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As a promising trading platform, e-business is growing rapidly. E-business markets are also at their most advanced stage of development. Together with the rapid-development of Internet technology, e-business will grow further in the future.

E-business is 'technology-mediated exchanges between parties (individuals, organisation, or both) as well as the electronically based intra- or interorganisational activities that facilitate such exchanges' (Rayport, F. J. and Jaworski, J. B. 2001: 3).

In this paper, I choose the on-line imaging service of Kodak and Fuji as the samples and analyse their e-business mode accordingly. As two main competitors in imaging industries, Kodak and Fuji lead this industry for a long time. In today's Internet-driven business environment, both Kodak and Fuji involve themselves into e-business and apply this business mode into their new product/service - on line imaging service.

The Definition of Product/Service

The Introduction to The Concept of Product/Service

Customers want to meet certain needs and seek products or service to satisfy them. Once the customer's need are known, the company can then develop the range of products and service to meet them. According to Philips Kotler's definition (1991: 199), product consists with three aspects: core product, actual product and augmented product. Core product is the core benefit which customers seek. Actual product contains the physical parts of a product including brand, features, quality and packaging etc. While augmented product is the additional benefits, such as pre- or post-sales service, delivery, credit terms etc.

In today's Internet-driven business environment, product/service has extended its concept and form more widely. The blurring of industry boundaries and technological innovation bring out many opportunities for companies to develop product/service to meet customers' need. However, in e-business environment, it takes almost the same product idea we mentioned above and therefore we can define Kodak and Fuji's product in their e-business mode accordingly.

The Definition of Kodak's Product/Service

Kodak has a range of products/services available to be traded on-line. Here we will focus on its two types of e-business: Kodak Photonet online (http://www.kodak.com/US/en/photoNet/aol/) and Ofoto digital print (http://www.ofoto.com).

Kodak sets up Kodak Photonet online (Refer to Figure 1) together with AOL (America On line) (http://www.aol.com) for on-line traditional imaging business, which links 38,000 retail stores to help customers process their films and get copy of the pictures online in addition to getting the prints. Through this on-line service, users can email selected photos to friends and family, invite others to view the pictures online and even order reprints and photo gifts online without negatives.

Moreover, to build its on-line digital imaging business, Kodak took over Ofoto digital print (Refer to Figure 2), the most successful company in on-line digital imaging business, through acquisition in June 2001. With its own processing centre, Ofoto digital print is an online photography service whose core mission is to provide silver halide prints for digital and film camera users. It gives photographers a new and easier way to store and share their pictures with family and friends. Once online, these photos can be easily edited or enhanced. Customers can even have prints and other photo-related ...
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