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INTERNATIONAL EBUSINESS ISSUES

INTERNATIONAL EBUSINESS ISSUES. KIP BECKER, PH.D. EMAIL; GoGlobal@bu.edu. Internet users % of population (2000). TOP 5 INTERNET USERS? BRTIAIN US ARGENTINA CHINA SWEDEN HONG KONG CANADA FRANCE SINGAPORE AUSTRALIA SOUTH KOREA RUSSIA GERMANY.

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INTERNATIONAL EBUSINESS ISSUES

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  1. INTERNATIONAL EBUSINESS ISSUES KIP BECKER, PH.D. EMAIL; GoGlobal@bu.edu

  2. Internet users % of population (2000) TOP 5 INTERNET USERS? BRTIAIN US ARGENTINA CHINA SWEDEN HONG KONG CANADA FRANCE SINGAPORE AUSTRALIA SOUTH KOREA RUSSIA GERMANY

  3. Which nations are highest in IT spending per GPD US ITALYSPAIN GERMANYSWEDEN NEW ZEALANDFRANCE AUSTRALIA TOP 4 ?

  4. COST OF USE INTERNATIONALLY – ACCESS COST AND USAGE RANK THE FOLLOWING: COST & USE US NEW ZEALAND JAPAN SWITZERLAND ICELAND GERMANY FINDLAND PORTUGAL ITALY NORWAY

  5. IMPORTANT DIGITAL DIVIDE ISSUES INDIA • Fewer 2 percent of 1 billion people have regular access to a phone line • Less than 1 percent have a PC • Government statistics: Only one in 2,000 has ever used a cellphone • More than 40 percent are illiterate • One in four lives in abject poverty.

  6. WHAT NEW PRICING SCHEMES ARE INTERNATIONALLY AVAILABLE TO THE WEB?

  7. The ability to customize products The ability to price discriminate Pricing on the Internet • Price Discovery • Electronic marketplaces enable new types of price discovery • Web-based auctions at Onsale.com and eBay.com • Intermediaries such as Priceline (www.priceline.com) and best buy for comparison shopping • Agents such as Kasbah (kasbah.com)

  8. THE DUTCH FLOWER GROWERS THE (TFA) TELE-FLOWER AUCTION • THE DFA • 11,000 SELLERS • 3,500 FLOWER TYPES • 5,000 BUYERS • 120 AUCTION GROUPS

  9. INTERNATIONAL Winners &Losers in EC • Proprietary network owners • Midsize manufacturers • Technology suppliers • Online dedicated companies • Conventional retailers that use online extensively • Providers of diversified Internet services • Advertisement and target marketing companies • Security payment Providers • Firms moving into new international markets/languages • Most wholesalers, especially small ones • Brokers • Salespeople • Non-differentiated manufacturers and non-value added chain members

  10. DEVELOPED NATIONS PROBLEMS PROBLEM :Japanese prefer to pay cash SOFTBANK Venture with 7-eleven,Yahoo!Japan and Tohan (book distributor) Order CDs on web pick up/pay @7Eleven DEVELOPING NATIONS LACK INFRASTURE Shared use of computing, Cafes, Rented computer/cell phones Cultural design and locaton specific sites NIKE.COM AND NIKEBOOTBALL.COM OVERCOMINGGEOPOLITICAL/CULTURAL PERSPECTIVES

  11. WHAT ARE SOME PROBLEMS ENCOUNTERED WITH WEB GLOBALIZATION?

  12. COST OF USE GLOBALLY

  13. HOW DO WE KNOW WHO WE ARE DEALING WITH ?

  14. WHAT ARE WE WILLING TO GIVE UP ?

  15. HOW DO WE KNOW WHAT IS TRUE ?

  16. HOW DO WE KEEP UP WITH THE FAST PACE OF THE WEB?

  17. KOREAN GOVERNMENT DESIGNES AN INTERESTING APPROACH E-MALLS FOR ARTISIANS • WOULD YOU CONSIDER IT A LEGITIMATE GOVERNMENT ROLE?

  18. THINK GLOBAL ACT LOCAL • LANGUAGE • INFRASTRUCTURE • LAWS • JOHN MASHALL LAW SCHOOL • CYBERSPACE LAW CENTER • JURISDICTION • TAX ISSUES • ETHICAL ISSUES • CULTURE/RELIGION • (wine.com Japanese shipping example) • Bokus.com largest online bookstore in Scandinavia (note language issue)

  19. Barriers to Global ECommerce WHAT ARE SOME OF THE • Important Issues • Identification of buyers and sellers • Trust • Security ( for example, viruses) • Cultural diversity • International agreements (multi-lateral agreements) • Role of government • Purchasing in local currencies • Language and translation • Legal Issues • Market Access Issues • Financial Issues • Consumer Money/Credit

  20. TRANSLATION SOFTWARE • IDIOM TECHNOLOGIES • TRACKS ALL SITES • REDUCES THE COST OF MAINTAINING XLANGUAGE SITES • LERNOUT & HAUSPIE • VARIETY OF USEFUL TRANSLATION SERVICES • ROUTINE CAN USE AUTOMATED SOFTWARE • 4,00,000 VS 400 TO 600 WORDS PER MINUTE • GENERALLY ”LOCALIZATION” OVER TRANSLATION IT CONSIDERS MULTIPE ELEMENTS OF LOCAL ENVIRONMENT (E.G. business, cultural,local dialect variations) Check out altaVista’s translation site BABLE FISH

  21. WHILE DECREASING 70% SITES STILL ENGLISH BUT CONSIDER USERS: 43% ENGLISH 57% NON-ENGLISH Source: Global Search

  22. THINK GLOBALLY-ACT LOCALLY • LANGUAGE TRANSLATION • More likely to buy if in own language • 370 million English native language of 6 billion • 80% of current content is in English • 40% current users do not read English • % of users: US 48% - European 29%- Asian 24% • Data Corporation predicts by 2003 • 2/3 users outside US - 60% of use and 48% of E-sales will involve at least one non-US party • Check out Global Reach- international consulting firm

  23. SITE site

  24. The End of The Day THE END

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