Table of Contents

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WAI MOE LWIN

Impact of Ecommerce...................................................................2
Impacts on Direct Marketing of Myanmar CD World...................2
Other marketing Impacts of Myanmar CD world.........................3
Impacts on Myanmar CD World general process........................5
Impacts on Manufacturing of Myanmar CD World......................7
Impacts on Finance of Myanmar CD World.................................7
Global Impact of E-commerce for CD/DVD shop............................8
Conclusion..................................................................................12
References.................................................................................. 13

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WAI MOE LWIN

Impact of Ecommerce

Impacts on Direct Marketing of Myanmar CD

World
Product promotion E-commerce
It enhances promotion of products and services through
direct, information-rich, and interactive contact with customers.
New sales channel E-commerce
It creates a new distribution channel for existing products. It
facilitates direct reach of customers and the bi-directional nature
of communication.
Direct savings
The cost of delivering information to customers over the
Internet results in substantial savings to senders when compared
with non electronic delivery. Major savings are also realized in
delivering digitized products versus physical delivery.
Reduced cycle time
The delivery of digitized products and services can
reduced to seconds. Also, the administrative work related
physical delivery, especially across international borders, can
reduced significantly, cutting the cycle time by more than
percent.

be
to
be
90

Customer service
Customer service can be greatly enhanced by enabling
customers to find detailed information online. Also, intelligent
agents can answer standard e-mail questions in seconds and
human experts' services can be expedited using help-desk
software.

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Corporate image
On the Web, newcomers can establish corporate images very
quickly. Corporate image means trust, which is necessary for
direct sales. Traditional companies such as Intel, Disney, Dell, and
Cisco use their Web activities to affirm their corporate identity
and brand image.

Other marketing Impacts of Myanmar CD

world
Customization E-commerce
It provides for customization of products and services, in
contrast to buying in a store or ordering from a television, which is
usually limited to standard products. Dell Computers Inc. is a
success story of customization. Today, we can configure not only
computers but also cars, jewelry, gifts, and hundreds of other
products and services. If properly done, one can achieve mass
customization. It provides a competitive advantage as well as
increases the overall demand for certain products and services.
Advertisement With direct marketing and customization
It comes as one-to-one or direct advertisement, which is
much more effective than mass advertisement. This creates a
fundamental change in the manner in which advertisement is
conducted not only for online trades but also for products and
services that are ordered in traditional ways.
Ordering System
Taking orders from customers can drastically be improved if
it is done online. When taken electronically, orders can be quickly
routed to the appropriate order-processing site. This saves time
and reduces expenses. So sales -people have more time to sell.
Also, customers can compute the cost of their orders, saving time
for all parties involved.
Markets
The physical market disappears as does the need to deliver
the goods to the marketplace. In a market space, which is an

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electronic market, goods are delivered directly to buyers when

purchasing is completed making markets much more efficient. For
those products that are digitally based-software, music and
information-the changes will be dramatic. Already, small but
powerful software packages are delivered over the Internet. This
fundamentally affects packaging and greatly reduces the need for
historical distribution.
New selling models
Such as shareware, freeware are emerging to maximize the
potential of the Internet. New forms of marketing will also
emerge, such as Web-based advertising, linked advertising, direct
e-mail, and an increased emphasis on relationship marketing.
Customers convenience is greatly enhanced, availability of
products and services is much greater, and cheaper products are
offered. All these provide EC with a competitive advantage over
the traditional direct sales methods. Some people predict the "fall
of the shopping malls," and many retail stores and brokers of
services are labeled by some as "soon to be endangered species."

Impacts on Myanmar CD World general

process
Technology and Organizational Learning
Rapid progress in E-Commerce will force companies to adapt
quickly to the new technology and offer them an opportunity to
experiment with new products, services, and processes. New
technologies require new organizational approaches. For instance,
the structure of the organizational unit dealing with E-Commerce
might have to be different from the conventional sales and
marketing departments. To be more flexible and responsive to the
market, new processes must be put in place. This type of
corporate change must be planned and managed.
Changing Nature of Work
The nature of work and employment will be transformed in
the Digital Age; it is already happening before our eyes. Driven by
increased competition in the global marketplace, firms are
reducing the number of employees down to a core of essential

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staff and outsourcing whatever work they can to countries where

wages are significantly less expensive. The upheaval brought on
by these changes is creating new opportunities and new risks and
forcing us into new ways of thinking about jobs, careers, and
salaries.
The Digital Age workers will have to become very flexible.
Few of them will have truly secure jobs in the traditional sense,
and all of them will have to be willing and able to constantly learn,
adapt, make decisions, and stand by them.
New product capabilities
E-commerce allows for new products to be created and
existing products to be customized in innovative ways. Such
changes may redefine organizations' missions and the manner in
which they operate. E-Commerce also allows suppliers to gather
personalized data on customers. Building customer profiles as
well as collecting data on certain groups of customers, can be
used as a source of information for improving products or
designing new ones.
Mass customization,
It is described earlier, enables manufacturers to create
specific products for each customer, based on his or her exact
needs. For example, Motorola gathers customer needs for a pager
or a cellular phone, transmits them electronically to the
manufacturing plant where they are manufactured, along with the
customer's specifications and then sends the product to the
customer within a day.

Impacts on Manufacturing of Myanmar CD

World
E-Commerce is changing manufacturing systems from mass
production to demand-driven and possibly customized, just-intime manufacturing. Furthermore, the production systems are
integrated with finance, marketing, and other functional systems,
as well as with business partners and customers. Using Webbased ERP systems, orders that are taken from customers can be
directed to designers and to the production floor, within seconds.

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Production cycle time is cut by 50 percent or more in many cases,

especially when production is done in a different country from
where the designers and engineers are located.
Companies like IBM, General Motors, are assembling
products for which the components are manufactured in many
locations. Sub-assemblers gather materials and parts from their
vendors, and they may use one or more tiers of manufacturers.
Communication, collaboration, and coordination become critical in
such multitier systems. Using electronic bidding, assemblers get
sub-assemblies 15 percent to 20 percent cheaper than before and
80 percent faster.

Impacts on Finance of Myanmar CD World

E-commerce requires special finance and accounting
systems. Traditional payment systems are ineffective or inefficient
for electronic trade. The use of the new payment systems such as
electronic cash is complicated because it involves legal issues and
agreements on international standards. Nevertheless, electronic
cash is certain to come soon and it will change the manner in
which payments are being made. In many ways, electronic cash,
which can be backed by currency or other assets, represents the
biggest revolution in currency since gold replaced cowry shells. Its
diversity and pluralism is perfectly suited to the Internet. It could
change consumers' financial lives and shake the foundations of
financial systems and even governments.

Global Impact of E-commerce for CD/DVD

shop
Thanks to the development of electronic commerce, the
most basic of economic transactions the buying and selling of
goodscontinues to undergo changes that will have a profound
impact on the way companies manage their supply chains. Simply
put, e-commerce has altered the practice, timing, and technology
of business-to-business (B2B) and business-to-consumer (B2C)
commerce. It has affected pricing, product availability,
transportation patterns, and consumer behavior in developed
economies worldwide.

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B2B e-commerce leads the way

Business-to-business electronic commerce accounts for the
vast majority of total e-commerce sales and plays a leading role
in global supply chain networks (see Figure 1). In 2003,
approximately 21 percent of manufacturing sales and 14.6
percent of wholesale sales in the United States were e-commerce
related; by 2008 those percentages had increased to almost 40
percent for manufacturing and 16.3 percent for wholesale trade.
One reason why B2B e-commerce is more sophisticated and
larger in size than direct to- consumer e-commerce is that B2B
transactions developed out of the electronic data interchange
(EDI) networks of the 1970s and 1980s.
The steady growth in business-to-business e-commerce has
changed the cost and profit picture for companies worldwide. At
the microeconomic level, growth of B2B e-commerce results in a
substantial reduction in transaction costs, improved supply chain
management, and reduced costs for domestic and global
sourcing. At the macroeconomic level, strong growth of B2B ecommerce places downward pressure on inflation and increases
productivity, profit margins, and competitiveness.
Double-digit growth for B2C
E-commerce retail has become the fastest growing trade
sector and has outpaced every other trade and manufacturing
sector since 1999, when the U.S. Census Bureau started collecting
and publishing data on e-commerce. That year, e-commerce retail
sales represented less than 1 percent of total U.S. retail sales. In
2003 that number climbed to a little less than 2 percent; by 2008
it had grown to 3.6 percent, and by the fourth quarter of 2010
B2C e-commerce reached 4.4 percent of total U.S. retail sales. In
dollar terms, e-commerce retail revenue currently stands at
approximately US $165 billion, considerably less than the US $3.9
trillion that represents the total U.S. retail market.
During the "Great Recession," which lasted from December
2007 through June 2009, manufacturing, wholesale, and bricksand-mortar retail sales took a heavy beating. By the fourth
quarter of 2010 they still had not fully recovered, even though
U.S. gross domestic product (GDP) and personal spending

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(adjusted for inflation) had surpassed their previous peaks seen in

late 2007.
Retail e-commerce, by contrast, weathered the recession
relatively well, albeit with considerably slower growth than had
been seen prior to the financial crisis. In the first quarter of 2002,
retail ecommerce experienced quarterly, year-over-year growth of
about 42 percent. On the eve of the recession, that rate dropped
to a still-respectable 18 percent. Quarterly sales continued to
grow until the latter part of 2008, and in the fourth quarter of
2009 sales surpassed the previous peak.
It's important to note here that a large portion of B2C sales
come through mail-order houses, many of which have an online
presence as well as traditional storefront outlets. Contrary to
popular opinion, mail-order houses still have a very strong online
presence, and until just recently their sales outperformed onlineonly retailers.
Economic, behavioral changes
The changes that B2C e-commerce has sparked arguably
have had a more significant impact on the economy and on
buyers' behavior than has B2B ecommerce. In the past, when
consumers wanted to make purchases they had to set aside time
to shop during certain hours of the day, or they had to read
through catalogs sent to them by mail-order houses. Today, many
consumers can simply use their computers and now smart
phones or other portable electronic devicesto shop online.
Buyers and sellers that engage in e-commerce retail trade are no
longer restricted by store hours, geographic marketing areas, or
catalog mailing lists. With a few simple clicks they can gain
access to a variety of goods 24 hours a day, seven days a week.
The characteristics of retail e-commerce merchandise also
have changed significantly over the past decade. Back in 2000,
computer hardware was the most common type of merchandise
sold over the Internet. Today, the variety of merchandise is
extremely diverse, and shoppers can buy almost anything online.
Online shoppers have benefited in other ways. The growth of
e-commerce retail sales has reduced consumers' search cost,
placed downward pressure on many consumer prices, and
reduced price dispersion for many consumer goods. But this has

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led to a substantial decrease in the number of small companies

operating in certain industries, as they tend to be less involved
with e-commerce. Larger businesses, most notably retail book
outlets, new automobile dealerships, and travel agents, are better
able to compete in this new market environment.
The extremely rapid growth of e-commerce retail sales has
provided a major boost to residential parcel delivery services.
That's because online merchandise purchases involve some form
of residential delivery by a third-party vendor such as FedEx, UPS,
or the U.S. Postal Service. In addition, there appear to be
considerable synergies related to B2C parcel and heavier freight
volumesparcel industry insiders have observed that businesses
with strong e-commerce related B2C parcel shipment volumes
often have stronger B2B shipment volumes than those that do not
engage in B2C e-commerce.
E-commerce influences demand patterns
As technology, e-commerce, and globalization become more
intertwined, buyers and sellers are increasing their connectivity
and the speed with which they conduct sales transactions. As we
saw during the recent turmoil in the financial markets and some
supply chain networks, speeding up sales transactions can be a
very positive attribute when small market corrections are taking
place. However, during a major economic correction like the one
we witnessed during the Great Recession, a quicker response to
sales transactions can have cascading impacts on supply chains,
resulting in large contractions or expansions in orders, production,
shipments, and inventory.
That's because years ago, it might have taken two years for
events in one country to affect another's economy. Now, thanks to
technology and instant communication, the impact can be almost
immediate.
Thus, there are some potentially negative consequences to
the rapid growth of e-commerce. In this volatile business
environment, supply chain managers should consider developing
strategies for dealing with the rapid swings that can result from
increasing use of e-commerce in a globalized market.

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E-commerce had a great effect on the development of global

economy in developing countries. Small firms are gaining more
profits by using e-commerce for making transactions with the
clients. By utilizing ICTs facilities to maximum they can reduce the
transaction costs to maximum. This reduction will encourage the
firms to extend the number of transactions they conduct across
both organizational and geographical boundaries. Many
developing countries are not able to utilize the efficiencies and
potentialities of internet marketing. By using the internet in
developing countries only very little business had been takes
place with new customers/suppliers. Many industries in the
developing countries are not able to utilize the B2B e-commerce
effectively. Trust is very important in the development of e-market
otherwise everyone will lose trust and it will become more
complex rather than utilizing its benefits. Banks and financial
services companies in the developing countries will need to adopt
online payment systems commerce. In the development of the ecommerce the government should also play a key role by
becoming Internet and business friendly and set Internet access
and use as a priority.
Drawbacks of E-Commerce
Investing in e-commerce has a number of drawbacks, most
notably those impacting the limits of its success on the global
marketplace. The primary concern for companies operating in the
e-commerce field is language barriers. While English has become
the dominant form of communication on the Internet, the majority
of the world does not speak the language. Other things to look at
are the cultural barriers present between certain distributors and
purchasers. For example, business in many Eastern Asian nations
is usually conducted on a more personal basis. This limits the
impact e-commerce can have in this section of the global
marketplace.

References
http://www.supplychainquarterly.com/columns/scq201102mo
netarymatters/
http://www.docstoc.com/docs/27757193/Impact-of-ecommerce-on-the-global-economy

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http://www.articlesbase.com/ecommerce-articles/impacts-ofecommerce-on-business-1882952.html