Endnotes


1 For example, Amazon is diverting the online traffic from CDNow, toysrus.com, and borders.com to its main site.

2 Riggins and Rhee (1998) use Lucent Technologies' AllViewTM system as an example to demonstrate the strategic advantage of allowing parts of a company's extranet accessible to business partners. AllViewTM is an extranet system that provides internal engineering teams and external customers with online access to several types of engineering documentation via the Internet. In doing so, Lucent has created a market where it controls the functionality of the new systems, sets the pricing of the information goods, and provides various levels of support to the telecommunication equipment vendors.

3 For example, Dell Computer Corporation's build-to-order e-commerce business model.

4 For example, iVillage.com, fool.com, and tripod.com.

5 For example, CDNow, ToysRUs, and many other independent vendors have joined Amazon.com's business ecosystem to take advantage of both scale and scope economies and to increase customers' switching costs.

6 For example, e-commerce companies that provide a good user interface and high usability (i.e., the ease with which a site can be used and navigated by users) will be able to reduce customers' transaction costs.

7 The transformation of retail banking provides a good example. See Evans and Wurster (1997).

8 eBay has capitalized on the logic of low transaction costs in the digital economy (e.g., zero inventory and distribution costs, near-zero editorial content development, revenue risk, and product liability) and transformed its value proposition from online auction to liquidity, i.e., converting goods into a desirable price. See Tapscott et al. (2000).

9 Two types of software help retailers set prices to their greatest advantage. Price optimization software, developed by companies such as DemandTec, Retek, and Manugistics Group, is for mass retailers like grocers and drug chains that have hundreds of thousands of items to track across multiple stores and e-commerce sites. The markdown optimization software, provided by i2 Technologies, ProfitLogic, and Spotlight Solutions, is for retailers that regularly refresh their inventory with new products (e.g., apparel) (Tedeschi, 2002). Both technologies give companies the ability to look at prices strategically.

10 Personalization software provides guided selling and online customer assistance solutions that help companies more profitably acquire and retain customers. Current technologies that help companies to implement personalization or one-to-one marketing strategy include: (1) rule-based personalization systems (e.g., BroadVision.com) offer businesses a solution for creating a personalized experience over the Internet and wireless devices; (2) collaborative filtering systems (e.g., NetPerceptions.com) that compare the input of many users to come up with recommendations; and (3) case-based personalization systems (e.g., Firepond.com), which are designed to deliver specific answers to specific questions. By implementing personalization software, companies such as Barnes & Noble (bn.com) and E!Online's movie finder (movies.eonline.com) can acquire and maintain strong relationships with their customers.




Social and Economic Transformation in the Digital Era
Social and Economic Transformation in the Digital Era
ISBN: 1591402670
EAN: 2147483647
Year: 2003
Pages: 198

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