Edexcel Business eCommerce

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  • The Internet and Business
    • E-commerce- involves digitally enabled commercial transactions between and among organisations and individuals.
    • Porter's Five Forces Model.
      • Threat of entry
      • Bargaining power of suppliers
      • Threat of Substitutes
      • Bargaining power of buyers.
    • Pure Play- no physical shops, company only online.
      • Advantages
        • Lower costs
        • No rents
        • Lower operating costs
      • Organisational Culture - aligned to operating and developing solely as a eCommerce business.
      • Access to finance - significant venture capital available for pure play.
    • Pros of Online Retailing
      • Potential customers expand
      • Shop is open all the time
      • Order taken automatically so left staff needed.
      • No need for shop premises.
      • Easier to set up.
      • Stock can easily be withdrawn or updated to keep up with dynamic markets.
    • Cons of Online Retailing
      • Must have a stable network to keep websites running
      • Technician costs
      • Online security worries
      • Very competitive markets.
      • Issues with sending goods back, may put customers off.

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