File1, 2, & 3 for tkang:



Since 1995, the four of us have had a very active program of
research on electronic commerce. We have published more than
20 refereed articles on this topic and have collectively given
dozens of seminars on electronic commerce in more than
20 countries for a wide range of corporations and universities.
We have tested and refined our ideas by working with corporations
to develop electronic commerce strategies. The focus of our work has been
to address fundamental issues that are common to many business practitioners.
Thus, we have frequently emphasized the strategic elements of electronic
commerce. In particular, we have explored the impact that Internet
technology has on marketing strategy and practice. We have reflected
on the feedback provided by many who have attended our seminars,
workshops, and classes, and commented on our publications.
As a result, we have refined and honed our thinking, and
this book represents the culmination of these efforts.

This book reports the results of our research. It is written
both for practitioners and business students. Managers wishing
to understand how electronic commerce is revolutionizing business
will find that our comprehensive coverage of essential business
issues (e.g., pricing and distribution) answers many of their questions.
Advanced business students (junior, seniors, and graduate students) will
find that the blend of academic structure and practical examples
provides an engaging formula for learning.

We live in exciting times. It is a rare event for an
economy to move from one form to another. We are
participating in the transition from the industrial
to the information age. We all have an opportunity to
participate in this historic event. The extent to
which you partake in this revolution is determined,
in part, by your desire to facilitate change and your
understanding of how new economy operates. We hope this
book inspires you to become an electronic commerce change
agent and also provide the wherewithal to understand what
can be changed and how it can be changed.


A finer grained approach to market development is to create a one-to-one
customized interactions between the vendor and buyer. Bank of America offers
customers the opportunity to construct their own bank by pulling together the
elements of the desired banking service. Thus, customers adapt the Website
to their needs. Even more advanced is an approach where the website is
adaptive. Using demographic data and the history of previous interactions, the
website creates a tailored experience for the visitor.

Any firm establishing a Web presence, no matter how small or localized,
instantly enter global marketing. The firm's message can be watched and heard
by anyone with web access. Small firms can market to the entire Internet world
with a few pages on the web. The economies of scale and scope enjoyed by large
organizations are considerably diminished. Small producers do not have to
negotiate the business practices of foreign climes in order to expose their
products to new markets. They can safely venture forth electronically from
their home base.

Finally,the Web can be used to diversify a business by taking new products
new markets. American Express Direct is using a web site to go beyond its
traditional traveler's checks, credit cards, and travel service business by
providing on-line facilities to purchase mutual funds, annuities, and
equities. In this case, the diversification is not particularly far from
the core business, but it is feasible that many firms will set up entirely
new businesses in entirely new markets.


Electronic commerce offers many opportunities to reformulate traditional modes
of business. Disintermediation, the elimination of intermediaries such as
brokers and dealers, is one possible outcome in some industries. Some
speculate that electronic commerce will result in widespread
disintermediation, which makes it a strategic issue that most firms should
carefully address. A closer analysis enables us to provide some guidance on
identifying those industries least, and most, threatened by disintermediation.

Consider the case of Manheim Auctions. It auctions cars for auto makers
(at the termination of a lease) and rental companies (when they wish to
retire a car). As an intermediary, it is part of a chain that starts with
the car owner (lessor or rental company) and ends with the consumer. In
a truncated value chain, Manheim and the car dealer are deleted. The
car's owner sells directly to the consumer. Given the Internet's capability of
linking these parties, it is not surprising that moves are already afoot to
remove the auctioneer.

Edmunds, publisher of hard-copy and Web-based guides to new and used cars, is
linking with a large autoleasing company to offer direct buying to customers.
Cars returned at the end of the lease will be sold with a warranty, and
financing will be arranged through the Web site. No dealers will be involved.
The next stage is for car manufacturers to sell directly to consumers, a
willingness Toyota has expressed and that large U.S. auto makers are
considering. On the other hand, a number of dealers are seeking to
link themselves to customers through the Internet via the Autobytel Web
site. Consumers contacting this site provide information on the vehicle
desired and are directed to a dealer in their area who is willing to
offer them a very low markup on the desired vehicle.

No lines are longer than 80 characters, TYVM. Other specified properties aren't being scored automatically at this time so this is not necessarily good news...