Chapter 1: The revolution is just beginning

1.What is EC? How does it differ from e – business? Where does it intersect with e –
business?
- E-commerce: involves the use of the Internet, the Web, and mobile apps and
browsers running on mobile devices to transact business. More formally, digitally
enabled commercial transactions between and among organizations and individuals.
- The differences between E-commerce and E-business:
+ E-business: the digital enabling of transactions and processes within a firm,
involving information systems under the control of the firm.
+ E-business: excludes commercial transactions between organizations, or
commercial transactions with customers.
- E-commerce intersects with e – business:
+ Online transactions: Both involve the use of the internet for buying and selling.
+ Customer interaction: Both require effective communication and engagement
with customers.
+ Technology infrastructure: Both rely on technology to support their operations.
2. What are some of the unique features of E – commerce technology?
Some of the unique features of E – commerce technology: Global reach,
Personalization, Interactivity, Universal standards, Richness, Information density,
Data analysis, Ubiquity, Social technology,...
3. What is a marketspace
Marketspace is a marketplace extended beyond traditional boundaries and removed
from a temporal and geographic location.
4. Compare online and traditional transactions in terms of richness?
The comparison between online and traditional transactions in terms of richness:
- Traditional transactions have great richness: Able to provide personal, face-to-face
service using aural and visual cues when making a sale. The richness of traditional
markets makes them a powerful selling or commercial environment. Prior to the
development of the Web, however, there was a trade-off between
richness and reach: the larger the audience reached, the less rich the message.
- Online transactions can vary in terms of richness, depending on factors like the
platform, the product, and the level of customer service provided.
+ Lower Richness (Initial Stage): Basic online shopping experiences may have
lower richness, with limited opportunities for interaction and personalization.
+ Higher Richness (Advanced Stage): E-commerce platforms that incorporate
features like live chat, video conferencing, and augmented reality can offer
higher levels of richness. These technologies allow for more personalized
interactions and a more immersive shopping experience.
5. Give examples of B2C, B2B, C2C, B2B2C e-commerce website
Examples of B2C, B2B, C2C, B2B2C e-commerce website:
+ B2C: H&M VN
+ B2B: Microsoft
+ C2C: eBay
+ B2B2C: Amazon
6. Describe three different stages in the evolution of e – commerce

Three different stages in the evolution of e – commerce:

+ Creating a website, using email to contact customers and suppliers.
+ Integrating tools and applications such as ERP, CRM, SCM,... to manage
internal operations and interact with customers better.
+ Achieving a high level of integration between business processes, utilizing
technologies such as extranets to connect with partners and suppliers.
7. List the major trends of EC
Major Trends in E-commerce:
- Technology-Driven Trends
+ Artificial Intelligence (AI): AI is being used to personalize product
recommendations, improve customer service through chatbots, and optimize
supply chain management.
+ Augmented Reality (AR) and Virtual Reality (VR): These technologies provide
immersive shopping experiences, allowing customers to visualize products in
their own environments.
- Customer-Centric Trends
+ Personalization: E-commerce businesses are focusing on delivering
personalized experiences based on customer preferences and behavior.
+ Mobile Commerce: Mobile devices have become the primary channel for
online shopping, driving the need for optimized mobile experiences.
- Industry-Specific Trends
+ Cross-Border E-commerce: Businesses are expanding their reach to
international markets, driven by factors like globalization and digitalization.
+ Sustainable E-commerce: Consumers are becoming more conscious of
sustainability, leading to a growing demand for eco-friendly products and
practices.
+ Live Streaming Commerce: Live streaming platforms are being used for
product demonstrations, interactive shopping experiences, and influencer
collaborations.
Chapter 2. E – commerce Business Models and Concepts
1. What is a business model? How does it differ from a business plan?
A business model is a set of planned activities (sometimes referred to as
business processes) designed to result in a profit in a marketplace.
A business plan is a document that describes a firm’s business model which
takes into account the competitive environment.
In some cases the business model and business plan are very close insofar as
the business model explicitly takes into account the competitive environment
(Ovans, 2015; Magretta, 2002). The business model is at the center of the
business plan.

2. What are eight key components of an effective business model?

1. Value Proposition
2. Market Opportunity
3. Revenue Model
4. Competitive Environment
5. Competitive Advantage
6. Market Strategy
7. Organizational Development
8. Management Team

3. Describe the five primary revenue models used by e – commerce businesses

1. Advertising
In the advertising revenue model, a business that offers content, services,
and/or products also provides a forum for advertisements and receives fees
from advertisers. Companies that are able to attract the greatest viewership
or that have a highly specialized, differentiated viewership and are able to
retain user attention (“stickiness”) are able to charge higher advertising rates.
2. Subscription
The subscription revenue model involves businesses charging a subscription
fee for access to their content or services. To overcome user disinclination,
content must be perceived as high-value, premium offerings.
3. Transaction Fee
In the transaction fee revenue model, a business receives a fee for enabling or
executing a transaction.
4. Sales
The sales revenue model involves a business selling goods, content, or
services to customers. Amazon uses this model for physical products, digital
 content, and services. Subscription-based models like Birchbox and Dollar
Shave Club offer home delivery and subscription-based services.
5. Affiliate
In the affiliate revenue model, a business that steers customers to an
“affiliate” receives a referral fee or percentage of the revenue from any
resulting sales. Social media influencers who receive a commission from
brands they represent can also be characterized as using an affiliate revenue
model

4. Examples of: transaction model, subscription model, advertising model, sale

models, affiliate marketing model
1. Advertising
Yahoo, for instance, derives a significant amount of revenue from display and
video advertising.
2. Subscription
eHarmony (dating services), Ancestry (genealogy research), Microsoft’s Xbox
Live (video games), Pandora, Spotify, and Apple Music (music), Scribd and
Amazon’s Kindle Unlimited program (e-books), and Netflix and Hulu (television
and movies)
3. Transaction Fee
For example, eBay provides a marketplace platform and receives a small
transaction fee from a seller if the seller is successful in selling the item. E*Trade,
a financial services provider, receives transaction fees when it executes certain
types of financial transactions on behalf of a customer.
4. Sales
Birchbox, which offers home delivery of beauty products for a $15 monthly or a
$156 annual subscription cost, is one example. Dollar Shave Club, which sells
razor blades by subscription and was acquired by Unilever for $1 billion, is
another.
5. Affiliate
For example, MyPoints makes money by connecting companies with potential
customers by offering special deals to its members. When they take advantage of
an offer and make a purchase, members earn “points” that they can redeem for
freebies, and MyPoints receives a fee.
Community review businesses, such as TripAdvisor, Yelp, and Angi typically
receive some of their revenue from steering potential customers to websites
where customers make a purchase.

5. Benefits of E-commerce
For Businesses:
1. Global Reach: E-commerce allows businesses to transcend geographical
limitations, enabling them to serve a worldwide market. Unlike traditional
 commerce, which is limited to a particular region, e-commerce connects
companies with customers around the globe.
2. Ubiquity: E-commerce operates 24/7, giving businesses the ability to reach
customers at any time and providing continuous access to their platforms.
This is a fundamental shift from brick-and-mortar stores that are limited by
operating hours.
3. Interactivity: Laudon emphasizes that e-commerce enables direct two-way
communication between businesses and consumers. This creates a more
dynamic and interactive customer experience compared to traditional
methods.
4. Customization/Personalization: E-commerce platforms can tailor marketing,
sales, and products to individual consumer preferences. Businesses can use
data collected through customer interactions to personalize
recommendations and offers, enhancing customer loyalty and satisfaction.
5. Cost Efficiency: E-commerce reduces the costs of physical storefronts,
warehousing, inventory management, and personnel. Automation of
processes such as order fulfillment and customer support further enhances
operational efficiency.
6. Information Density: The Internet increases the richness and amount of
information available to both businesses and consumers. Companies can
provide more detailed product descriptions and data while customers can
access user reviews, price comparisons, and expert opinions before making a
purchase decision.
7. Lower Transaction Costs: Through automated sales processes, e-commerce
reduces costs associated with traditional sales channels, such as handling
cash, employing salespeople, or managing physical stores.
8. Scalability: E-commerce businesses can easily scale operations up or down
based on market demand without requiring significant capital investment in
new physical infrastructure.
For Consumers:
1. Convenience and Accessibility: E-commerce platforms are available anytime,
allowing consumers to shop whenever and wherever they want, without the
constraints of traditional store hours or locations.
2. Information Richness: E-commerce platforms provide consumers with
detailed product information, customer reviews, and easy access to
comparison shopping. This empowers consumers to make better-informed
purchasing decisions.
3. Increased Choices and Variety: Customers have access to a wider variety of
products and services than they would in traditional retail settings. They are
no longer limited by their local stores’ inventory.
4. Lower Prices: Due to reduced operating costs, e-commerce businesses often
offer lower prices than their brick-and-mortar counterparts. Online
 marketplaces also make it easier for consumers to compare prices and find
the best deals.
5. Personalization: Customers benefit from personalized shopping experiences.
Based on their browsing behavior, purchase history, and preferences,
e-commerce platforms can recommend products that align with their needs.
6. Social Networking and Community: E-commerce allows consumers to engage
with brands and other customers via reviews, forums, and social media,
creating a more community-driven shopping experience.

6. Business Value Proposition

A company’s value proposition is at the very heart of its business model. A
value proposition defines how a company’s product or service fulfills the
needs of customers (Payne, Frow, and Eggert, 2017). To develop and/or
analyze a firm’s value proposition, you need to understand why customers will
choose to do business with the firm instead of with another company and
what the firm provides that other firms do not and cannot. From the consumer
point of view, successful e-commerce value propositions include
personalization and customization of product offerings, reduction of product
search costs, reduction of price discovery costs, and facilitation of
transactions by managing product delivery
For example, Amazon revolutionized book shopping by allowing customers to
shop from home or office 24/7, with immediate stock availability. The Kindle
e-book service further enhances this convenience, making e-books instantly
available with no shipping delay. Amazon's primary value propositions are
unparalleled selection and convenience.

7. What is CPA, CTR, CPQL, CPL, PPC, CPS, CPO stand for?
CPA: cost per action. Advertiser pays only for those users who perform a specific
action.
CTR: Click Through Rate
CPL (cost per lead): Customers fill out the registration form and they get a
commission, often seen in financial campaigns Customers just need to fill out the
form, even if they don't borrow money, they still get a commission.
CPQL (Cost Per Qualified Lead): Orders that meet the criteria required by the
supplier will be counted as commission for you.
PPC: stands for pay-per-click, a model of digital advertising where the advertiser
pays a fee each time one of their ads is clicked.
CPS : Cost per Sale. CPS is a form of paying commission on a successful
purchase (sale).
CPO: Cost per order.
Chapter 3. EC infrastructure: The internet, The Web, and The
Mobile Platform
1. What are the attribute of website (interactive, measurable…)

A website is a collection of interconnected web pages that are accessible through

the internet. It can serve various purposes, from providing information to facilitating
e-commerce or social interaction. Here are some key attributes of a website:
- Interactive:
+ Dynamic content: Websites can dynamically generate content based on user
input or real-time data.
+ User interaction: They allow users to interact with the content through forms,
buttons, and other elements.
+ Feedback mechanisms: Websites often include features for user feedback,
such as contact forms or comment sections.
- Measurable:
+ Analytics: Websites can track user behavior, such as page views, time spent
on site, and conversion rates.
+ Key Performance Indicators (KPIs): Websites can be measured against
specific goals and objectives, such as increasing traffic or improving user
engagement.
- Accessible:
+ Usability: Websites should be designed to be easy to navigate and use, even
for users with disabilities.
+ Compatibility: Websites should be compatible with different devices and
browsers.
+ Accessibility standards: Websites should adhere to accessibility standards
like WCAG (Web Content Accessibility Guidelines) to ensure inclusivity.
- Secure:
+ HTTPS: Websites should use HTTPS to encrypt data transmitted between the
server and the user's browser.
+ Data protection: Websites should have measures in place to protect user data
from unauthorized access or breaches.
- Responsive:
+ Adaptive design: Websites should adjust their layout and content to fit
different screen sizes and devices.
+ Mobile-friendly: Websites should be optimized for mobile devices to provide a
good user experience on smaller screens.
- Informative:
+ Clear and concise content: Websites should present information in a clear and
concise manner.
+ Relevant content: The content should be relevant to the website's purpose and
target audience.
- Engaging:
+ Visual appeal: Websites should be visually appealing and use appropriate
design elements.
+ User experience: Websites should provide a positive and enjoyable user
experience.
2. List data privacy policy of Lazada (short summary)

Lazada collects and processes personal data from individuals participating in its
Delivery and Station Programs. This data includes:
- Personal Information: Name, gender, national ID number, date of birth,
nationality, country and city of birth/residence, driver's license details,
geo-location, location tracking data, vehicle information, bank
account/payment details, mailing address, phone numbers, email address,
work-related health issues, disabilities, and photographs.
- Documents: Any other documents or information containing personal data
submitted when accessing or using Lazada's Portals.
● Lazada collects this data for various purposes, including:
● Processing and screening applications for the Delivery Program.
● Assessing suitability for the Delivery Program through interviews.
● Conducting background checks.
● Maintaining and updating records of applications.
● Complying with laws and regulations.
● Preventing fraud and illegal activities.
● Allocating services to participants.
● Facilitating service provision.
● Providing solutions to improve service delivery.
● Administering accounts and contractual relationships.
● Conducting market research and analysis.
● Supporting business operations.
● Communicating with emergency services.
● Lazada may disclose personal data to third parties where necessary for the
above purposes.
● Lazada uses cookies and other technologies to collect information about user
behavior on its Portals. This data is used to improve the user experience and
provide personalized content.
● Participants have the right to withdraw their consent to Lazada's use of their
personal data at any time. However, this may affect their participation in the
Delivery or Station Program.
● Participants can request access to or correction of their personal data by
contacting Lazada's Data Protection Officer.
● Lazada takes measures to protect the security of personal data but cannot
guarantee complete security.

3.List data privacy policy of Google:

● Account Information: Name, email address, phone number, profile picture, etc.
● Usage Data: Information about how users interact with Google products,
including search queries, websites visited, videos watched, etc.
● Location Data: Information about the user's location, including IP address,
GPS data, etc.
● Device Information: Information about the user's device, including device type,
operating system, and app usage.
Google uses this data to:
 ● Personalize user experiences: Google tailors search results,
recommendations, and ads based on user preferences and history.
● Improve products and services: Google uses data to identify trends and
improve product features.
● Protect user accounts: Google uses data to detect and prevent fraud and
abuse.
Google shares user data with third parties:
● Google's partners: Google may share data with trusted partners to provide
services, such as advertising and analytics.
● Legal requirements: Google may share data with law enforcement or
government agencies as required by law.
Users have control over their data:
● Privacy settings: Users can manage their privacy settings to control what data
Google collects and how it is used.
● Data deletion: Users can delete their Google account or request the deletion
of specific data.
Google is committed to protecting user data:
● Security measures: Google implements robust security measures to protect
user data from unauthorized access.
● Transparency: Google is transparent about its data practices and provides
users with information about how their data is collected and used.

4. What are smartphones a disruptive technology?

Smartphones are a disruptive technology because they have radically altered the
personal computing and e-commerce landscape. They involve a major shift in
computer processors and software from the 40-year dual monopolies established by
Intel and Microsoft. The mobile platform also has profound implications for
e-commerce because it influences how, where, and when consumers are able to
shop and buy.

5. How is TCP/IP protocol related to information transfer on the Internet?

Transmission Control Protocol/Internet Protocol (TCP/IP) (also sometimes referred
toas the Internet protocol suite) has become the core communications protocol for
the Internet (Cerf and Kahn, 1974). TCP/IP is a large family of protocols named after
its most important members: TCP and IP. TCP establishes the connections among
sending and receiving computers and makes sure that packets sent by one
computer are received in the same sequence by the other, without any packets
missing. IP provides the Internet’s addressing scheme and is responsible for the
actual delivery of the packets.

6. What is an Ipv6 address? Why are Ipv6 address necessary?

The IP addressing scheme answers the question “How can billions of devices
attached to the Internet communicate with one another?” The answer is that every
device connected to the Internet must be assigned an address—otherwise it cannot
send or receive TCP packets. For instance, when you sign onto the Internet, your
device is assigned a temporary address by your Internet Service Provider. Most
corporate and university computers attached to a local area network have a
permanent IP address. An IPv6 Internet address is 128 bits, so it can support up to 2
(3.4 1038) 128 × addresses, many more than IPv4 can. According to Akamai, in the
United States about 40% of Internet traffic now occurs over IPv6. (Akamai, 2022)
The main reason IPv6 was developed was to provide a solution for the eventual
exhaustion of addresses in IPv4. Unlike its predecessor, IPv6 uses four times more
bits to address devices on the internet. These extra bits provide an address space for
approximately 3.4 x 10^ 38 devices. IPv6 addresses offer a much larger address
space, capable of supporting a significantly greater number of devices connected to
the internet. This scalability is crucial to accommodate the growing demand for
internet connectivity. IPv6 provides a foundation for future internet technologies and
services, ensuring that the internet can continue to evolve and meet the needs of
users for years to come.

7. What is cloud computing, and how has it impacted the Internet?

Cloud computing is a model of computing in which computer processing, storage,
software, and other services are provided as a shared pool of virtualized resources
via the Internet. These “clouds” of computing resources can be accessed on an
as-needed basis from any connected device and location.
Cloud computing has impacted the Internet by radically reducing the cost of building
and operating Web sites because the necessary hardware infrastructure and
software can be licensed as a service from Internet providers at a fraction of the cost
of purchasing these services as products.This means firms can adopt
“pay-as-you-go” and “pay-as-you-grow” strategies when building out their businesses.
For instance, according to Amazon, hundreds of thousands of customers use
Amazon Web Services. For individuals, cloud computing means you no longer need a
powerful laptop or desktop computer to engage in e-commerce or other activities.
Instead, you can use much less expensive tablet computers or smartphones. For
businesses, cloud computing means that a significant part of hardware and software
costs (infrastructure costs) can be reduced because firms can obtain these services
online for a fraction of the cost of owning them, and they do not have to hire an IT
staff to support the infrastructure.

8. The impact of the development of mobile apps:

The smartphone in your pocket or the tablet computer on your lap has become not
only a general-purpose computer but also an always-present shopping tool as well as
an entirely new marketing and advertising platform for vendors. Early e-commerce
applications using desktops and laptops were celebrated as allowing people to shop
at home in their pajamas. Smartphones and tablets extend this range to far beyond
the home: You can now shop anywhere, everywhere, and all the time, in between
talking, texting, watching video, and listening to music.

9. Name and describe five services currently available through the Web
- E-mail: This is one of the oldest and most widely used services on the Internet,
enabling users to send and receive messages and file attachments to and
from other users globally. Popular e-mail providers include Gmail, Outlook, and
Yahoo Mail.
- Instant Messaging (IM): This service allows real-time text communication
between users over the Internet. Platforms like WhatsApp, Facebook
 Messenger, and Slack provide the ability to send instant messages, voice
notes, and multimedia content.
- Search Engines: Web search engines like Google, Bing, and Yahoo enable
users to locate information quickly by entering keywords. These engines
retrieve relevant content from vast databases of indexed web pages.
- Blogs: Blogs are personal or corporate web pages used to communicate with
a broad audience on a variety of topics. Websites like WordPress, Blogger, and
Medium allow users to create and share blog posts.
- Video Conferencing and Chat: Services like Zoom, Microsoft Teams, and
Google Meet allow individuals and businesses to hold virtual meetings,
webinars, and conferences with real-time video and audio interaction over the
web.
These services enhance global communication, collaboration, and information
sharing.

10. Why is the smartphone a disruptive technology?

There are several key reasons why the smartphone is considered a disruptive
technology:
- Industry Disruption
Smartphones have brought about significant changes across multiple industries,
leading to the decline or extinction of several traditional products and services.
In telecommunications, landlines and payphones have become nearly obsolete as
smartphones dominate the way people communicate. Similarly, the rise of
high-quality cameras in smartphones has caused a decline in the demand for
standalone cameras. Portable music players, such as the iPod, have also been largely
replaced by smartphones that offer built-in music playback capabilities. Additionally,
print media, including newspapers and books, has seen a sharp decrease in demand
as people turn to digital formats on their smartphones. Even standalone calculators
have become less relevant as smartphone apps now offer calculator functions.
- Functionality and Indispensability
Smartphones have become essential to modern life due to the wide range of
functionalities they provide. In terms of communication, smartphones offer the ability
to make calls, send messages, and participate in video conferencing. They also
provide easy access to information through internet browsing and apps, making them
a valuable tool for quick searches and staying updated. Smartphones have also
become a major source of entertainment, allowing users to play games, watch
videos, and listen to music. Additionally, they enhance productivity by enabling users
to manage tasks like checking emails, editing documents, and organizing calendars,
making them indispensable in both personal and professional settings.
- Technological Advancements
The continuous evolution of smartphone technology has made these devices more
powerful and versatile. Improved processing power allows smartphones to handle
complex tasks and run demanding apps smoothly. The quality of smartphone
cameras has also advanced significantly, with many now capable of capturing
professional-level photos and videos. Moreover, advancements in battery technology
have increased the longevity of smartphones, allowing them to last longer on a
single charge. With faster internet speeds, such as 5G, and better connectivity
options, smartphones have become even more effective tools for communication
and data access.
- App Ecosystem
One of the key elements of smartphones' success is the vast and diverse app
ecosystem. There are apps available for nearly every specialized task, from fitness
tracking and navigation to language learning. For businesses, smartphones have
become essential tools, with apps that enhance productivity, streamline
communication, and aid in management tasks. Entertainment apps, including games,
streaming services, and social media platforms, have also become a significant part
of smartphone usage, providing endless options for users to engage with content.
- Economic Impact
Smartphones have had a profound economic impact, creating entirely new industries
while disrupting traditional ones. The development of mobile apps has grown into a
massive industry, providing jobs and fueling innovation. E-commerce has been
transformed by smartphones, making it easier for consumers to shop online and
make payments through mobile platforms. Furthermore, businesses have adapted to
the smartphone era by focusing on digital marketing, using mobile advertising to
reach their target audience in more personalized and effective ways.
- Social Impact
The adoption of smartphones has dramatically changed the way people interact and
consume information. Social media platforms like Facebook, Instagram, and Twitter
have become integral parts of social life, facilitating communication and content
sharing. Smartphones have also made information sharing easier and faster,
enabling individuals to share news, opinions, and experiences with just a few taps.
However, the widespread use of smartphones has highlighted the issue of the digital
divide, as not everyone has equal access to these technologies, raising concerns
about societal inequality.

11. What is 5G
5G - a cellular standard for high-bandwidth mobile broadband. It is the fifth
generation of cellular technology, designed to offer significantly faster speeds, lower
latency, and greater capacity compared to previous generations like 4G. With 5G,
users can experience download speeds of up to 10 Gbps or more, and latency as low
as 10 milliseconds, allowing data to be transmitted and received almost instantly.
Moreover, 5G supports massive connectivity, with the ability to handle up to 100,000
devices per square kilometer, enabling large-scale connections.
5G's features open up a wide range of applications. For example, in autonomous
vehicles, the low latency is crucial for real-time communication between cars and
infrastructure, which is essential for safe and efficient autonomous driving.
Augmented and virtual reality experiences also benefit from 5G's high speed and low
latency, creating more seamless and immersive interactions. Additionally, the
Internet of Things (IoT) will see expanded capabilities, with 5G enabling the
connection of a vast number of devices, making smart cities, smart homes, and
automated industries a reality.
In the business world, 5G can enhance online retail experiences by supporting
features like live streaming, AR/VR try-ons, and faster, contactless payments. In
digital marketing, 5G allows for more interactive and personalized ads, such as
high-resolution mobile videos and AR/VR-based advertising.
Although 5G networks are being rolled out globally, full coverage and widespread
adoption may take some time. As the technology develops, it is expected to
revolutionize various industries, bringing significant changes to how we live and work
in the future.

12. Name and describe five services currently available through the Web. (Same as
Q8)

13. What is LAN, WAN, MAN. Types of LAN

LAN (Local Area Network): LANs connect devices within a limited geographical area,
such as a single building, office, or school. They allow for the sharing of resources
and data among connected devices. LANs offer very high speeds, typically ranging
from 100 Mbps to 10 Gbps, and are generally privately owned. They have low
maintenance costs, minimal congestion, and cover areas up to a few kilometers.
LANs are known for their high fault tolerance and reliability. Common types of LAN
include:
● Ethernet LAN: Utilizes Ethernet cables to connect devices in a wired network.
● Wi-Fi LAN: Uses wireless technology to connect devices without physical
cables.
● Token Ring LAN: Uses a token-passing protocol to control access to the
network.
● Home Area Network (HAN): A specialized LAN within a home environment to
connect personal devices.
MAN (Metropolitan Area Network): MANs cover larger areas than LANs but smaller
than WANs, typically ranging from 5 to 50 kilometers. They connect devices across a
city or metropolitan area, providing moderate speeds from 10 Mbps to 1 Gbps.
MANs can be either publicly or privately owned and are more costly to maintain than
LANs, with higher congestion levels. They offer average fault tolerance and are
designed for high-speed connectivity over medium distances. Types of MAN include:
● Fiber Optic MAN: Utilizes fiber optic cables to deliver high-speed data over a
metropolitan area.
● Wireless MAN: Uses wireless technology to connect devices over medium
distances, often employed in urban environments.
WAN (Wide Area Network): WANs span extensive geographical areas, potentially
covering entire countries or continents. They connect multiple LANs and MANs over
long distances, using technologies such as public switched telephone networks,
satellite links, or leased lines. WANs offer lower speeds compared to LANs and
MANs, ranging from a few Kbps to Mbps, and are expensive to maintain. They
experience high congestion and significant propagation delays due to the vast
distances involved. Types of WAN include:
● Public WAN: Operated by telecommunications companies and accessible to
the general public, such as the Internet.
● Private WAN: Owned and operated by private organizations for internal
communication, often using leased lines or VPNs.
● Hybrid WAN: Combines various WAN technologies to optimize performance
and cost-effectiveness.
14. Compare and contrast Internet, Intranet, Extranet

Feature Internet Intranet Extranet

A global network An extension of an
connecting billions A private network within intranet, connecting to
Definition of devices an organization external parties
Internal communication
Global information and document Collaboration with
Purpose sharing management external partners
Between internal and
Scope Global Within an organization external
Security Low High Medium
Employees and
Anyone with an authorized external
Users internet connection Organization's employees partners
Public
accessibility Public Private Semi-public
Access
control Open Restricted Restricted
Complexity High Medium Medium
Often free for Higher due to Lower than Internet,
Cost end-users infrastructure investment higher than Intranet
Employee portal, internal
Google, Facebook, document management Partner portal, order
Examples YouTube system management system

15. List of TLDs by ICANN

- Generic Top-Level Domains (gTLDs)
+ Common gTLDs:
.com: Originally designated for commercial organizations, it is now available for any
purpose.
.net: Typically associated with network services, but can be used broadly.
.org: Often used by non-profit organizations.
.edu: Specifically reserved for educational institutions.
.gov: Restricted to government entities.
.mil: Designated for military organizations.
+ New gTLDs:
Geographic names: Examples include .nyc (New York City) and .london (London).
Business identifiers: Such as .restaurant and .realtor.
Brand names: Examples include .bmw and .suzuki.
A wide range of other options with diverse themes.
 - Country Code Top-Level Domains (ccTLDs)
.uk: United Kingdom.
.au: Australia.
.cn: China.
.jp: Japan.
Each country typically has its own ccTLD, reflecting its national identity on
the Internet.
- Sponsored Top-Level Domains (sTLDs)
.aero: For the aviation industry.
.coop: For cooperatives.
.museum: For museums.
These domains serve specific use cases and communities.

- Infrastructure Top-Level Domain (arpa): Specifically designated for purposes

related to Internet infrastructure.

- Test Top-Level Domain (test): Reserved for testing and development

purposes.

16. What is TCP/IP

TCP/IP, or Transmission Control Protocol/Internet Protocol, is a suite of
communication protocols used to interconnect devices on the Internet and other
networks. It is the foundational technology that underpins the Internet and many
other networks.
● Transmission Control Protocol (TCP): Manages the establishment of
connections between devices, ensuring that data packets are delivered
accurately and in the correct order. It handles error-checking and guarantees
that packets are reassembled correctly.
● Internet Protocol (IP): Provides addressing and routing, ensuring that data
packets are sent from the source to the correct destination across networks.
It defines how addresses are assigned and how packets are routed through
the network.
TCP/IP is organized into four layers:
1. Network Interface Layer: Manages the physical and data link aspects of
network communication, including how packets are placed onto the network
and received from it.
2. Internet Layer: Handles addressing, routing, and packaging of data packets to
ensure they reach their destination across diverse networks.
3. Transport Layer: Ensures reliable communication between applications by
managing the flow of data, error checking, and packet sequencing. TCP and
UDP operate at this layer.
4. Application Layer: Includes protocols that provide various network services to
applications, such as HTTP (web browsing), FTP (file transfer), and SMTP
(email).
TCP/IP enables diverse devices and networks to communicate and share
information effectively, forming the backbone of modern digital communication.
Chapter 4. Building EC Presense: Website, Mobile sites, and Apps
1. What are the main factors to consider in developing an e – commerce presence?
Management; software; hardware architecture; design; telecommunications and
human resources:
On the organizational and human resources fronts, you will have to bring together a
team of individuals who possess the skill sets needed to build and manage a
successful e-commerce presence. This team will make the key decisions about
business objectives and strategy, technology, design, and social and information
policies. The entire development effort must be closely managed if you hope to
avoid the disasters that have occurred at some firms.
Hardware, software, and telecommunications infrastructure: The demands of your
customers should drive your choices of technology. Your customers will want
technology that enables them to easily find what they want, view the product,
purchase the product, and then receive the product from your warehouses quickly.
You will also have to carefully consider design. Once you have identified the key
decision areas, you will need to think about a plan for developing the project. There
are a number of different methodologies for building information systems such as
websites.

2. Define the systems development life cycle, and discuss the various steps involved
in creating an e – commerce site:

Systems development life cycle (SDLC) a methodology for understanding the

business objectives of any system and designing an appropriate solution.
Various steps involved in creating an e-commerce site: systems analysis/planning,
systems design, building the system, testing, and implementation and maintenance.
+ Systems Analysis/Planning: Identify Business Objectives, System
Functionality, and Information Requirements: One way to start is to identify
the specific business objectives for your site and then to develop a list of
system functionalities and information requirements. Business objectives are
simply capabilities you want your site to have. System functionalities are
types of information systems capabilities required to achieve your business
objectives. The information requirements for a system are the information
elements that the system needs to achieve the business objectives.These
objectives must be translated into a description of system functionalities and
ultimately into a set of precise information requirements.
+ System Design: Hardware and Software Platforms: Once you have identified
the business objectives and system functionalities and have developed a list
 of precise information requirements, you can begin to consider just how all
this functionality will be delivered. You must come up with a system design
specification—a description of the main components in the system and their
relationship to one another. The system design itself can be broken down into
two components: a logical design and a physical design.
+ Building the System:
+ In-House versus Outsourcing: Once you have a clear idea of both the
logical and the physical designs for your site, you can begin considering
how to actually build the site. You have many choices, and much depends
on the amount of money you are willing to spend. Choices range from
outsourcing everything (including the actual systems analysis and design)
to building everything yourself (in-house). Outsourcing involves hiring an
outside vendor to provide the services involved in building the site rather
than using in-house personnel. You also have a second decision to make:
Will you host (operate) the site on your firm’s own servers or will you
outsource the hosting to a web host provider? These decisions are
independent of each other, but they are usually considered at the same
time. There are some vendors who will design, build, and host your site,
while others will either build or host (but not both).
+ Build Your Own versus Outsourcing Let’s take the building decision first. If
you elect to build your own website, there are a range of options. Unless
you are fairly skilled, using a pre-built template to create the website may
be the best choice. A number of companies, such as WordPress, Wix (see
the Insight on Business case), Squarespace, Shopify, Square, and Weebly,
provide inexpensive and easy-to-use website-building tools. All of these
companies also provide access to built-in e-commerce functionality.
However, if you do so, you will be limited to the “look and feel” and
functionality provided by the templates and infrastructure supplied by
these vendors
+ Host Your Own versus Outsourcing: Now let’s look at the hosting decision.
Few small to medium-sized businesses host their own websites anymore.
Most choose to outsource hosting, which means that the hosting company is
responsible for ensuring the site is “live,” or accessible, 24 hours a day. By
agreeing to a monthly fee, the business need not concern itself with many of
the technical aspects of setting up a web server and maintaining it,
telecommunications links, nor with staffing needs
+ Testing the System:
Once the system has been built and programmed, you will have to engage in
a testing process. Depending on the size of the system, this could be fairly
difficult and lengthy. Testing is required whether the system is outsourced or
built in-house. A complex e-commerce site can have thousands of pathways
through the site, each of which must be documented and then tested. It is
 important to note that testing is generally underbudgeted. As much as 50% of
the budget can be consumed by testing and rebuilding (usually depending on
the quality of the initial design). Unit testing involves testing the site’s program
modules one at a time. System testing involves testing the site as a whole, in
the same way a typical user would when using the site. Because there is no
truly “typical” user, system testing requires that as many conceivable paths as
possible be tested. Final acceptance testing requires that the firm’s key
personnel and managers in marketing, production, sales, and general
management actually use the system as installed on a test server. This
acceptance test verifies that the business objectives of the system as
originally conceived are in fact working.
Another form of testing is called A/B testing (or split testing). This form of
testing involves showing two versions (A and B) of a web page or website to
different users to see which version performs better. There are several
different types of A/B testing that can be used for a website design project. A
template test compares the same general page content using two different
layouts and/or design treatments. A new concept test compares a control
page with one that is very different. A funnel test compares the flow through a
series of pages (such as a product page, to a registration page, to a shopping
cart page, versus skipping the registration page) to see which one results in a
higher percentage of conversions. Multivariate testing is a much more
sophisticated form of testing than A/B testing. Multivariate testing involves
identifying specific elements, or variables, on a web page, such as a headline,
image, button, and text, creating versions for each element, and then creating
a unique combination of each element and version to test. So, for example, if
there are three elements and two versions of each, there will be eight possible
combinations (222 ⋅ ⋅ = 8) to test. When used correctly, multivariate testing
enables designers to identify the most optimal layout, color, content, and
format.
+ Implementation, Maintenance, and Optimization:
Many people mistakenly believe that once an information system is installed,
the work is done. In reality, system maintenance is just beginning. Systems
often break down unpredictably and require ongoing checks, tests, and
repairs. Maintenance costs are usually similar to development costs. For
example, a $40,000 e-commerce site might need $40,000 annually for upkeep,
with larger sites benefiting from economies of scale.
E-commerce sites require more maintenance than static systems like payroll
because they are constantly evolving. About 20% of time is spent fixing
issues, 20% on updating data and backend systems, and 60% on general
administration, catalog updates, and system improvements. A dedicated web
team, including programmers, designers, and business managers, is essential
to ensure the site's success. Key tasks include responding to customer
 feedback, monitoring performance, testing regularly, and benchmarking
against competitors to stay competitive and avoid losing customers due to
site issues.

3.Discuss the differences between a simple logical and a simple physical website
design
Logical design: describes the flow of information at your e-commerce site, the
processing functions that must be performed, the databases that will be used, the
security and emergency backup procedures that will be instituted, and the controls
that will be used in the system
Simple physical design: translates the logical design into physical components. For
instance, the physical design details the specific model of server to be purchased,
the software to be used, the size of the telecommunications link that will be required,
the way the system will be backed up and protected from outsiders, and so on.

simple logical design simple physical design

Purpose Focuses on the workflow Translates the logical

and how data moves components into actual
through the system. physical components that
will be implemented.

Components It outlines the abstract Includes specific

processes and data technologies, hardware,
stores without specifying and software that will be
the actual hardware or used to build the system.
software technologies.

Key elements User Actions: Such as Hardware: Specifies the

login verification and type of hardware like HP
purchasing products. or Dell web servers, and
Data Flow: Shows how the necessary storage
data moves between capacity (e.g., 5
different entities (e.g., terabytes).
from the user to the Software: Details the
database). specific software and
Processes: Such as databases that will be
verifying logins, used (e.g., Oracle SQL
displaying catalog pages, Database, HCL
 and confirming shipped Commerce).
orders. Network Connections:
Data Stores: Customer Types of internet
information and catalog connections such as
databases that hold data Cable, DSL, or Wi-Fi that
without specifying their will support the website's
structure or technology. connectivity.

4. Compare the costs for system development and system maintenance. Which is
more expensive, and why?
Cost for system maintenance: Ongoing Expenses: Maintenance is a continuous
investment, often comparable to the original development cost, or even higher over
the lifespan of the system. For example, an e-commerce site that costs $40,000 to
build might require around $40,000 annually for ongoing maintenance. This includes
activities like bug fixes, updates, security patches, and system enhancements to
ensure optimal performance.
Larger websites, costing $1 million to develop, may benefit from economies of scale,
potentially reducing the annual maintenance budget to about 50%–75% of the
original development cost. For instance, such a site may require $500,000–$750,000
per year for maintenance.
Example: A $40,000 e-commerce site might need $40,000 each year for
maintenance, while a $1 million site could require $500,000 to $750,000 annually for
upkeep and improvements.

Costs for system development :

Initial Investment: Developing an e-commerce site can be a significant upfront
expense. If you opt for more advanced site-building packages, you’re likely investing
in state-of-the-art software that’s robust and well-tested, potentially allowing you to
launch your site faster. However, the evaluation process for choosing the right
package can be time-consuming, and costs can escalate quickly if extensive
modifications are needed to fit your specific business requirements. A package
initially priced at $4,000 can easily grow into a $40,000–$60,000 development
project once customizations and integrations are factored in.
Example: A typical e-commerce site development could range from $40,000 to $1
million depending on the complexity and level of customization involved.

=>Maintenance is typically more expensive over the long term.

● Recurring Nature of Maintenance: Unlike development, which is a one-time or

short-term investment, maintenance is ongoing. Over several years, the cost
of maintaining and updating the site will exceed the initial development cost.
 ● Dynamic Environment: E-commerce sites are constantly changing, improving,
and correcting issues. This constant evolution drives up the maintenance
cost, especially if the business frequently adds new features or needs to
adapt to market changes and technological advancements.
● Security and Compliance: As the site grows and handles more traffic,
maintenance becomes crucial to ensure the site remains secure, fast, and
compliant with any new regulations (e.g., GDPR, PCI-DSS compliance for
payment security).
● Economies of Scale: While very large sites benefit from economies of scale,
their maintenance costs can still be significant, especially as their size and
complexity increase.

Although the initial cost of development can be high, maintenance is often more
expensive in the long run, especially since it is a recurring cost. Maintenance costs
can parallel or exceed the development cost annually, especially for small to
medium-sized e-commerce sites. For very large projects, maintenance may be
somewhat reduced proportionally, but it remains a substantial long-term investment.

5. Why is a website so costly to maintain? Discuss the main factors that impact cost.

Why is a website so costly to maintain: Unlike payroll systems, for example,

e-commerce sites are always in a process of change, improvement, and correction.
Studies of traditional systems maintenance have found 20% of the time is devoted to
debugging code and responding to emergency situations. Another 20% of the time is
concerned with changes in reports, data files, and links to backend databases. The
remaining 60% of maintenance time is devoted to general administration (making
product and price changes in the catalog) and making changes and enhancements
to the system. E-commerce sites are never finished: They are always in the process
of being built and rebuilt. They are dynamic—much more so than payroll systems.

Discuss the main factors that impact cost: The long-term success of an
e-commerce site for a medium-sized to large business typically depends on a
dedicated team of employees (the web team) whose sole job is to monitor and adapt
the site to changing market conditions. The web team must be multi-skilled; it will
typically include programmers, designers, and business managers drawn from
marketing, production, and sales support. One of the first tasks of the web team is to
listen to customers’ feedback on the site and respond to that feedback as necessary.
A second task is to develop a systematic monitoring and testing plan to be followed
weekly to ensure all the links are operating, prices are correct, and pages are
updated. Other important tasks of the web team include benchmarking (a process in
which the site is compared with those of competitors in terms of response speed,
quality of layout, and design) and keeping the site current on pricing and promotions.
The Web is a competitive environment where you can very rapidly frustrate and lose
customers with a dysfunctional site.

6. Name the basic functionalities that web server software should provide?
Basic web server functionality includes security services, file transfer, search
services, data capture, e-mail, and site management tools

7. What are the main factors to consider in choosing the best hardware platform for
your website
● Speed, capacity, and scalability are three of the most important
considerations in choosing the most appropriate hardware for an e-commerce
site.
● To evaluate how fast the site needs to be, companies need to assess the
number of simultaneous users the site expects to see, the nature of their
requests, the types of information requested, and the bandwidth available to
the site. The answers to these questions will provide guidance regarding the
hardware necessary to meet customer demand. In some cases, additional
processing power can increase capacity, thereby improving system speed.
● Scalability is also an important issue. Scaling up to meet demand can be
done through vertical or horizontal scaling or by improving processing
architectur
8.What are eight most important factors impacting website design, and how do they
effect a site’s operation

● Metatags, keywords, titles, page contents: Search engines “crawl” your site
and identify keywords as well as title pages and then index them for use in
searches. Pepper your pages with keywords that accurately describe what you
say you do in your metatag site “description” and “keywords” sections of your
source code. The goal is to find a balance of the different types of keywords,
including shorter head keywords that may be more generic (such as “car”),
body keywords that may be slightly more specific (such as “British sports
car”), and long-tail keywords that are much more detailed (such as “1968 red
Jaguar XKE convertible”).
● Offer expertise: White papers, industry analyses, FAQ pages, guides, and
histories are excellent ways to build confidence on the part of users and to
encourage them to see your website as the place to go for help and guidance.
● Get linked up: Encourage other sites to link to your site; create a blog that
attracts people and who will share your URL with others and post links in the
process. Create a Facebook page for your company, and think about using
Instagram or Pinterest to develop a following or fan base for your products.
● Buy ads: Complement your organic search optimization efforts with paid
search engine keywords and ads. Choose your keywords, and purchase direct
exposure on web pages. You can set your budget and put a ceiling on it to
control costs. See what works, and observe the number of visits to your site
produced by each keyword string.
 ● Local e-commerce: Developing a national market can take a long time. If your
website is particularly attractive to local people, or if it involves products sold
locally, use keywords that connote your location so that people can find you
nearby. Town, city, and region names in your keywords—such as “Hudson
Valley honey” or “San Francisco blues music”—can be helpful.

9. What is the difference between a mobile web app and a native app?
A mobile web app is an application built to run on the mobile web browser built into a
smartphone or tablet computer. In the case of Apple, the native browser is Safari.
Generally, a mobile web app is built to mimic the qualities of a native app using
HTML5, CSS, and JavaScript. Mobile web apps are specifically designed for the
mobile platform in terms of screen size, finger navigation, and graphical simplicity.
Mobile web apps can support complex interactions used in games and rich media;
can perform real-time, on-the-fly calculations; and can be geo-sensitive using the
smartphone’s built-in global positioning system (GPS) function. Mobile web apps
typically operate more quickly than mobile websites but not as quickly as native
apps.

A native app is an application designed specifically to operate using a mobile

device’s hardware and operating system. These stand-alone programs can connect
to the Internet to download and upload data and can operate on this data even when
not connected to the Internet. You can download a book to an app reader, disconnect
from the Internet, and read your book. Because the various types of smartphones
have different hardware and operating systems, apps are not “one size fits all” and
therefore need to be developed for different mobile platforms. An Apple app that
runs on an iPhone cannot operate on Android phones. As you learned in Chapter 3,
native apps are built using different programming languages depending on the
device for which they are intended, which is then compiled into binary code, and
which executes extremely quickly on mobile devices. For this reason, native apps are
ideal for games, complex interactions, on-the-fly calculations, graphic manipulations,
and rich media advertising.

Reading: Book 2: Chaffey, Dave – Digital business and E –

commerce management
1. What is digital business strategy

Definition of the approach by which applications of internal and external electronic

communications can support and influence business strategy

2. What are the functions of digital business strategy

Supports corporate strategy: Digital business strategy should align with the overall
goals and objectives of the organization. It helps to ensure that digital initiatives
contribute to the achievement of the company's mission and vision.

Influences corporate strategy: Digital business strategy can identify new

opportunities and threats related to electronic network adoption. This information
can be used to update and refine the corporate strategy to capitalize on emerging
trends and mitigate risks.

Supports functional marketing and supply chain management strategies: Digital

business strategy can provide guidance for specific functions such as marketing and
supply chain management. It can help to define digital initiatives that support the
goals of these departments, such as improving customer experience or optimizing
operations.

Avoids problems associated with poorly defined digital business strategy: A clearly
defined digital business strategy can help to prevent issues such as missed
opportunities, inappropriate direction, limited integration, and resource wastage. By
establishing a clear roadmap for digital transformation, organizations can make
informed decisions, allocate resources effectively, and avoid costly mistakes.

3. List generic strategy process model (four steps)

Four steps:

STEP 1: Strategic analysis

- External Environment: This stage involves assessing the external factors that
can impact the organization's strategy. It includes analyzing the industry,
competitors, customers, technology, economic conditions, political and regulatory
factors, and socio-cultural trends.

- Internal Resources: This stage focuses on evaluating the organization's

internal strengths and weaknesses. It includes assessing financial resources, human
capital, technology, intellectual property, and operational capabilities.

STEP 2: Strategic Objectives

- Vision: This defines the long-term desired future state of the organization. It
articulates the organization's aspiration and sets a direction for its growth and
development.

- Mission: This outlines the organization's purpose and reason for existence. It
clarifies the organization's core values, beliefs, and the contribution it aims to make.
- Objectives: These are specific, measurable, achievable, relevant, and
time-bound (SMART) goals that support the organization's vision and mission. They
provide a clear focus for strategic initiatives.

STEP 3: Strategic Definition

- Option Generation: This stage involves identifying and exploring various

strategic options that could help the organization achieve its objectives. It includes
brainstorming, creativity techniques, and market research.

- Option Evaluation: This stage involves assessing the potential benefits, risks,
and costs associated with each strategic option. It helps in selecting the most
promising options based on their alignment with the organization's goals and their
feasibility.

- Option Selection: This stage involves choosing the most appropriate strategic
option based on the evaluation process. It requires careful consideration of the
organization's resources, capabilities, and external environment.

STEP 4: Strategic Implementation:

- Planning: This stage involves developing detailed plans and strategies to

implement the chosen strategic option. It includes setting timelines, allocating
resources, and assigning responsibilities.

- Execution: This stage involves carrying out the strategic plans and initiatives.
It requires effective leadership, teamwork, and resource management.

- Control: This stage involves monitoring progress, evaluating performance, and

making adjustments as needed. It ensures that the strategic initiatives are on track
and aligned with the organization's objectives.

4. Describe links of e-commerce strategy with other strategies in a company (ex.

Link with SCM strategy, marketing strategy…)

Amazon, a global e-commerce giant, provides a prime example of how e-commerce

strategy can be intricately linked with other functional strategies. Let's examine how
Amazon's e-commerce strategy interacts with its supply chain management,
marketing, finance, human resources, and information technology strategies:

1. Supply Chain Management (SCM)

- Fulfillment Centers: Amazon's extensive network of fulfillment centers
is a cornerstone of its e-commerce strategy. These centers are strategically
located to minimize delivery times and optimize inventory management.
 - Prime Delivery: Amazon's Prime membership program, which offers
fast and free shipping, is directly tied to its SCM strategy. To meet the
expectations of Prime members, Amazon has invested heavily in efficient
logistics and transportation infrastructure.
- Inventory Management: Amazon's advanced inventory management
systems use data analytics to predict demand, optimize stock levels, and
minimize inventory costs. This is crucial for maintaining a vast product
catalog while avoiding stockouts.

2. Marketing
- Personalized Recommendations: Amazon's recommendation engine
leverages customer data to suggest products tailored to individual
preferences. This personalized marketing approach drives sales and
enhances customer satisfaction.
- Content Marketing: Amazon's content marketing initiatives, such as
reviews, product descriptions, and guides, help customers make informed
decisions and build trust in the platform.
- Social Media Marketing: Amazon actively engages with customers on
social media platforms to promote products, address inquiries, and gather
feedback. This helps to build brand awareness and foster a sense of
community.

3. Finance
- Payment Processing: Amazon's secure payment infrastructure enables
seamless transactions and protects customer data.
- Financial Forecasting: Amazon's financial team uses data analytics to
predict revenue, expenses, and cash flow, ensuring that the company can
allocate resources effectively to support its e-commerce growth.
- Risk Management: Amazon's finance strategy involves managing risks
associated with currency fluctuations, economic downturns, and
cybersecurity threats.

4. Human Resources
- Talent Acquisition: Amazon's HR strategy focuses on attracting and
retaining top talent in areas such as technology, logistics, and customer
service. These employees are essential for driving innovation and delivering
exceptional customer experiences.
- Training and Development: Amazon invests in training programs to
equip its employees with the skills needed to thrive in a rapidly evolving
e-commerce environment. This includes training on emerging technologies,
data analytics, and customer service.
 - Employee Engagement: Amazon's culture of innovation and employee
empowerment fosters a highly engaged workforce. This contributes to the
company's success and its ability to meet the demands of its customers.

5. Information Technology
- E-commerce Platform: Amazon's proprietary e-commerce platform is
highly scalable and customizable, allowing the company to adapt to changing
market conditions and customer preferences.
- Cloud Services: Amazon Web Services (AWS) is a major revenue driver
for the company. The integration of AWS with Amazon's e-commerce
operations provides a competitive advantage and drives efficiency.
- Data Analytics: Amazon's IT team leverages data analytics to optimize
website performance, personalize recommendations, and improve supply
chain efficiency.

As illustrated by Amazon, a successful e-commerce strategy requires a holistic

approach that integrates various functional areas. By aligning these strategies,
companies can create a powerful synergy that drives growth, innovation, and
customer satisfaction.