Monday, March 2, 2009

Building business strategy and intellegence


E-Commerce

E-commerce is short for electronic commerce. Electronic commerce is commerce that is accelerated and enhanced by information technology, in particular the Internet. The types of e-Commerce being used are B2B, suppliers supply Wal-Mart the goods they need in order to service their B2C. Businesses such as Wal-Mart use B2B e-marketplaces that are virtual and provide a way for businesses to buy and sell their products to one another. They also are able to share information and perform other important activities. They started Walmart.com in 1996 and it was deemed a failure. It was difficult to use and studies showed Wal-Mart customers were not key internet users. Wal-Mart insists that any company that wants to be a supplier use the Wal-Mart EDI so Wal-Mart can replenish their stock straight from the wholesalers and keep prices low. This also reduces inventory space which increases shelf space for display. Consumers go to Wal-Mart, either online or in the stores for products that are needed. Business to business occurs when a business sells products and services to customers who are primarily other businesses. However, customers like that online and offline channels become integrated. For example, you can order your prescription online then go into the store and pick it up.


Internet Model

Wal-Mart uses ani

nternet accessed retail system called Linka. With Internet technology and the Cisco network, Wal-Mart has elevated Retail Linka to a new level of efficiency and usefulness. Now that Retail Linka is an Internet application, Wal-Mart doesn’t need the modems, they can update the software on the Web, and vendors are able to use their own browsers. Another advantage is that data transmission is no longer limited to the speed of dial-up modems. If vendors have a high-speed connection to the Internet, they can get Wal-Mart’s data at those speeds. If vendors are all accessin

g the same database,Wal-Mart uses password protection to designate what they can see. Users in different locations within a vendor company get different passwords, depending on their need to know. With Retail Linka, vendors see how their products are selling, use it to do different scenarios, and then work with Wal-Mart on selling. This is a functional tool. Automated replenishment and the smooth functioning of the Wal-Mart supply chain depend on reliable connectivity between the stores, the centralized database, and the distribution centers. Speed is important, and so is the optimum functioning of Wal-Mart’s logistics system. With the Cisco network, they have dramatically increased speed and alsosubstantially cut outages. Every time Wal-Mart does that, it makes the supply chain more efficient.


Marketing Mix

The marketing mix of a company is the tools that the organization uses to pursue its marketing objectives in reaching and attracting customers. In a B2B e-commerce such as Wal-Mart, marketing mixes do not usually include broad and generic strategies that reach all potential businesses. Instead, marketing often occurs in the context of an e-marketplace. Once a contact has been made, the relationship is formal and often includes negotiations for pricing, quality, specifications, and delivery timing. Wal-Mart uses online ads which are small advertisements that appear on other sites. Yahoo is an ad networks partner of Walmart.com. To improve customers ad experience on Wal-Mart.com and elsewhere on the internet, they may send anonymous information to Yahoo based on your browser activity. Wal-Mart also offers an affiliate program that is listed on their website. Membership is free and you earn commission for referring customers to Wal-Mart.com.

Payment Systems

The payment system used in Wall-Marts Business to Business e-commerce model is one in which customers tend to make very large purchases and will not pay using a credit card or an option such as a PayPal. Businesses rather pay through Electronic Data Interchange (EDI) and in large amounts. EDI is the direct computer to computer transfer of transaction contained in standard business documents. Financial EDI is a process used within business to business e-commerce for the payment of a purchase. There must be a level of system integration between the businesses involved. Costs for order processing are minimized as orders can be handled electronically, without paper or much human intervening. For Wal-Mart’s B2C approach, the payment systems they use are PayPal which is an internet based company that makes it easy for one person to pay another person securely over the internet. PayPal also gives you the option of transferring money to your bank accounts. Another payment system Wal-Mart uses is the option of paying by credit card, debit card, or gift card. The last payment system Wal-Mart offers is Bill Me Later. Bill Me Later is the quick easy way to shop without using your credit card on websites. Bill Me Later also offers payment plans.


Wal-mart's initiative moves have seemed to never fail them




1 comment:

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