EFFECTS OF GLOBALIZATION
TO E-COMMERCE
by: ELMER CAPADOSA BUENAVIDES
LEARNING OBJECTIVES:1. Define globalization
2. Describe and discuss activities involved in globalization
3. Discuss the three important drivers of globalization including its good and bad sides
4. Define E-commerce and describe its various classification by the nature of transaction.
5. Describe the E-Commerce Facts for current trends and future prospects
6. Discuss the pros and cons of E-Commerce
7. Describe and discuss the effects of globalization to E-Commerce.
OUTLINE:1. What is Globalization?
2. Activities involved in Globalization
3. The drivers of Globalization
4. Good sides and bad sides of Globalization
5. What is E-Commerce?
6. Classification of E-Commerce by the nature of the transactions
7. E-Commerce Facts: Current trends and future prospects
8. Pros and Cons of E-Commerce
9. Effects of Globalization to E-Commerce
10. Synthesis (Insights)
What is GLOBALIZATION?GLOBALIZATION
-is a process of interaction and integration among the people, companies, and governments of different nations, a process driven by international trade and investment and aided by information technology. This process has effects on the environment, on culture, on political systems, on economic development and prosperity, and on human physical well-being in societies around the world.
Activities involved in GlobalizationTravel Abroad
Shoes made in Korea
Big Mac from Moscow
Internet
US Brand
US –China Business Partners
Cellphones
Satellite TV
Online Bus.
CD Player-Made in Japan
T-Shirt Made in Mexico
The Drivers of Globalization1.The Rapid spread of IT and communications across the world
2. The massive investment in broadband technologies or enablers like fiber optic cables and undersea cables in the wake of the dotcom bubble
3.The adoption of English as the medium of instruction in many countries across the world.
Good sides and Bad sides of globalization
GOOD SIDES
1. Easier to communicate throughout the boundaries
2. Easier to travel 3. Cultural interchange4. International Trade5. Better and cheaper products6. Improvement of new
technologies7. The cheaper products
increases the purchase power 8. The transport of the products
is easier and faster9. Globalization creates a political
and an economical union, which facilitates the agreement between the countries
BAD SIDES
1. Delocalization creates unemployment in developed countries
2. Non-controlled circulation of money (free market) – no ethics
3. The businessmen and the big companies are the only winners in globalization
4. Exploitation of the workers in the developing countries – incl. children
5. Money problems can easily be spread6. The mix of cultures can lead to
racism, xenophobia, intolerance and loss of national identity
7. Small companies have to go out of business because they cant compete with the multinationals
8. As a result the gap between the poor and the rich people increases
What is E-Commerce?
E-Commerce
-is defined as the use of electronic communications and digital information processing technology in business transactions to create, transform, and redefine relationships for value creation between or among organizations, and between organizations and individuals.
Classification of EC by the Nature of the Transaction
• Business-to-business (B2B) : EC model in which all of the participants are businesses or other organizations
• Business-to-consumer (B2C): EC model in which businesses sell to individual shoppers
• Business-to-business-to-consumer (B2B2C): EC model in which a business provides some product or service to a client business; the client business maintains its own customers, to whom the product or service is provided
• Consumer-to-business(C2B): individuals who use the Internet to sell products or services to organizations and /or seek sellers to bid on products or services they need
• Consumer-to-consumer (C2C) : consumers sell directly to other consumers
• Mobile commerce (m-commerce)—EC transactions and activities conducted in a wireless environment
• Location-commerce—(l-commerce)
m-commerce transactions targeted to individuals in specific locations, at specific times
Intrabusiness (organizational) EC: EC category that includes all internal organizational activities that involve the exchange of goods, services, or information among various units and individuals in an organization
• Exchange (electronic): a public e-market with many buyers and sellers
• Exchange-to-exchange (E2E): EC model in which electronic exchanges formally connect to one another for the purpose of exchanging information
E-COMMERCE FACTS: CURRENT TRENDS AND FUTURE PROSPECTS
INVENTION ON ONLINE SHOPPING
E-Commerce Facts
SHOPPERS BY AGE GROUP
E-COMMERCE IN AMERICA
TOP E-COMMERCE STORE IN USA
CONSUMER ONLINE SHOPPING BEHAVIORS
PAYMENT MODES USED IN E-COMMERCE
GLOBAL ECOMMERCE SALES
E-COMMERCE SALES BY 2015
E-COMMERCE TO M-COMMERCE
PROS AND CONS OF E-COMMERCEPROS
• No Standing in Queues or Being Placed on Hold Forever
• Easier to Compare Prices• Access to Stores Located
Remotely• No Need for a Physical
Store• Common Availability of
Coupons and Deals
CONS
• Lack of Personal Touch• Easier to Compare
Prices• Inability to Experience
the Product Before Purchase
• Need for an Internet Access Device
• Need for an Internet Connection
• Lots of Choices• Stores Are Open All the
Time• Ability to Buy and Sell to
Other Consumers• Instantaneous Purchase
of Digital Goods• Ability to Have Vendors
Bid for Your Business• Not About "Location
Location Location“• Ability to Scale Up
Rapidly
• Common Availability of Coupons and Deals
• Credit Card Fraud• Security Issues• Delay in Receiving
Goods• Inability to Identify
Scams• Extraordinarily High
Reliance on the Website• Multiplicity of
Regulations and Taxation
• Unlimited Shelf Space• Ease of Communication• Superior Customization• No Need to Handle Currency
Notes• Efficient Procurement• Delivery of Each Individual Item• Superior Inventory Management• Reduced Employee Costs• Gain Search Engine Traffic• Ability to Sell Low Volume Goods
Too• Ability to Track Logistics
• Chargebacks• Delivery of Each
Individual Item• Expense and Expertise
Needed for Ecommerce Infrastructure
• Need for Expanded Reverse Logistics
EFFECTS OF GLOBALIZATION TO E-COMMERCE
E-COMMERCE
GLOBALIZATION
Life’s standard increased: Education Social Industrial Financial Economic Political Informational Competition Ecological Cultural Technical Legal/Ethical
SYNTHESIS(INSIGHTS)
• Globalization and E-Commerce which is part of the evolution of Information Technology had great impact in all aspects of the society that brought a lot of changes and affect human life either good or bad.
• This refers also to Digital Revolution because the economy is based on digital technologies including:– Digital communication networks, Computers, Software,
Other related information technologies• Also called:
– Internet economy, New economy, Web economy
• Through this new economy, where e-commerce is greatly involved, it actually expands the marketplace to national and international markets because of the challenges in the globalization.
• It enables people to shop or do other transactions 24 hours a day, all year round from almost any location
• Provides consumers with less expensive products and services by allowing them to shop in many places and conduct quick comparisons.
• Provides consumers with more choices and enables them to work at home, and to do less traveling for shopping, resulting in less traffic on the roads, and lower air pollution.
• Thus, these few activities mentioned, simply change the way how people live and to make the country progressive and the world a better place to live with.
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