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)

That's all for today!