INTERNATIONAL EBUSINESS ISSUES KIP BECKER, PH.D. ;
Internet users % of population (2000) TOP 5 INTERNET USERS? BRTIAINUSARGENTINACHINA SWEDENHONG KONGCANADA FRANCESINGAPOREAUSTRALIA SOUTH KOREARUSSIAGERMANY
Which nations are highest in IT spending per GPD USITALY SPAINGERMANY SWEDENNEW ZEALAND FRANCEAUSTRALIA TOP 4 ?
COST OF USE INTERNATIONALLY – ACCESS COST AND USAGE RANK THE FOLLOWING: COST & USE USNEW ZEALAND JAPAN SWITZERLAND ICELANDGERMANY FINDLANDPORTUGAL ITALYNORWAY
Fewer 2 percent of 1 billion people have regular access to a phone line Less than 1 percent have a PC Government statistics: Only one in 2,000 has ever used a cellphone More than 40 percent are illiterate One in four lives in abject poverty. INDIA IMPORTANT DIGITAL DIVIDE ISSUES
WHAT NEW PRICING SCHEMES ARE INTERNATIONALLY AVAILABLE TO THE WEB? THE WEB?
Pricing on the Internet Price DiscoveryPrice Discovery –Electronic marketplaces enable new types of price discovery Web-based auctions at Onsale.com and eBay.com Intermediaries such as Priceline (www.priceline.com) and best buy for comparison shoppingwww.priceline.com Agents such as Kasbah (kasbah.com)kasbah The ability to customize products The ability to price discriminate
THE (TFA) TELE-FLOWER AUCTION THE DFA 11,000 SELLERS 3,500 FLOWER TYPES 5,000 BUYERS 120 AUCTION GROUPS THE DUTCH FLOWER GROWERS
INTERNATIONAL Winners & Losers in EC Proprietary network owners Midsize manufacturers Technology suppliers Online dedicated companies Conventional retailers that use online extensively Providers of diversified Internet services Advertisement and target marketing companies Security payment Providers Firms moving into new international markets/languages Most wholesalers, especially small ones Brokers Salespeople Non-differentiated manufacturers and non-value added chain members
DEVELOPED NATIONS PROBLEMS PROBLEM :Japanese prefer to pay cash –SOFTBANK Venture with 7-eleven,Yahoo!Japan and Tohan (book distributor)SOFTBANK –Order CDs on web pick DEVELOPING NATIONS LACK INFRASTURE Shared use of computing, Cafes, Rented computer/cell phones Cultural design and locaton specific sites NIKE.COM AND NIKEBOOTBALL.COMNIKE.COM NIKEBOOTBALL.COM OVERCOMING GEOPOLITICAL/CULTURAL PERSPECTIVES
WHAT ARE SOME PROBLEMS ENCOUNTERED WITH WEB GLOBALIZATION?
COST OF USE GLOBALLY
HOW DO WE KNOW WHO WE ARE DEALING WITH ?
WHAT ARE WE WILLING TO GIVE UP ?
HOW DO WE KNOW WHAT IS TRUE ?
HOW DO WE KEEP UP WITH THE FAST PACE OF THE WEB?
WOULD YOU CONSIDER IT A LEGITIMATE GOVERNMENT ROLE? KOREAN GOVERNMENT DESIGNES AN INTERESTING APPROACH E-MALLS FOR ARTISIANS
THINK GLOBAL ACT LOCAL LANGUAGE INFRASTRUCTURE LAWS –JOHN MASHALL LAW SCHOOL –CYBERSPACE LAW CENTERCYBERSPACE LAW CENTER JURISDICTION TAX ISSUES ETHICAL ISSUES CULTURE/RELIGION –(wine.com Japanese shipping example) –Bokus.com largest online bookstore in Scandinavia (note language issue)Bokus.com largest online bookstore in Scandinavia
Legal Issues Market Access Issues Financial Issues Consumer Money/Credit Barriers to Global ECommerce WHAT ARE SOME OF THE Important Issues Important Issues Identification of buyers and sellers Trust Security ( for example, viruses) Cultural diversity International agreements (multi- lateral agreements) Role of government Purchasing in local currencies Language and translation
TRANSLATION SOFTWARE IDIOM TECHNOLOGIES –TRACKS ALL SITES –REDUCES THE COST OF MAINTAINING XLANGUAGE SITES LERNOUT & HAUSPIE –VARIETY OF USEFUL TRANSLATION SERVICES –ROUTINE CAN USE AUTOMATED SOFTWARE 4,00,000 VS 400 TO 600 WORDS PER MINUTE –GENERALLY ”LOCALIZATION” OVER TRANSLATION IT CONSIDERS MULTIPE ELEMENTS OF LOCAL ENVIRONMENT (E.G. business, cultural,local dialect variations) Check out altaVista’s translation site BABLE FISHaltaVista’s translation
Source: Global Search WHILE DECREASING 70% SITES STILL ENGLISH 43%57% BUT CONSIDER USERS: 43% ENGLISH 57% NON-ENGLISH
THINK GLOBALLY-ACT LOCALLY LANGUAGE TRANSLATION –More likely to buy if in own language –370 million English native language of 6 billion –80% of current content is in English –40% current users do not read English –% of users: US 48% - European 29%- Asian 24% –Data Corporation predicts by /3 users outside US - 60% of use and 48% of E-sales will involve at least one non-US party Global Reach Global ReachCheck out Global Reach - international consulting firm Global Reach