INTRACLASS #19

TOPIC: Digital electronic commerce, digital products.

OBJECTIVE: Analyze digital electronic commerce and digital products.

DEVELOPMENT

Digital products vs traditional products.-

- The production cost of 1 is high and 2 variable.

- The cost of copies of 1 is almost zero and 2 is greater than zero.

- The delivery cost of 1 is low and 2 is high.

- The inventory cost of 1 is low and 2 is high.

- Marketing costs of 1 and 2 are variable.

Digital markets vs traditional markets.-

- The 1 presents reduced information and the 2 high cost in obtaining it.

- The search costs of 1 are low and 2 are high.

- The transaction cost of 1 is low and 2 is high.

- The bonus of 1 is delayed and of 2 low.

- The price adjustment of 1 is dynamic and 2 has a high cost.

- Segmentation of 1 is low cost and 2 has high costs.

- The network effects of 1 are strong and 2 are weak.

- Disintermediation more possible in 1 and 2 less possible.

Electronic business models.-

- E - tailer. (AMAZON)

- Market maker. (Ebay)

- Content provider. (I Tunes)

- Portal. (Google)

- Community provider. (Facebook)

- Service provider. (Google Apps)

RESULT

The development of technology has allowed developing new business forms such as social networks, providers of services such as applications and digital content providers such as photos, videos, music.

TASK

Make the 3 practical cases of chapter 10 of the base book.