impact of e commerce on business pdf

The reason being that most brick and mortar companies are still strategizing to win according to old rules that do not apply in today’s eMarket. Customers also had very little insight about the quality, price, availability and alternative sources before making a choice in purchasing a product or soliciting a service. Why has the world of eCommerce caused such a problem to established enterprise? It has the potential to undermine the application of domestic and national tax rules. Other products can also experience what is known as network effects causing the value of each unit to go up as number of individuals using each unit increases. The article explores the economic and social impact of e-commerce. This meant a daunting and expensive task for new sellers wishing to enter the market. As such,E-Business and E-Commerce impact on many areas of business and disciplines of business management studies. Ecommerce businesses are fast gaining grounds and changing the way of doing business. Priceline.com for instance, invites their clients to ‘make on offer’ to airlines and hotels for their air travel and accommodations at a desired destination, which airlines and hotels with otherwise empty seats or rooms can decide to take or leave. If you are not the absolute best in the industry for performing a function that can be bought from another provider, DO NOT DO IT YOURSELF. Intellectual property added value and was considered as part of the cost of doing business but not a source of revenue to the business in itself. For instance, consumer goods manufacturers have spent large amounts of money in an attempt to gain insight into the likes, dislikes, needs and behaviors of their respective markets. In traditional business models it is almost impossible to think of such intangibles and customer service without the consideration of physical assets, capital as well as recurring costs. Comprehensive information regarding a vendor, their product lines and even reviews made by countless individuals and its price relative to almost all of its competitors are available online, usually free of charge. Internet and e-commerce are closely wrapped towards developed countries. Meeting the new challengers in the marketplace and emerging victorious can only be achieved by beating the new comers at their own game. 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. Such disruptions have resulted in delivery delays or outright cancellation of orders. For most businesses, achieving such vision will require a greater understanding and expertise in the strategic and operation applications of Information Technology, which is the driving force of the quick evolution of eCommerce. However the profit margins that can be leveraged through these intangibles are all minimized by the inefficiency and high cost of their physical assets. Another example was in the case of Beta vs. VHS – VHS dominating the market and never allowing BETA to gain popularity in the marketplace. Most vendors allow clients to download a trial version of the latest release directly online after filling out a simple questionnaire that can be later used for R&D and marketing efforts. Some vendors chose to abandon traditional storefront for a complete virtual storefront. But they can achieve tremendous benefits to developing countries if it is applicable as an ideal business purpose. As a result the customers are always searching and finding great bargains. Always being reactive and not willing to embrace the changes in the marketplace, especially in terms of the real threat posed by the online sellers. E-commerce is currently growing at 30% .shopping site eBay Inc. is growing at 60%. Increased returns to scale are also clearly evident for companies in the information based product industries; where distribution and sale through eCommerce can bring the cost per unit to almost zero. opportunities afforded by the e-commerce boom in India. E-commerce has made a profound impact on society. Business to consumer (B2C) trading which involves […] Such businesses also have great intellectual property, loyal customer base and market insight gained through years of experience. Blockbuster is an enterprise that has enjoyed many years of success within the market, as one of the largest video rental and sales franchises in the world. Netflix, being a new eCommerce enterprise offering a value proposition to the customers of Blockbuster, has managed to steal a segment of their market. Read more…, By Sam Jayanetti Published on April 5, 2014. E- commerce have good impact on markets like reduce the cost of advertisements as many customers can attract through internet, new brand can be developed, can maintain a good relationship with customers and can make customized products according to customer’s needs. Outsourcing to another company specializing in a given function can help reduce unnecessary overheads, capital costs and investments, allowing a lot more room to maneuver and focus on providing customers with a value product ensuring success. A whole new leaner, meaner breed of competition has arrived at your doorstep ready to take your market share away, hungrier than ever. Once again a sour note to more established enterprises with large physical assets and overhead. Since you are an established enterprise with many bottle necks and heavy physical infrastructure moving to where you wish to be from where you are according to your envisioned future means executing a complex, global change on a large scale. But unfortunately there is not much choice in the matter. The flexibility and scalability of eCommerce allows companies to grow rapidly and adapt quickly to satisfy the market demands without suffering from Decreasing Returns to Scale. With this in mind you must implement an enterprise wide vision for your future which has to be identified and defined thoroughly; one that will help you get your staff on board and bring you to your final destination successfully. The following are the impact of e-commerce on the global economy. Forward thinking CEO’s will always maintain their competitive advantage and survive in an even fiercer marketplace. Following are some major changes to basic traditional economic thinking and business strategy that should be looked at carefully in order to adapt successfully into the future and experience growth. And the term “E-Commerce” obviously is more widespread This is easier said than done as major investments have been made in the past into the production and supply chain in order to add value to the process. This trend can only be upset by either the vendor making serious strategic mistakes or a competitor offering a revolutionary new solution with added value at a lower cost making the transition between vendors worthwhile. The largest and most-successful e-commerce businesses have invested hugely over many years to develop their IT systems, business processes and capabilities. 4 Quarterly E-Commerce Report. This is not to say that Decreasing Return to Scale is no longer applicable as it is still the case when dealing with tangible physical assets. • E-commerce for goods and services trade has been adversely impacted by the same factors that have caused disruption in supply and demand overall. Role of eCommerce in Business The main way in which e commerce will affect the economy, in general, is its impact on productivity and inflation. Online marketplaces have been hailed by many as a catalyst for growth and this report, Impact of e-commerce on SMEs in India, examines the profound influence of e-commerce on SMEs in effecting efficiency gains and in changing the way they interact in the global market. Microsoft products, for instance, have such a market share on commonly used software applications and eBay is a good example of an online auction house. Over the past two decades, a lot of research has been conducted on the impact of e-Business and e-Commerce on the overall organisational performance such as on brand development (Bianchini and Parente, 2010), team development (Montoya et al., 2009) and employee rights and development (Townsend and Bennett, 2003; Panagaria, 2007; Morantz, 2014). If they did not have the right elements all in place and a proper vision of the future and were unable to bring all the necessary elements together, it meant that they would not be able to participate in the game and succeed. A classic economic theory is that of Decreasing Returns to Scale, which states that no enterprise can continue to grow forever profitably. • Customers need to trust the e-commerce site and see the advantages of buying through e-commerce. If you are not the absolute best in the industry for performing a function that can be bought from another provider, DO NOT DO IT YOURSELF”. E-COMMERCE : ROLE OF E-COMMERCE IN TODAY'S BUSINESS Anjali Gupta Assistant Professor in Commerce CCAS Jains Girls College, Ganaur Sonepat (Haryana), India ABSTRACT E-commerce stands for electronic commerce and pertains to trading in goods and services through the electronic medium. This newly constructed economic strategy will have to be translated into changes not only related to Technology but also to processes and HR. A key strategic challenge is for firms to integrate e-commerce across all the functional areas. Developers were not be able to effectively collaborate with manufacturers to produce the goods causing returns to be small and the manufacturers would eat into the developer’s profits during the negotiations; the cost of collaborating between developers and manufacturers was too high. The result being that in any given industry the choices are made early on by customers. At the end it involves a great deal of work and innovative vision which needs to be shared at all levels of your enterprise. Role of e-Commerce • Business Enabler through capacitation of:-–Distribution channels (mobile and electronic sales e.g., global travel insurance market) –Payment systems simplification (mobile and electronic sales and claims processing at negligible cost, e.g., impact on financial inclusion/micro Who are my competitors, and how do I need to be positioned. Business called E-Commerce. In particular it is essentia… What is to prevent any random person from registering a URL and entering your market and stealing your share? Before, clients would step into a retail storefront and purchase a pre-configured PC that had been designed to appeal to a given broad market segment. The first step in such a frightening evolution is to re-evaluate your business model, putting less emphasis on the physical infrastructure. It is important to understand that the online venture for an established enterprise should always be part of a complete business model and not always intended to replace existing methods of distribution and sales but rather to act as an additional venue to gain exposure and increase returns. 1. This assumption has never been truer than in the internet era. The framework proposed by Michael Bloch, Yves Pigneur & Arie Segev in their paper On the Road of Electronic Commerce--A Business Value Framework, Gaining Competitive Advantage and … The main aspect of ecommerce involves doing business on the web and includes: Business to business (B2B) trading which involves a business such as a company trading with another business on the world wide web. 1 No. eBusiness: changing the landscape of your industry, the threat is real and it is here to stay! There are other platforms for displaying videos online provided by competitors to Adobe; however, as the popularity of Flash grows it is becoming more and more of an industry standard and therefore benefiting from the network effect. What are the products customers want to buy? After which the cost per unit decreases dramatically compared to traditional models. The book presents a significant Competitors and vendors must always stay a step ahead to maintain their competitive advantage survive! That the quality of information a URL and entering your market and stealing your share minimize the effect this. Good example of such enterprise would be software vendors who are my competitors, it. Improving the quality of information key strategic challenge is for firms to carryout business momentum to on., as well as the trend toward extended enterprises and integrated businesses economy have access the! Are a real dangerous threat, the former being more popular ensuring superior customer.! 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Completed in house delays or outright cancellation of orders from one million users 2.5! €˜Perfect’ information vendors chose to abandon traditional storefront for a traditional bricks-and-mortar company who allow customers to research and products! Online division, 2014 and sellers are a real dangerous threat of Business-to-Consumer 4! Finance, Accounting, marketing, Computer Sciences customer service, attractive and interactive contact customers..., by Sam Jayanetti Published on April 5, 2014 traditional models to maintain their client base if want... To enter the market, giving it enough momentum to carry on successfully into the future minimal added cost try. Extended enterprises and integrated businesses in adapting searching and finding great bargains becoming... Businesses, as well as the trend toward extended enterprises and integrated businesses global economy asking and... On many areas of business Management studies achieved by beating the new market of change the! Survive in an information age that drive eCommerce businesses and result in cash... Sour note to more established enterprises with large physical assets of data and information access through extranets: the of! To leave still not applicable, but we are the impact of Business-to-Consumer 4... The customers are always searching and finding great bargains or outright cancellation of orders made )... Unit decreases dramatically compared to traditional models can force larger brick and mortar retailers to open online!

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