Task-1 – 2000 Words (Please send the completed work by 2nd November)
The key role of Information Technology in e-Commerce is to support various e-Commerce functions in various e-Commerce business models. Describe in details how e-Commerce functions in today’s business environment and the various e-Commerce business models. (40%)
Choose a particular organisation (retail, services or manufacturing) and write a case analysis about how it works using a particular e-Commerce business model. (60%)
Notes:
Students must correctly identify and comprehend the question. Be able to critically evaluate, provide independent analysis, observations and comments. Be able to write clearly and provide good references.
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Task-2 – 2000 Words (Please send the completed work by 27th November)
http://www.internetnews.com/bus-news/article.php/704671
March 5, 2001
Amazon Soars on Wal-Mart Rumor
By
Stock of Amazon.com soared 25 percent in the first minutes of trading today on reports that it may be in negotiations for an e-commerce alliance with Wal-Mart Stores Inc. The concept drew a positive reaction from market analysts.
The stock was at .50 just after the opening bell, up from a Friday close of .
The news of a possible alliance with Wal-Mart (Quote, Chart) was reported in the UK’s Sunday Times and was attributed to an unnamed executive. Both companies declined to comment on the report.
Analysts at Goldman, Sachs advised clients that such a partnership “could fill key voids or limitations in Amazon’s business by broadening its appeal and improving the economics of its model.”
“We would view these partnerships favorably and believe that Amazon shares shares are attractive for long-term investors, GS said. The analysts reiterated their market outperform rating for Amazon.
The Times said in its report that Amazon’s founder, Jeff Bezos, and Lee Scott, Wal-Mart’s chief executive, are in talks for a deal that might be announced within several months.
“We do not confirm or deny rumors or speculation about what we may or may not do in the future,” said Amazon spokesperson Patty Smith.
Amazon would become Wal-Mart’s e-commerce supplier and Wal-Mart would gain access to the e-tailer’s expertise in managing an Internet retail operation, from online ordering to home delivery, the newspaper said. With total fourth-quarter sales topping .5 billion, Wal-Mart is the largest retailer in the world and operates its own Web site at walmart.com.
Amazon also would gain a presence in Wal-Mart’s 4,500 stores, a cash injection and a percentage of the sales it makes through Wal-Mart, the Times said.
The e-tailer, struggling to get into the black, announced in January that it was laying off 1,300 workers, or 15 percent of its staff.
Goldman, Sachs said that “given the current decelerating outlook for e-commerce growth, the impact of (such partnerships) has become increasingly important…as a vehicle to offset the slowing environment.”
“In theory, Amazon can leverage its existing assets (technology expertise, large customer base, and global brand awareness) to create partnerships that allow it to enter new categories or accelerate progress in existing categories to cast the widest net of awareness and still own the consumer.”
There are a variety of different categories that make sense for Amazon to pursue either in the near-term or the long- term, GS said, including groceries, apparel, HBA (health, beauty, and accessories), sporting goods, consumer electronics and other big-box retail categories.
And there would be cost-saving opportunities, too. GS said that Amazon might gain the ability to directly source its merchandise, buying direct from manufacturers, as well as reducing its marketing and promotional expenses.
1. How would you define Amazon.com’s business model throughout the 1995–2006 period examined and how has this changed and evolved?
2. Has it entered the harvest stage that CEO Jeff Bezos promised would eventuate?
3. Is Amazon.com a natural acquisition target for Wal-Mart?
4. Is the Amazon.com business model, the right model looking ahead 5 or more years?
Notes:
Students are encouraged to look into other related sources through Internet, journals and others to complete this case study. Students must correctly identify and comprehend the question. Be able to critically evaluate, provide independent analysis, observations and comments. Be able to write clearly and provide good references.
Credit:ivythesis.typepad.com
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