ONLINE

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ONLINE SERVICES
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Possible Exam Question

• Explain why online career services are so well
  suited to the Web and identify current trends in
  the online career services industry.

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The Service Sector

• The largest and most rapidly expanding pare of
  the economies in advanced industrial nations
• Employ 37 of the labor and account for 1.8
  trillion in GDP
• Adding finance, insurance, and real estate
  services (FIRE), about 44 of labor force works
  in service delivery and accounts for around 3.5
  trillion or 40 of the entire U.S. economy

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The Relative Size of the Service Sector Employees

• Page 586, Figure 11.1

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The Relative Size of the Service Sector GDP

• Page 586, Figure 11.2

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The Major Service Industry Groups

• Page 587, Figure 11.3

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Online Investing and Banking

• Page 591, Figure 11.5

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Financial Service Industry Trends

• Two important global trends in financial services
  that have a direct consequences for online
  financial services firms are changing the
  institutional structure of financial services
• Industry consolidation
• Movement toward integrated financial services

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Industry Consolidation and Integrated Financial
Services

• Page 593, Figure 11.6

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Financial Supermarket

• Provides a variety of financial products and
  services at a single physical center or branch
  bank
• Internet has created the technical foundation for
  an online financial supermarket to operate

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The Financial Supermarket Model

• Page 594, Figure 11.7

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Financial Service Industry Trends

• Management of financial assets online is growing
  rapidly
• By 2005, it is projected that more than half of
  all households in the United States will be
  investing online
• Online banking is also expect to double by 2005
• Online stock trading is expected to grow from 15
  million households today to 34 million households
  in 2005

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Financial Service Industry Trends

• In the insurance and real estate industries,
  consumers still generally use the Internet for
  research and use conventional transaction broker
  to complete the purchase
• The move toward industry consolidation and the
  provision of integrated financial services are
  two important trends for online financial
  services firms

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Leading online firms in financial services

• ETrade
• Fidelity
• Charles Schwab
• Ameritrade
• Datek
• Merrill Lynch
• DLJ Direct
• TD Waterhouse
• MSDW
• Smith Barney

Was it better to be a first mover or a fast
follower?
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A successful first mover of the online pure play
firms. What is its future?
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Online Mortgage and Lending, Insurance, and Real
Estate

• Attraction of Visitors, but not buyers
• Traditional vendors doing the bestwhy?
• What has been the impact of these online services?

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Online Travel Services

• Attract the largest single e-commerce audience
• Largest slice of B2C revenues
• Most common channel used by consumers to research
  travel options
• Most common way for people to search for the best
  possible prices and book reservation for airline
  tickets, rental cars, hotel rooms, cruises and
  tours

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Total U.S. Online Travel Booking Revenue

• Page 616, Figure 11.8

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Projected Growth of Online Travel Market

• Page 618, Figure 11.9

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Projected Growth of Managed and Leisure/Business
Travel

• Page 619, Figure 11.10

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Online Travel Services

• What are the strengths and limitations?

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Travel Sites
What are the competitive dynamics. What could
expedia do to be more profitable in the next 3
years?

• Expedia.com
• Travelocity.com
• Orbitz.com
• Priceline.com
• Cheaptickets.com

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Online Career Services

• Next to travel services, job hunting services
  have been one of the Internets most successful
  online services
• Save money for both job hunters and employers
• Who has used an online posting service?

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The Growth of Online Recruitment

• Page 628, Figure 11.12

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Many Ways to Find a Job

• Page 631, Figure 11.13

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Survey Results

• Page 631, Figure 11.14

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Web Van

• Do you think the founders of Web Van, and perhaps
  their venture capital investors could have
  anticipated the response of consumers to WebVans
  grocery service?
• Why is a store-based model for Internet grocers
  more viable than computerized centralized
  warehouses?
• If you were a manager at Peapod, what steps would
  you take to ensure a profitable outcome?
• Compare and contrast WebVans experience with
  other service components discussed in this
  chapter. What are some of the common factors and
  failures?