Year 2020 (3/2)

Ans. to the question no. 1. (a)

Definition of e-business: E-business, or electronic business, refers E-business, or

electronic business, refers to the use of digital technologies to conduct business
activities. It involves the integration of information and communication technologies
(ICT) in various business processes, such as buying and selling products or services,
managing customer relationships, conducting market research, and collaborating with
business partners.
In e-business, transactions and interactions are carried out online or through other
digital channels, such as email, social media, or mobile apps. This enables businesses
to reach a wider audience, reduce costs, and improve efficiency.
Answer to the question no. 1.(b)
E-commerce and e-business are related terms that are often used interchangeably, but
they have different meanings.
E-commerce refers specifically to the buying and selling of goods or services over the
internet, or any other digital network. It involves transactions that are conducted
online, such as through an e-commerce website, online marketplace, or mobile app. E-
commerce platforms are focused on facilitating the exchange of products or services
between buyers and sellers, and often include features such as shopping carts,
payment processing, and order tracking.
On the other hand, e-business is a broader term that encompasses all aspects of using
digital technology to run a business, including e-commerce. E-business refers to the
use of digital technologies to manage all aspects of a business, including production,
finance, marketing, and customer relationship management. E-business may also
involve collaboration between different businesses and partners, as well as the use of
internal communication and collaboration tools.
In summary, e-commerce is a subset of e-business, and specifically refers to online
buying and selling, while e-business includes all aspects of using digital technology to
run a business, including e-commerce.
Answer to the question no. 1. (c)
E-commerce has become an increasingly important part of the global economy, and
there are several indicators that suggest it is here to stay:
1. Growing online sales: Online sales continue to grow year-over-year, with e-
commerce sales worldwide reaching $4.2 trillion in 2020, according to e marketer. This
suggests that consumers are increasingly turning to online channels for their shopping
needs.
2. Expansion of e-commerce platforms: E-commerce platforms like Amazon, Alibaba,
and Shopify continue to grow and expand their services, indicating that there is still
significant opportunity for growth in the e-commerce market.
3. Increasing adoption of mobile devices: Mobile devices have become the primary
device for online browsing and shopping, and the widespread adoption of
smartphones and tablets has made it easier for consumers to make purchases on-the-
go.
4. Advancements in technology: Technology is constantly evolving and improving, and
new developments in areas like artificial intelligence, virtual and augmented reality,
and voice assistants are likely to continue to shape the future of e-commerce.
5. Changing consumer behaviour: Consumer behaviour is changing, and many people
are now more comfortable with online shopping than they were in the past. This trend
is likely to continue as younger generations who have grown up with e-commerce
become the primary consumer demographic.
Overall, the continued growth and evolution of e-commerce, along with changes in
consumer behaviour and advances in technology, suggest that e-commerce is here to
stay and will continue to play an increasingly important role in the global economy.
Answer to the question no. 2. (a)
The internet has grown and become commercialized over the years due to the
contributions of many different technologies. Here are some of the most important
technologies that have played a significant role in the growth and commercialization
of the internet:
1. TCP/IP: The Transmission Control Protocol/Internet Protocol (TCP/IP) is the
foundational technology of the internet. It allows computers to communicate with
each other across a network, enabling the exchange of data and information.
2. World Wide Web: The World Wide Web (WWW) was invented by Tim Berners-Lee
in the late 1980s, and it is the technology that makes it easy to navigate and access
information on the internet. The WWW includes technologies like HTML, HTTP, and
URLs.
3. Search Engines: Search engines, such as Google and Bing, have made it easier for
users to find and access information on the internet. They use complex algorithms to
index and organize the vast amount of content on the web, making it easier for users
to find what they are looking for.
4. E-commerce: E-commerce technologies, such as online payment systems, shopping
carts, and secure checkout processes, have made it possible for businesses to sell
products and services online, creating a massive new market for commerce.
5. Cloud Computing: Cloud computing has made it easier and more cost-effective for
businesses to host and manage their online operations. It allows businesses to store
and access data and applications on remote servers, rather than on local computers.
6. Social Media: Social media platforms, such as Facebook, Twitter, and Instagram,
have enabled users to connect and share information with others on a massive scale.
They have also become an important marketing tool for businesses to reach and
engage with customers.
Overall, these technologies, along with many others, have played a significant role in
the growth and commercialization of the internet, transforming the way we
communicate, do business, and access information.
Answer to the question no. 2. (b)
Broadband connections offer several benefits for e-businesses, including:
1. Faster speeds: Broadband connections typically offer much faster speeds than
traditional dial-up connections, allowing businesses to transmit and receive data more
quickly. This can help to improve efficiency and reduce the time it takes to complete
online transactions.
2. Increased productivity: With faster speeds, businesses can perform tasks more
quickly and efficiently, which can help to increase overall productivity. This can be
especially important for businesses that rely on online tools and services to manage
their operations.
3. Better customer service: With a broadband connection, businesses can provide
better customer service by offering faster response times and quicker access to online
support resources.
4. Improved collaboration: Broadband connections can help to improve collaboration
between employees and business partners by making it easier to share information
and communicate in real-time.
5. Increased online presence: With a faster connection, businesses can create and
maintain a more dynamic and interactive online presence, such as by using video and
other rich media to engage with customers.
6. Access to cloud services: Broadband connections are essential for accessing cloud-
based services, which are becoming increasingly important for businesses of all sizes.
Cloud services offer businesses access to powerful tools and resources, such as
storage, data processing, and application hosting, without requiring significant
investment in hardware and infrastructure.
Overall, broadband connections are essential for e-businesses, enabling them to take
advantage of the full range of online tools and services available, and helping them to
compete and grow in an increasingly digital marketplace.
Answer to the question no. 3. (a)
An e-marketplace is an online platform where buyers and sellers come together to
conduct business transactions. These marketplaces can be industry-specific or general,
and they may offer a range of services to participants, including payment processing,
dispute resolution, and logistics management.
Here's a brief overview of how e-marketplaces operate and the benefits they bring to
participants:
1. Setting up an account: Participants, including both buyers and sellers, typically need
to create an account on the e-marketplace in order to access its services. This may
involve providing basic information about their business, such as their contact
information and tax identification number.
2. Listing products or services: Sellers can then list their products or services on the e-
marketplace, including details such as pricing, shipping options, and availability. Buyers
can then search for products and services based on their needs and preferences.
3. Payment processing: E-marketplaces often provide payment processing services to
facilitate transactions between buyers and sellers. This can include the use of secure
payment gateways, such as PayPal or Stripe, to process payments and protect against
fraud.
4. Logistics management: Some e-marketplaces also offer logistics management
services, such as tracking and shipping, to help sellers manage the fulfilment of orders.
Benefits to participants:
1. Increased exposure: E-marketplaces provide sellers with access to a larger pool of
potential customers, increasing their exposure and helping them reach new markets.
2. Greater convenience: Buyers can access a wide range of products and services from
multiple sellers in one place, making it more convenient to find what they need.
3. Streamlined transactions: E-marketplaces often provide payment processing and
other services that make it easier and more efficient for buyers and sellers to conduct
transactions.
4. Reduced costs: By bringing buyers and sellers together in one place, e-marketplaces
can help to reduce transaction costs for both parties, such as marketing and
distribution costs.
5. Trust and credibility: E-marketplaces often provide tools and services to help ensure
trust and credibility between buyers and sellers, such as feedback and rating systems,
dispute resolution services, and seller verification processes.
Overall, e-marketplaces provide a range of benefits to participants, helping to
streamline transactions, reduce costs, and build trust and credibility between buyers
and sellers. They have become an important part of the e-commerce landscape,
offering a valuable resource for businesses of all sizes looking to expand their reach
and increase their online sales.
Answer to the question no. 3. (b)
The primary value-adding features of the internet for e-businesses include:
1. Global reach: The internet enables businesses to reach customers from all over the
world, increasing their potential customer base and expanding their market reach. For
example, a small business in the United States can sell its products to customers in
Europe or Asia, increasing their sales and revenue.
2. Cost savings: The internet can help businesses to save on costs by eliminating the
need for physical storefronts or offices. For example, a business can set up an online
store or use cloud-based services to manage their operations, reducing their overhead
and increasing their profitability.
3. Personalization: The internet enables businesses to personalize their marketing and
customer experiences based on data and user behaviour. For example, an online
retailer can use customer data to offer personalized product recommendations or
promotions, increasing customer engagement and loyalty.
4. Data collection and analysis: The internet enables businesses to collect and analyse
data on customer behaviour, preferences, and purchasing patterns, helping them to
improve their products and services and make more informed business decisions.
5. Improved customer engagement: The internet enables businesses to engage with
customers in new and innovative ways, such as through social media, online
communities, and interactive content. For example, a business can use social media to
interact with customers and build brand awareness, or use interactive content to
increase customer engagement and satisfaction.
6. Efficiency and automation: The internet enables businesses to automate and
streamline their operations, improving efficiency and reducing errors. For example, a
business can use automated software to manage inventory, process orders, and
handle customer service requests, reducing the need for manual intervention and
improving overall productivity.
7. Flexibility and scalability: The internet enables businesses to scale their operations
and adapt to changing market conditions quickly and easily. For example, a business
can quickly expand its online store to handle increased demand or pivot to a new
product line based on customer feedback.
Overall, the internet offers a wide range of value-adding features for e-businesses,
helping them to reach new customers, save costs, improve customer engagement and
loyalty, and improve overall efficiency and productivity. These features have made the
internet a critical part of the modern business landscape, offering new opportunities
and competitive advantages for businesses of all sizes and industries.
Answer to the question no. 4. (a)
Supply chain management (SCM) is the process of managing the flow of goods,
services, and information from the raw materials stage to the final delivery of a product
to the end customer. The goal of SCM is to optimize the entire process, from
procurement and production to distribution and delivery, in order to maximize
efficiency, reduce costs, and improve customer satisfaction.
The benefits of effective supply chain management can include lower costs, increased
efficiency, improved product quality, and better customer service. By optimizing the
entire process, businesses can reduce waste, minimize delays, and improve
responsiveness to customer needs. SCM is an essential function for many businesses,
particularly those with complex operations or global supply chains, and requires close
collaboration with suppliers and customers to achieve optimal results.
Answer to the question no. 4(b)
There are several different types of e-business specialists, each with a specific focus
and expertise. Some of the most common types of e-business specialists include:
1. Web developers: These specialists are responsible for designing, building, and
maintaining websites and web applications. They are experts in web development
languages and tools such as HTML, CSS, JavaScript, and PHP.
2. E-commerce specialists: These specialists focus on online sales and marketing. They
may be responsible for developing e-commerce strategies, managing online sales
channels, and optimizing online marketing campaigns.
3. Digital marketers: These specialists are focused on creating and executing digital
marketing campaigns to promote e-businesses. They may specialize in areas such as
search engine optimization (SEO), social media marketing, email marketing, and online
advertising.
4. Data analysts: These specialists are responsible for collecting and analysing data to
help e-businesses make informed decisions. They may be experts in areas such as web
analytics, customer behaviour analysis, and market research.
5. Information security specialists: These specialists are responsible for ensuring the
security of e-business systems and data. They may specialize in areas such as network
security, data encryption, and cybersecurity.
6. Customer service specialists: These specialists are responsible for managing
customer support channels, such as email, chat, or phone. They may specialize in areas
such as customer relationship management (CRM), customer experience design, and
customer retention.
7. Mobile app developers: These specialists are responsible for designing, building,
and maintaining mobile applications for e-businesses. They may be experts in mobile
development languages and tools such as Java, Swift, or React Native.
8. UX/UI designers: These specialists are focused on designing user experiences (UX)
and user interfaces (UI) for e-businesses. They may specialize in areas such as user
research, information architecture, or visual design.
Overall, e-business specialists play a critical role in the success of online businesses,
each contributing their specific skills and expertise to help businesses thrive in the
digital marketplace.
Answer to the question no. 4. (c)
Drawing up an e-business plan is an important step to ensure that your online business
venture is viable and sustainable in the long run. Here are some general steps you can
take to create an e-business plan:
1. Define your business concept: Clearly define what your e-business is all about. What
are you selling or offering, and who is your target audience? Determine what sets your
e-business apart from competitors and what value you bring to customers.
2. Research the market: Conduct thorough market research to determine the
potential demand for your product or service. Look at the industry trends, your
competition, and your target audience. Determine their needs, preferences, and
behaviours.
3. Develop a marketing strategy: Based on your research, identify the most effective
ways to reach your target audience, promote your brand, and drive traffic to your
website. Consider using a combination of paid advertising, social media marketing,
search engine optimization (SEO), and content marketing.
4. Create a sales strategy: Determine how you will generate revenue, what your
pricing strategy will be, and how you will handle payment processing. Consider offering
multiple payment options to make it easy for customers to buy from you.
5. Determine the technology and infrastructure required: Decide on the technology
platform you will use to build and host your website, as well as any additional tools or
software you will need to run your e-business effectively. Consider security measures
and the data protection measures that will need to be put in place.
6. Identify your team and resources: Determine the roles and responsibilities of your
team members, including any external contractors or partners. Identify any additional
resources you will need, such as legal or financial services, to support your e-business.
7. Create a financial plan: Estimate your start-up costs, ongoing expenses, and revenue
projections. Determine how you will fund your e-business and what your break-even
point will be.
8. Define your metrics: Determine the key performance indicators (KPIs) you will use
to measure the success of your e-business, such as website traffic, sales conversion
rates, customer satisfaction, and return on investment (ROI).
Overall, an effective e-business plan should provide a clear roadmap for your online
business, help you make informed decisions, and increase your chances of success.
Answer to the question no. 5. (a)
E-business strategy refers to a plan or approach for how a business will use digital
technologies, such as the internet, social media, mobile devices, and other electronic
communication channels, to achieve its goals and objectives. An effective e-business
strategy involves a comprehensive analysis of the business's current digital capabilities
and online presence, as well as its target market and competition, to identify areas of
opportunity and potential challenges.
The e-business strategy will typically define the organization's online goals and
objectives, the target audience, the digital channels to be used, the content and
messaging, and the metrics for success. A well-crafted e-business strategy can help a
business increase its visibility, attract new customers, improve customer engagement
and loyalty, streamline its operations, and ultimately increase revenue and
profitability. It is an essential component of any organization's overall business
strategy, particularly in the modern digital age where the internet and other digital
technologies have transformed the way people live, work, and interact with
businesses.
Answer to the question no. 5.(b)
The strategic process of e-business involves the identification, planning, and execution
of various activities required to build and maintain a successful online business. The
process typically involves several steps:
1. Define the e-business strategy: This involves defining the business objectives, the
target market, and the overall e-business strategy. This step helps to identify the most
effective ways to leverage technology and the internet to achieve business goals.
2. Develop a business plan: This step involves developing a detailed business plan that
outlines the specific steps needed to execute the e-business strategy. The plan should
include information on marketing, sales, technology, human resources, and financials.
3. Choose the right technology: This step involves selecting the appropriate
technology to support the e-business strategy. This includes hardware, software, and
internet infrastructure.
4. Create an effective online presence: This involves designing and building a website
that is both user-friendly and visually appealing. The website should be optimized for
search engines, be responsive to mobile devices, and provide a seamless user
experience.
5. Develop an effective marketing strategy: This step involves developing a marketing
plan that includes online advertising, social media marketing, email marketing, and
other promotional activities.
6. Build customer relationships: This step involves building and maintaining
relationships with customers through effective customer service, personalized
communications, and loyalty programs.
7. Monitor and measure results: This step involves tracking key performance
indicators (KPIs) and analysing data to evaluate the effectiveness of the e-business
strategy. This information can be used to refine the strategy and make necessary
adjustments.
8. Continuous improvement: This step involves making continuous improvements to
the e-business strategy to stay competitive and meet the changing needs of customers.
By following these steps, an e-business can establish a strong online presence, attract
and retain customers, and achieve long-term success.
 Answer to the question no. 5. (c)
Differentiation and cost leadership are two commonly used e-business strategies, both
of which aim to achieve a competitive advantage in the market.
Differentiation strategy is focused on creating a unique and distinctive product or
service that stands out from the competition. This can be achieved through a variety
of means, such as using high-quality materials, offering superior customer service,
providing unique features or functionality, or creating a strong brand image. The goal
is to create a product or service that customers are willing to pay a premium for, and
that is perceived as offering something that is different and better than what the
competition offers.
Cost leadership strategy, on the other hand, focuses on minimizing costs in order to
offer products or services at a lower price point than the competition. This can be
achieved through a variety of means, such as streamlining production processes,
negotiating better deals with suppliers, reducing overhead costs, or using lower-cost
materials. The goal is to offer products or services at a price that is lower than what
the competition offers, which can help to attract price-sensitive customers.
Both differentiation and cost leadership strategies have their advantages and
disadvantages in e-business. Differentiation can help to create a loyal customer base
and generate higher profit margins, but it can be difficult to maintain a competitive
edge if the competition is able to copy or improve upon the unique features that are
being offered. Cost leadership can help to attract customers who are primarily
interested in price, but it can also lead to lower profit margins and may be difficult to
sustain if the competition is able to offer similar products or services at an even lower
price.
Ultimately, the choice between differentiation and cost leadership will depend on a
variety of factors, such as the target market, the competitive landscape, and the
resources and capabilities of the e-business. Some e-businesses may choose to focus
on a combination of both strategies, or may choose to adopt a different strategy
altogether, such as a focus on niche markets or innovation.
Answer to the question no. 6. (a)
Technology can play a crucial role in increasing trust and confidence in e-business and
e-commerce transactions. Here are some ways technology can aid in the development
of trust and confidence:
1. Encryption and security measures: Technology can be used to ensure that all
transactions are secure and protected against potential cyber attacks. By using
encryption technology and other security measures, e-businesses can protect their
customers' personal and financial information, and prevent fraud.
2. Digital signatures: Digital signatures can be used to verify the authenticity and
integrity of digital documents, including contracts, agreements, and other important
business documents. This can help to establish trust between businesses and their
customers or partners.
3. Online reviews and ratings: Technology can also be used to enable customers to
leave online reviews and ratings, which can help build trust and confidence in a
business. This provides social proof of a business's reliability and quality of products or
services.
4. Chabot’s and virtual assistants: Chabot’s and virtual assistants can help customers
with their queries and provide instant support. This can help to build trust and
confidence, as customers can rely on prompt responses and solutions to their
concerns.
5. Block chain technology: Block chain technology can be used to create a secure and
transparent ledger for transactions. This can help to build trust and confidence by
enabling customers to track and verify their transactions, and providing a permanent
and unalterable record of all transactions.
6. Mobile optimization: As more customers use mobile devices to shop online, e-
businesses should ensure their websites are optimized for mobile devices. Mobile-
optimized websites can help build trust and confidence by providing a seamless and
user-friendly experience for customers.
Overall, technology can help to build trust and confidence in e-business and e-
commerce by providing secure and efficient transactions, protecting customer data,
and enabling transparent and reliable communication.
Answer to the question no. 6. (b)
Internet security breaches can have serious consequences for e-businesses, including
loss of customer trust, reputational damage, and financial losses. Here are three
common types of internet security breaches and the issues they might cause for e-
businesses:
1. Phishing attacks: Phishing attacks are a type of social engineering attack that
involves tricking people into divulging sensitive information, such as usernames,
passwords, and credit card details. These attacks can be conducted through email,
instant messaging, social media, and other communication channels. Phishing attacks
can lead to account takeover, unauthorized access to sensitive data, and financial loss
for e-businesses.
2. Malware attacks: Malware attacks involve the use of malicious software to
compromise a system or network. This can include viruses, Trojans, ransomware, and
other types of malware. Malware attacks can cause significant damage to e-
businesses, including data theft, data corruption, and system downtime. They can also
lead to loss of customer trust and reputational damage.
3. Dodos attacks: Distributed denial of service (Dodos) attacks involve overwhelming
a website or online service with traffic in order to make it unavailable to legitimate
users. This can be done through the use of a network of compromised computers,
known as a botnet. Dodos attacks can cause significant disruption to e-businesses,
including loss of revenue, damage to reputation, and increased security risks.
In order to protect against these types of internet security breaches, e-businesses need
to implement a range of security measures, including strong passwords, two-factor
authentication, malware protection, network monitoring, and Dodos mitigation. It's
also important for e-businesses to educate their employees and customers about the
risks of internet security breaches and how to protect against them.

Year 2019(3/2)
Answer to the question no. 1. (a)
E-commerce, short for electronic commerce, is the buying and selling of products or
services over the internet. This includes any commercial transaction that is conducted
online, such as online shopping, online banking, online ticketing, and online auctions.
E-business, on the other hand, is a broader term that encompasses all aspects of
conducting business online, not just buying and selling. This includes online marketing,
customer service, supply chain management, and any other business process that is
carried out electronically. E-business can involve e-commerce, but it also includes non-
commerce activities such as internal communication, collaboration, and data exchange
between business partners.
In summary, e-commerce is a subset of e-business that specifically refers to the buying
and selling of goods or services over the internet, while e-business is a more
comprehensive term that covers a wider range of online business activities.
Answer to the question no.1.(b)
Information asymmetry refers to a situation where one party in a transaction has more
information than the other party. In such a scenario, the party with more information
can use it to their advantage, which can result in an unfair outcome for the other party.
For example, a seller may have more information about the quality of a product they
are selling than the buyer. In such a case, the seller may use their knowledge to sell a
lower quality product at a higher price, resulting in a disadvantage for the buyer.
Similarly, in the context of financial markets, insiders may have access to non-public
information that they can use to make profits at the expense of other investors.
As for e-commerce technology, some unique features include:
1. Global reach: e-commerce technology allows businesses to reach customers all over
the world, which can greatly expand their customer base.
2. Lower costs: e-commerce technology can reduce the costs associated with physical
stores, such as rent, utilities, and staff.
3. Personalization: e-commerce technology can use data to personalize the shopping
experience for customers, such as recommending products based on their browsing
history.
4. Convenience: e-commerce technology allows customers to shop at any time and
from any location, providing greater convenience.
5. Faster transactions: e-commerce technology can facilitate faster transactions,
reducing the time it takes for customers to receive their purchases.
6. Data analytics: e-commerce technology can provide businesses with valuable data
about customer behaviour, preferences, and purchasing patterns, which can help
them improve their marketing strategies and product offerings.
Answer to the question no. 2. (a)
A business model is a framework or a plan for how a company will create, deliver, and
capture value. It describes the way a business generates revenue and makes a profit.
A business model typically includes elements such as the target market, the value
proposition, the revenue streams, the cost structure, and the key resources and
activities required to deliver the value proposition.
A business plan, on the other hand, is a written document that outlines the strategies
and tactics that a company will use to achieve its goals. It typically includes a detailed
description of the business model, as well as information on the market, competition,
management team, operations, and financial projections.
While a business model and a business plan are related, they are not the same thing.
A business model is a high-level description of how a company creates and captures
value, while a business plan is a more detailed roadmap that outlines the steps a
company will take to achieve its goals. In other words, a business plan is a document
that outlines how a company will execute its business model.
 Answer to the question no. 2. (b)
E-commerce technology has had a profound impact on the travel industry, leading to
significant changes in its industry structure. Here are some of the unique features of
e-commerce technology that have changed the travel business:
1. Online Booking: The ability to book travel products and services online has
fundamentally changed the way people plan and purchase their travel. With the
availability of online booking platforms, travel agents are no longer the only option for
customers to make travel arrangements.
2. Price Comparison: E-commerce technology has enabled consumers to easily
compare prices for flights, hotels, rental cars, and other travel services. This has
increased competition among suppliers, resulting in lower prices for consumers.
3. Personalization: E-commerce technology allows travel companies to collect and
analyse customer data to offer personalized recommendations and experiences. This
has led to a more tailored approach to travel planning and increased customer loyalty.
4. Direct Sales: E-commerce technology has made it easier for suppliers to sell directly
to consumers, bypassing intermediaries like travel agents. This has led to a more
fragmented industry structure, with suppliers competing directly with each other and
traditional travel agents.
5. User Reviews: Online user reviews and ratings have become a significant factor in
consumers' decision-making process when selecting travel products and services. This
has increased transparency in the industry, leading to improved quality and customer
satisfaction.
Overall, e-commerce technology has disrupted the traditional travel industry structure
by empowering consumers with more choices and increasing competition among
suppliers. The industry has become more customer-centric, with personalization and
user reviews playing a crucial role in shaping customer experiences.
Answer to the question no. 2. (c)
The three generic business strategies for achieving a profitable business are:
1. Cost leadership: This strategy involves achieving the lowest cost of production and
distribution in the industry. This can be done by achieving economies of scale, reducing
overhead costs, and optimizing the supply chain. Companies that pursue a cost
leadership strategy typically offer products or services at a lower price than their
competitors while maintaining acceptable levels of quality.
2. Differentiation: This strategy involves offering a unique product or service that sets
the company apart from its competitors. This can be achieved by developing
innovative products or services, offering superior customer service, or establishing a
strong brand image. Companies that pursue a differentiation strategy typically charge
a premium price for their products or services.
3. Focus: This strategy involves targeting a specific niche market or customer group
and offering products or services that meet their specific needs. This can be achieved
by specializing in a particular product or service, targeting a specific geographic region,
or serving a specific customer demographic. Companies that pursue a focus strategy
typically have lower overhead costs and can charge higher prices for their specialized
products or services.
It is important to note that these strategies are not mutually exclusive, and companies
can pursue a combination of these strategies to achieve profitability. For example, a
company may pursue a cost leadership strategy by optimizing their supply chain while
also differentiating themselves by offering superior customer service.
Answer to the question no. 3. (a)
The origin of the internet can be traced back to the 1960s, when the US Department
of Defence created a communication network called ARPANET. The purpose of
ARPANET was to allow researchers to share information and resources, and it was
designed to be resilient in the event of a nuclear attack. Over time, ARPANET grew to
include universities and other research institutions, and it eventually evolved into the
internet we know today.
Here are some of the key technology concepts behind the internet:
1. Packet switching: The internet uses a packet-switched network, which means that
data is divided into small packets and sent across the network independently of each
other. This allows for more efficient use of network resources and enables data to be
sent quickly and reliably.
2. Transmission Control Protocol (TCP) and Internet Protocol (IP): TCP/IP is the
protocol suite used by the internet. TCP is responsible for ensuring that data is
transmitted reliably and in the correct order, while IP is responsible for routing data
across the network.
3. Domain Name System (DNS): The DNS is a system that translates domain names
(such as www.google.com) into IP addresses. This allows users to access websites using
easy-to-remember domain names instead of having to remember a string of numbers.
4. World Wide Web (WWW): The WWW is a system for organizing and accessing
information on the internet. It uses a protocol called HTTP (Hypertext Transfer
Protocol) to transfer data between web servers and web browsers.
5. Hypertext Mark-up Language (HTML): HTML is the language used to create web
pages. It allows content creators to define the structure and layout of web pages using
tags and attributes.
6. Web browsers: Web browsers are software applications that allow users to access
and view web pages on the internet. Popular web browsers include Google Chrome,
Mozilla Firefox, and Microsoft Edge.
These concepts and technologies have enabled the internet to become a powerful tool
for communication, information sharing, and commerce, and have paved the way for
many of the technologies we use today.
Answer to the question no. 3. (b)
Today's internet has revolutionized the way we communicate, access information, and
conduct business. However, there are limitations to the current internet infrastructure
that can hinder its performance and security. Some of the limitations of today's
internet include:
1. Security: The internet is susceptible to cyber-attacks, and data breaches can lead to
the theft of sensitive information. Current security protocols, such as firewalls and
encryption, can be breached by sophisticated attackers, which puts users' privacy and
security at risk.
2. Speed and reliability: Although internet speeds have increased over time, there are
still areas of the world that have limited or slow internet connectivity. Additionally,
internet connectivity can be affected by outages, weather events, and other factors
that can disrupt service.
3. Centralization: The internet is largely controlled by a small number of large
corporations and governments, which can limit the ability of individuals and small
businesses to compete on an equal footing.
4. Data privacy: There are concerns about the amount of personal data collected by
internet companies and how that data is used. There is also a lack of transparency
about how data is collected, stored, and shared.
The internet of the future has the potential to overcome some of these limitations and
unlock new capabilities. Here are some potential capabilities of the future internet:
1. Increased security: Future internet technologies could use advanced encryption and
authentication techniques to ensure that data is secure and that users are who they
say they are.
2. Greater speed and reliability: Technologies such as 5G wireless networks, fibber-
optic connections, and satellite internet could provide faster and more reliable
internet connectivity.
3. Decentralization: The internet of the future could be more decentralized, with block
chain technology enabling peer-to-peer transactions and greater control over data.
4. Enhanced privacy: Future internet technologies could incorporate better privacy
protections, such as zero-knowledge proofs and differential privacy, to ensure that
users' data is protected and that they have more control over their personal
information.
Overall, the internet of the future has the potential to be faster, more secure, more
private, and more decentralized, enabling new applications and services that are not
possible with today's internet.
Answer to the question no. 3. (c)
The internet and web features and services are essential for the functioning of e-
commerce. Here are some ways in which they support e-commerce:
1. Online shopping platforms: The internet and web allow for the creation of online
shopping platforms, which provide a marketplace for businesses to sell their products
and services directly to consumers. These platforms can be customized to suit the
needs of individual businesses and can be accessed from anywhere in the world.
2. Payment gateways: Payment gateways allow customers to securely make online
payments using credit cards, debit cards, or other payment methods. These gateways
are integrated into e-commerce platforms and provide a seamless payment
experience for customers.
3. Product information and reviews: E-commerce websites provide detailed product
information and customer reviews, which help customers make informed purchasing
decisions. This information can include product specifications, images, videos, and
user-generated content.
4. Search engine optimization (SEO): SEO is the practice of optimizing a website's
content and structure to rank higher in search engine results pages. This helps
businesses to attract more traffic to their e-commerce websites and increase sales.
5. Social media integration: Social media platforms such as Facebook, Instagram, and
Twitter can be integrated with e-commerce websites, allowing businesses to reach a
wider audience and promote their products and services.
6. Logistics and delivery services: The internet and web also support the logistics and
delivery of e-commerce products. Delivery services can be integrated with e-
commerce platforms to provide real-time tracking information and automated
delivery notifications.
Overall, the internet and web features and services play a critical role in supporting e-
commerce. They provide the infrastructure, tools, and platforms necessary for
businesses to sell their products and services online, and for customers to make
purchases securely and conveniently.
Answer to the question no. 4. (a)
The old economy and new economy are terms used to describe the differences
between the traditional industrial economy of the 20th century and the modern digital
economy of the 21st century. Here are some key differences:
1. Production: In the old economy, production was primarily based on physical goods
and manufacturing, while the new economy is focused on digital products and
services. The new economy relies on software, data, and digital technologies to create
value.
2. Employment: The old economy was characterized by stable, long-term employment
in large corporations, while the new economy is characterized by a more flexible,
entrepreneurial workforce. The new economy has also led to the rise of the gig
economy and the sharing economy, where people can work as independent
contractors or participate in collaborative consumption.
3. Technology: The old economy relied on traditional technologies such as machinery,
while the new economy is characterized by digital technologies such as cloud
computing, artificial intelligence, and the Internet of Things. These technologies have
enabled new business models and transformed industries such as finance, healthcare,
and retail.
4. Globalization: The new economy is more globalized than the old economy, with
companies able to easily reach customers and partners around the world using digital
technologies. This has led to increased competition and the rise of new economic
powers such as China and India.
5. Business models: The new economy has given rise to new business models such as
e-commerce, sharing economy, and freemium, which were not possible in the old
economy. These models are characterized by greater flexibility, innovation, and
customer engagement.
Overall, the old economy and new economy are fundamentally different in their
approach to production, employment, technology, globalization, and business models.
The new economy is more dynamic, innovative, and global, while the old economy was
more stable and focused on traditional manufacturing and employment.
Answer to the question no. 4. (b)
The Internet has brought about a number of advantages for firms and consumers alike.
Here are some of the key advantages:
Advantages for Firms:
1. Increased reach: The Internet allows firms to reach a much wider audience than
traditional marketing methods. By creating a website, businesses can reach customers
all over the world, 24/7.
2. Lower cost: The Internet has lowered the cost of doing business for many firms.
Online marketing is often less expensive than traditional marketing, and e-commerce
can reduce the cost of sales, distribution, and customer service.
3. Improved customer service: The Internet allows firms to interact with customers in
real-time, which can improve customer satisfaction and retention. Online support
forums, catboats, and social media platforms can help firms respond quickly to
customer queries and feedback.
4. Enhanced data collection and analysis: The Internet provides firms with vast
amounts of data about their customers and operations. By using analytics tools, firms
can gain insights into customer behaviour, preferences, and purchasing patterns.
5. Increased innovation: The Internet provides a platform for innovation, with many
firms using crowdsourcing and open innovation to develop new products and services.
Social media platforms also provide a means for firms to interact with customers and
gather feedback on new products.
Advantages for Consumers:
1. Convenience: The Internet allows consumers to shop and buy products from the
comfort of their own homes, at any time of the day or night. This saves time and effort,
and makes shopping more convenient.
2. Greater choice: The Internet provides consumers with access to a vast range of
products and services, from all over the world. This means that consumers have more
choice than ever before.
3. Lower prices: The Internet has increased competition among firms, which has led to
lower prices for consumers. Online retailers are often able to offer lower prices than
traditional retailers, due to lower overheads.
4. Improved information: The Internet provides consumers with access to a wealth of
information about products and services. Online reviews, ratings, and comparison sites
help consumers to make informed purchasing decisions.
5. Personalization: The Internet allows firms to personalize their products and services
to meet the specific needs and preferences of individual consumers. This can enhance
the overall customer experience and increase customer loyalty.
Overall, the Internet has brought about numerous advantages for both firms and
consumers, from increased reach and lower costs, to greater convenience and choice.
Answer to the question no. 4. (c)
Integrated e-marketplace systems can provide several key business capabilities,
including:
1. Increased visibility: An e-marketplace system can help businesses increase their
visibility to potential customers by making their products or services more easily
discoverable online.
2. Improved efficiency: E-marketplace systems can streamline the procurement
process by automating tasks such as order processing, invoicing, and payment.
3. Better supply chain management: E-marketplace systems can provide real-time
visibility into supplier inventory levels and lead times, allowing businesses to better
manage their supply chain and reduce stock outs.
4. Access to new markets: E-marketplace systems can help businesses access new
markets and customers that they may not have been able to reach through traditional
sales channels.
5. Enhanced collaboration: E-marketplace systems can facilitate collaboration
between suppliers and buyers by providing a common platform for communication,
negotiation, and dispute resolution.
6. Customization and personalization: E-marketplace systems can provide businesses
with tools to customize their offerings and services to meet the unique needs and
preferences of individual customers.
7. Data analytics and insights: E-marketplace systems can provide businesses with
real-time data and insights into customer behaviour, sales performance, and market
trends, enabling them to make more informed business decisions.
8. Improved customer experience: E-marketplace systems can provide a seamless and
convenient buying experience for customers, with features such as personalized
recommendations, user reviews, and 24/7 customer support.
Overall, an integrated e-marketplace system can provide businesses with a range of
capabilities to help them improve efficiency, reduce costs, access new markets, and
enhance the customer experience.
Answer to the question no. 5. (a)
Online payment modes are digital payment methods that allow individuals and
businesses to make and receive payments over the internet. Here are some of the most
common online payment modes:
1. Credit and Debit Cards: This is the most popular online payment mode. Consumers
can make payments using their credit or debit cards on e-commerce websites, online
marketplaces, and other online platforms.
2. Digital Wallets: Digital wallets are becoming increasingly popular as a mode of
online payment. Popular digital wallets include PayPal, Skrilla, and NE teller, among
others. These wallets allow users to store and transfer funds online, without the need
for a bank account.
3. Bank Transfers: Bank transfers are another popular online payment mode. Users
can transfer funds from their bank accounts to other accounts using online banking
platforms.
4. Mobile Payments: Mobile payments are gaining popularity in some regions. Users
can make payments using mobile apps such as Google Pay, Apple Pay, and Samsung
Pay.
5. Cryptocurrencies: Cryptocurrencies are digital currencies that can be used to make
online payments. Bitcoin is the most well-known cryptocurrency.
In Bangladesh, online payment modes are still in their early stages of development,
but there is great potential for growth. The government and private sector have taken
steps to promote the use of digital payments, with initiatives such as the launch of a
national payment switch and the introduction of mobile financial services.
In recent years, mobile banking and digital wallets have gained popularity in
Bangladesh, with companies such as bKash, Rocket, and Nagad leading the way.
However, credit and debit card usage is still relatively low, and cash remains the most
popular payment method.
Overall, online payment modes have great potential in Bangladesh, and with the right
infrastructure and policies in place, they could revolutionize the way people make and
receive payments in the country.
 Answer to the question no.5. (b)
Online payment methods have both advantages and disadvantages. Here are some of
the most common pros and cons:
Pros:
1. Convenience: Online payment methods are very convenient, allowing users to make
transactions from anywhere and at any time, without the need to visit a physical
location.
2. Security: Online payment methods are generally secure, with built-in encryption and
other security measures to protect users' personal and financial information.
3. Speed: Online payments are generally processed faster than traditional payment
methods such as checks and bank transfers.
4. Cost-Effective: Online payments can be cost-effective for both consumers and
businesses, with lower transaction fees compared to traditional payment methods.
5. Improved Record Keeping: Online payment methods can help businesses and
individuals keep track of their transactions and financial records, with online records
that are easily accessible and searchable.
Cons:
1. Security Risks: While online payment methods are generally secure, there is always
the risk of fraud, hacking, and identity theft, which can result in financial loss for
consumers and businesses.
2. Technical Issues: Online payment systems can be prone to technical issues, such as
server downtime, system crashes, and glitches, which can cause delays and other
problems.
3. Dependence on Technology: Online payment methods require users to have access
to technology, such as a computer or smartphone, and a stable internet connection,
which can be a limitation for some users.
4. Limited Acceptance: Not all merchants accept online payment methods, which can
limit the options available to consumers.
5. Fees: While online payment methods are generally cost-effective, some services
may charge fees for certain transactions, which can add up over time.
Overall, online payment methods offer many advantages, but they also come with
some potential risks and limitations. Users should carefully evaluate their options and
take steps to protect their personal and financial information when using online
payment methods.
Answer to the question no. 6. (a)
Security challenges are a major concern for any electronic business, and it's important
to implement measures to protect against potential risks. Here are some common
security challenges and protection measures for electronic businesses:
1. Unauthorized Access: One of the biggest risks facing electronic businesses is
unauthorized access to sensitive information, such as customer data or financial
information. Protection measures include implementing strong access controls, using
multi-factor authentication, and regularly updating passwords.
2. Malware and Viruses: Malware and viruses can infect a business's computers and
compromise sensitive data. Protection measures include using antivirus software,
regularly scanning for malware, and training employees on safe browsing habits.
3. Phishing and Social Engineering: Phishing and social engineering attacks are
designed to trick users into giving up sensitive information. Protection measures
include training employees on how to recognize and avoid phishing emails, using email
filters to block suspicious emails, and implementing security protocols to prevent
social engineering attacks.
4. Data Breaches: Data breaches can occur when sensitive information is accessed or
stolen by unauthorized individuals. Protection measures include implementing strong
encryption protocols, using secure data storage systems, and regularly testing security
systems for vulnerabilities.
5. Payment Fraud: Payment fraud is a common risk for electronic businesses,
particularly those that accept online payments. Protection measures include using
secure payment gateways, implementing fraud detection and prevention tools, and
regularly monitoring payment activity.
6. Insider Threats: Insider threats can come from employees, contractors, or other
individuals with access to sensitive information. Protection measures include
implementing strong access controls, monitoring employee activity, and regularly
conducting security audits.
Overall, electronic businesses must take a multi-faceted approach to security,
implementing a variety of protection measures to mitigate potential risks and protect
against security threats. It's also important to stay up-to-date with the latest security
threats and to regularly review and update security protocols to ensure maximum
protection.
 Answer to the question no. 6. (b)
There are several security requirements that must be met to ensure safe electronic
payments. Here are some of the key requirements:
1. Encryption: Electronic payment systems must use strong encryption protocols to
protect sensitive information, such as credit card numbers and personal information,
from being intercepted by unauthorized individuals.
2. Authentication: Electronic payment systems must use strong authentication
protocols, such as two-factor authentication, to ensure that only authorized users can
access payment information and make transactions.
3. Authorization: Electronic payment systems must have strong authorization
protocols in place to ensure that only authorized transactions are processed.
4. Fraud Detection: Electronic payment systems must have robust fraud detection and
prevention measures in place, including real-time monitoring of payment activity, to
detect and prevent fraudulent transactions.
5. Secure Networks: Electronic payment systems must use secure networks, such as
SSL or TLS, to protect against network-based attacks and to ensure that payment
information is transmitted securely.
6. PCI Compliance: Electronic payment systems must comply with Payment Card
Industry (PCI) Data Security Standards, which set forth requirements for protecting
payment card data.
7. User Education: Electronic payment systems must educate users on safe payment
practices, including how to recognize and avoid phishing scams and other types of
online fraud.
Overall, safe electronic payments require a combination of technical security measures
and user education to protect against fraud, theft, and other security threats. It's
important for electronic payment systems to stay up-to-date with the latest security
threats and to implement robust security protocols to ensure safe and secure
payments.
Answer to the question no. 7. (a)
Internet Protocol (IP) is a set of rules and standards used for communicating data over
the internet. IP provides a standardized way for devices to communicate with each
other by breaking down data into smaller packets and routing them through the
internet.
Internet addresses, also known as IP addresses, are numerical identifiers assigned to
every device connected to the internet. IP addresses are used to identify and route
data to and from devices on the internet. There are two versions of IP addresses: IPv4
and IPv6.
IPv4 addresses are 32-bit numbers expressed in dotted-decimal format (for example,
192.168.0.1), and are the most commonly used IP addresses. However, the supply of
available IPv4 addresses is limited, which has led to the development of IPv6. IPv6
addresses are 128-bit numbers expressed in hexadecimal format (for example,
2001:0db8:85a3:0000:0000:8a2e:0370:7334), and provide a much larger pool of
available addresses. IPv6 addresses are slowly being adopted as the internet evolves
and more devices become connected.
Internet addresses are an essential component of the internet infrastructure, allowing
devices to communicate with each other and enabling users to access online resources
from anywhere in the world.
Answer to the question no. 7. (b)
There are several options available for connecting to the internet, including:
1. Dial-up: Dial-up internet access uses a telephone line and a modem to connect to
the internet. Dial-up is a relatively slow and outdated method of connecting to the
internet, and is not commonly used anymore.
2. DSL: DSL (Digital Subscriber Line) is a broadband internet connection that uses the
same telephone line as a dial-up connection, but provides faster speeds by using a
different frequency range than voice calls.
3. Cable: Cable internet access uses a coaxial cable to deliver internet service over the
same lines used for cable TV service. Cable internet can provide higher speeds than
DSL, but the quality of service can vary depending on the number of users in a
particular area.
4. Fiber: Fiber internet access uses fiber optic cables to transmit data over long
distances at very high speeds. Fiber internet is the fastest and most reliable option
available in many areas, but is also the most expensive.
5. Satellite: Satellite internet access uses a satellite dish to receive and transmit data
to and from the internet. Satellite internet can provide internet service in remote areas
where other types of internet access are not available, but is often slower and more
expensive than other options.
6. Mobile: Mobile internet access uses a cellular network to provide internet service
to mobile devices such as smartphones and tablets. Mobile internet can be convenient
for users who need to access the internet on the go, but can be expensive and may
have data usage limits.
Overall, the best option for connecting to the internet will depend on a variety of
factors, including location, speed and bandwidth requirements, and cost.

Year 2018
Answer to the question no. 1. (a)
E-business is the use of information technology, the Internet, and digital media
to facilitate the buying and selling of goods and services, as well as the
communication of business information and transactions. It is a way of doing
business that allows companies to reduce costs, increase efficiency, and remain
competitive in the global marketplace.
1. "E-business is the use of electronic networks and technologies to conduct
business transactions and operations, facilitate communication, and manage
relationships with customers, suppliers, and employees." - KPMG
2. "E-business is the process of buying, selling and exchanging goods and
services over computer networks such as the internet." - Microsoft
3. "E-business is the use of digital technologies to enable organizations to better
interact with customers, suppliers, partners, and other stakeholders to create
and deliver value." - Gartner
4. "E-business is the use of the internet and other digital technologies to enable
organizations to better manage their business processes and operations, as
well as to create and deliver value to their customers." - IBM
Answer to the question no. 1. (b)
E-commerce is a type of e-business and refers to the buying and selling of
products and services over the internet. It is the process of electronically buying
and selling goods and services on the internet. E-business is a broader term
and includes activities such as e-marketing, e-banking, e-tendering, and e-
procurement. It includes all activities related to the management of electronic
business transactions. It involves the exchange of information, data and money
over the internet. It is an umbrella term used to describe all kinds of business
activities that are conducted electronically.
Answer to the question no. 1. (c)
Indicators that suggest e-commerce is here to stay include an increasing
number of purchases being made online, a growing number of online stores and
services, and a shift in consumer habits towards digital channels. The growth of
online shopping is likely to continue as more people become comfortable with
digital technology and the convenience of shopping online.
Additionally, businesses are recognizing the potential of e-commerce and are
investing in digital technologies to improve their customer experience. Finally,
the increasing availability of mobile devices and faster internet speeds will likely
continue to drive e-commerce growth.
Answer to the question no. 2. (a)

1. Low Cost: Internet marketing is much more affordable than traditional forms
of marketing, such as television and print ads.
2. Targeted Audience: By using search engine optimization and other
marketing tools, you can target specific audiences with your internet marketing
campaigns.
3. Measurable Results: Unlike traditional forms of marketing, you can measure
the success of your internet marketing campaigns in real time.
4. Reach: A well-executed internet marketing campaign can reach people all
over the world.
5. Brand Building: You can create a strong brand by using internet marketing
to reach customers, build relationships, and create loyalty.
6. Increased Visibility: Proper internet marketing can attract more customers
to your business and increase your visibility in the marketplace.

Answer to the question no. 2. (b)

Traditional Marketing: Traditional marketing includes traditional media such
as print, television, radio, direct mail, etc. It is expensive and requires a lot of
planning and implementation. It also requires a wide reach to potential
customers.
E-Marketing: E-marketing is digital marketing that uses the internet and other
digital devices such as mobile phones. It is cost effective, requires less planning
and implementation, and has a wider reach than traditional marketing. It also
allows for more targeted and personalized campaigns. Additionally, e-marketing
campaigns can be tracked and measured for effectiveness.
 Answer to the question no. 2. (c)
A customer relationship management (CRM) system helps organizations
manage customer relationships by providing an organized view of customer
data and interactions. From a marketing perspective, a CRM system can
provide a number of benefits.
First, a CRM system can help businesses better understand their customers.
By gathering and analyzing customer data, businesses can gain insights into
customer preferences and behavior, allowing them to create more targeted and
effective marketing campaigns.
Second, a CRM system can help businesses streamline their marketing
processes. By automating manual processes, such as sending emails and
generating reports, businesses can save time and resources that can be used
elsewhere in the marketing mix.
Third, a CRM system can help businesses track the performance of their
marketing campaigns. By tracking and analyzing customer engagement,
businesses can better understand which campaigns are successful and which
need to be improved.
Finally, a CRM system can help businesses build strong relationships with their
customers. By sending personalized messages and providing tailored customer
service, businesses can create a sense of trust and loyalty with their customers.
Answer to the question no.3 . (a)
The key difference between the old and new eCompany lies in its structure and
approach. The old eCompany was structured as a traditional business, with a
hierarchical structure and centralized decision-making. The new eCompany
takes a more decentralized approach, with a flat organizational structure that
enables teams to work more collaboratively and make decisions more quickly.
Additionally, the new eCompany utilizes a more agile approach when it comes
to launching products and services, allowing them to quickly adapt to changing
customer needs. Finally, the new eCompany is more focused on building
customer relationships and loyalty, leveraging data and analytics to better
understand customer needs and drive more personalization in their offerings.
Answer to the question no.3 . (b)
Advantages of using the internet for firms and consumers include:
1. Cost Savings: The internet can reduce operational costs for businesses by
streamlining communication, marketing, and customer service processes. It
also allows for more efficient and cheaper delivery of goods and services.
Consumers can benefit from lower prices due to the increased competition and
transparency that the internet provides.
2. Increased Reach: The internet offers businesses and consumers access to
a global market, allowing firms to expand their customer base and consumers
to access a much wider range of products and services.
3. Increased Productivity: Businesses can improve their productivity through
the use of online tools such as cloud computing and data analytics. Consumers
can also benefit from improved productivity by using the internet to conduct
research and compare products and prices.
4. Improved Communication: The internet provides businesses and
consumers with a range of communication options such as email, social media,
and video conferencing. This can improve customer satisfaction and help firms
to build relationships with their customers.
5. Enhanced Security: The internet provides businesses with a range of
security measures such as two-factor authentication and encryption that can
help to protect customer data and reduce the risk of fraud. Consumers can also
benefit from improved security measures when
Answer to the question no.3 . (c)
1. Shopping Cart: The shopping cart feature of an integrated e-marketplace
system allows customers to add and remove items from their order, as
well as view the total cost of their purchase
2. Payment Processing: Integrated e-marketplace systems provide
payment processing features, allowing customers to pay for their purchases
using a variety of payment methods, such as credit cards, PayPal, and more.
3. Product Catalog: An integrated e-marketplace system includes a product
catalog, which allows customers to browse and search for items to purchase.
The catalog is typically organized into categories and includes product
images and descriptions, as well as pricing information.
4. Order Management: Integrated e-marketplace systems provide order
management features, allowing vendors to track orders, fulfill orders, and
provide customer service. This includes features such as order tracking,
order history, and order status updates.
5. Analytics and Reporting: Integrated e-marketplace systems allow
vendors to analyze customer data, track sales, and generate reports. This
includes features such as sales and marketing analytics, customer
segmentation, and more.
 6. Security: Integrated e-marketplace systems provide a variety of security
features, such as fraud prevention, encryption, and authentication.
Answer to the question no.4 . (a)
E-business strategy is a business plan that focuses on the use of electronic
technologies, such as the Internet, to enable a business to increase its sales,
expand its customer base, and/or reduce its costs. It is typically used to enable
a business to become more competitive in the marketplace by utilizing
technology to offer new products or services, or to increase the speed and
efficiency of existing products or services.
Answer to the question no.4 . (b)
The strategic process of e-business consists of five key steps:
1. Establishing Goals: Establishing the goals and objectives of the e-business
is the first step in the strategic process. This involves determining the purpose
of the e-business and the type of products and services it will offer.
2. Market Research: The next step is to conduct market research to identify
potential customer needs and wants. This includes researching customer
demographics, competitors, industry trends, and other relevant data.
3. Developing a Strategy: After gathering the necessary data, the business
can develop an appropriate strategy to meet the goals and objectives. This
includes creating a competitive advantage, determining the appropriate
technology and systems, and creating a business model.
4. Implementing the Strategy: The next step is to implement the strategy. This
involves developing the necessary technology and systems, creating a website,
and launching the e-business.
5. Evaluating Performance: Finally, the business must evaluate the
performance of the e-business to ensure it is meeting its goals and objectives.
This includes gathering feedback from customers, monitoring sales and other
metrics, and making changes as needed.
Answer to the question no.4 . (c)
Differentiation Cost Leadership Strategy: The Differentiation Cost
Leadership strategy involves offering a differentiated product for a lower price
than competitors. A company can gain a competitive advantage by offering
higher quality features than the competition at a lower cost. This strategy is often
used by businesses that have a strong brand, such as Apple, and can charge a
premium for their products. Examples of companies that have adopted a
Differentiation Cost Leadership strategy include Apple, Dell, and Amazon.
 Focus E-Business Strategy: The Focus E-Business strategy involves
targeting a specific group of customers and providing them with a specialized
product or service. This strategy is often used by businesses that are able to
understand the needs of their target market and tailor their offerings to fit those
needs. Examples of companies that have adopted a Focus E-Business strategy
include Alibaba, Etsy, and eBay.
Answer to the question no.5 . (a)
Customer Relationship Management (CRM) is a system used to manage a
company’s interactions with current and potential customers. It uses data
analysis about customers' history with a company to improve business
relationships with customers, specifically focusing on customer retention and
ultimately driving sales growth. CRM systems can consist of a combination of
software and services that allow organizations to manage customer data, track
customer interactions, and automate various customer service processes.
Answer to the question no.5 . (b)
1. Web Designers: These are professionals who are responsible for creating
and maintaining websites, including the design, layout, coding, and content.
They are well versed in web technologies such as HTML, CSS, and JavaScript.
2. Digital Marketers: These specialists are responsible for creating marketing
campaigns and strategies to promote an e-business. They use various digital
channels such as search engine optimization, pay-per-click advertising, social
media, and email marketing to reach target audiences.
3. E-Commerce Specialists: These are professionals who are responsible for
setting up and managing e-commerce platforms. They are knowledgeable in
payment gateway integration, inventory management, shipping and logistics,
customer service, and other related tasks.
4. Social Media Experts: These are experts who are responsible for managing
an e-business’s presence on various social media platforms. They are proficient
in content creation and developing campaigns to increase engagement.
5. SEO Experts: These professionals are responsible for optimizing an e-
business’s website for better search engine rankings. They use various
techniques such as keyword research, content optimization, link building, and
more to improve visibility and rankings.
6. Business Analysts: These specialists are responsible
Answer to the question no.5 . (c)

1. Define Your Business Model: Start by outlining what your e-business does
and how it will make money. Include details such as the types of products or
services offered, target markets, pricing strategies, and any unique advantages
your business has.
2. Establish Your Business Goals: Establish short and long-term goals for
your e-business. Identify what you want to achieve in the next three to six
months, as well as in the next year and beyond.
3. Outline Your Business Strategy: Determine how you will reach your goals,
including the strategies and tactics you will use to acquire customers, increase
revenue, and grow your business.
4. Establish Your Marketing Plan: Develop a comprehensive plan to promote
your e-business. Include the channels you plan to use, such as search engine
optimization (SEO), social media, and email marketing.
5. Outline Your Financial Plan: Calculate the costs associated with launching
and running your e-business. Include expenses such as web hosting,
advertising, and any software or tools you will need.
6. Set Up Your Infrastructure: Determine what tools and software you need to
run your e-business, such as accounting and customer
Answer to the question no.6 . (a)
Performance of e-business refers to the effectiveness of an organization's
online presence. This includes factors such as website usability, customer
service, product selection, ease of ordering, delivery speed, and customer
satisfaction. Performance of e-business also includes the ability to measure,
track, and analyze the organization’s online performance.
Answer to the question no.6 . (b)
1. Develop a Unique Value Proposition: Create a unique value proposition
that differentiates your business from those of competitors. This will help you
stand out and better explain why customers should choose your products or
services over those of your competitors.
2. Utilize Digital Platforms: Utilize digital platforms such as social media, email
marketing, search engine optimization, and paid search to reach potential
customers and promote your business.
3. Deliver Exceptional Customer Service: Deliver exceptional customer
service and build relationships with customers through personalization and
responsiveness.
 4. Invest in Data-Driven Strategies: Use data-driven strategies to identify
customer preferences, analyse market trends, and develop targeted
campaigns.
5. Monitor Competitor Activity: Monitor the activities of your competitors to
stay ahead of them and gain insights into their strategies.
6. Leverage Automation: Leverage automation and artificial intelligence to
streamline processes, reduce costs, and improve efficiency.
7. Pursue Strategies for Growth: Pursue strategies such as product
innovation, partnerships, and expansion into new markets to drive growth and
gain competitive advantage.
Answer to the question no.6 . (c)
E-business is expected to continue its rapid growth over the next few years and
beyond. This is largely due to the increasing adoption of digital technology, the
widespread availability of high-speed internet access, and the growth of mobile
device usage. As e-businesses become more sophisticated, they will provide
customers with more personalized experiences, making it easier to purchase
goods and services online. Additionally, e-businesses will be able to leverage
data analytics to more accurately target customers with products and services
based on their individual needs and preferences. Furthermore, advancements
in automation and artificial intelligence (AI) will enable e-businesses to deliver
even more personalized and optimized customer experiences. Finally, the use
of blockchain technology in e-commerce is expected to increase, allowing for
greater security and trust in online transactions.