Overview Of E-commerce Essay Example | Topics and Well Written Essays - 5750 words

Overview Of E-commerce - Essay Example Many giant businesses are using e-marketing for quite sometimes now and many have been programmed with other automated businesses since 1990s. For example, at GE’s Aircraft division, the customer could order an aircraft part, get invoice and initiate delivery all within 45 minutes. However, such sophisticated systems require dedicated communication lines and expensive hardware. These costs have been cut to a great extent with the invention of internet. Generally, B2B exchanges can be sub-divided into three main categories. Consortia are primarily a collaboration of vendors dealing with a particular industry e.g. the consortium of Global Food Exchange. Private Marketplaces on the other hand are run by a single organization and is aided by its key suppliers. Wallmart and Dell are examples of Private Marketplace. ... , industry consortium is typically a Vertical market owned by the industry which allows buyers to procure services and goods from restricted participants. The aim of the industry consortium is to generate steady association with the industry with a view to establish a long term affiliation through contractual procurement. These industry consortium tend to bring together all the supply chains within the industry which in-turn bringing the profits back to the industry. The industry consortia provides a number of facilities e.g. systematic procurement process, auctions, pricing and RFQs mechanisms for profitability of the industry. Q 72 What is channel conflict? Give an example of how channel conflict can be avoided or lessened. Ans Channel conflict is a term used to describe the expulsion of channel partners e.g. suppliers or distributors from supply chain by a company to reach out for the customer directly. This may be achieved through the use of internet via e-commerce or through gen eral marketing. E-commerce provides a simple and economic solution for the businesses to directly contact their consumers and sell their brands without intermediaries. However, this simple solution also brings with it a great challenge. The customers can also interact with one another through internet and exchange ideas regarding product quality and price. This scenario forces the companies to fix a competitive price of the product or service without compromising on the quality. Over production by a company can also result in channel conflict. Similarly, newer editions of the products in the market, trend changes and wholesalers insolvency also cause channel conflict. Therefore, the stock clearance strategy of a company is of utmost importance for avoidance of channel conflict. There are