MBA EXAM 1 REVIEW

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MBA EXAM 1 REVIEW
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• Event Study
• B2C ANNOUNCEMENTS PRODUCE GREATED ABNORMAL RETURN
  THAN B2B ANNOUNCEMENTS
• EXPECTATIONS
• B2C
• MORE DISPERSED MARKET
• WIDER ASSORTMENT OF GOODS
• CUSTOMIZE INTERACTIONS
• ELIMINATE INTERMEDIARIES
• (DIRECT DELIVERY INFRASTRUCTURE)

3

• B2B
• STREAMLINING SUPPLY CHAINS
• LEARNING
• (ONLINE AUCTIONS BY CUSTOMERS)
• B2B AND B2C POSITIVE ABNORMAL RETURNS
• 5-DAY, 10-DAY
• 5-DAY
• NO SIG DIFF BETWEEN B2B AND B2C
• 10-DAY
• SIG DIFF

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• DISCUSSION OF RESULTS
• B2B
• JUST CONVERTING OLD EDI TO INTERNET.
• HIGH LEVEL OF INTEGRATION BETWEEN COMPANIES ARE
  EXPECTED TO CAUSE PROBLEMS
• B2C
• MARKET PSYCHOLOGY
• ATTENTION, GREATER FAMILIARITY

5

• INTERNET2
• WHY INTERNET2 IS REQUIRED TO ADDRESS QUALITY OF
  SERVICE ISSUES
• APPROACH
• WHAT IS INTERNET2
• WHAT IS QUALITY OF CONTROL ISSUE
• WHY?

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• INTERNET2
• NETWORK TO EXPLORE APPLICATIONS WHICH NEED
  SUPERFAST, HIGH CAPACITY CONNECTIONS
• INTERNET OVERLOADED WITH COMMERCIAL TRAFFIC
• MINIMUM SPEED FOR CONNECTION TO BACKBONE 155
  MEGABITS/SEC
• (100 X UNIV), (3000 X HOME)

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• QUALITY OF SERVICE
• DATA LOSS, DELAYS, FIDELITY
• EXAMPLE
• NANOMANIPULATOR
• TO SIMULATE TOUCH
• DELAY OF 1/20TH SECOND CAN AFFECT FEEL
• TELEMEDICINE
• SECOND OPINION
• HIGH FIDELITY IS NEEDED
• HIGH CAPACITY NETWORK HELPS.

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• ENVIRONMENTAL SCHOOL
• HOW DOES IT RELATE TO THE DEVELOPMENT OF
  AMAZON.COM
• WHAT IS ENVIRONMENTAL SCHOOL
• WHAT WERE FORCES FACED BY AMAZON?
• CONNECTION

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• ENVIRONMENTAL SCHOOL
• ENVIRONMENT CONSTRAINS CHOICES
• MULTIPLE SEGMENTS OF ENVIRONMENT
• POLITICAL
• FINANCIAL
• ETHICAL
• LEGAL
• TECHNOLOGICAL

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• FINANCIAL
• 1995
• LITTLE MONEY FOR INTERNET COMPANIES
• SO LIMITED TO ONE PRODUCT, LOOKING FOR LOW COST
  OPTIONS LIMITED TO BOOKS
• gt1996
• VENTURE CAPITAL
• TRYING TO EXPLOIT MANY OPPORTUNITIES
• PARTNERSHIPS, GLOBAL, PURCHASES

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• gt2000
• MARKET RESTRICTED
• TIGHTENING BELTS
• SHEDDING UNPROFITABLE ELEMENTS
• SHOOTING FOR PROFITABILITY
• TECHNOLOGY
• AT START-UP
• BROWSER TECH IN EARLY PHASE
• MANY PEOPLE RELIED ON EMAIL

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• HAD BROWSER TECH NOT TAKEN OFF, INTERNET SHOPPING
  WOULD NOT HAVE BEEN SO EASY
• SO FEWER CUSTOMERS
• BROWSER TECHNOLOGY MATURED AT SERENDIPITOUS TIME

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• COMPETITIVE FORCES
• POWER OF CUSTOMERS
• IN SOME MARKETS CUSTOMERS ARE MORE POWERFUL THAN
  SUPPLIERS VICE VERSA IN OTHERS
• LARGE CUSTOMERS
• SMALL CUSTOMERS USUALLY ARE AT MERCY OF LARGER
  ORGANIZATIONS
• INFORMATION
• LACK OF MECHANISM TO NEGOTIATE

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• INTERNET CHANGES
• INFORMATION AVAILABILITY
• ABILITY TO SEARCH
• IN SOME INSTANCES, STORES PROVIDE, E.G.,
  BOOKS.COM
• INFRASTRUCTURE TO NEGOTIATE
• PRICELINE.COM

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• COMPETING ON THE EDGE
• RELATIONSHIP TO PURE INTERNET PLAYS?

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• EDGE OF CHAOS
• CHAOS TOTAL RANDOMNESS
• LOCKED IN STRUCTURE
• EDGE OF CHAOS FLEXIBILITY
• DONT KNOW WHAT THE FUTURE HOLDS
• TECHNOLOGY
• CONSUMER BEHAVIOR
• COMPETITIVE RESPONSES
• SO, FLEXIBILITY IS NEEDED

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• EDGE OF TIME
• FOCUS ON PRESENT
• KEEP PAST, FUTURE IN MIND
• PURE PLAY
• NO PAST..
• HAVE TO FOCUS ON PRESENT
• CAN SINK REAL FAST, SINCE NO FOOTHOLD YET
• EYE ON FUTURE
• YOU DONT KNOW WHAT IS COMING DOWN THE PIKE

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• TIME PACING
• ALWAYS IMPROVE (DONT WAIT FOR EXTERNAL
  PRESSURES)
• JUST BECAUSE A CONCEPT IS SUCCESFUL, YOU CANT
  SIT STILL
• AMAZON
• ASSOCIATE PROGRAM
• BOOK WRITING CONTEST
• (DIDNT WAIT FOR EXTERNAL PRESSURE).