International Business Success 2005 Workshop Series

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International Business Success 2005 Workshop
Series
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• Part 4 Internet Issues

When Gerber started selling baby food in Africa,
they used the same packaging as in the U.S., with
the beautiful Caucasian baby on the label. Later
they learned that in Africa, companies routinely
put pictures on the label of what's inside, since
most people can't read.
International
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E-Commerce

• Using the internet to transact business
• Very new less than 10 years old
• Highest growth in activity couple years
• Tip of the iceberg in potential
• Huge successes high valuations
• Will effect every home and business
• US Amounts for 2/3s of World
• E-Commerce Sales
• World E-commerce sales for
• 2001 600 B

Total Numbers Online World Total 605.60
m Africa 6.31 m Asia/Pacific
187.24 m Europe 190.91 m Middle East
5.12 m Can. USA 182.67 m Latin America 33.35
m
Source Jupiter 2/2002
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Types of E-Commerce

• Business to Consumer (B2C)
• Most Known eBay, Amazon, AOL, etc.
• But Smaller Piece, Maybe 180 B by 2003
• Maybe 50 B by 2003 in UK
• Business to Business (B2B)
• 80 of E-commerce, 150 B in 1999, Maybe 4
  trillion by 2004
• Electronic Data Interchange (EDI) or Extranet
• Manufacturers Communications w/ Suppliers, etc.

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Key Issues in International E-Business

• Culture Language Issues Do the French want to
  see an English site?
• Taxation US moratorium
• Consumer Protection Credit Card Fraud
• Buyer Behavior Japans 8,000 7-11s
• Credit Card Usage Rates Parcel Post Delivery
• Censorship 45 countries restrict Internet
• Li Han of Shanghai sentenced to 2 years in jail
  for giving a list of email addresses to US
  Democracy group
• Syrians go to Lebanon for the weekend to check
  email

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Problems with E-Commerce

• New internet business formed every 3 seconds in
  USA
• Very poor reputation in retail sites - 1.44 B
  Lost in 99
• A good site is not necessarily a good business or
  a money maker
• Tens of thousands of failures Customers
  Unforgiving
• Very poor supporting technology Demise of some
  DSL providers Only 15 of Orders On Time
• In South America, customers wont use credit cards
  for fear of kidnapping
• Only 15 of Germans have a credit card and even
  fewer Japanese
• By 2006, 66 of European consumers will be online
  but only 10 will have Broadband access
• Source Jupiter 2/2002

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Success Characteristics

• Niche Markets (spice racks)
• Differentiation of product or service
• Deep search ability to find product or service
• Narrow scope but high quality
• Targeted marketing or associated with a group
  (Doctors, Galleries, Hotels)
• Often high margins
• Limited growth potential
• Quick Click Thru to Sales Closing
• Amazon in America
• 7-11 in Japan
• Brits Want Someplace to Return Goods and Ask
  Questions
• Must Establish Trust
• Design Sites from Customers Point of View
• Offer Choice b/t Streamlined or Normal Pages
• Offer Shorter Registration Systems, Fast DLs
• Be Honest about Product Availability
• Use Customers Language (except Russia)
• Display Real Contact Numbers and Addresses
• Good Web Marketing Effort

Online, Trust is more important than low prices.
Source E Y, 2002
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Wholesale Cost Roughly 40
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The Process

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• 1.  get URL from www.register.com
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• 2.  get hosting platform from someone like Mavweb
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• 3.  get shopping cart like Americart 
• 4.  get inventory mgt like Stone Edge
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• 5.  Build website Dreamweaver for Google or Yahoo
  or MS
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• 6 .  Credit card processing like from YourPay
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• 7 .  Money in to Bank account Summit National
•  

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• Internet Marketing Secrets

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Find Site you Like
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• Title bar
• URL
• Logo
• Index
• Text
• Sidebar
• Text Title
• Pic Name
• Pop Over
• Item Name
• Several 10s

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12. Good Programming 13. Sponsored Links 14.
Froogle 15. More Sponsored
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