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Chapter 15, Online Industries

Outline15.1 Introduction15.2 Retailing on the Web15.3 Medical Services Online; Health and Nutrition15.4 Online Travel15.5 Transportation and Shipping15.6 Online Automotive Sites15.7 Energy Online15.8 Selling Brainpower Online15.9 Online Art Dealers15.10 Online Grocery Stores15.11 Online Real Estate15.12 Online Legal Services15.13 Government Online15.14 Insurance Online15.15 Children Online15.16 Purchasing Event Tickets Online15.17 Genealogy Online

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15.1 Introduction

• Every major industry has used the Web to enhance business practices and create new markets and distribution channels

• Providing unique and highly targeted information is a key to developing site traffic

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15.2 Retailing on the Web

• Retail store – Purchases goods from a wholesaler, marks up the price and

then offers the products to consumers

• Online retailers can communicate easily with suppliers, shipping companies and customers

• Most Web retailers use the shopping-cart model exclusively

• Other Web retailers integrate other models such as the auction model or price-comparison model

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• E-tailers often offer lower prices to generate brand awareness and increase site traffic

• Consider if short-term losses equal long term success

• Examples:– Amazon.com

– Bestbuy.com

– Kennethcole.com

– Sharperimage.com

15.2 Retailing on the Web

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15.3 Medical Services Online

• The Web gives consumers access to case studies, medical journal articles and doctors who can answer questions

• Health Insurance Portability and Accountability Act (HIPAA) – Requires medical offices and other healthcare related

agencies to perform many of their administrative tasks online

• Examples:– WebMD

– Sickbay.com– Dr.Koop

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15.3 Medical Services Online

WebMD home page. (Copyright © 2000 WebMD Corporation. Reprinted with permission.)

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15.4 Online Travel

• Customers now have the power to bypass a travel agent

• Discounts and low fares available online• Name-your-price for tickets, hotels and car rentals• “Last minute” fares often lower online• Examples:

– Expedia.com– Travelocity

– Cheaptickets.com

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15.4 Online Travel

Travelocity home page. (Courtesy of Travelocity.)

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15.5 Transportation and Shipping

• The Internet adds efficiency and convenience to traditional shipping and logistics

• Load Matching– Matching available truck capacity with the shipping needs of

many companies that are willing to split the cost of full truckloads

• Examples:– UPS

– FedEX

– DHL Direct

– Trucking.net– Getloaded.com

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15.6 Online Automotive Sites

• Consumers access automobile information empowering them to make an informed buying decisions

• Dealers use the Web to showcase vehicles• Online auto auctions give buyers more options• Examples:

– Auto.com– Autobytel.com– Autoparts.com

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15.7 Energy Online

• Energy exchange sites allow energy providers to trade excess energy commodities, buy on auction and sell materials

• 1000’s of energy commodities are sold online• Efficiency increases as supply chains are

simplified• Examples:

– Houstonstreet.com– Altranet

– Retailenergy.com

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15.8 Selling Brainpower Online

• Unused patents and trademarks can be sold online• Outsourcing

– Hiring outside contractors or companies to complete projects and offer consulting

• Contractors can find projects to match their needs on the Web

• Examples:– Hellobrain

– Yet2.com– Question Exchange

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15.9 Online Art Dealers

• Artists have access to a global audience• Web is a new medium for art• Virtual galleries give artists a chance to showcase

their work• Short films are finding new fans online • Examples:

– Art.com– Guild.com– AtomFilms

– Art.net

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15.10 Online Grocery Stores

• Grocery shopping on the Web saves time• Web delivery services offer door-to-door delivery• A strong distribution network is essential to this

industry• Examples:

– Webvan

– Homegrocer.com– Peapod.com

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15.10 Online Grocery Stores

Webvan home page. (Courtesy of Webvan Group, Inc.)

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15.11 Online Real Estate

• An online real estate transaction reduces the effort necessary to sell or buy property

• XML allows postings to be listed in multiple locations

• Multiple Listing System (MLS)– Brokers can post their listings at hundreds of locations with

MLS

• Examples:– Apartments.com– Realty.com– Rent.net

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15.11 Online Real Estate

Apartments.com can help you find an apartment. (Courtesy of Apartments.com.)

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15.12 Online Legal Services

• Libraries of data available to people with a few mouse clicks

• Arbitration being practiced online• Research made easier through search engine

technology• Examples:

– LEXIS

– FindLaw

– Law.com– Loislaw.com

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15.12 Online Legal Services

The Cybersettle home page. (Courtesy of Cybersettle.com.)

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15.13 Government Online

• Freedom of Information Act– Gave citizens access to previously classified government

data

• Thomas– Official senate Web site, allows citizens to research past

federal legislation and other senate proceedings

• All major branches of the government have established a presence on the Web

• Examples:– Whitehouse.gov– Senate.gov– NASA

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• The FBI uses the Web to retrieve information about wanted fugitives

• Citizens are now empowered by the Internet to research their presidential candidates at a variety of Web locations

• NASA broadcasts transmissions and offers exclusive coverage of its space exploration

• The General Services Agency (GSA) supplies the government with its e-commerce site

15.13 Government Online

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15.14 Insurance Online

• Insurance is complicated, the Web offers instruction and helpful documentation

• Free quotes and calculators help consumers make informed decisions

• Lower rates are often found on the Web• Brokers can locate new clients online• Examples:

– Insweb

– Prudential.com

– Getmet.com

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15.14 Insurance Online

Ebix.com home page. (Courtesy of ebix.com, Inc.)

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15.15 Children Online

• Children are an important market• Educational Web sites help kids learn to use

advanced technology• A number of risks exist online• Many leading children’s content creators have

established a presence online• Examples:

– SesameStreet

– Lycoszone

– Educationplanet.com

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15.16 Purchasing Event Tickets Online

• It has never been easier to purchase tickets• Long lines are prevented through home shopping• It is important to check all vendors as prices and

availability may vary• Examples:

– TicketMaster

– TicketWeb.com– Tickets.com– Tixx.com– Culturefinder.com

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15.16 Purchasing Event Tickets Online

Ticketmaster.com home page. (Used under permission of TicketmasterOnline-City Search, Inc.)

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15.17 Genealogy Online

• It has never been easier to trace your roots• Track down your ancestors and build a family tree• Find missing money and belongings online• Contacting distant family is simplified using e-

mail and the Web• Examples:

– Ancestry.com– Missingmoney.com– Genealogy.com– Naupa.com