COURSE

E - COMMERCE

Lecturer: Hà Hiền Minh

Email: hahienminh.cs2@ftu.edu.vn

CONTENT

- Chapter 1: Introduction to e-commerce

- Chapter 2: The e-commerce business models
- Chapter 3: Building an e-commerce website
- Chapter 4: E-marketing
- Chapter 5: Digital signature

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 GRADING CRITERIA

- Attendance: 10%
- Mid-term score: 30%, includes
+ 10%: mid-term test
+ 20%: Group project
- Final test: 60%

GROUP PROJECT

• Idea: (50%)
+ Product? (10%)
+ Customer? (10%)
+ E-commerce business models? (30%)

• Technology: (50%)
+ Website: content (10%); context (10%)
+ Extensions (20%): at least 4
+ E-marketing tools (10%)

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 Notice

- Attending on the presentation day is required. Anyone who

absent will get the grade deducted 30%. If you have an
appropriate reason, the grade will be deducted 10%;
- Before the presentation, each group should check the
possibility of connecting your laptop to the projector;
- Preparing presentation before class to avoid wasting time to
correct mistakes.

TEXTBOOK

Kenneth C. Laudon & Carol

Guercio Traver, 2021-2022, E-
commerce: business. technology.
society

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 REFERENCES

1. E-commerce textbook (published by Foreign Trade

University)
2. Vietnam E-commerce Report (from 2005 to 2022)
3. www.vecom.vn (VN e-commerce Association)
4. www.idea.gov.vn (VN e-commerce and Digital
economy Agency)
5. Newspaper, books.....

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 SCHEDULE

SESSION CONTENT
Day 1 Overview of this course

Day 2 - 4 Chapter 1: Introduction to E-commerce

Day 5 - 7 Chapter 2: The E-commerce Business Models

Chapter 3: Building an E-commerce website
Day 8
Practice at class
Day 9 - 10 Chapter 4: E-marketing

Day 11 Chapter 5: Digital signature

Day 12 Mid-term test

Day 13 - 15 Group report + Guest speaker

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 Group discussion

Discuss the following questions:

WHAT ARE
PROMINENT
EVENTS/
APPLICATIONS OF
E-COMMERCE IN
RECENT YEARS?

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1. User-generated content, published online as social network posts, continues to grow and provides a method of self-publishing that
tweets, blogs, and pins, as well as video and photo-sharing, engages millions.
as Facebook comes under fire for allowing third parties such as
2. Social networks encourage self-revelation, threatening privacy, Cambridge Analytica, device makers, and app developers to mine its
database of user information without user consent.
storing consumer content and software on “cloud” (Internet-based)
3. Cloud computing completes the transformation of the mobile
servers and making it available to any consumer-connected device, from
platform by
the desktop to a smartphone.
4. Concerns increase about increasing market dominance of Facebook, leading to calls for government regulation in both the European Union
Amazon, and Google, and the United States.
there is substantial agreement among online distributors and copyright
5. Conflicts over copyright management and control continue, but
owners that they need one another.
comprised of billions of Internet-connected devices, continues to grow
6. The Internet of Things (IoT),
exponentially.

7. Concerns over commercial and governmental privacy invasion increase.

continues to decline as major companies are hacked and lose control

8. Online security
over customer information.
9. A mobile computing and communications platform based on
a reality, creating an alternative platform for online transactions,
smartphones, tablet computers, wearable devices, and mobile apps
marketing, advertising, and media viewing.
becomes
10. On-demand service e-commerce produces a flood of temporary, poorly paid jobs without benefits.

11. Although global economic activity declined in 2020 due to the B2B e-commerce revenues remained stable and are expected to
pandemic, continue to increase.
12. Small businesses and entrepreneurs continue to flood into the e- often riding on the infrastructures created by industry giants such as
commerce marketplace, Apple, Facebook, Amazon, Google, and eBay.
Amazon Echo and Google Home become increasingly popular,
13. Smart speakers such as
providing an additional platform for e-commerce.
sophisticated software called business analytics (or web analytics) that
14. In order to make sense out of big data, firms turn to can identify purchase patterns as well as consumer interests and
intentions in milliseconds.
15. Spam remains a significant problem.

CHAPTER 1

INTRODUCTION TO E - COMMERCE

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Chapter 1: Introduction to E-commerce

1 History of E-commerce

2 Definition of E-commerce

3 The overview of Vietnam E-commerce

4 Pros and Cons of E-commerce

1. History of E-commerce

2007 – Present:
REINVENTION
2001 - 2006:
CONSOLIDATION

1995 – 2000:
INVENTION

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 1. History of E-commerce

1995 – 2000: INVENTION

• A period of explosive growth and extraordinary I...
• Key e... were developed and explored
• Thousands of d… companies were formed
• The first widespread use of the web to a… products
• A period which was characterized by experimentation,
capitalization and hypercompetition;

1. History of E-commerce

2001 - 2006: CONSOLIDATION

• A more approach rather than
technology-driven
• became more important than creating
new things
• Financing as capital markets start-
up firms

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 1. History of E-commerce

2007 - Present: REINVENTION

• A period of reinvention involving the extension
of Internet technologies, the discovery of new
business models based on consumer-generated
content, social networking and virtual online
lives.

EVOLUTION OF E-COMMERCE

1995 - 2000 2001 - 2006 2007 - Present

Mobile technology enables

Technology - driven Business - driven social, local, and
mobile commerce

Revenue growth Earnings and profits Audience and social network

emphasis emphasis connection emphasis

Smaller investments; early

Venture capital financing Traditional financing small firm buyouts by large
online players

Stronger regulation and Extensive government

Ungoverned
governance surveillance

Entrepreneurial social and

Entrepreneurial Large traditional firms
local firms

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 EVOLUTION OF E-COMMERCE

1995 - 2000 2001 - 2006 2007 - Present

Proliferation of small online

Strengthening intermediaries renting
Disintermediation
intermediaries business processes of larger
firms

Continuation of online
Imperfect markets, brands market imperfections;
Perfect markets
and network effects commodity competition in
select markets

Return of pure online

Mixed “bricks and clicks” strategies in new markets;
Pure online strategies
strategies extension of bricks and clicks
in traditional retail markets

EVOLUTION OF E-COMMERCE

1995 - 2000 2001 - 2006 2007- Present

Strategic follower First-mover advantages return

First-mover advantages strength; complimentary in new markets as traditional
assets web players catch up

Low complexity retail High complexity retail

Retail, services and content
products products

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1. History of E-commerce

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8 UNIQUE FEATURES OF E-COMMERCE TECHNOLOGY
Internet/Web is available everywhere: at work, at home
and elsewhere via mobile devices, anytime
The technology reaches across national boundaries,
around the Earth
There is one set of technology standards, namely
Internet standards

Video, audio and text messages are possible

The technology works through interaction with the user

The technology reduces information costs and raises

quality
The technology allows personalized messages to be
delivered to individuals as well as groups

User content generation and social networking

2. Definitions of E-commerce

The narrow sense

The broad sense (Definition of UNCTAD)

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 2.1. Definition of EC in narrow sense

E-commerce is the buying or selling

of goods and services over electronic
means and telecommunication
networks, especially computer and
the Internet .

ELECTRONIC MEANS

An electronic means is a means that operates based on

electric, electronic, digital, magnetic, wireless, optical,
electro-magnetic technologies or similar technologies.
Source: Clause 10, Article 4, Law on e-transactions,
No. 51/2005/QH11

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 TELECOMUNICATION NETWORKS

▪ Telephone landline network;

▪ Cable television network;
▪ Mobile network (cellular network: 3G, 4G, 5G);
▪ Internet (wifi??? Wireless network)
▪ Intranet/ Extranet;

COMMERCIAL ACTIVITIES

Commercial activities mean activities for the purpose

of generating profits, including: sale and purchase of
goods, provision of services, investment, commercial
promotion and other activities for the profit purpose.
Source: Clause 1, Article 3, Commercial law,
No. 36/2005/QH11

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 2.2. Definition of EC from UNCTAD

Horizontal definition of E-commerce -

Enterprises’ concerns: MSDP

Vertical definition of E-commerce:

Governments’ concerns: IMBSA

theo góc độ nhà quản lý: chính phủ/ các doanh nghiệp
IMBSA: phải viết theo đúng thứ tự. Đây là các cấp độ để phát triển
hoạt động thương mại điện tử
Infrastructure (internet và world wide web) - message (thông điệp, dữ liệu) - basic law - specific law - application
3 luật: luật giao dịch điện tử, luật cntt, luật viễn thông
tại sao thông điệp dữ liệu

MSDP

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 E-Marketing

E-marketing activities
• Market research
• Website marketing
• E-mail marketing
• Search engine marketing
• Mobile marketing
• Social networks
•…

E-sales

• Place an order online

• Shopping cart
• Customer database
• Traffic management
• Automated sales process

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 E-distribution

Downloads (digital goods): Digital goods are commodities or

products that exist in a digital form, something that can be sold
and consumed online.

Effective improvement of distribution system (traditional

goods)
• E-logistics
• E-customs
• E-C/O
• E-warehouse
• E-supply chain management
• E-delivery management

E-payment

E-commerce payment systems:

• Credit card
• Digital wallet
• Digital cash
• Online stored value payment
systems
• ....

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 IMBSA

Infrastructure

Internet: an interconnected network

• 1961 – 1974: innovation phase
• 1975 – 1994: institutionalization phase
• 1995 – present: commercialization phase

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 Infrastructure

Infrastructure

Internet: an interconnected network

• 1961 – 1974: innovation phase
• 1975 – 1994: institutionalization phase
• 1995 – present: commercialization phase
World wide web / Web
• Web 1.0
• Web 2.0
• Web 3.0, 4.0

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 Web 3.0

It is the “executable” phrase of Word Wide Web with

dynamic applications, interactive services, and
“machine-to-machine” interaction. Web 3.0 is a
semantic web which refers to the future. In Web 3.0,
computers can interpret information like humans and
intelligently generate and distribute useful content
tailored to the needs of users.

Message

A data message means information created,

transmitted, received and stored by electronic
means.

Source: Clause 12, Article 4, Law on e-transactions,

No. 51/2005/QH11

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 Message

Legal validity of data message

Information in data messages cannot have its
legal validity disclaimed for the sole reason that
it is expressed in the form of data messages.
Source: Article 11, Law on e-transactions,
No. 51/2005/QH11

Basic & Specific Rules

Basic
Rules

(Source: Vietnam E-commerce Report)

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 Basic & Specific Rules

Specific
Rules

(Source: Vietnam E-commerce Report)

Definition of EC by Laudon

E-commerce is the use of the

Internet, the Web, and apps to
transact business. More formally,
digitally enabled commercial
transactions between and among
organizations and individuals.
Source: Laudon, 2015

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 NOTE 1

1. “Brick and mortar” business model: physical stores

2. Virtual (pure-play) business model (click and

browse): online stores

3. “Click and mortar” (brick and click) business model:

physical + online stores

NOTE 2

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 NOTE 3

E-commerce E-business

Primarily involves the

Primarily involves
application of digital
transactions that cross
technologies to business
firm boundaries
processes within the
firm

NOTE 3

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 3. The overview of VN E-commerce
- ECVN portal hosted by the Ministry
of Industry and Trade was officially
put into operation from 8/2005
- Law on E-transactions was
approved in 11/2005 and effected
from 03/2006
- 6/2006: published Law on 2011
information technology
- 25/6/2007: Vietnam E-commerce 2009
Association was established
2007

2005

Overview of VN E-commerce

2011
2009

2007 - 6/2008: establish Root Certification Authority

(belong to Authority of Information and
Communications application)
- Implement TrustVn program (13/6/2008)
2005 - E-payment gateway “Smartlink – MasterCard”
was launched on 16/3/2009
- Law on telecommunication was approved in
11/2009

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 Overview of VN
- Enterprises E-commerce
strongly applied specialized software
(such as: CRM, SCM, ERP...) and started using
online public services provided by state agencies
(such as: electronic tax filling, electronic customs,
electronic import/export procedures, electronic
C/O...)

2011
2009

2007

2005

Overview of VN E-commerce

2011
2009
- Marked the end of 5 years’
implementation of the Master
2007
Plan on E-commerce
Development for the 2006 –
2010 period.
2005

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 Overview of VN E-commerce
- Implementing the Master
Plan on E-commerce
Development for the 2011-
2015 period and 2016-2020
period

2011
2009

2007

2005

3. The overview of VN E-commerce

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 4. Pros and Cons of E-commerce

4. Pros and Cons of E-commerce - Pros

Reduce cost,
Increase revenue

Build and develop

To the customer relationship
Business

Improve
competitiveness

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 4. Pros and Cons of E-commerce - Pros

Lower price

To the
Customer

More convenience

4. Pros and Cons of E-commerce - Cons

Lack of security

To the
Customer

Breakdown of
human relationships

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4. Pros and Cons of E-commerce

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