What’s your deadline? Role of eCommerce in Business. In the UK, the retail industry is very competitive and every company is looking for a competitive edge over the other. Accounting Education, 2(1), 567-582. For an e-commerce website, the costs of storing and referencing a product represent a small fraction of the cost as compared to the cost of storing and referencing a product for "physical" stores. E-commerce offers a different mode of performing trade throughout the world without the need for tangible contact between the buyer and seller. If you are the copyright owner of this paper and no longer wish to have your work published on IvyPanda. Convenient services appeared, IMPACT OF E-COMMERCE ON BUSINESS International Journal of Electronic Business, 4(5), 380-400. Prentice Hall. The reason for this is that customers will be provided with all necessary information regarding products and services available, information on progress on orders placed as well as deliveries. Today, the technology driving a business to success is the Internet, which can be used to buy and sell goods and services. E-commerce has also, Business Skills for E-Commerce Many people nowadays are excited to explore the application was provided into gadget such as mobile smartphone, tablet, Ipad, etc. Chaudhury, A. The electronic and social impact of e-commerce. The main way in which e commerce will affect the economy, in general, is its impact on productivity and inflation. Lacks physical proximity. Airlines are turning to e-commerce to keep business flying, and the reason they are focusing on selling tickets through their Web sites is that it is the cheapest distribution channel. This will be attained by novelty to have room for the needs and aspirations of customers from the ground. The work I provide is guaranteed to be plagiarism free, original, and written from scratch. However, there is little knowledge these firms have with regards to both advantages and disadvantages of adopting e-commerce. You can use them for inspiration, an insight into a particular topic, a handy source of reference, or even just as a template of a certain type of paper. 3. EDI (Electronic Data Interchange) is widely viewed as the beginning of ecommerce if we consider ecommerce as the networking of business communities and digitalization of business information. However, it is established that there are a host of drawbacks associated with e-commerce such as increase in criminal activities, ethical issues such as firing employees as a result of automating some tasks, technical issues, compatibility problems as well as legal implications. Bases on these pros and cons of adopting e-commerce, it would be rational for businesses to critically examine them and develop better strategies to curb some of these drawbacks. It is worth mentioning that. Similarly, working from home help reduces traffic congestions as well as cutting down air pollution (Bonnett, 2000). For full functionality of this site it is necessary to enable JavaScript. It is apparent that since the inception of computers and internet, everything particularly on how business is carried out has tremendously changed. This in turn will shape how the business strategizes on production. After capturing a global market, a firm can parcel out some production processes to other firms that offer goods and services similar to it. Today e-commerce has become a prominent trading approach for organisations and businesses alike and has made a considerable impact on society, and the way in which business is carried out on a global scale. Using internet to carryout business has been deemed to be the most current innovation in the world of business and offers an opportunity to businesses to carryout business through electronics. Although the current generation is capable of living up to this kind of idea, the older population is yet to embrace this kind of technology and they still prefer the human contact (Wyckoff & Colecchia, 2000). Firms have rushed to adopt e-commerce the belief that it will help them gain competitive advantages and increase their market shares as well as revenue. This will help even small firms to gain competitive advantage and increase their market shares. E-commerce and its use of the Internet will sell more products, increase revenue, and shape the future of production for businesses. E-commerce technologies have provided opportunities for business growth but have also presented the business world with many challenges (Nissanoff, 2006). professional specifically for you? 1. They later use these details to steal money from unsuspecting customers. It is also thanks to e-commerce that it has been possible to fill tax return forms on line and submit them on time (Seethamraju, 2006). E-commerce business models are different from traditional business models because e-commerce offers firms different market opportunities and changes organisations’ revenue models, competitive environments and advantages, which are core elements of a business model. It reduces transaction costs; allocates recourses better; increases economies of scale; improves the competitiveness of business in general; increases efficiency; generates important changes in the management and production processes of business. It is also a fact that most customers’ critic some business concerning the products and services it offers. (2020, January 14). The last section of the paper is the conclusion which entails a … A physical touch and smell of a product influence a person’s decision to buy it. Eisingerich, A. The next section is the main body tackling the impact of e-commerce to businesses. As noted previously, there is need to have this information in the public domain so that organizations are not misled that adopting e-commerce is a bed of roses. Indeed there are numerous advantages associated with this concept such as capturing new markets by allowing firms to go global, 24/7 operation, cutting costs among others. The continuous expansion of electronic commerce can lead to downward pressure on inflation through increased competition. Does it pay to be a first mover in e-commerce: The case of Amazon.com. One notable issue is what a firm will do with those employees for instance who work on business paperwork’s now that most of the things have been automated. Impact of E-Commerce on Business Process Redesign and Integration. Future Shop: How the New Auction Culture Will Revolutionize the Way We Buy, Sell and Get the Things We Really Want. Firms have rushed to adopt e-commerce which entails making transaction online with the belief that it will help them gain competitive advantages and increase their market shares as well as revenue. This will be very important since it will help them make informed decision as well as prepare them in developing better strategies that can help them overcome the negative impacts of such technology. However, one sure way some of the retail shops have been able to break off is through migration to e-commerce and turning their stores into e-business hubs. However, there is need for each and every organization to deeply and extensively consult before embarking in rolling the entire project, this is important as it will dictate the success and sustainability of the project. The problem statement is also clearly written down together with the objectives of the entire work. Examining the e-commerce important question is what impact ICT and the Internet have had on the productivity growth. Management Decisions, 38(7), 445-452. On the same note, e-commerce carries with it the advantage of doing business around the clock, 24/7. It is evident that e-commerce will help an organization to reach to a wider market not initially thought of (Kalakota & Whinston, 1997). Transformation in the Marketplace: ii. Marketing Management. It refers to the buying and selling of goods and services without using any paper documents to the customers through electronic medium (investorwords.com, 2016). Due to this, groceries and confectionery product e-business makes small profits. In a well thought out PowerPoint presentation, discuss the impact of e-commerce and digital technology for small business. It is worth noting that what this brings in elimination of the poor timing in production and possibly cutting down on wasting of resources and time. It is also changing how the government regulates online commerce. Thus it has a large economic impact. A clear understanding of this legal provision is key in ensuring that any emerging legal issues for instance differing prices advertisement can be handle with clear precedent. For instance there is concern about increase in crime rates that are not easily detected, the real time production of goods and services have and will continue to create stock crisis, there is potential of loss of resources as well as underutilization of the same (people will lose jobs and rates of disposed equipment will increase), unavailability of power, ICT manpower, telecommunication facilities leaves some communities especially in third world countries at a disadvantage, social division and broken human interaction that creates and nurture trust. According to Kalakota & Whinston, 1997 these include increase crime rates that are not easily detected, the real time production of goods and services have and will continue to create stock crisis, there is potential of loss of resources as well as underutilization of the same (people will lose jobs and rates of disposed equipment will increase), unavailability of power, ICT manpower, telecommunication facilities leaves some communities especially in third world countries at a disadvantage, social division and broken human interaction that creates and nurture trust. Less than ten years old and it already has radically altered the potential to economic activities and the social environment. Additionally in situations where there are serious complains, there is no perfect opportunity like face to face interaction. Throughout the decades ever since, technology was then on the road to sudden rapid expansion, with a big boom in new hardware, software and internet capabilities such as faster computer speeds, faster internet connections and efficient software. Pets.com, Inc.: Assessing financial performance and risks in the e-commerce industry. Development of computer technologies and Informational Age have established a strong scientific field called e-commerce.According to the scientific definition, it is a branch of economics which comprises all financial and trade transactions that are executed by networks and all related business processes. & Kretschmer, T. (2008). Laudon, K. & Traver, C. (2010). Advancement in technology has reshaped and revamped the way business is being done. Mellahi, K. & Johnson, M. (2000). With this come the concepts of convenience and reliability. Essay On E-Commerce. You are free to use it for research and reference purposes in order to write your own paper; however, you must. "The Impact of E-Commerce on Business." 2.1 Plan an e-Commerce implementation strategy for an e-Commerce business…………………………………………………………………..…….12 There are chances that after adopting the innovation, a new one is developed rendering the one adopted to be obsolete leading to a financial draw back especially if the entire project has not repaid the money invested in it (Seethamraju, 2006). With e-commerce, a business will be able to get various group segments directly especially via internet. Less than ten years old and it already has radically altered the potential to economic activities and the social environment. An e-business … There are nearly 200 million Internet users worldwide currently. Malcolm would later join the company in, The Importance Of A Independent Audit Is Stronger Than It Ever Has Been Essay, Results And Selection Of Study Selection Process Essay, Indian Investment And Trade : India Essay, Estimating Exchange Rate Volatility With Garch Models Essay, The And Finance Executives When It Is A Financing Option Of Last Resort Essay. As suggested by Coulter & Vogel, 2004 with the introduction of e-commerce, managers and line supervisors will be faced with very serious ethical issues that need to be addressed in time. Similarly the paper will give recommendations to businesses that desire to adopt e-commerce. It is however important to note that the full impact of e-commerce on an economy depends on several factors such as the rate at which the economy adopts e-commerce. An IBM Guide to Doing Business on the Internet. Adverse effects of e-commerce. It is worth noting that doing business around the clock will attract more potential customers especially those who do not have time to physically come to the offices to place an order. This paper has identified the pros and cons of adopting e-commerce. By 2003, the company had collapsed (Hoover, 2009). Mass customization and network production can be made possible by adopting e-commerce. To control this, there will be need to limit the kind of information accessible through the internet. E-commerce is a term describing a new and innovative more efficient way of doing business completely by use of the internet, to conduct trade dealings both on a national and global scale. Nissanoff, 2006 believed that E-commerce if introduced in an organization might help a firm to segment its market better by utilizing the demographic characteristics such as age, gender, price, interest, tastes and preferences of its potential customers, information that is usually easily collected online. E-business benefits little to the consumer in such cases. Bonnett, K. (2000). "The Impact of E-Commerce on Business." The ultimate outcome of this is highly satisfied who will be loyal to the firm which translates to doing business with them for a longer period. The major reason why people resist using internet to transact is due to lack of adequate knowledge on how the system works as well as reluctant to buy a product that cannot be physically examined. The advantages associated with this technology has left almost all business firms whether big or small in size to consider adopting it with the notion that it will help them stay competitive and relevant in the current world of business. When the later happen, it is risky for the business since it can loss all its viable data in case it has not backed it up. Additionally, information gathered online concerning the desires of customers will aid the firm to be in contact with demand and supply curve hence always striving to stay competitive. Lefebvre, L., Pierre-Majorique, L., Cassivi, L., Lapointe, R & Pierre, H. (2001). In most cases the products are delivered in at the customers’ door steps. In this chapter, I am going to review 3 organizations that have been successful in e-commerce no matter their areas of specialization:- Since the introduction of the Internet in the 1950’s, development of technology began for use by the military until it was soon introduced to the public for commercial and private use. It is worth noting from the onset that just like any other business and for that matter a normal concept, there are both benefits and draw backs associated with introduction of e-commerce to any business organization. On the same note, e-commerce has facilitated quick delivery of public services for instance plumbing services, banking services and more importantly health care services. If you continue, we will assume that you agree to our The Impact of E-Commerce on Business Essay 614 Words | 3 Pages. E-Commerce is the paperless exchange of business information and refers to Internet shopping, online stock and bond transactions, the downloading and selling of “soft merchandise” and business-to-business transactions. This is costly and laying them off can imply legal battle on the basis of the contract signed between employees and their employer (Kalakota & Whinston, 1997). Understand the impact of e-Commerce on business 2. New York: McGraw-Hill. It also pertains to any form of business transaction in which the parties interact electronically rather than by physical exchanges or directs physical contact. Throughout the decades ever since, technology was then on the road to sudden rapid expansion, with a big boom in new hardware, software and internet capabilities … ⏰ Let's see if we can help you! And Impacts of E-Commerce E-COMMERCE BUSINESS:- E-Commerce refers to a wide range of online business activities for products and services. "The Impact of E-Commerce on Business." Many facets of retail trade have been changed. New York: The Penguin Press. One notable technology that has propelled a number of organizations to greater height is internet-e-commerce (Coulter & Vogel, 2004). E-commerce has a significant impact on business costs and productivity. E-commerce is a boom in the modern business. 14 January. Therefore, the impact to the whole organization, consumers, current market and legal issues can be very dramatic (Kotler, 2009). E-commerce is one of the fastest growing industries worldwide and is one of the most rapidly evolving areas of national and international trade. Cookies Policy, This research paper on The Impact of E-Commerce on Business was written and submitted by your fellow student. Web. Copyright © 2020 - IvyPanda is a trading name of Edustream Technologies LLC, a company registered in Wyoming, USA. Miller, R. (2002). Information exchange was constraint in transnational business but e-commerce provides... iv. E-business also can be linked to the evolution of supply chain management that at around the same time IBM was incorporating e-business through the initial use of e-commerce, supply chain management was also developing and becoming a manner in which to manage supply chains effectively. The implications of this is that more revenue will be generated and at the same time widening customer base. The quality of my essay was worth the money I had paid. On the other hand, there is need for the business especially if it operates in the United States to carefully evaluate the associated legislations such as the copyright legislation, computer misuse act 1990, trading standards, delta protection act of 1998, freedom of information act of 2002 as well as e-commerce regulation. The documentation is about the process of implementing an e-commerce solution for the We utilize security vendors that protect and ensure the integrity of our platform while keeping your private information safe. IvyPanda. E-commerce`s prime driver is Internet which presents an hierarchical framework. The last section of the paper is the conclusion which entails a brief summary of the work done. Indeed there are numerous advantages associated with this concept such as capturing new markets by allowing firms to go global, 24/7 operation this has been shown to bring with it the advantage of reliability and convenience which allows potential customers who do not have time to buy products and services regardless of time. The Impact Of E-Business On Organization Essay Impact of E-Business on Organization Electronic business is utilization of information and communication technologies so as to support the business activities. The advantages of this working scenario not only include convenience but also offer a conducive environment to take part in activities that aid in generating revenue. E-commerce has provided not only a quick way to exchange products and services, but also provided the most efficient and convenient way of accomplishing the transactions involved in this trade (Syed and Raisinghani 13). It is also a fact that surfing the internet is an interesting as well as time consuming, there is a possibility of an employee to surf during work time which can jeopardize the efforts of adopting the innovation (Mellahi & Johnson, 2000). On the other hand, there are drawbacks that the society has experience as a result of adopting e-commerce. Consequently, people are interconnected which makes sharing of information to be very easy and quick thus making the entire society to make informed choices before engaging in business transactions. Institution Using internet to carryout business has been deemed to be the most current innovation in the world of business and offers an opportunity to businesses to carryout business through electronics. (Sharma & Gupta, 2003, p. 655). However, when a firm adopts e-commerce, this gives it a perfect opportunity to compete globally since there are no geographic boundaries. Definitions of important terms are also presented. Be able to manage an e-Commerce strategy January 14, 2020. https://ivypanda.com/essays/the-impact-of-e-commerce-on-business/. Since it is everybody’s anticipation that there will be development of further technological innovation, the business might face problems with compatibility of its old and the emerging innovation. This does not mean that other businesses in other geographic locations are exempted. Of these 200 million users, roughly 40 percent reside in the United States (Styliano, A., Robbins, S. & Jackson, P., 2003). E-commerce will serve as a catalyst and diffuse more widely changes that are already under... iii. Unfortunately, your browser is too old to work on this site. Here the complaining party can gain full understanding of the issue at hand which cannot be attained through online communication particularly when the other party is agitated (Laudon & Traver, 2010). Retrieved from https://ivypanda.com/essays/the-impact-of-e-commerce-on-business/. 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