Digital Technologies Flashcards
(10 cards)
1
Q
E-commerce
A
- process of buying and selling goods and services electronically
2
Q
Types of E-Commerce
A
- B2C (business to consumers) : retailing products and services to individual shoppers
- B2B (business to business): sales of good and services among businesses
- C2C (consumer to consumer)
3
Q
Types of companies in the ‘new economy’
A
- Bricks-and-mortar: traditional companies based in the physical world
- Pure-play: companies that are only engaged in electronic commerce
- Clicks-and-mortar: companies that conducts some e-commerce activities, yet their primarilybusiness is done in the physical world
4
Q
Advantages of e-commerce
A
- may eliminate need for maintaining physical shop front
- increased transaction speed
- ease of crossing geographical boarders
- Web-sites available 24/7
- ease of updating existing and distributing new information
- may empower smaller companies
5
Q
Barriers to e-commerce
A
- SME’s digital readiness
- regulatory barriers
- suitability of product - ‘feel and touch’
- trust, and fraud issues
6
Q
Impact of the internet on digital business
A
- reduces transaction costs
- shrinking information asymmetry
- offers a new distribution channel
- Disintermediation - cutting out the middle man
7
Q
Porter’s five forces
A
- Threat of new entrants
- Threat of substitute products or services
- Internal rivalry between existing competitors
- Bargaining power of suppliers
- Bargaining power of customers
8
Q
Non-digital vs digital products
A
Non-digital:
- maximum profit when they set their products in output to level where marginal costs meets marginal revenue
Digital products:
- near-zero marginal cost
- creates incentive to undercut prices of competitors
9
Q
The sharing economy
A
- use of tech platforms to allow consumers to make unused resources available to other customer
- e.g. uber
10
Q
Sharing economy criticism
A
- increasingly monopolistic platforms
- fuels worker exploitation
- Unfair practices: Airbnb, Uber - concerns about driver vetting
- bypassing some regulations as a result
