Business Infromation System Assignment

Table of Contents

1.        Executive summary:        

2.        Introduction:        

3.        Different models of e-commerce system:        

3.1.        Business-to-business (B2B):        

3.2.        Business-to-consumer (B2C):        

3.3.        Consumer-to-business (C2B):        

3.4.        Consumer-to-consumer (C2C):        

4.        Competitive advantage:        

4.1.        Threat of entry:        

4.2.        The power of suppliers:        

4.3. The power of buyers:        

4.4. Threat of substitutes:        

4.5. Rivalry among existing competitors:        

5.        Conclusion:        

References        

1. Executive summary:

This report provides a detailed description on E-commerce, competitive strategies, and an analysis of how fast-food industry gains competitive advantages.

 The research draws attention to strategies that fast-food companies such as McDonald, Burger King and KFC in the industry are implementing to be more competitive. It is revealed that they are concentrating on Marketing campaign on social media, expanding their menus and developing more services available for customer such as Free Wi-Fi, and Gift Cards, etc.

It is recommended that they:

• Build up stronger brand loyalty at customers to maintain low threat of entry.
• Maintain good relationship with existing suppliers and collaborate with other suppliers from local to ensure the proper inputs of potatoes and beef as well as hold down the power of current suppliers.
• Get closer to customers worldwide by opening more franchises and increasing more augmented services.
• Develop better foods and services to be superior to local and other substitutions.
• Keep track of competitors’ strategies to have appropriate strategies and polices

1. Introduction:

The purpose of this part is to give an overview of electronic commerce and competitive advantages.

Nowadays, organizations and individuals have been exploiting technologies involving the Internet, World Wide Web (the Web) and mobile applications in order for their business transactions. (E. Turban, D. King and J. Lang, 2009). This application of technology called e-commerce (EC) provides CEOs with a new way of conducting their business.

Based on the nature of transactions or the relationship among participants, it is classified into 4 common models in the e-Commerce system. These types are commonly distinguished. The models will be discussed in the following session (refer to part 3).

Secondly, a company can earn more profits via EC system by developing its competitive advantage. The competitive advantage is considered as the tool that brings a company to the market and enhances firm’s capability to compete with competitors’ products and services. To be more competitive in its market segmentation, especially in its e-commerce system, companies have to analyze 5 forces based on Michael Porter’s theory. These forces may be related to rivalry, new entrants, substitute products or services, power of suppliers; buyers’ influence on the business.

1. Different models of e-commerce system:

1. Business-to-business (B2B):

All of the participants in B2B e-commerce are trying to trade their products and services with either business or organizations from local or even from other countries. For example, several parts of Apple’s IPhone involve B2B with some suppliers from China or Vietnam. Amazon also cooperate with distributors from other companies who are trading cell-phones, books, appliances or equipment and so on. This model allows manufacturers to buy at a low cost worldwide, and it offers enterprises the opportunities to sell to a global market. B2B e-commerce’s size is possibly enormous. Today, B2B takes over 85 percent of EC capacity (Mockler, D.G. Dologite, and M.E. Gartenfeld, 2006).

1. Business-to-consumer (B2C):

This EC model refers retail transactions of products or services from business to individual customers. These shoppers are purchasing stocks, books, newspaper, airline tickets, and hotel rooms online. For instance, Amazon.com is a merchandiser using this model in their transactions from consumer products to retail consumer.

1. Consumer-to-business (C2B):

In this category, consumers may use the Internet and Web put their products or services out to tender. Businesses will profit from the willingness of consumers to set their own price, contribute data or marketing to their company. In return for that, it is profitable for the customer because of the elasticity, direct payment, or augmented products and services. Priceline.com is the most popular online business conducting C2B transactions.

1. Consumer-to-consumer (C2C):

Here, transactions are implemented directly among consumers. They often trade their residential property, used cars, motorbikes and household appliances to each other. Consumers also post their personal services like massage or nail services online to attract other consumer who has this demand. Ebay.com, a web auction site, where users can place their products and services up for auction, is the best example to demonstrate this idea.

1. Competitive advantage:

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Source: (Jurevicius, 2013)

1. Threat of entry:

The element is emphasizing on the possibility of new entrants into a specific market.  New entrants bring new capacity and a desire to achieve more market share. The company’s products and services’ prices, costs of introduction, amount of investment and the like may be forced to be decreased. Hence, profitability is held down. It is a market with high rate of entry when: