MD253/MK252 Electronic Commerce

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MD253/MK252Electronic Commerce

• Jan. 25, 2006
• Distribution Channels Disintermediation

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Topics Covered

• Collapsing Channels
• Failures successes
• the role of value gaps
• Firms changing the channel
• Expedia the travel industry
• BlueNile the jewelry industry
• NetFlix the movie industry

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Disintermediation
Source Benjamin Wigand (SMR)
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Value Gaps
Value Added A, Expense X
Value Added B, Expense Y
Expense Savings (XY) - Cost of New
Effort Value Gap (AB) - Value Added by New
Effort
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The Long Tail
Source Wired
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Revenue sharing for DVDs
Source Video Rental Developments the Supply
Chain Netflix Inc., WUSTL.EDU case http//www.oli
n.wustl.edu/workingpapers/pdf/2004-03-225.pdf