Addis Ababa University

School of Commerce
Post Graduate Studies

Digital Marketing Program Unit

Course: Fundamentals of E-Commerce

TMA 01

By
Melat Solomon
ID

Submitted To
(Dr.)
 1. Try to answer the following questions in detail after referring the necessary
materials.
a) What is EC? What is the difference between EC and E-marketing? List the
major components of the EC framework and discuss in brief.

Electronic Commerce (EC): refers to companies and individuals that buy and sell goods and
services over the internet. E-commerce operates in different types of market segments and can be
conducted over computers, tablets, smartphones, and other smart devices. Nearly every
imaginable product and service is available through e-commerce transactions, including books,
music, plane tickets, and financial services such as stock investing and online banking. As such,
it is considered a very disruptive technology.

Electronic commerce (e-commerce) refers to the buying and selling of goods and services over
the internet. It involves online transactions, electronic data interchange, online marketing, and
online payment systems. EC encompasses a wide range of activities such as online shopping,
online banking, online auctions, and electronic supply chain management.

E-marketing means using digital technologies such as websites, mobile devices and social
networking to help reach your customers, create awareness of your brand and sell your goods or
services. The basics of marketing remain the same - creating a strategy to deliver the right
messages to the right people.

The main difference between EC and E-marketing lies in their focus. EC is a broader concept
that includes all aspects of conducting business online, while E-marketing specifically refers to
marketing activities conducted online. E-marketing is a subset of EC and focuses on promoting
products or services through digital channels such as email marketing, social media marketing,
and search engine optimization

Major components of the EC framework include:

1. E-commerce Infrastructure: This includes hardware, software, networks, and

telecommunications infrastructure that support EC activities.
2. E-commerce Applications: These are the various applications and platforms used for online
transactions, marketing, and customer service.

3. E-commerce Support Services: These services include payment processing, security, and
logistics support for EC operations.

4. E-commerce Legal and Ethical Issues: This component deals with the legal and ethical
considerations in conducting business online, such as privacy, security, and intellectual property
rights.

5. E-commerce Business Models: These are the different ways in which businesses can generate
revenue through EC, such as B2B (business-to-business), B2C (business-to-consumer), and C2C
(consumer-to-consumer) models.

b) List and discuss with examples the major technological and non technological
barriers and limitations to EC and describe some of the benefits of studying EC
?

Technological barriers to EC include issues related to infrastructure, compatibility, security, and

scalability. For example, inadequate internet connectivity in certain regions can hinder the
growth of EC. Non-technological barriers include lack of trust in online transactions, resistance
to change from traditional business practices, and regulatory challenges.

Examples of technological barriers:

- Inadequate internet infrastructure in rural areas

- Compatibility issues between different e-commerce platforms

- Cybersecurity threats such as data breaches and hacking

- Scalability challenges in handling large volumes of online transactions

Examples of non-technological barriers:

- Lack of consumer trust in online payments

- Resistance from traditional brick-and-mortar businesses to adopt e-commerce

- Regulatory hurdles related to data protection and taxation

Benefits of studying EC include:

Studying EC can help businesses overcome barriers and leverage the benefits of electronic
commerce to drive growth and success.

E-commerce has a short but exciting history. The pandemic has shown what an essential part of
the global economy this area has become and what a catastrophic shortage of personnel exists in
this specialization.

Studying e-commerce can provide a range of benefits, including:

1. Understanding the principles of online business: E-commerce studies can help you understand
the fundamentals of conducting business online, including marketing strategies, customer
engagement, and sales techniques.

2. Developing technical skills: E-commerce often involves using various tools and platforms for
online transactions, website development, and digital marketing. Studying e-commerce can help
you develop technical skills that are in high demand in the digital economy.

3. Learning about consumer behavior: E-commerce studies can provide insights into consumer
behavior in the online environment, helping you understand how to attract and retain customers
in the digital marketplace.

4. Expanding career opportunities: With the growth of online shopping and digital marketing,
there is a high demand for professionals with e-commerce expertise. Studying e-commerce can
open up a wide range of career opportunities in fields such as digital marketing, e-commerce
management, and online retail.

5. Enhancing entrepreneurial skills: E-commerce studies can help you develop the skills needed
to start and run your own online business. You can learn about e-commerce business models,
online payment systems, and digital marketing strategies that are essential for success in the
online marketplace.
6. Keeping up with industry trends: The field of e-commerce is constantly evolving, with new
technologies and trends emerging all the time. Studying e-commerce can help you stay informed
about the latest developments in the industry and adapt your skills and knowledge accordingly.

Overall, studying e-commerce can provide you with valuable insights and skills that are essential
for success in the digital economy.

2. Read the attached case one question and answer the questions that follows

The Business Opportunity of Godiva.com

The demand for high-quality chocolate has been increasing rapidly since the early 1990s.
Several local and global companies are competing in this market. Godiva Chocolatier is a well-
known international company based in New York whose stores can be found in hundreds of
malls worldwide. The company was looking for ways to increase its sales. It had the courage to
try online sales as early as 1994.

Godiva.com sells both to individuals and to corporations. For corporations, incentive programs
are offered, including address lists of employees or customers to whom the chocolate is to be
sent—an example of the B2B2C EC model. Godiva.com continues to add features to stay ahead
of the competition.

Questions:

1.Identify the B2B and B2C transactions in this case.

B2B transactions are those transactions which involve Godiva.com selling chocolates and
assorted commodities to corporate entities’ and B2C are transactions between godiva.com and
individual customer. It is considered as B2B and B2c transactions because it is engaged into
business to business and business-to-consumer transactions.

B2B transactions in this case would involve Godiva selling their products to other businesses,
such as wholesalers or retailers. B2C transactions would involve Godiva selling directly to
individual consumers.
2.Why did Godiva decide to sell online?

The Godiva.com was looking for an alternate sales channel for selling their products to increase
sales profitability. So they decided to create an E-commerce website to sell online to both
businesses and individuals.

Godiva decided to sell online to tap into the growing e-commerce market and reach a wider
customer base. They also recognized the convenience and accessibility that online shopping
offers to consumers.

3.List the EC drivers in this case.

There was specific segment of internet users who were chocolate lovers to whom Godiva
hoped to sell online. And using their word of mouth hoped to make Godiva Chocolates more
popular. Godiva wanted to stay one step ahead of the competition by being innovative and
using modern technology

The EC drivers in this case could include factors such as increased customer convenience,
expanded market reach, cost savings through automation and streamlined processes, improved
customer experience through personalization, and the ability to gather and analyze customer
data for better decision-making.

4.Visit Godiva.com...How user-friendly is the site?

This is very user friendly and it has seasonal that offers variety products on the page. It is also a
good navigation interface with tabs that have dropdown options showing products with prices,
helping the customers choose easily.

The user-friendliness of godiva.com can vary depending on individual experiences and

preferences. It is recommended to visit the website and assess its ease of navigation, clarity of
product information, checkout process, and overall design to determine its user-friendliness.

5. Describe B2B2C at Godiva.

Business to business to consumer (B2B2C) describes business relationships in which two
companies partner to offer services to consumers. Examples include relationships between
grocery stores and delivery services to offer consumers online shopping and home delivery.

B2B2C at Godiva refers to the business model where Godiva sells its products to other
businesses (B2B) who then sell those products to individual consumers (B2C). In this case,
Godiva may partner with retailers or wholesalers who act as intermediaries between Godiva
and the end consumers, allowing them to reach a wider audience and increase sales.