Answer to Question 1
In addition to buying materials and selling computers, the company must also undertake many other activities to convert the purchased materials into computers. These activities might include hiring and managing the people who make the computers, renting or buying the facilities in which the computers are made and stored, shipping the computers, maintaining accounting records, obtaining customer feedback, purchasing insurance, and developing advertising campaigns.
Answer to Question 2
Traditional commerce, rather than electronic commerce, can be a better way to sell items that rely on personal selling skills. For example, sales of commercial real estate involve large amounts of money and a high degree of interpersonal trust. Even if commercial real estate is listed online, it will usually require personal contact to negotiate the deal.
Answer to Question 3
The increase in broadband connections in homes is a key element in the B2C component of the second wave. The increased use of home Internet connections to transfer large audio and video files is generally seen as the impetus for the large numbers of people spending the extra money required to obtain a broadband connection during the second wave. The increased speed of broadband not only makes Internet use more efficient, but it also can alter the way people use the Web. For example, a broadband connection allows a user to watch movies and television programs onlinesomething that is impossible to do with a dial-up connection. This opens up more opportunities for businesses to make online sales. It also changes the way that online retailers can present their products to Web site visitors.
Another group of technologies emerged in the second wave that made new online businesses possible. The general term for these technologies is Web 2.0, and they include software that allows users of Web sites to participate in the creation, editing, and distribution of content on a Web site owned and operated by a third party. Sites such as Wikipedia, YouTube, and Facebook use Web 2.0 technologies.