Description
The World Wide Web (WWW), also known as the Web, is the most popular way to trawl through the information content of the Internet, the network of networks which has become part of everyday life for millions of people in all sectors of the community.
Project Report
On
“E-COMMERCE GROWTH IN
INTERNATIONAL MARKET -
Impact on Suppl C!a"n
Mana#ement“
$
Mr% &&&&& &&&&&&
M'A "n Suppl C!a"n
Mana#ement
APPEN(I& - I
CERTI)ICATE )ROM THE G*I(E
This is to certify that the Project work titled E-Commerce
Gro+t! "n Internat"onal Mar,et Is a bonafde work carried
out by XXXXXX XXXXXX Roll # 00000000 a candidate for the
MB e!a"ination of the Institute of Mana#e"ent under "y
#uidance and direction
SIGNAT*RE O) G*I(E
NAME XXXXX XXXXXX
(ESIGNATION- Mana#er$ Projects % &o#istics
A((RESS Maersk &ine$ '()(*ouse$
Mu"bai
(ATE- ./-.0-/.1&
PLACE- M+MBI
Ta$le o2 Content3
Introduction to the ,orld ,ide ,eb............................................................................4
Business-to-'onsu"er -B.'/..................................................................................5
Business-to-Business -B.B/.....................................................................................5
Business-to-d"inistration -B./.........................................................................6
,hat is 0-'o""erce1.......................................................................................................7
Benefts of e-co""erce2..................................................................................................9
The hy3er #rowth of 0-co""erce2 The di#ital econo"y...................................12
Buy-4ide 5s( 4ell-4ide e-'o""erce...................................................................15
Research Methodolo#y............................................................................................17
6i7erent ty3es of 0-'o""erce2..................................................................................18
0-co""erce ad5anta#es................................................................................................22
0-co""erce disad5anta#es and constraints.........................................................25
The 86o9s: of 0co""erce..............................................................................................29
The 86on9ts: of 0co""erce..........................................................................................30
0-business ; +ser security re?@? and was de5elo3ed by Ti"
Berners-&ee of the 0uro3ean Particle Physics &aboratory -'0RA/( *e
3ro3osed the 3roject as an e7ecti5e "eans of trans3ortin# research and
ideas throu#hout the or#anisation(
The initial 3roject 3ro3osal outlined a si"3le syste" of usin# a conce3t
called 8networked hy3erte!t: to trans"it docu"ents and to co""unicate
a"on# sta7 in the hi#h-ener#y 3hysics co""unity( *y3erte!t is the
or#anisation of infor"ation into connected associations that a user can
choose to "ake( n instance of such an association is called a link or
hy3erte!t link( The ,eb is just a 5ast a"ount of infor"ation content
connected by si"ilar and lar#e nu"ber of hy3erte!t links(
This allows "o5e"ent between docu"ents or infor"ation on the sa"e
,eb site or between ,eb sites$ 3ro5idin# a dyna"ic way of accessin#
infor"ation(
Throu#h the early >??0s the conce3t was taken on board by co"3uter
de5elo3ers and hundreds of 3eo3le across the world contributed by
writin# ,eb software and docu"ents$ or educatin# others about the ,eb(
• By >??B the ,eb was beco"in# reco#niCed across the #lobe and
the frst International ,orld ,ide ,eb conference was held at '0RAD
• Throu#hout >??B$ ,eb success stories were 3ublished by the
"ediaD
By the end of 1994, the ,eb had >0$000 ser5ers$ of which .$000
were co""ercial$ and >0 "illion usersD
• By Eebruary >??F the nu"ber of users had reached GF "illion
world-wideD
• By Ao5e"ber .000 there was a sta##erin# B0F "illion users world-
wide(
The ,eb today is a 5ast resource of infor"ation of all ty3es$ accessed and
used by all sections of society$ fro" research institutions and 3ublic and
3ri5ate sector or#aniCations$ to all sectors of the business co""unity$ as
well as 3ri5ate indi5iduals(
Hery little of today9s world is not re3resented on the ,orld ,ide ,eb(
The use of the ,eb see"s al"ost li"itless( 05ery day 3eo3le disco5er
e!citin# new ways to use the de5elo3"ent( 4o"e use it to 3ublish
infor"ation about their co"3any or hobbies whilst$ increasin#ly$ it is used
to conduct business( 'o"3anies are bein# set u3 which rely totally on the
,eb as a deli5ery "echanis" and are fre00 days( 0-co""erce is doublin#
annually( ,orldwide e-business was e!ceeded $1 trillion by .00.(-a
sur5ey/
• 'anada is the "ost Mwired9 nation$ with the hi#hest 3er ca3ita rate of
Internet-connected 3eo3le( Eorty-f5e 3ercent of 'anadians are online
for a total of >=(G "illion users( "ericans rank frst for the total
nu"ber of users with ?. "illion 3eo3le online$ or =B 3ercent of the
3o3ulation( -A+ Internet 4ur5eys$ >???/
• P>N of 'anadian s"all and "ediu"-siCed enter3rises -4M0G/ were
connected to the Internet in >???( -Internet Institute/
• 'anada has the lowest Internet access cost in the world( -L0'6$ >??F/
)or more Internet3 mar,et report3 an4 "n2ormat"on on t!e
Con3umer Onl"ne "n4u3tr-
• A+ Internet 4ur5eys
• International 'o""unications Inc(
• Qu3iter 'o""unications
• 'LM R+04T Research -'anadian data/
• Ne+3 an4 anal3"3%
'hina9s Mr( Internet2 Qack Ma wants to build 'hina9s frst #enuinely
#lobal e-co""erce fr" - The 0cono"ist -u# .P$ .000/
• Thinkin# 4trate#ically about 4ellin# Lnline - scenda
*o"e Internet use M#rowin#9 - BB' Aews -u# F$ .000/
• 6airy industry turns to e-co""erce - 'AA -Qul .@$ .000/
• Lnline sho33in# #ets "ore con5enient - BB' Aews -Qul .F$ .000/
Internet ne+3%com
• Internet e-co""erce news
?(Net
• 0-co""erce news$ ti3s$ strate#ies and best 3ractices
All E-Commerce
0-'o""erce Ti"es2 #ettin# started$ strate#ies$ news and re3orts
E-commerce Come3 o2 A#e
focuses on buyin# and sellin# o5er the Internet$ alon# with on#oin#
issues that will i"3act the future of electronic co""erce(
E-Commerce- T!e Net E@ect on A#r"$u3"ne33
The #ricultural Eoru" -+(4(/ has a series of 3a3ers on the e7ects of e-
co""erce in the a#ri food industry(
S!opp"n# aroun4 t!e We$
0-co""erce sur5ey by The 0cono"ist
Tal,"n#A a$out e-#enerat"on
4tudent o3inions re3ort by The 0cono"ist
Most business owners understand the idea of conductin# business o5er
the Internet$ and 3robably understand the need to 8#et their business
online: but what is e-'o""erce$ really$ and how do you #et started1
In a nutshell$ e-'o""erce -0lectronic 'o""erce/ is a way of conductin#
business throu#h co"3uters and o5er networks( 4i"3ly 3ut$ e-'o""erce
is buyin# and sellin# o5er the Internet( But it9s actually "uch "ore than
that(
Business interactions of all ty3es-fro" si"3le buyin# and sellin#$ to
co"3le! business 3ractices such as bankin#$ "anufacturin#$
and su33ly chain "ana#e"ent-can be easily acco"3lished usin# the
Internet(
'u-S"4e B3% Sell-S"4e e-Commerce
There are two basic sides to e-'o""erceD the Buy 4ide and the 4ell 4ide
'u S"4e
Cu3tomer3
'u S"4e refers to the e-'o""erce functionality that enables a business
to sell their 3roducts to a buyer -custo"er/ online( This buyer could be an
indi5idual consu"er or a lar#e co"3any buyin# 3roducts for co""ercial
use( The 3ur3ose is to "ake online buyin# easier and the e!3erience
"ore 3leasant for the buyer( The "ore robust the choice in conjunction
with an easier$ user- friendly web site$ custo"er satisfaction increases and
so do sales(
Sell S"4e refers to the e-'o""erce functionality that enables a co"3any to
actually "ake their #oods and ser5ices a5ailable o5er the Internet( 'ritical to the
success of the seller$ it assists the seller in i"3ro5in# internal business 3rocesses
and functionality( The 3ur3ose is to hel3 co"3anies increase re5enue and
3roftability by reducin# business and 3rocure"ent costs(
4ince e-'o""erce is a relati5ely new 3heno"enon$ the defnitions and jar#on
are not necessarily e"bedded into our e5eryday business le!icon(
4o$ what9s the buCC around the oJce1
“EC-ant!"n#%%% S T!e 80: e@ "illion in 6ece"ber >??F to
>.@ "illion in .00.$ re3resentin# "ore that +46B00 billion worth of
transactions( In +(4( alone$ the re5enue #enerated by Internet businesses
in >??@ was lar#er than all 3re5ious esti"ates ; a bo##lin# O =00 billion
E-Commerce - T!e #lo$al mar,etplace calle4 Internet
Internet o33ortunities #row with the nu"ber of Internet users( The world-
wide-web is #lobally 3er5asi5e( Internet has attracted "ore users in "ore
countries than any other co""unication tool( 05en thou#h it "ost
concentrated in +4 and 0uro3e$ "ost #rowth o5er the ne!t three to f5e
years is e!3ected to take 3lace in sia and &atin "erica(
It9s a #ood e!a"3le$ where &atin "erica has 3ortrayed a 3icture so"e
ti"e back to s3end "oney on 0-co""erce #rowth
Impact o2 E-commerce "n Internat"onal
mar,et-
16 E-Commerce "nternat"onal #ro+t! ; Impact on Mar,et"n#-
C!an#e3 to t!e Mec!an"c3 o2 'u3"ne33-
The force of chan#e brou#ht about by the Internet and e'o""erce is
swee3in# the world of business$ fro" the cotta#e industries to the
"ultinationals( This chan#e 3resents an o33ortunity to learn and 3roft
fro" new ways of workin#$ and a threat that other su33liers will use
e'o""erce to #ain a co"3etiti5e ad5anta#e to erode your "arket share(
6oin# nothin# is not a safe or sensible o3tionV
Before "akin# decisions about how your business can use e'o""erce$ it
is i"3ortant to take a look at what is #oin# on outside in the 8"arket
Thin#s that the business has no control o5er2
e!ternal factors such as chan#es in 3olitics$ econo"ic conditions$ law$
technolo#y$ fashion$ de"o#ra3hics$ co"3etition$ etc($ and$ of course$ the
wants and needs of 3ros3ecti5e and current custo"ers( +nder technolo#y
fts e'o""erce( Therefore$ you "ust consider how the "arket has
chan#ed with the introduction of e'o""erce "ethods$ and the i"3act it
will ha5e on your business( Indeed$ a 3ro5en way of increasin# the
likelihood of business sur5i5al and success is to take a strate#ic "arketin#
a33roachD a lon# ter" 5iew$ which$ based on the "arketin# en5iron"ent$
looks at the way forward for a business o5er the ne!t one to three years(
/6 E-Commerce "nternat"onal #ro+t! ; Impact on Sale3-
Ho+ to 'e#"n to *3e eCommerce to 3ell7
Much has been written about usin# e'o""erce "ethods to sell 3roducts and
ser5ices$ and with the low cost of entry into the Aet econo"y$ "ost businesses
can a7ord to do it - the
The World Wide Web (WWW), also known as the Web, is the most popular way to trawl through the information content of the Internet, the network of networks which has become part of everyday life for millions of people in all sectors of the community.
Project Report
On
“E-COMMERCE GROWTH IN
INTERNATIONAL MARKET -
Impact on Suppl C!a"n
Mana#ement“
$
Mr% &&&&& &&&&&&
M'A "n Suppl C!a"n
Mana#ement
APPEN(I& - I
CERTI)ICATE )ROM THE G*I(E
This is to certify that the Project work titled E-Commerce
Gro+t! "n Internat"onal Mar,et Is a bonafde work carried
out by XXXXXX XXXXXX Roll # 00000000 a candidate for the
MB e!a"ination of the Institute of Mana#e"ent under "y
#uidance and direction
SIGNAT*RE O) G*I(E
NAME XXXXX XXXXXX
(ESIGNATION- Mana#er$ Projects % &o#istics
A((RESS Maersk &ine$ '()(*ouse$
Mu"bai
(ATE- ./-.0-/.1&
PLACE- M+MBI
Ta$le o2 Content3
Introduction to the ,orld ,ide ,eb............................................................................4
Business-to-'onsu"er -B.'/..................................................................................5
Business-to-Business -B.B/.....................................................................................5
Business-to-d"inistration -B./.........................................................................6
,hat is 0-'o""erce1.......................................................................................................7
Benefts of e-co""erce2..................................................................................................9
The hy3er #rowth of 0-co""erce2 The di#ital econo"y...................................12
Buy-4ide 5s( 4ell-4ide e-'o""erce...................................................................15
Research Methodolo#y............................................................................................17
6i7erent ty3es of 0-'o""erce2..................................................................................18
0-co""erce ad5anta#es................................................................................................22
0-co""erce disad5anta#es and constraints.........................................................25
The 86o9s: of 0co""erce..............................................................................................29
The 86on9ts: of 0co""erce..........................................................................................30
0-business ; +ser security re?@? and was de5elo3ed by Ti"
Berners-&ee of the 0uro3ean Particle Physics &aboratory -'0RA/( *e
3ro3osed the 3roject as an e7ecti5e "eans of trans3ortin# research and
ideas throu#hout the or#anisation(
The initial 3roject 3ro3osal outlined a si"3le syste" of usin# a conce3t
called 8networked hy3erte!t: to trans"it docu"ents and to co""unicate
a"on# sta7 in the hi#h-ener#y 3hysics co""unity( *y3erte!t is the
or#anisation of infor"ation into connected associations that a user can
choose to "ake( n instance of such an association is called a link or
hy3erte!t link( The ,eb is just a 5ast a"ount of infor"ation content
connected by si"ilar and lar#e nu"ber of hy3erte!t links(
This allows "o5e"ent between docu"ents or infor"ation on the sa"e
,eb site or between ,eb sites$ 3ro5idin# a dyna"ic way of accessin#
infor"ation(
Throu#h the early >??0s the conce3t was taken on board by co"3uter
de5elo3ers and hundreds of 3eo3le across the world contributed by
writin# ,eb software and docu"ents$ or educatin# others about the ,eb(
• By >??B the ,eb was beco"in# reco#niCed across the #lobe and
the frst International ,orld ,ide ,eb conference was held at '0RAD
• Throu#hout >??B$ ,eb success stories were 3ublished by the
"ediaD
By the end of 1994, the ,eb had >0$000 ser5ers$ of which .$000
were co""ercial$ and >0 "illion usersD
• By Eebruary >??F the nu"ber of users had reached GF "illion
world-wideD
• By Ao5e"ber .000 there was a sta##erin# B0F "illion users world-
wide(
The ,eb today is a 5ast resource of infor"ation of all ty3es$ accessed and
used by all sections of society$ fro" research institutions and 3ublic and
3ri5ate sector or#aniCations$ to all sectors of the business co""unity$ as
well as 3ri5ate indi5iduals(
Hery little of today9s world is not re3resented on the ,orld ,ide ,eb(
The use of the ,eb see"s al"ost li"itless( 05ery day 3eo3le disco5er
e!citin# new ways to use the de5elo3"ent( 4o"e use it to 3ublish
infor"ation about their co"3any or hobbies whilst$ increasin#ly$ it is used
to conduct business( 'o"3anies are bein# set u3 which rely totally on the
,eb as a deli5ery "echanis" and are fre00 days( 0-co""erce is doublin#
annually( ,orldwide e-business was e!ceeded $1 trillion by .00.(-a
sur5ey/
• 'anada is the "ost Mwired9 nation$ with the hi#hest 3er ca3ita rate of
Internet-connected 3eo3le( Eorty-f5e 3ercent of 'anadians are online
for a total of >=(G "illion users( "ericans rank frst for the total
nu"ber of users with ?. "illion 3eo3le online$ or =B 3ercent of the
3o3ulation( -A+ Internet 4ur5eys$ >???/
• P>N of 'anadian s"all and "ediu"-siCed enter3rises -4M0G/ were
connected to the Internet in >???( -Internet Institute/
• 'anada has the lowest Internet access cost in the world( -L0'6$ >??F/
)or more Internet3 mar,et report3 an4 "n2ormat"on on t!e
Con3umer Onl"ne "n4u3tr-
• A+ Internet 4ur5eys
• International 'o""unications Inc(
• Qu3iter 'o""unications
• 'LM R+04T Research -'anadian data/
• Ne+3 an4 anal3"3%
'hina9s Mr( Internet2 Qack Ma wants to build 'hina9s frst #enuinely
#lobal e-co""erce fr" - The 0cono"ist -u# .P$ .000/
• Thinkin# 4trate#ically about 4ellin# Lnline - scenda
*o"e Internet use M#rowin#9 - BB' Aews -u# F$ .000/
• 6airy industry turns to e-co""erce - 'AA -Qul .@$ .000/
• Lnline sho33in# #ets "ore con5enient - BB' Aews -Qul .F$ .000/
Internet ne+3%com
• Internet e-co""erce news
?(Net
• 0-co""erce news$ ti3s$ strate#ies and best 3ractices
All E-Commerce
0-'o""erce Ti"es2 #ettin# started$ strate#ies$ news and re3orts
E-commerce Come3 o2 A#e
focuses on buyin# and sellin# o5er the Internet$ alon# with on#oin#
issues that will i"3act the future of electronic co""erce(
E-Commerce- T!e Net E@ect on A#r"$u3"ne33
The #ricultural Eoru" -+(4(/ has a series of 3a3ers on the e7ects of e-
co""erce in the a#ri food industry(
S!opp"n# aroun4 t!e We$
0-co""erce sur5ey by The 0cono"ist
Tal,"n#A a$out e-#enerat"on
4tudent o3inions re3ort by The 0cono"ist
Most business owners understand the idea of conductin# business o5er
the Internet$ and 3robably understand the need to 8#et their business
online: but what is e-'o""erce$ really$ and how do you #et started1
In a nutshell$ e-'o""erce -0lectronic 'o""erce/ is a way of conductin#
business throu#h co"3uters and o5er networks( 4i"3ly 3ut$ e-'o""erce
is buyin# and sellin# o5er the Internet( But it9s actually "uch "ore than
that(
Business interactions of all ty3es-fro" si"3le buyin# and sellin#$ to
co"3le! business 3ractices such as bankin#$ "anufacturin#$
and su33ly chain "ana#e"ent-can be easily acco"3lished usin# the
Internet(
'u-S"4e B3% Sell-S"4e e-Commerce
There are two basic sides to e-'o""erceD the Buy 4ide and the 4ell 4ide
'u S"4e
Cu3tomer3
'u S"4e refers to the e-'o""erce functionality that enables a business
to sell their 3roducts to a buyer -custo"er/ online( This buyer could be an
indi5idual consu"er or a lar#e co"3any buyin# 3roducts for co""ercial
use( The 3ur3ose is to "ake online buyin# easier and the e!3erience
"ore 3leasant for the buyer( The "ore robust the choice in conjunction
with an easier$ user- friendly web site$ custo"er satisfaction increases and
so do sales(
Sell S"4e refers to the e-'o""erce functionality that enables a co"3any to
actually "ake their #oods and ser5ices a5ailable o5er the Internet( 'ritical to the
success of the seller$ it assists the seller in i"3ro5in# internal business 3rocesses
and functionality( The 3ur3ose is to hel3 co"3anies increase re5enue and
3roftability by reducin# business and 3rocure"ent costs(
4ince e-'o""erce is a relati5ely new 3heno"enon$ the defnitions and jar#on
are not necessarily e"bedded into our e5eryday business le!icon(
4o$ what9s the buCC around the oJce1
“EC-ant!"n#%%% S T!e 80: e@ "illion in 6ece"ber >??F to
>.@ "illion in .00.$ re3resentin# "ore that +46B00 billion worth of
transactions( In +(4( alone$ the re5enue #enerated by Internet businesses
in >??@ was lar#er than all 3re5ious esti"ates ; a bo##lin# O =00 billion
E-Commerce - T!e #lo$al mar,etplace calle4 Internet
Internet o33ortunities #row with the nu"ber of Internet users( The world-
wide-web is #lobally 3er5asi5e( Internet has attracted "ore users in "ore
countries than any other co""unication tool( 05en thou#h it "ost
concentrated in +4 and 0uro3e$ "ost #rowth o5er the ne!t three to f5e
years is e!3ected to take 3lace in sia and &atin "erica(
It9s a #ood e!a"3le$ where &atin "erica has 3ortrayed a 3icture so"e
ti"e back to s3end "oney on 0-co""erce #rowth
Impact o2 E-commerce "n Internat"onal
mar,et-
16 E-Commerce "nternat"onal #ro+t! ; Impact on Mar,et"n#-
C!an#e3 to t!e Mec!an"c3 o2 'u3"ne33-
The force of chan#e brou#ht about by the Internet and e'o""erce is
swee3in# the world of business$ fro" the cotta#e industries to the
"ultinationals( This chan#e 3resents an o33ortunity to learn and 3roft
fro" new ways of workin#$ and a threat that other su33liers will use
e'o""erce to #ain a co"3etiti5e ad5anta#e to erode your "arket share(
6oin# nothin# is not a safe or sensible o3tionV
Before "akin# decisions about how your business can use e'o""erce$ it
is i"3ortant to take a look at what is #oin# on outside in the 8"arket
Thin#s that the business has no control o5er2
e!ternal factors such as chan#es in 3olitics$ econo"ic conditions$ law$
technolo#y$ fashion$ de"o#ra3hics$ co"3etition$ etc($ and$ of course$ the
wants and needs of 3ros3ecti5e and current custo"ers( +nder technolo#y
fts e'o""erce( Therefore$ you "ust consider how the "arket has
chan#ed with the introduction of e'o""erce "ethods$ and the i"3act it
will ha5e on your business( Indeed$ a 3ro5en way of increasin# the
likelihood of business sur5i5al and success is to take a strate#ic "arketin#
a33roachD a lon# ter" 5iew$ which$ based on the "arketin# en5iron"ent$
looks at the way forward for a business o5er the ne!t one to three years(
/6 E-Commerce "nternat"onal #ro+t! ; Impact on Sale3-
Ho+ to 'e#"n to *3e eCommerce to 3ell7
Much has been written about usin# e'o""erce "ethods to sell 3roducts and
ser5ices$ and with the low cost of entry into the Aet econo"y$ "ost businesses
can a7ord to do it - the