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Chapter 2 Learning Objectives Define e-marketplaces and list their components List the major types of electronic markets and describe their features Define supply chains and value chains and understand their roles Describe the role of intermediaries in EC Discuss competition, quality, and liquidity issues in e-marketplaces Describe electronic catalogs, shopping carts, and search engines Learning Objectives (cont.) Describe the various types of auctions and list their characteristics Discuss the benefits, limitations, and impacts of auctions Describe bartering and negotiating online Describe the impact of e-marketplaces on organizations Define m-commerce and explain its role as a market mechanism How Raffles Hotel is Conducting E-Commerce The Problem The company’s success depends on the its ability to lure customers to its hotels and facilities and on its ability to contain costs Solution Business-to-consumer—maintains a public portal () that includes: Information on the hotels Reservation system Links to travelers’ resources Customer relationship management (CRM) program Online store for Raffles products Raffles Hotel (cont.) Business-to-business—maintains an interorganizational systems that enable efficient contacts with its suppliers The e-marketplace also has a sell-side, allowing other hotels to buy Raffles-branded products from electronic catalogs (bathrobes) Competitors buy Raffles-branded products because they are inexpensive, but look upscale Raffles Hotel (cont.) The Results Public portal helps in customer acquisition Hotel is able to maintain high occupancy rates using: Promotions Direct sales Raffles Hotel (cont.) The private marketplace is strategically advantageous: Raffles in forcing suppliers to disclose their prices, thus increasing competition among suppliers Raffles is saving about $1 million a year on procurement of eight high-volume supplies; more savings on other products Success is evident in its aggressive expansion in the Asian markets E
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