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History and Lines of Business in Rakuten - Case Study Example

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The paper "History and Lines of Business in Rakuten " is a perfect example of a business case study.   An electronic business which is commonly abbreviated as e-business is identified as the application of ICT information and communication technologies done to support the activities of the business…
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BUSINЕSS FUNDАMЕNTАLS Student’s Name Course Professor’s Name University City (State) Date An electronic business which is commonly abbreviated as e-business is identified as the application of ICT information and communication technologies done to support the activities of the business. The electronic commerce mainly focuses on the use of ICT which helps in making certain that the external activities and relationships of the business with individuals, e-business and groups are conducted in an effective manner over the internet. The world is slowly becoming a global village where business is done over the internet; corporations are also making strides to attract new and overseas clients where they wish to expand new international markets. This study seeks to discuss the various themes of e-business that needs to show how they can be used by the organisation to bring benefits and value. It will also highlight the areas that the business operates in where it will provide recommendations and benefits that will bring better and potential risks that may be encountered. It will discuss the business operation of Rakuten Ichiba e-commerce site which is based in Japan but also does its business in Europe and England in specific. This will provide a better understanding of the relevant themes of e-business that helps in benefiting the business. History and lines of business in Rakuten Rakuten group of companies consist about forty businesses and services which are all provided to their clients. It is largely involved in online retail which is conducted in a number of countries within the Asia and Europe regions. It also offers banking, payments and credit that are offered to personal consumer credit services which include banking services, card loans, and mortgages services. The corporation also offers portal and media where it is responsible for managing portal sites and also acts as a gateway to the internet through performing internet based activities. Connectively Rakuten also offers operations such as hotel bookings, and other travel related services such as booking for transport services. Recently, the business has also entered into the services where it provides services such as online securities and brokerage. Lastly, it offers professional sports services such as managing of professional teams, planning and selling related merchandise and performing other related activities such as online video club and international shipping. The business offers about 95million products to more than 40,000 merchants E-Business Themes These are business portfolios that are created to provide consumers and clients with a link and navigation abilities within the website. Connectively, they are the central, ideas and messages that are used in producing a cumulative effect on the effects of the individual disconnect. Commonly, businesses and corporations use navigation themes with the intent of ensuring that they provide effective and efficient information for running the business and attracting more clients. The themes are custom made to ensure they bring value and benefits as they act as self-care navigation where the customers can get their intended information on a different aspect of life. Within this company, the different themes are created where a customer is required to sign into the website even before signing in; there is a wide variety of products that the consumer can peruse and choose to purchase. After signing into the website, products are divided and classified as per categories from sports, beauty, electronics, foods, jewellery, toys and other accessories among others. From each category, there is a wide range of products which then goes until one is able to select their most favourable product they wish to purchase. Online purchase system such as purchasing using PayPal, credit and debit card is used in purchasing. The client is also required to provide a shipping address to ensure that the product reaches the intended client in an effective manner. Through the use of these themes, the company remains better equipped to use the internet as a business tool. Themes should also ways have updates on the prevailing market conditions; there should be a choice from the customer on whether t get updates notifications as soon as they arise. This facilitates the compatibility with the latest version. Additionally, Rakuten should provide its customers with all theme updates. This makes them remain informed on developments made by the organisation. A website that can be said to be running smoothly is identified as the most effective and comprehensive way through which an effective business is conducted. According to Rakuten website, it is evident that all the themes are localised, this is effective to ensure that there is an easy translation. There are files that come in different languages additionally; a user may choose their most preferred language, whether English or Japanese. Through universal language inclusion consumers and buyers from almost all over the world are well taken care of. It is possible to attract consumers from all over the world in a situation where their need sand desired are considered (Stevens 2006).  Themes should have a secure and valid code; businesses are advised that their themes should have W3C compliant and should also undergo through frequent security audits. Rakuten should ensure the themes are always audited for any error or gap the may allow malicious persons to exploit and use them for their ill motivates. The themes should also guarantee a level of premium and best services. It Is important to ensure the browser is compatible with all available search engines that are in the market among the search engines includes Firefox Mozilla, chrome, internet explorer, opera mini, and yahoo among others. Compatibility facilitates the website to perform well for every person who wishes to visit the website. To ensure that the themes are appealing in a beautiful manner the themes should have at least nine unique colour schemes to help ensure that there is a style that effectively suits the different needs of consumers and clients. Lastly, unparallel support should be assured in establishing a top-notch technological support to all the customers. The hiring of dedicated support staff ready and trained to answer any question for effective customer care services. Connectively, one can also ensure they have a blog that is up and running without a hitch. Web sites that keep on crashing after sometimes means that customer will not receive any service during such times. Additionally, they may lose faith in the organisation due to lack of dependability. Dependability absence ensures that Benefits of Using E-Business The benefits that are realised from the use of business can be classified into three sections; this includes the organisation benefits, production and customer benefits. Within the organisation perspective, the organisation has the ability to have a more and flexible infrastructure. Through the use of e-business, the infrastructure needed largely includes large warehouses, and effective transport system from the rail, road air to water transport. This ensures that the business will effectively grow in a more and rapid manner. This infrastructure is flexible therefore can be transported to any desired destination (Zimmerman 2003).  Connectively, the organisation, benefits from an enhanced business intelligence and information management. The information gathered from the website mainly from the clients is useful in decision making, an informed decision largely depends on the value and quality of information that the managers and other decision makers have in an organisation perspective (Post 2002). Through such information, the managers within the organisation have better and enhance information intelligence which is commonly used in steering the organisation into greater heights. The process of using e-business helps in making certain that the business will be operated in an intelligent manner through information management (Stevens 2006).  Through the use of e-business, Rakuten organisation has the ability to access a global accessibility and sales reach. As opposed to the brick and mortal centralised type of business, e-business can be conducted anywhere; the client only needs to have the internet then connect with the business and make orders. Payments are also made online making the process convenient. In today’s technology, the Client is allowed to go through the inventory asking about the specifics of each and every piece of product that is sold on the market. With that information, they are then allowed to make their decision on which product they choose to purchase and also make price negotiations. In other cases, the online auction process is conducted, the highest bidder is then allowed to carry the item home. This has helped in revolutionising the market and also opening it as opposed to the previously geographical limited market share (Post 2002). With increased market share, the company enjoys increased number of sales made; more clients will be buying more products which imply increased revenue hence increased profit generation. Business intelligence is largely interested in activities that businesses may be able to take to ensure effective competition and decision making that is conducted online. It also helps businesses to achieve efficiently and quicker trends that may lead to better decisions Information about activities that a small business may grow (Schenck 2012). Better and faster decision are realised by the application of e-business managers and other policy makers within a given business ensure they use information collected from the wider scope of business to ensure effective and conducive business operations. Since the managers deal with involving problems within the organisation. In a situation where a problem is identified, then faster and better decisions are made which ensure that the organisation is run in an effective manner (Rosen 2000). Due to e-business, the organisation’s activities are conducted in higher efficiency the producers know the different needs and desires of the clients that it serves. This makes the production team work towards the satisfaction of such needs. Additionally, it becomes more efficient since the whole production procedure is identified, tested and approved by the relevant authorities. There is a pronounced learner chain where the organisation learns from other companies, the clients and the market (Laudon & Traver 2002). Additionally, sharing of information that fosters effective learning process ensure that there is better utilisation of resources which facilitates the reduction of wastage within the production process. With the learner value chain, the business has the ability to identify any type of barriers that may exist within the organisation (Reid & Plank 2004). Through such measures method to prevent or avert any unforeseen and foreseen business calamity can be implemented to ensure that there is an effective and speedy delivery of services. Additionally, where barriers are identified, organisational measures to promote and facilitate customer satisfaction. To ensure such barriers are removed the World Wide Web (WWW) that prevents development. It brings more advantages to the small businesses online ordering system that can process payment and orders that are made in real time. Connectively, it is also possible to store and also access any desired product, information online, catalogues and services (Nast 2006).  This helps in saving the time and money that is required to mail, print and also transport the information. Other products w such as files, music, e-books, and application are easily hosted and then downloaded directly from the vendor’s site which implies that there is no any type of physical inventory delays and shipping expenses. It is important to ensure and also cultivate future solutions. Through the use of World Wide Web Lastly, the organisation benefits from implementation of solutions to ensure the barriers are removed (Post 2002). Higher employee engagement is realised from e-business since Rakuten will be able to ensure that its employees are all engaged in various activities. There are customers from Europe and the world at large this means that the customers need to be served in a continuous process. Connectively, it is important for the managers to have duties and tasks to the employees. This will facilitate effective and comprehensive pre-assigned engagement in a better way (Ray 2013). Training and development among the employees facilitate engagement which in turn ensures that the employees are better and well equipped to handle simple to complex responsibilities. Higher employee’s engagement in Rakuten is identified as the sole reason for the speedy organisation development and growth. Customers are well and timely served this creates loyalty which facilitates repeat purchase from the company (Nelson 2016). Reduced cost generates high net profits, due to e-business most cost are reduced. The internet is used in marketing and promotion of the product. It then facilitates wider customer reach with little or no cost at all. Additionally, there is no need to have huge offices and headquarters buildings to house the employees. Even through virtual employees business activities can be conducted across continents over the internet (Laudon & Traver 2002). It is better and simpler to conduct business over the internet compared to face to face transactions. This is due to reduced travel cost, time wastage when making travel arrangements and making certain that there will be no any mistakes made. For any clarification required, the customer or the vendor can make a call to ensure the right products and services are offered. E-businesses are slowly turning to be the most famous for the low-cost start-up when compared with the traditional and highly appreciated brick and mortar businesses. This is due to the removal and reduction of barriers to entry to the market (Nelson 2014). Moreover, People are now able to start their e-business and also remain employed in their previous jobs since they will only need the internet to connect to their customers and then carry out their businesses in an effective manner. Due to technological advancement, less costly and more reliable it is now easier to conduct business over the internet. One only needs a computer and internet access; this internet provides one with more access to launch run a business over the internet as compared to having personal contact with people over a limited geographical region. This helps in making certain that cost is reduced, which then facilitated effective and equitable development (Neapolitan & Jiang 2007). E-business saves money, which is used for customer service, this is by making that the client's accounts information are all available on the internet, here, customers have the ability to check their accounts whenever they feel like it. Through the creation of a customer service, within the website, Rakuten allows its customers to make requests returns and product authorization. Customers can also make a request for particular clarification of information that they may not understand. Through such measures, the customer service value is increased to service levels while ensuring that there is effective lowering of the cost of doing business. According to the statistics conducted in the year 2010, it was found out that consumers bought more than $35 billion worth of products and services from the internet. In the same year, there were more than 1.1 trillion online advertisements that were created in the same period to market different products. With an intention, finding new products and vendors. This implies that the number have grown over the past six years where many people have moved to the internet and online shopping since they can do their shopping anywhere in the service of the earth as opposed to where one need to walk into a mall and make their desired shopping. More efficient and effective marketing programs are realised through the adoption of e-business (Laudon & Traver 2002). In e-business, every person within the transaction is deemed as equal in that it is difficult to tell how big the business is. A well developed and maintained website may look impressive, even better than established organisation. The looks can attract or send people away from the website, therefore; creation of a strong website is effective as a level playing field that helps to create an opportunity for small businesses. E-business through an internet order interface that are commonly hooked directly to the inventory software facilitates the customers to make orders from the company anytime they wish (Chaston, & Mangles 2002). Here, it is easy to have money on hiring a sales staff through opening an order-entry section on the website for clients that may make smaller orders. Although security on websites has continued to be a worry due to the risk of getting hacked by malicious intent users, the vast and continued improvement in e-commerce security are whittling away the danger. People are afraid of conducting business online since they bank, credit or personal information may be used for malicious reasons. It is also possible to get a virus; hackers attacked that may lead to loss of important data, customers, and products or sometimes even pull the site down. The use of internet and online security measures such as signatures, encryption and firewalls has proven to be an effective way of making certain that information is never lost (Hutt & Speh 2007) E-business provides the ability to widen the availability of information in an inclusive manner. Clients have the chance to research about the product being bought they will also investigate the prices assigned to different products. Through information found from such sources, it is possible to ensure the clients get what they ask for and value for their money. Additionally, the organisation representatives do not need to go through the rips and bounds explaining different products to their customers. Additionally, e-business provides better and closer relationship, both for the business and the customers. Due to the feeling of dealing directly and individually, the customers are assured of a closer relationship between them and their dealers. Connectively, every customer gets shipped directly to their desired address. They are also given a way through which they can track their commodities hence making certain they are provided by their products (Hayes 2013). How to Expand E-Business The main reason for the establishment of a business is profit generation and capital development and growth. Almost every business starts up to ensure it have a continued growth and development. E-businesses also need to be nurtured for effective development. For the managers and decision makers in recent organisation to facilitate the development of the business into the global capacity there are vital elements that they should consider. Since the business is e-business, it should have the ability to reach a new customer base which includes the overseas with much ease. First, it is important for the managers think local and then globally (Glover, 2001). Secondly, establish the business within the local region; this should be used as a litmus test before rolling the business to the globe. Any mistakes, shortcoming and gaps realised at the local region should be closed. Effective measures should also be taken to ensure that the products and services will be having a unique and different brand compared to the existing products (Chaston, & Mangles 2002). For every region, it is important to rethink each marketing strategy and the shopping experience of people in such areas. The managers should conduct a market research on the marketing trends, cultural and demographic characteristics that may help to shape the marketing dimensions. Measures should also be taken to accommodate the regional expectations. Here, globalisation should be credited as the only way through which brand trust and credibility that is useful for success in a global scale (Films for the Humanities & Sciences 2014). The managers should also create a better, detailed and repeatable regional rollout plan that can easily adapt to each market. The process of developing a test comprehensive plan that can be effectively used in the creation of local sales presence appreciable by the local market. Later the management should then make the plan broad enough to apply within the available local based on region to each region that is targeted for expansion. The plan is the laid out in a way that forms the local partnership that will then be needed and provide guidance to the local teams or other partnerships which may be needed and then provide guidance to the local teams and partners that will work with them. Connectively, the plan should identify the market characteristics and customer preferences that may be included within the globalisation plan. Customer preferences should be made since they tend to differ from one region to the other. The social class analysis of the target market helps in product positioning within the market and the pricing strategy. The plan is used as a road map which the business is required to follow when rolling out the business into the global market (Nast 2006). Any deviation from the strategic plan should also be made in a way that ensures better and effective comprehensive coverage of the business (European Court of Auditors 2014).  The management should make certain that the e-commerce site has the ability to accommodate local languages and customs. The site is used in the creation of a first impression to the mind of the potential customers. How the sites look like is likely to either attract or send away potential customers. For example, a company wishing to establish itself in the Asia and more specific Arab countries, it should ensure it observes the culture of the people within the region (Chaston, & Mangles 2002). This includes ensuring photographs of women do not wear any kind of revealing clothes which could be done in an American market without any worry. About language, straight translation is never an enough and conducive answer. The use of local language is considered friendly, where every context is made to adapt the content to a new market, the language should be made with excellent grammar and which then resonates with the shoppers in that market. The feeling of being respected by the organisation is achieved; this makes the customers to feel as if they are part of the company as they can comfortably claim and be associated with such cooperation with ease (Chaston, & Mangles 2002). A pricing and tax compliance strategy should be developed, different regions and countries have diverse tax-collection regulations. Organisation should have an accounting procedure, rules and infrastructure. This is helpful since it reduces the liability exposure in the event of an audit process. Since taxes on e-commerce operations are complex due to the involvement of the local nexus issues, different currencies, and export regulations (Singer 2012).  Moreover, the product and service pricing process should coincide with the local market realities. This means they should not be highly or low priced. It is important to ensure that every of items displayed should be displayed as per the local currency. Connectively, it is important to make sure that the prices are in line with the local expectations and averages. Pricing the products higher than the local prices makes the products to receive little of no purchases as they are considered to be expensive hence unaffordable. Additionally, low pricing of products makes people think the products and services are of low quality. It is common for people to use prices and money as a measure of the quality of a given product (Chaffey 2009). A scalable e-commerce infrastructure design should be created where a step by step global expansion strategy should be rolled out. Every step should be watched in a convenient manner to accomplish this at every stage the expansion in mind when defining the back end processes (Nast 2006). A cloud-based infrastructure and better and secure off-site technology resources that are made to ease the expansion. The infrastructure should also offer features such as flexible automation to allow the policy makers to expand to new global markets in a quick manner. This is important as the expansion is done without reinventing the company each time growth and expansion strategies are rolled out. Managers should also create operations plans which are aimed at delivering robust logistics and support abilities (Chaffey 2015). During the process of launching e-commerce, e-business and e-marketing operations within the worldwide markets, it is imperative for the employees and other stakeholders to ensure they build a network that has the abilities to handle logistics and the local level. This includes detailed supply chain and transportation plans that are based on information accessed from local teams and has the know-how of walking through every stage. This includes the ordering stage, payments, transport to the delivery of the products to the end user or the buyer (Singer 2012). The management should also ensure that it provides reliable 24/7 customer care support through the customer –service representatives who are well familiar with the local languages skills. The customers should feel a connection with the intention of maintaining a high level of customer satisfaction which is an essential part of the creation and development of a brand (Branch 2009).  Section B How Well You/Your Team Performed On the Task Since the team was composed of different people with diverse abilities and skills, the task was divided and assigned based on people skills; small groups were given different tasks to ensure maximum participation, attention and care on each task. Before the division into groups, the team leader communicated the different stages of development that we were expected to go through; team members were encouraged to work for the common good of the team and ask any question (Singer 2012).  The decision was taken and implemented by the entire team. The team vision, mission and commitment were reiterated. This provided guidelines and focus team members were encouraged to work on tasks that they found interesting which would increase their capabilities and knowledge. With the right information on what each group was expected to do the team went ahead to carry out the different tasks. Group leaders were chosen by the created group members where the team leader delegated most of the task to the group leaders. Among the responsibilities delegated included decision-making duties, communication and conflict solving (Lasater & Stiles 2010). To ensure people were appreciated every suggestion was taken into considerations without being ignored. New ideas were supported as a way of showing gratitude for each and every contribution that every group members did to the organisation. The team leader acted as the overall supervisor who was involved in making certain that organisational activities were implemented at the highest level. Individual support to each team members through managing every member in an individual scope was instrumental as it encouraged creativity hence creation of a healthy competition which facilitated the creation of w good working environment. This lead to an early and comprehensive finish of the task (Lencioni 2004).  How well did you work as a Team? Where there any Particular Issues or Challenges Here Since the task was to be completed as a team, then every person within the team was required to contribute to the task. Here, every member was made aware of the collective vision which made sure that there was a continued concentration on the task ahead. The team leader was responsible for communicating the ideas, concerns and other arising matters to the team. Communication was both ways where the team leaders and team members could contribute to any topic (Parkin et al 2014). Challenging task were allocated as a way of making certain that the group members are growing through developing their skills while making sure that the tasks under question are all reachable in the frames of person interest. A team spirit was encouraged where the team was seen as a small version of family, within this team mutual trust, support and important values were deemed as most important. This encourages success through creation and maintenance of a powerful team spirit at the workplace (Fischer & Vassen 2011).  However, working with a large number of people is prone to challenges, within this team task; it was evident that communication was not at what could be considered best. Some decisions were imposed on the group members. This lead to resistance since some of these decisions was through by the team member to have the potential of causing major faults on the task. Failure to communicate the reason for taken some drastic measures on the tasks made some members feel as if they were left behind on the implementation of the plan. Sometimes the team leader could assume some ideas without an explanation why she thought they were not as strong as others. The person contributing the ideas felt as If they were monumental there and their contribution was not welcomed or taken into consideration. It was also difficult for the team leader to give an explanation on each and every idea that she choose to drop out. Some ideas were also good but could not be applied for this type of task since it could be expensive and economica (Parkin et al 2014). How effective were the tools used to support this process The communication tools within an organisation are utilised in making certain that every member has the right information in a convenient and timely manner. The Internet and social media is a strong communication tool which can be accessed by authorised users within a business organisation for communication and collaboration. This proved to be a more flexible workforce communication tool that was instrumental in ensuring that all employees and team members were working towards the same goals (Stevens 2006). Here, chat rooms were also used in discussions on a given task where the team members shared their concerns, ideas and thought. Discussion forums where people show up and hold face to face discussions to bring out preferred communication. Here, team members can be more real as they do not hind behind a keyboard. The discussion forum is more successful compared to group chats over the internet. Other communication tools include memos and letter where there are used in making an announcement and communications. No reply or discussion can be conducted on this tool of communication (Nast 2006).  References Branch, A E. 2009. Global supply chain management and international logistics. New York: Routledge. Chaffey, D. 2015. Digital business and E-commerce management: Strategy, implementation and practice. Chaffey, D. 2009. E-business and e-commerce management: Strategy, implementation and practice. Harlow, England: FT Prentice Hall. Chaston, I, & Mangles, T. 2002. Small business marketing management. Houndmills, Basingstoke, Hampshire: Palgrave. European Court of Auditors,. 2014. Has ERDF support to SMEs in the area of e-commerce been effective?: (pursuant to Article 287(4), second subparagraph, TFEU. IFIP TC8/WG8.4 Working Conference on E-Business: Multidisciplinary Research and Practice, & Andersen, K. 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Sydney: Pan Macmillan. Post, J E., Preston, L E., & Sauter-Sachs, S. 2002. Redefining the corporation: Stakeholder management and organizational wealth. Stanford, Calif: Stanford Business Books. Ray, R. 2013. The Facebook guide to small business marketing. Hoboken, N.J: John Wiley & Sons, Inc. Reid, D A., & Plank, R E. 2004. Fundamentals of business marketing research. New York: Best Business Books. Rosen, A. 2000. The E-commerce question and answer book: A survival guide for business managers. New York, N.Y: AMACOM. Schenck, B F. 2012. Small business marketing kit for dummies. Hoboken, N.J: Wiley. Stevens, R E. 2006. The marketing research guide. New York: Best Business Books. Zimmerman, J. 2003. Marketing on the Internet: Seven steps to building the internet into your business. Gulf Breeze: Maximum Press. Read More
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