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E-Commerce Quesitons : B2B and B2C Examples

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1. Discuss the advantages of specialized e-tailor, such as dogtoys.com. Can such a store survive in the physical world? Why or why not?
2. Enter doublediamondsoftware.com/product_overview.htm. Identify all potential B2B applications and prepare a report about them
3. Visit http://www.octopuscards.com/enindex.jsp. How does the Octopus Card work? What accounts for the success of the Octopus system?

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1. Discuss the advantages of specialized e-tailor, such as dogtoys.com. Can such a store survive in the physical world? Why or why not?
Solution:
The advent of electronic commerce has introduced great opportunities into the retail sector (Forbes, Scott & Hoffman, 2005). Stores such as dogtoys.com and cattoys.com have several advantages; specifically that they are able to target a very specific niche and service that niche very well.
However, the ability of such stores to survive in the physical world is debatable. One argument is that a store such as this could not survive in any particular physical market because the number of potential clients is so small. The prospective customer base is too less for such kind of stores to exist. A physical store has many additional expenses including the cost of rental space, inventory maintenance costs, and cost of labour apart from several ancillary costs that would cast aspersions on the success of such a store.
While in the case of e-commerce, it is a totally different issue. The Internet is needed in order to create a critical mass of potential clients. Merchants are able to meet their customers' exact needs and may not need to carry any inventory. This model is quite suitable for small businesses that serve a niche market and who wish to have a regional, national or international presence (Ortiz & Granville, 2000). The global nature of internet would give the business access to a large clientele which was not possible through physical stores, as the store would need to open a branch in each of the locations. Hence, this model of niche market is suitable and financially viable only for companies seeking to operate through the e-commerce model. The only expenses ...

Solution Summary

The solution examines in brief the business objectives behind these three e-commerce sites and evaluated their chances of success and failure taking into account various e-commerce theories and relevant examples.

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