Lecture E-commerce and e-business for managers - Chapter 15: Online industries
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Chapter 15, Online Industries
Outline
15.1
15.2
15.3
15.4
15.5
15.6
15.7
15.8
15.9
15.10
15.11
15.12
15.13
15.14
15.15
15.16
15.17
Introduction
Retailing on the Web
Medical Services Online; Health and Nutrition
Online Travel
Transportation and Shipping
Online Automotive Sites
Energy Online
Selling Brainpower Online
Online Art Dealers
Online Grocery Stores
Online Real Estate
Online Legal Services
Government Online
Insurance Online
Children Online
Purchasing Event Tickets Online
Genealogy Online
2001 Prentice Hall, Inc. All rights reserved.
15.1 Introduction
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• Every major industry has used the Web to enhance
business practices and create new markets and
distribution channels
• Providing unique and highly targeted information
is a key to developing site traffic
2001 Prentice Hall, Inc. All rights reserved.
15.2 Retailing on the Web
3
• Retail store
– Purchases goods from a wholesaler, marks up the price and
then offers the products to consumers
• Online retailers can communicate easily with
suppliers, shipping companies and customers
• Most Web retailers use the shoppingcart model
exclusively
• Other Web retailers integrate other models such as
the auction model or pricecomparison model
2001 Prentice Hall, Inc. All rights reserved.
15.2 Retailing on the Web
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• Etailers often offer lower prices to generate brand
awareness and increase site traffic
• Consider if shortterm losses equal long term
success
• Examples:
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Amazon.com
Bestbuy.com
Kennethcole.com
Sharperimage.com
2001 Prentice Hall, Inc. All rights reserved.
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15.3 Medical Services Online
• The Web gives consumers access to case studies,
medical journal articles and doctors who can
answer questions
• Health Insurance Portability and Accountability
Act (HIPAA)
– Requires medical offices and other healthcare related
agencies to perform many of their administrative tasks
online
• Examples:
– WebMD
– Sickbay.com
– Dr.Koop
2001 Prentice Hall, Inc. All rights reserved.
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15.3 Medical Services Online
WebMD home page. (Copyright © 2000 WebMD Corporation.
Reprinted with permission.)
2001 Prentice Hall, Inc. All rights reserved.
15.4 Online Travel
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• Customers now have the power to bypass a travel
agent
• Discounts and low fares available online
• Nameyourprice for tickets, hotels and car rentals
• “Last minute” fares often lower online
• Examples:
– Expedia.com
– Travelocity
– Cheaptickets.com
2001 Prentice Hall, Inc. All rights reserved.
15.4 Online Travel
Travelocity home page. (Courtesy of Travelocity.)
2001 Prentice Hall, Inc. All rights reserved.
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15.5 Transportation and Shipping
• The Internet adds efficiency and convenience to
traditional shipping and logistics
• Load Matching
– Matching available truck capacity with the shipping needs of
many companies that are willing to split the cost of full
truckloads
• Examples:
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UPS
FedEX
DHL Direct
Trucking.net
Getloaded.com
2001 Prentice Hall, Inc. All rights reserved.
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15.6 Online Automotive Sites
• Consumers access automobile information
empowering them to make an informed buying
decisions
• Dealers use the Web to showcase vehicles
• Online auto auctions give buyers more options
• Examples:
– Auto.com
– Autobytel.com
– Autoparts.com
2001 Prentice Hall, Inc. All rights reserved.
15.7 Energy Online
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• Energy exchange sites allow energy providers to
trade excess energy commodities, buy on auction
and sell materials
• 1000’s of energy commodities are sold online
• Efficiency increases as supply chains are
simplified
• Examples:
– Houstonstreet.com
– Altranet
– Retailenergy.com
2001 Prentice Hall, Inc. All rights reserved.
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15.8 Selling Brainpower Online
• Unused patents and trademarks can be sold online
• Outsourcing
– Hiring outside contractors or companies to complete projects
and offer consulting
• Contractors can find projects to match their needs
on the Web
• Examples:
– Hellobrain
– Yet2.com
– Question Exchange
2001 Prentice Hall, Inc. All rights reserved.
15.9 Online Art Dealers
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• Artists have access to a global audience
• Web is a new medium for art
• Virtual galleries give artists a chance to showcase
their work
• Short films are finding new fans online
• Examples:
– Art.com
– Guild.com
– AtomFilms
– Art.net
2001 Prentice Hall, Inc. All rights reserved.
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15.10 Online Grocery Stores
• Grocery shopping on the Web saves time
• Web delivery services offer doortodoor delivery
• A strong distribution network is essential to this
industry
• Examples:
– Webvan
– Homegrocer.com
– Peapod.com
2001 Prentice Hall, Inc. All rights reserved.
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15.10 Online Grocery Stores
Webvan home page. (Courtesy of Webvan Group, Inc.)
2001 Prentice Hall, Inc. All rights reserved.
15.11 Online Real Estate
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• An online real estate transaction reduces the effort
necessary to sell or buy property
• XML allows postings to be listed in multiple
locations
• Multiple Listing System (MLS)
– Brokers can post their listings at hundreds of locations with
MLS
• Examples:
– Apartments.com
– Realty.com
– Rent.net
2001 Prentice Hall, Inc. All rights reserved.
15.11 Online Real Estate
17
Apartments.com can help you find an apartment. (Courtesy of
Apartments.com.)
2001 Prentice Hall, Inc. All rights reserved.
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15.12 Online Legal Services
• Libraries of data available to people with a few
mouse clicks
• Arbitration being practiced online
• Research made easier through search engine
technology
• Examples:
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LEXIS
FindLaw
Law.com
Loislaw.com
2001 Prentice Hall, Inc. All rights reserved.
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15.12 Online Legal Services
The Cybersettle home page. (Courtesy of Cybersettle.com.)
2001 Prentice Hall, Inc. All rights reserved.
15.13 Government Online
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• Freedom of Information Act
– Gave citizens access to previously classified government
data
• Thomas
– Official senate Web site, allows citizens to research past
federal legislation and other senate proceedings
• All major branches of the government have
established a presence on the Web
• Examples:
– Whitehouse.gov
– Senate.gov
– NASA
2001 Prentice Hall, Inc. All rights reserved.
15.13 Government Online
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• The FBI uses the Web to retrieve information
about wanted fugitives
• Citizens are now empowered by the Internet to
research their presidential candidates at a variety
of Web locations
• NASA broadcasts transmissions and offers
exclusive coverage of its space exploration
• The General Services Agency (GSA) supplies the
government with its ecommerce site
2001 Prentice Hall, Inc. All rights reserved.
15.14 Insurance Online
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• Insurance is complicated, the Web offers
instruction and helpful documentation
• Free quotes and calculators help consumers make
informed decisions
• Lower rates are often found on the Web
• Brokers can locate new clients online
• Examples:
– Insweb
– Prudential.com
– Getmet.com
2001 Prentice Hall, Inc. All rights reserved.
15.14 Insurance Online
Ebix.com home page. (Courtesy of ebix.com, Inc.)
2001 Prentice Hall, Inc. All rights reserved.
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15.15 Children Online
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• Children are an important market
• Educational Web sites help kids learn to use
advanced technology
• A number of risks exist online
• Many leading children’s content creators have
established a presence online
• Examples:
– SesameStreet
– Lycoszone
– Educationplanet.com
2001 Prentice Hall, Inc. All rights reserved.
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15.16 Purchasing Event Tickets
Online
• It has never been easier to purchase tickets
• Long lines are prevented through home shopping
• It is important to check all vendors as prices and
availability may vary
• Examples:
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TicketMaster
TicketWeb.com
Tickets.com
Tixx.com
Culturefinder.com
2001 Prentice Hall, Inc. All rights reserved.
