Assignment #1

Part A:

1. What are the major differences between pure play e-commerce and bricks-and-clicks operations? What are the benefits and limitations of each? A pure play operation is only online, and there is no physical interaction between the company and the customer. This could be considered a limitation as some consumers rely on physical interaction. A benefit for a pure play operation is that there is online deals, and a large market structure that could provide more consumers if advertised correctly.
A bricks-and-clicks operation has both a physical store and sells products or services online. This is a benefit as those customers who buy in the physical store will already know the brand names. There is already an established distribution channel, as well as established customers. A limitation would be that some customers aren't used to buying online or the legacy systems.
2. One of the key motivations for developing an e-commerce site is immediate access to a much larger market. Explain why an increased market reach may have benefits, and describe its limitations.
An online market would increase potential sales by advertising to more customers which they might not have reach possibly in a physical store. Limitations would consist of connection problems for customers and perhaps even to the provider's service. Also there could possibly be fraud issues with potential hackers. Another limitation co-insides to the benefit of reaching a new marketing geographic, the cost of the advertising and the market could cause a set back for a company.
3. What are the three most important mediation issues in e-commerce? Give an example of each.