E-Commerce and IVECO Ltd.

E-Commerce and IVECO Ltd.

E-Commerce and IVECO Ltd.

Introduction

E-commerce is defined as "business activities conducted using electronic data transmission via the Internet and the World Wide Web". E-commerce provides many benefits to both buyers and sellers. With minimal capital expenditure, a company using e-commerce can easily and quickly locate best suppliers, more customers, and the most suitable business partners worldwide. This is especially important for developing countries and SMEs since by using e-commerce they might be able to reach other markets that otherwise would be very difficult to access. Buyers could also benefit from accessing global markets and having larger product availability from a wider variety of sellers.

Discussion

E-commerce has a lot of unique benefits that traditional commerce could not achieve. First of all, e-commerce provides new channels for delivery of products. Traditionally, products can only reach consumer via retailers, store branches. Now with the new technology of e-commerce, consumers can browse over the Internet and order online. Products can be delivered immediately. Secondly, distribution costs are reduced. Traditional distribution channels add 135% to the cost of a manufactured item; e-commerce enabled manufacturer to consumer will only add 10% . Traditional bank transaction costs are £1.07; e-commerce transaction will cost about 1 cent. Traditional airline ticket costs £8 to process; e-ticket will cost just £1. These differences make lower cost and higher efficiency possible. (Aaker, 2011)

IVECO Ltd.

Iveco is a global supplier and manufacturer of commercial trucks, diesel engines and parts. Iveco supplies the United Kingdom with first class products.  As a main participant in the transport world , Iveco is an global palyer in the manufacture, development, servicing and marketing of a huge variety of heavy light , and medium commercial automobiles.

Business Summary

Iveco is a company in the Fiat Group. Co. is an global manufacturers of diesel engines and commercial vehicles. Co.'s products are divided into 4 distinguishable business divsions: The Vehicles Division including: Light Commercial Vehicles, Meduim Trucks and Heavy Trucks;  including buses and a complete range of fire fighting and rescue vehicles; The Parts Division including: Spare Parts, Original Parts, Recycled Parts and Iveco Shop product line; The Used Truck Division; and the Automotive Engine Division. Co. also provides the following services: Financial; After Sales and Technical Center.

Key Financials

(In EUR as of 12/31/2010)

Income Statement

Revenue

9,755m

Net Income

-497m

Balance Sheet

Total Assets

10,846m

Total Liabilities

9,748m

Shareholders' Equity

1,098m

Net Assets per Share

42.82

Cash Flows

Cash from Operations

460m

Cash from Investing

-1,050m

Cash from Financing

956m

With seven production sites in Europe, the company's Eurofire group offers a range of fire fighting and rescue vehicles for all applications and uses. Iveco produces its own fire engine chassis, Alufire superstructure system and the group's series of Eurofire pumps. Four main companies make up the Eurofire group.

Magirus manufactures turntable ladders and articulated ladder platforms with a rescue height of 32 to 54 meters are produced under the brand name Magirus Snorkel. Lohr-Magirus manufactures vehicles for the Austrian market, South Tyrol and for neighboring Eastern European countries. Iveco Mezzi Speciali is headquartered in Brescia, Italy and it produces air crash tenders, special vehicles, forest ...