Value Chain Analysis : E Commerce Essay

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Value Chain Analysis Introduction The expansion of globalization has led to the emergence of the digital economy. New concepts have emerged, such as electronic business (e-Business) or electronic commerce (e-Commerce), as the electronic alternative to the traditional way of doing business or trade. Operating in a highly competitive economy based on information technologies and telecommunication, required firms to adopt new business models. Under these conditions, e-commerce became a reality in today 's business world and the prerogative of obtaining success in the market for any company. E-commerce has known during the last decades a significant growth, becoming more and more important for the companies worldwide. Nowadays due to globalization, technology is evolving at a very fast speed, forcing all the companies to adopt new technologies. E-commerce plays and it will play a key role in the economy in the future, and more and more companies will have to change their business strategies. The e-commerce industry contains important retailers, e.g. Amazon.com and eBay, information service companies, e.g. Google and Yahoo, online versions of traditional brick-and-mortar stores. In 2004 Amazon was on top in what online service meant with: 6 website servers, 32 million customers in 150 different countries, 900,000 associate programs linked with Amazon or having contents of Amazon. Because of his tremendous importance in the e-commerce industry, Amazon has the power to influence
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