1. Briefly describe the technologies that led businesses into the second wave of electronic commerce.
3. Briefly describe the specific activities that a computer assembly operation might include in B2B electronic commerce for its supply management or procurement operations.
5. Many business analysts have discussed the concept of the first-mover advantage. What are some of the disadvantages of being a first mover?
CASE STUDY C1 CRITICAL THINKING QUESTIONS
1. Toys“R”Us sales exceeded $300 million by 2004 on the Amazon.com site. Explain how Amazon, Toys“R”Us, and other toy sellers who participated in Amazon’s Marketplace retailer program benefitted from the network effect as a result of the relationship between Amazon and Toys“R”Us.
2. In 2004, Toys“R”Us sued Amazon.com for violating terms of the agreement between the companies; specifically, Toys“R”Us objected to Amazon.com’s permitting Amazon Market-place retailers to sell toys. (Note: When the lawsuit was filed, Amazon Marketplace was called “zShops.”) Amazon.com responded by filing a countersuit. After more than two years of litigation, a New Jersey Superior Court judge ruled that the agreement had been violated by both parties. The judge ordered that the agreement be terminated and denied both companies’ claims for monetary damages. Amazon.com appealed the ruling. In
2009, an appellate court affirmed the lower court ruling but reversed the ruling on damages, which had awarded Toys“R”Us $93 million plus interest. In June
2009, the two companies finally agreed in an out-of-court settlement
