Electronic commerce

Introduction

Electronic commerce,is also known as electronic marketing,consist of process of buying,selling or exchanging products,services or information via computer network.The amount of trade conducted electronically grown extraordinarily with widespread Internet usage. Electronic commerce started more than 20 years ago in the form of Electronic Data Interexchange(EDI) and Electronic Funds Transfer(EFT) Followed in the 1980s by Automated Teller Machine(ATM),telephone banking and the extensive use of on-line credit card transaction.There are three concept in E-commerce such as brick-and-mortar,virtual, and click and mortar.

The brick-and-mortar concept

The brick-and-mortar is refer to business that have physical presence which is rather than virtual or online.Furthermore,stores(physical material such as brick and mortar) that we can drive to end enter physically to touch,purchase and see the merchandise.It is term as the basic for the click and mortar.The brick-and-mortar business is old-economy organization(corporation) that perform most of their business whithout network(off-line).It is selling physical product by means of physical agents.

The vitual pure play organization(virtual)

In e-commerce pure-play I refer to organization that originated and does business purely through the internet.It has no physical store(brick-and-mortar) where customers can shop.Examples of large pure play companies are Amazon.com and Netflix.com.

The click-and-mortar concept

The click-and-mortar concept is refer to combination of traditional(brick-and-mortar) and online establishment,such as store,bank and website.Transaction can be initiated and finalized either at the website(‘click’)or at the physical site(‘mortar’)

The transformation in organization(brick to click)

Many of organizational structures of today’s business were designed more than 100 years ago when when computer-based information system were not available.Besides,information is really comparative and difficult to process.Plus,communition system is too old to use in daliy life.More than 10 years a ago Peter Drucker heralded the coming of a new organizational type,an organization composed largely of specific who discipline and direct their own performance through organized feedback from headquarters,colleagues and customers.

Few years ago,when pure-play organization is can’t stand anymore in business,other organization think to expand their sale,so click-and-mortar start to be use.The area pure-play fall short are precisely the areas in which brick-and-mortar companies took place in business. Before this,we use brick-and-mortar also.This concept can be use in organization,but to expand the business is hard because the business is just spread around its area because brick-and-mortar organization only sell physically outside the network.People from other places can’t purchase thingS from it because they did not know about it.Soon,they realize that to make a successful business,it must go online.

Click-and-mortar is not about praising one business model at the expense of another.It is also about combining the strength of both to develop the most positive consumer experience possible because in the e-commerce world,the customer will determine the winner.

The advantage of using click-and-mortar concept in organization