Lecture 2

Lecture 2: Technology Fundamentals: Online Retailing Business Models

  • Very quick review of class survey results
  • Review of Homework 1
  • Review wiki basics
  • Web and internet technology fundamentals
    • Goal is to include only enough background for you to understand the business implications
    • Intro to how the web works
    • HTTP and other protocols
    • Origins of the internet and the web
      • The internet is not the same thing as the web
    • Clients and servers
    • Hosting
    • HTML - the language of the web
      • Right-click and select "View Source" in Windows
    • Creating and publishing web pages
    • Very quick overview of web site production process
      • Planning: purpose, audience, goals, scope, organization
      • Implentation: gathering content, visual design, technology design, producing HTML
      • Testing: browsers/platforms, user experience
      • Maintenance: updating, revising, reviewing effectiveness in achieving goals and revising
  • Retailing Continued
    • Finish DUB pies - profitability of online sales and online sales strategy
      • See PieShop.xls
      • Fixed and variable costs
      • Transaction costs
        • Shipping
        • Online store hosting and payments processing
    • Customer acquisition cost
      • How it's affected by marketing strategy
    • Who pays? Cost to the customer
    • Pricing decisions
      • Impact of competition
    • Business model
  • Online Retailing - a new(ish) business model
  • Dot Com Flops
  • Important costs
    • Customer acquisition costs
    • Shipping and handling costs
    • Cost of delay to customer
    • Cost of risk to the customer
  • When online retailing makes sense
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