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  5 

  Outline the internal changes a company may need to make when introducing digi‑

tal  business.  

  6 

  Summarise the benefits of applying social media marketing approaches to an 

organisation.  

  7 

  Name three risks to a company that introduces  buy‑  side e‑commerce.  

  8 

  Name  three  risks  to  a  company  that  introduces   sell‑  side  e‑commerce.     

  References 

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40

Part 1  Introduction

 Nielsen (2010) The State of Mobile Apps, June 2010:  

http://blog.nielsen.com/nielsenwire/

online_mobile/the‑state‑of‑mobile‑apps/

 . 

 O’Reilly, T. (2005) What Is Web 2? Design Patterns and Business Models for the Next 

Generation of Software. Web article, 30 September. O’Reilly Publishing, Sebastopol, CA. 

 Page,  M. (2012), How to improve Edge Rank. Blog post, 7 July  2012, Smart Insights: 

 

www.smartinsights.com/social‑media‑marketing/facebook‑marketing/

how‑to‑improve‑edgerank‑part‑2/

 . 

 Perrott, B. (2005) Towards a manager’s model of e-business strategy decisions.  Journal of 

General Management , 30 (4), Summer. 

 Rayport, J. and Jaworski, B. (2003)  Introduction to E-Commerce , 2nd edn. McGraw-Hill, 

New York. 

 Shah, D. and Halligan, B. (2009)  Inbound Marketing: Get Found Using Google, Social Media 

and Blogs . John Wiley & Sons, Hoboken, NJ. 

 Smart Insights (2012) Ship Early, Ship Often. By Dave Chaffey, 4 September 2012. Blog post: 

 

www.smartinsights.com/goal‑setting‑evaluation/web‑analytics‑strategy/

ship‑early‑ship‑often/

 . 

 Smart Insights (2013) A Digital Campaign Example of a Startup Fashion Brand. Blog post, 

25 April 2013:  

www.smartinsights.com/traffic‑building‑strategy/campaign‑planning/

startup‑fashion‑brand‑campaign‑example/

 . 

 Spivack (2009) How the WebOS Evolves? Nova Spivack blog post, 9 February:  

www. 

novaspivack.com/?s=How+the+WebOS+Evolves%3F

  .  

 Waterman, R.H., Peters, T.J. and Phillips, J.R. (1980) Structure is not organization.  McKinsey 

Quarterly  in-house journal, McKinsey & Co., New York. 

 Weinberg, T. (2010)  Th e New Community Rules: Marketing on Th e Social Web . John Wiley & 

Sons, Hoboken, NJ. 

 Yammer (2010) Suncorp case study, accessed May 2010, Yammer website: 

https://about.

yammer.com/customers/suncorp/

.  

        Web  links 

 Sites giving general information on market characteristics of digital business: 

  ClickZ Stats   ( 

www.clickz.com/stats/

 ) The definitive source of news on Internet develop-

ments, and reports on company and consumer adoption of the Internet and characteris-

tics in Europe and worldwide. A searchable digest of most analyst reports. 

  European Commission Information Society Statistics   ( 

http://ec.europa.eu/information_

society/digital‑agenda/index_en.htm

 ) Reports evaluating digital business activity and 

consumer adoption across the European Union. 

  Econsultancy.com   ( 

www.econsultancy.com

 ) Research, best practice reports and supplier 

directory for online marketing. 

  Mary Meeker (  

www.kpcb.com/insights

  )  An analyst at Kleiner Perkins Caufield Byers who 

presents trends and forecasts on digital technology yearly with a focus on mobile channels. 

  Ofcom   ( 

http://stakeholders.ofcom.org.uk/

 ) The Office of Communication has an annual 

Communications Market report on the adoption of digital media including telecommu-

nications and the Internet (including broadband adoption), digital television and wireless 

services. 

  Smart Insights   ( 

www.smartinsights.com

 ) Guidance on digital marketing best practice from 

Dave Chaffey to help businesses succeed online. It includes alerts on the latest develop-

ments in applying digital technology and templates to create marketing plans and budgets.    

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2

➔ 

Online marketplace analysis  42

➔ 

Location of trading in the 

marketplace 53

➔ 

Business models for 

e‑commerce 58

Focus  on . . .

➔ 

Online start‑up companies  66

2.1

 

 i‑to‑i – a global marketplace for 

a start‑up company  69

Chapter at a glance

Main topics

Marketplace analysis 

for e‑commerce

Learning outcomes

After completing this chapter the reader should be able to:

�

 

Complete an online marketplace analysis to assess competitor, 

customer, and intermediary use of digital technologies and 

media as part of strategy development

�

 

Identify the main business and marketplace models for electronic 

communications and trading

�

 

Evaluate the effectiveness of business and revenue models for 

online businesses, paticularly online start‑up businesses

Management issues

The fundamentals of e‑commerce imply these questions for 

managers:

�

 

What are the implications of changes in marketplace structures 

for how we trade with customers and other partners?

�

 

Which business models and revenue models should we consider 

in order to exploit the Internet?

�

 

What will be the importance of online intermediaries and 

marketplace hubs to our business and what actions should we 

take to partner these intermediaries?

The following additional case studies 

are available at