence. You can choose between physical stores, online
channels, or a combination of both.

Why It Matters: This decision shapes how you reach customers and
deliver products or services. It influences your costs, reach, and
customer experience. Making the right choice ensures you connect
with your target audience effectively.

Market and Product Development: Market and product development

is about figuring out which new markets to target and how to expand
your product offerings to grow your business.

Why It Matters: It allows you to tap into new customer segments and
diversify your product range. By understanding customer needs and
market trends, you can adapt and thrive in a changing business
landscape.

Positioning and Differentiation: Positioning and differentiation involve

defining how your business stands out from competitors. You need to
decide if you want to be known for product quality, excellent service,
competitive pricing, or quick delivery.
Why It Matters: Effective positioning helps you attract the right
customers and create a unique brand identity. It guides your marketing
efforts and influences how customers perceive your business.

Business and Revenue Models: Your business and revenue models

define how you make money. This includes pricing strategies,
subscription models, advertising revenue, or any other way you
generate income.

Why It Matters: Your business model determines your financial

sustainability. Choosing the right model aligns your income with your
costs and ensures profitability.

Marketplace Restructuring: Marketplace restructuring involves

adapting to changes in the business environment. It might include
exploring new sales channels, collaborating with other businesses, or
reorganizing your supply chain.

Why It Matters: Adapting to marketplace changes helps you stay

competitive and agile. It allows you to seize new opportunities and
navigate challenges effectively.

Supply Chain Management Capabilities: Supply chain management

capabilities focus on how you handle the flow of goods and services
from suppliers to customers. This includes optimizing processes,
reducing costs, and ensuring timely delivery.

Why It Matters: Efficient supply chain management enhances customer

satisfaction, reduces expenses, and increases competitiveness. It's
crucial for meeting customer demands and managing resources
effectively.

Internal Knowledge Management Capabilities: Internal knowledge

management involves how you collect, share, and utilize knowledge
within your organization. It includes practices like using intranets for
collaboration and promoting a culture of learning.
 Why It Matters: Effective knowledge management boosts productivity,
innovation, and employee satisfaction. It helps your organization adapt
and make informed decisions.

Organizational Resourcing and Capabilities: Organizational resourcing

involves allocating resources like people, funds, and technology to
support your business strategies. It also includes developing the skills
and capabilities of your workforce.

Why It Matters: Proper resource allocation ensures that your business

strategies can be executed successfully. Building capabilities in your
team empowers them to drive your business forward.

(in 2nd decision) – market and product A. Market Penetration:

development strategy. Selling more of your existing products in the markets where you're
already active but using digital channels.
Ways to do it:
 Market Share Growth: Improve your website to convert more
visitors into customers. Use online marketing methods like
search engine marketing, affiliate marketing, and online
advertising.
 Customer Loyalty Improvement: Shift your existing customers to
online platforms, increasing their loyalty.
 Customer Value Improvement: Make your customers more
profitable by reducing costs and increasing how often they buy
from you.

B. Market Development:
Using online channels to enter new markets, often internationally,
without needing a physical presence there.
Why it works: The internet makes it cost-effective to reach new
markets.

C. Product Development:
Using the internet to enhance your existing products or create new
ones.
How it's done:
 Adding Value: Improve your current products.
  Developing Digital Products: Create new digital offerings.
 Changing Payment Models: Consider subscriptions or per-use
pricing.
 Increasing Product Range: Expand the variety of products you
offer.

D. Diversification:
Developing entirely new products and selling them in new markets.
Why it can work: The internet can help facilitate these risky strategies
at a lower cost than before.

Options:
 Diversification into Related Business: For instance, an airline can
promote related services like hotel bookings or car rentals
online.

 Diversification into Unrelated Business: Promoting less related

products online (less common).

 Upstream Integration: Collaborate with suppliers to gain more

control over the supply chain.

 Downstream Integration: Work with intermediaries like online

distributors through data exchange.

As the 4th step we implement these strategies and Controls if needed to achieve strategic goals.

Reasons to fail E-business Strategy 1. Poor Situational Analysis: it's crucial to thoroughly analyze the
current business environment, including market conditions, customer
behaviors, and competitive landscape. Failing to do so can lead to
uninformed decisions.

Impact: Without a clear understanding of the situation, businesses may

make strategic choices that don't align with market realities, resulting in
poor outcomes.

2. Setting Unrealistic Objectives: Objectives in e-business strategies

must be realistic, specific, and measurable. Unrealistic goals or a lack of
clear objectives can lead to confusion and inefficiencies.
 Impact: Teams may struggle to work toward vague or unattainable
goals, leading to a lack of direction and eventual failure to achieve
meaningful results.

3. Lack of Creativity: Innovation and creative thinking are essential in e-

business, especially in rapidly evolving digital landscapes. Failing to
embrace creativity can result in stagnant strategies that can't compete
effectively.
Impact: Without creative solutions, businesses may miss opportunities
to differentiate themselves, engage customers, or solve problems in
unique ways.

4. Weak or Inconsistent Branding: Branding is vital for establishing a

strong identity and building trust with customers. Weak or inconsistent
branding across digital channels can confuse audiences.
Impact: Inadequate branding can lead to a lack of brand recognition
and trust, making it harder to attract and retain customers in the
competitive e-business arena.

L7. E-Marketing

What is E-marketing? E-marketing is the use of digital channels to promote and sell products or
services. It includes a wide range of activities, such as website
development, search engine optimization (SEO), social media marketing,
email marketing, and pay-per-click (PPC) advertising.

What are the Three main goals to achieve 1. Customer acquisition: Attracting new customers to your website
through e-marketing? or business.

2. Customer conversion: Converting website visitors into paying

 customers.

3. Customer retention and growth: Encouraging repeat business and

customer loyalty.

What is an E-marketing plan? An e-marketing plan is a document that outlines your e-marketing goals
and strategies. It should include a clear understanding of your target
audience, your competitors, and the digital channels that you will use to
reach your goals.

Explain the SOSTAC framework 1) Situational analysis

The first step in the SOSTAC framework is to conduct a situational analysis.
This involves assessing your current situation, including your strengths,
weaknesses, opportunities, and threats (SWOT analysis). You should also
consider your target audience, competitors, and the digital marketing
landscape.

2) Objectives
Once you have a good understanding of your current situation, you can
start to set your objectives. What do you want to achieve with your e-
marketing plan? Do you want to increase brand awareness, generate leads,
or boost sales? Your objectives should be specific, measurable, achievable,
relevant, and time bound.

3) Strategy
Once you have set your objectives, you need to develop a strategy for
achieving them. This involves identifying the digital channels that you will
use to reach your target audience and the specific tactics that you will
employ. For example, you may decide to use search engine optimization
(SEO) to improve your website's visibility in search engine results pages
(SERPs), or you may decide to use social media marketing to connect with
your target audience on social media platforms.

4) Tactics
Tactics are the specific actions that you will take to implement your
strategy. For example, if you are using SEO to improve your website's
visibility in SERPs, your tactics may include creating high-quality content,
optimizing your website's title tags and meta descriptions, and building
backlinks from other websites.

5) Action
Once you have developed your strategy and tactics, you need to put them
into action. This involves creating a timeline and assigning tasks to specific
team members. You should also develop a budget for your e-marketing
plan.
 6) Control
The final step in the SOSTAC framework is to control your e-marketing plan.
This involves tracking your progress and adjusting as needed. You should
use web analytics tools to monitor your website traffic, leads, and sales.
You should also track your social media engagement and other key metrics.
The SOSTAC framework is a flexible and adaptable model that can be used
to develop e-marketing plans for businesses of all sizes. It is a valuable tool
for any business that wants to use digital marketing to achieve its goals.

What are the Characteristics of new media The 6I concept of new media marketing is a framework for understanding
marketing (6I concept)? the unique characteristics of digital channels. The 6Is are:
1. Interactivity: New media platforms allow users to interact with
content in ways that were not possible with traditional media.
2. Intelligence: New media platforms collect and use data to
personalize the user experience and deliver targeted advertising.
3. Individualization: New media platforms allow users to tailor their
experience to their individual preferences.
4. Integration: New media platforms often integrate different forms
of multimedia, such as text, images, video, and audio.
5. Industry re-structuring: New media technologies have disrupted
traditional industries and created new opportunities for
businesses.
6. Independence of location: New media platforms can be accessed
from anywhere with an internet connection, regardless of location.
The 6I concept of new media marketing is a helpful tool for developing e-
marketing strategies that leverage the unique characteristics of digital
channels.

L8. Customer Relationship

Management

what is Customer Relationship Management C

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t

Effective websites for CRM should have the 

following characteristics:

Four marketing activities that comprise CRM: 1.

Calculating Customer Retention Rate: C

W

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m

N
S
m

Customer Extension Techniques: 

Benefits of CRM: 

Customer Acquisition Management: C

a
T

O
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g

O
-

Customer Acquisition Management Techniques 

 T
n

Customer Retention Management: C

Customer Loyalty Drivers: C

 c
t

Customer retention can be achieved through the 

following techniques: