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![](3D"master04_image001.gif")
Creating a Winning
E-Business
Second Edition
Second Edition
Defining Your E-Business Idea
<=
/div>
Chapter 2
Creating a Winning E-Business Second Edition, Chapter 2
2
Learning Objectives
§Identify
entrepreneurial abilities
§Describe
the entrepreneurial process
&s=
ect;Understand
the factors affecting e-business success
&s=
ect;Identify
ways to exploit e-business advantages
Creating a Winning E-Business Second Edition, Chapter 2
3
The Entrepreneur and the
Entrepreneurial Process
Entrepreneurial Process
&s=
ect;Entrepreneur
=
211;Assumes
the risks of starting and operating his or her own business
&=
#8211;Must
be able to lead others
&=
#8211;Must
believe in his or her business idea
–Must
have the self-confidence to accomplish business goals
Creating a Winning E-Business Second Edition, Chapter 2
4
The Entrepreneur and the
Entrepreneurial Process (continued)
Entrepreneurial Process (continued)
&s=
ect;E-business
entrepreneur examples
&=
#8211;Jeff
Bezos, Amazon.com
&=
#8211;Pierre
Omidyar, eBay
=
211;Kelby
Hagar, GroceryWorks.com and Digital Witness
&=
#8211;Jason
Zasky, Failure Magazine
Creating a Winning E-Business Second Edition, Chapter 2
5
The Entrepreneur and the
Entrepreneurial Process (continued)
Entrepreneurial Process (continued)
&s=
ect;Entrepreneurial
abilities
&=
#8211;Leadership
traits
&=
#8211;High-energy
level
&=
#8211;Self-confidence
&=
#8211;Organizational
skills
&=
#8211;Ability
to act quickly and decisively
&=
#8211;Independent,
goal-oriented, creative, competitive
Creating a Winning E-Business Second Edition, Chapter 2
6
The Entrepreneur and the
Entrepreneurial Process (continued)
Entrepreneurial Process (continued)
&s=
ect;Entrepreneurial
process
&=
#8211;Stage
1: Are you an entrepreneur?
&=
#8226;Assess
your entrepreneurial abilities
•Evaluate time and effort involved in starting/running
your own business
=
226;Consider
the effect of the business commitment on your family life<=
/div>
Creating a Winning E-Business Second Edition, Chapter 2
7
The Entrepreneur and the
Entrepreneurial Process (continued)
Entrepreneurial Process (continued)
&s=
ect;Entrepreneurial
process (continued)
R=
11;Stage
2: Buy existing business or start own business?
Creating a Winning E-Business Second Edition, Chapter 2
8
The Entrepreneur and the
Entrepreneurial Process (continued)
Entrepreneurial Process (continued)
&s=
ect;Entrepreneurial
process (continued)
&=
#8211;Stage
3: For a new business startup you must
&=
#8226;Define
the business idea
&=
#8226;Create
a business plan
&=
#8226;Secure
financing
Creating a Winning E-Business Second Edition, Chapter 2
9
The Entrepreneur and the
Entrepreneurial Process (continued)
Entrepreneurial Process (continued)
&s=
ect;Entrepreneurial
process (continued)
&=
#8211;Stage
4: Operate and grow your business
Creating a Winning E-Business Second Edition, Chapter 2
10
The Entrepreneur and the
Entrepreneurial Process (continued)
Entrepreneurial Process (continued)
&s=
ect;Entrepreneurial
process (continued)
&=
#8211;Stage
5: Harvest your business
&=
#8226;Continue
to operate “cash cow”
&=
#8226;Go
public
&=
#8226;Sell
the business
&=
#8226;Liquidate
the business
Creating a Winning E-Business Second Edition, Chapter 2
11
The Entrepreneur and the
Entrepreneurial Process (continued)
Entrepreneurial Process (continued)
![](3D"slide0006_image003.jpg")
Creating a Winning E-Business Second Edition, Chapter 2
12
Factors Affecting
E-Business Success
E-Business Success
&s=
ect;The
network effect
=
211;Total
value of a product, service, or technology grows as more and more pe=
ople
use it
&=
#8226;Telephone
system example
–Single
telephone has no value; as more people join the telephone system,
the value of each telephone increases
&=
#8226;uBid
online auction site example
=
211;As
more people participate, the auction site becomes more
valuable to buyers and sellers
Creating a Winning E-Business Second Edition, Chapter 2
13
Factors Affecting
E-Business Success (continued)
E-Business Success (continued)
![](3D"slide0019_image005.jpg")
Creating a Winning E-Business Second Edition, Chapter 2
14
Factors Affecting
E-Business Success (continued)
E-Business Success (continued)
![](3D"slide0031_image007.jpg")
Creating a Winning E-Business Second Edition, Chapter 2
15
Factors Affecting
E-Business Success (continued)
E-Business Success (continued)
&s=
ect;Innovative
marketing ideas
&=
#8211;Hotmail
and viral marketing example
•Hotmail users grew at a rapid rate because of <=
/span>electronic
word of mouth coupled with the network effect
•Electronic word of mouth or viral marketing spreads
from user to user in the same way a human virus spreads from
person to person
Creating a Winning E-Business Second Edition, Chapter 2
16
Factors Affecting
E-Business Success (continued)
E-Business Success (continued)
![](3D"slide0032_image009.jpg")