Difference between the early years of e- commerce and today e- commerce
Answers
• During the Innovation stage, e-commerce was primarily technology-driven. During the Consolidation stage, it was primarily business-driven. Today’s e-commerce, while still business-driven, is also audience, customer, and community-driven.
• During the Innovation stage, firms placed an emphasis on revenue growth, quickly achieving high market visibility/market share. During the Consolidation stage, the emphasis was on building profitable firms. Today, audience and social network growth are being emphasized.
• Startups during the Innovation stage were financed by venture capitalists, whereas those in the Consolidation stage were primarily financed by traditional methods. Today, startups are once again being financed by venture capitalists, albeit with smaller investments. In addition, many large online firms are now entering the market, and acquiring early stage firms via buy-outs.
• During the Innovation stage, e-commerce was, for the most part, ungoverned. In the Consolidation stage, there was a rise in the amount of regulation and governmental controls by governments worldwide. Today, there is extensive government regulation and surveillance.
• The Innovation stage of e-commerce was characterized by the young entrepreneurial spirit. During the Consolidation stage, e-commerce was primarily dominated by the retail giants. Today, large purely Web-based firms are playing a major role.
• The Innovation phase was characterized by an emphasis on deconstructing traditional distribution channels and disintermediating existing channels. During the Consolidation stage, intermediaries strengthened. Today, there is a proliferation of small online intermediaries that are renting the business processes of larger firms.
• “Perfect markets” in which direct market relationships with consumers, the decline of intermediaries, and lower transaction costs resulted in intense competition and the elimination of brands, are being replaced by imperfect markets. Imperfect markets are characterized by a strengthening of brand name importance, increasing information asymmetries, price discrimination, and network effects.
• The early years of e-commerce saw an infusion of pure online businesses that thought they could achieve unassailable first mover advantages. During the Consolidation stage, successful firms used a mixed “bricks-and-clicks” strategy, combining traditional sales channels such as physical stores and printed catalogs with online efforts. Today, there is a return of pure online strategies in new markets, as well as continuing extension of the “bricks-and-clicks” strategy in traditional retail markets.
• The early years of e-commerce were dominated by the first movers. In the Consolidation stage, e-commerce was dominated by the well-endowed and experienced Fortune 500 and other traditional firms. Today, first-mover advantages are returning in new markets as traditional Web players catch up.
The significant contrasts between the early long stretches of web based business (the Innovation arrange), the period between 2001-2006 (the Consolidation stage) and the present online business (the Reinvention organize) are: · During the Innovation organize, internet business was principally innovation driven. Amid the Consolidation arrange, it was basically business-driven. The present online business, while still business-driven, is likewise gathering of people, client, and network driven. · During the Innovation arrange, firms put an accentuation on income development, rapidly accomplishing high market perceivability/piece of the overall industry. Amid the Consolidation arrange, the accentuation was on building beneficial firms. Today, gathering of people and interpersonal organization development are being underlined. · Startups amid the Innovation arrange were financed by financial speculators, while those in the Consolidation organize were principally financed by customary strategies.
Amid the Consolidation organize, internet business was essentially overwhelmed by the retail mammoths. Today, vast absolutely Web-based firms are assuming a noteworthy job. · The Innovation stage was portrayed by an accentuation on deconstructing conventional circulation channels and disinters intervening existing channels. Amid the Consolidation arrange, mediators reinforced. Today, there are multiplications of little online go-betweens that are leasing the business procedures of bigger firms