Amazon and Ebay: The New Face of Web Services
CASE STUDY QUESTIONS
1. What are the purpose and business value of Web services?
The principal purpose of Web service is create the exchange of data between business (for example e-commerce or e-business) in real time via Internet, and this way a business might share with its costumers, suppliers, and other business partners all the necessary information.
As a result, the use of Web serving by any organization, which wants grow up and support a place in the market, is the best tool. This is because the increasing and development of the technology and communication (or by the globalization's growth) the use of the Web to make business is increasing too. Thus, when any organization applies de use of Web service, automatically their business value augment, because now, all the benefits that brings work on line they are going to help to the company in its growth.
Some of those benefits that increase the business value are:
A better, easy and efficient e-business or e-commerce application.
Coping with the fast-changing relationships between a company and its business partners.
To go in the global market.
Innovate the way of make business.
2. What are the benefits of Web services to Amazon, eBay, and their developer partners?
There are a lot of benefits, some of them are the following:
It allows an explosive business growth
A person will easily integrate its software with other pieces of software.
It is an easily option for commerce, because you can run on all kinds of machines, either within your enterprise or at external sites.
It allows tighter business relationships between enterprises and more efficient business processes.
Give users the ability to act on information any time, any place, and from any smart device.
Customers, sellers and buyers can request and get information in real time.
All suppliers will use the same language to describe their offerings.
Web services help these companies to expand their market reach.
The software model that they are using works with popular developer tool.
Also it is an excellent tool for reducing costs.
3. What are the business challenges of Web services?
Web Services are transforming and simplifying the way the enterprise thinks about integrating applications, information and business processes. They represent a new way to link systems together and automate business processes, eliminating much of the complexity and expense associated with traditional enterprise integration technologies. More importantly, Web services will be a catalyst for Service Oriented Architectures, enabling the real time enterprise by accelerating the flow of information and decisions across the organization.
In summary, “Internet activities are not most significant in competition, such as informing customers, processing transactions, and procuring inputs”. (Porter, 2001) significant corporate assets--skilled employees, proprietary product, and efficient logistical systems – these factors are the most important to keep competitive advantages. In fact, it is foreseeable that the Internet's evolution will come up in the future involve a shift “in thinking from e-business to business, from e-strategy to strategy”. (Porter, 2001)Only by integrating the Internet into overall strategy will this powerful new technology become an equally powerful force for competitive advantage.
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A user can provide computing abilities, like server time and network storage or require human interaction with the provider automatically
Web IS. The importance of web led the classical information systems to transform in order to integrate with web technologies. This means that a web application can access an organization’s dataset. And as we mentioned above, this integration creates new data issues, like security and accessibility.
Amazon has been able to maintain sustainable competitive advantage based on three operational strategies. These are low cost-leadership, customer differentiation and focus strategies. Low cost-leadership is pursued by Amazon by differentiating itself primarily on the basis of price. By offering low prices to customers Amazon ensures its future success. Partially modifying the costs of lowering prices over time through achieving higher sales volumes, negotiating better terms with suppliers, and achieving better operating efficiencies. Amazon makes sure that it offers the same quality products as other companies at a considerably cheaper price. Another strategy that Amazon has is its fast delivery service and there are many delivery services that one can choose from. With Amazon Prime, there are certain, but many products that have free two-day shipping. Also, with Amazon Prime, there are many offers specifically for people that have Amazon Prime. For example,
One of the greatest opportunities for Amazon is an Online Payment System. The online system allows the company to reduce transaction fees and increase ease of use for their customers. Internet sales are increasing at a fast pace. This is a product of increased fuel prices, which make driving to a store less likely, and foreign purchases. This development allows foreign purchases to buy clothing as it becomes more popular abroad. Amazon’s biggest competitors can include retail stores that online stores such as Target, Best Buy, and Walmart among others, these can be considered the most dangerous for them since they have strong market share and can be a direct competitor since they attack the same market. Amazon wish to compete in prices, offering
connected to so many things. At the touch of a button we can get information on google,
Consumers not only request help for product issues but also seek buying advice and comparisons with competing products. The consumer does not want to worry about whether a query should go to sales, service or marketing, they just want answers. A robust service strategy that is supported by trained employees backed by technology can take your service standards to a whole new level and also helps the consumer along the buying
...urcing services, the company operation will be became a mess. This is because one organization can’t run a lot of task or project at one time. Therefore an organization need outsourcing in the way to help their organization run smoothly.
The Internet is the future of business. Bring your company up-to-date and provide customers, not only with product descriptions and information, but with a way to shop, communicate and interact with your company via the web. The Internet also provides less chance for human error in the ordering process because fewer individuals have to handle information. And, most importantly, the Internet speeds up operations, whether it is use for sending information to employees or receiving custom orders from customers.
As some of you may know, Amazon has recently become a client of Deloitte. Amazon is a company that sells merchandise, produce and other goods through Amazon.com. They have also expanded into the same day delivery industry through its new venture, Amazon Prime. Recently, Amazon has been looking to focus more on growing its business outside of the United States. In order to do this, Amazon needs to increase profitability in North America. Thus, they have requested our team’s recommendations on how they can increase sales from online shoppers within the next 12 months.
One of the most important benefits of having a website and a good online presence is that your business can be reached by your customers 24 hours a day. Just imagine that you have gone out to a shop to buy something, and you find it closed. You will move to another shop to buy the thing. Similarly, if you do not have a website or a good online presence, your competitor will get benefited.
E-commerce application is a platform where there is buying and selling of products and services which are done by businesses and consumers via an electronic medium, mostly without using any paper documents. “E-Commerce applications support transactions between businesses and their customers. They provide 24/7 customer support, allowing customers to order products, check orders and track shipping, review previous orders, reorder products, and manage their accounts.” (Auburn SeeWolf llc , 2009-2012)
E-business and e-commerce are terms that are sometimes used interchangeably, and sometimes they are used to differentiate one vendor’s product from another. In both cases, the e stands for "electronic networks" and describes the application of electronic network technology - including Internet and electronic data interchange (EDI) - to improve and change business processes (Bartels, 2000)
fixture in everyday life then ever before, from housewives planning meals, to checking bank balances and paying bills, to looking up recipes. Children have the ability to do their homework, playing games and chatting to a friend on the internet. Business executives carrying PDA's, [personal digital assistants] with the ability to do their everyday business duties, from anywhere in the world that they may be at any time of the day or night.