The Digital Revolution and The Global E-Marketplace

Chapter 25

Matakuliah : J0474 International MarketingTahun : 2009

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Learning Outcome

• Convergence• Value Networks and Disruptive Technologies• Global E-Commerce• Web Site Design and Implementation• New Products and Services

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ConvergenceThe digital revolution is causing dramatic changes in industry structure.

Convergence is a term that refers to the coming together of previously separate industries and

product categories.

What busines

s is Sony in?

1999

Telephones

Consumer Electronics

Computers

Photography

2008

ComputersPhotography

Consumer Electronics

New technologies affect the

business sectors in which a company competes.

Telephones

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Value Networks and Disruptive TechnologiesIn every industry, companies are embedded in a value network.

Each value network has a cost structure associated with it that dictates the margins needed

to achieve profitability.

Christensen has developed five principles of disruptive innovations:

1. Companies depend on customers and investors for resources.

2. Small markets don’t solve the growth needs of large companies.

3. Markets that don’t exist can’t be analyzed.

4. An organization’s capabilities define its disabilities.

5. Technology supply may not equal market demand.

Sustaining technologies

OrDisruptive

technologies ??

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Global E-Commerce

Benefit of Global marketing

The term e-commerce refers to the general exchange of goods and services

using the internet as a marketing channel.

Web sites can be classified by purpose :

1. Promotion sites2. Content sites

3. Transaction sites.

E-commerce activities can be divided into three broad

categories :Business to consumer (B2C),Business to business (B2B),

Consumer to consumer (C2C)

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Web Site Design and Implementation

Whichever approach a company adopts,

several issues must be addressed when setting up for global

e-commerce.

To fully exploit the internet’s potential, company executives must be willing to integrate interactive media into their marketing mixes.Web sites can be developed in-house, or an outside firm can be contracted to do the job. During the past few years, a new breed of interactive advertising agency has emerged to help companies globalize their internet offerings.

Domain namesArranging payment Setting up a distribution

system

Localizing sites Addressing privacy issues

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New Products and Services

As a result of the digital revolution, a variety of companies in all parts of the world are developing a new generation of product, services and technologies.

A new generation of products, services and

technologies,include broadband

networks,mobile commerce ,etc.

Wow…I proud with

its

……. wireless connectivity “ smart” cell phones, and

internet phone service.

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New Products and Services

Broadband

A broadband communication system is one that has sufficient capacity to carry multiple voice, data, or video channels simultaneously.Bandwidth determines the range of frequencies that can pass over a given transmission channel.

What opportunities does broadband offer to

companies outside the telecommunications

industry?

Broadband internet allows users to access

streaming audio,

streaming video,and

streaming media.

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New Products and Services

Mobile Commerce and Wireless Connectivity

Many companies are developing ways to

provide internet access without the need for a

wired broadband connection.

Wireless fidelity (Wi-Fi) permits laptop and PDA users

to establish high speed wireless connections to the

internet and corporate intranets via’ hot spots’

located in airports, cafes or other public places.

Wi-Fi networks have a limited range;

An improved technology known as WiMax,

Is being deployed in many parts of the world.

A mobile communication

technology known as Bluetooth,

Is well suited to use with cell phones.

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New Products and Services

Smart Cell Phones

Now, advertisers are taking advantage of this capability by using short message service

(SMS)

The record companies prepare

to make original recordings available

….Ring tunes….

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Summary

• The digital revolution has created a global electronic marketplace . The digital revolution has resulted in a process known as convergence.

• In this environment, the innovator’s dilemma means that company management must decide whether to invest in current technologies or try to develop new technologies.

• E-commerce is growing in importance for both consumer and industrial goods marketers.