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E-Business can be defined as any kind of transaction or exchange in which an electronic medium is used to facilitate the entire or part of the transaction. Develops global economy. Many companies claim that putting their supply chains online has led, or will lead, to major cost savings. They will also want to differentiate their own offers from the competitors, exploiting customer relation management techniques as to communication, sales and customers’ loyalty (e-business Watch 2000). Companies implement technology to create a competitive advantage in the business … E-business is a monolithic term encompassing the various business processes that aim to integrate the vendors or traders with the consumers and suppliers using the Internet. The most important form of e-business used by banks is the online banking which has help cut down cost. The negligible demand for man force reduces the cost of paying employees. Ecommerce has affected businesses positively and negatively. April 27, 2010, C Kapoor, Comments Off on Benefits Of E-Business. Do you have a 2:1 degree or higher? Also, the time required to learn good security measures is a major hindrance. on Positive and negative effects of e-business, Positive and negative effects of E-Cigarette. An e-business eliminates the need for a physical location to set up a business. The use of IT to conduct business online is known as Electronic Commerce (E-Commerce). Due to wide reach and availability of the internet, major corporations are conducting e-business to make supplies, collaborate on sales promotions and conduct joint research. E-commerce is a revolution in business practices (Ohidujjaman, et al 2013). Thus, a few companies can participate in an e-business. Company Registration No: 4964706. It also highlighted the relevance of inter-business exchanges. The main benefit of e-commerce stems from being able to integrate business operational processes across organizational boundaries and time zones. However, there are a number of recent studies, which demonstrate that firms engaging in e-commerce need not perform better compared to more traditional enterprises. E-business changes the macroeconomy in several beneficial ways. E-commerce has a significant impact on business costs and productivity. In this manner, it encourages transparency and honesty in certain business transactions. Unauthorized persons could access this information through flaws in the merchant's computer system. It has automated and streamlined internal processes and communications, delivering productivity and efficiency improvements. In total, there are 12 articles in the special issue, which are summarized below. 1.Provides Flexibility: E-business interacts with more customers, can entail more,and can offer an innovative experience through website. The results shed light on both the financial fragility of many small businesses, and the significant impact COVID-19 had on these businesses in the weeks after the COVID-19–related disruptions began. Introduction to E-business. It has affected consumers, the value chain, markets as well as business models. Here are few reasons why businessmen prefer e-business over conventional one. Every country in this world produces different raw materials as per their abilities and capacities of their land surface. According to Whiteley (2000), e-business operations can be grouped into three categories; Electronic categories, Electronic Data Interchange (EDI) and Internet business. The UK figures released by the Office of National Statistics in February 2009 showed that internet retail sales, as a percentage of total retail sales, rose by 13.2% (average weekly value of £167 million). David Liederbach, IBM Director of e-commerce marketing defined “ E-business is extending any business process from one company to its trading partners. The term commerce is viewed as transactions conducted between business partners. At the same time, every business kind has pros and cons which we will discuss here. Customers frequently consult the Internet to … E-business contributes in developing global economy by trading across international borders and reaching customers in the four corners of the world. E-business has a wide-ranging impact on the way organizations conduct business. Political issues among few nations lead to the legal restriction on some products from specific countries. Notify me of follow-up comments by email. The results suggested that e-business technology has a positive effect on the development of operational capabilities, which is consistent those of past studies (e.g., , . The availability and continued growth of Internet technologies (IT) have created great opportunities for users all over the globe to benefit from IT services and use them in a variety of different ways. In fact, retailers, beside their relationship with suppliers and consumers, have significant impact on intercompany exchanges through CEDI (centre of distribution). 138 on Minimum Age and ILO Convention No. As delivery takes few days to reach the end customer, who pays at the time of ordering. Exploring the effect of strategic positioning on firm performance in the e-business context. Overall, e-business benefits the economy in many ways. Koellinger, P. (2008). Free resources to assist you with your university studies! In this way, e-business breaks down the time barrier that a typical business encounter and increases flexibility. Here, the buyer and the seller don’t meet personally. To export a reference to this article please select a referencing stye below: If you are the original writer of this essay and no longer wish to have your work published on UKEssays.com then please: Our academic writing and marking services can help you! Here, the internet is an alternative to a salesperson. Copyright © 2003 - 2020 - UKEssays is a trading name of All Answers Ltd, a company registered in England and Wales. These figures closely match figures released by the IMRG/Capgemini Sales Index which showed that the e-business retail market rose by 17% in July compared to July 2008, this increase has been driven by the clothing, accessories and electrical goods online retail sales. Today, the internet is available 24 hours a day, which means a business stay open. Our academic experts are ready and waiting to assist with any writing project you may have. You can view samples of our professional work here. Coronavirus-driven event cancellations will spur marketers to explore digital alternatives and more event-like content promotion. In the business-to-business context, higher efficiency can be gained from B2B e-commerce and B2B exchanges via lower procurement cost and better supply chain management. In 3. On the one side, ecommerce makes it easier for businesses to reach a much wider audience at less expense than would be required if the traditional retail method was to be applied. Nevertheless, not all the effects of e-business on macroeconomic conditions are positive, and some aspects of e-commerce may limit the effectiveness of monetary policy. For example, e-business creates huge data security risks because customers are often required to provide sensitive information, such as contact information and credit card numbers, during e-business transactions. We're here to answer any questions you have about our services. The relationship between technology, innovation, and firm performance—Empirical evidence from e-business in Europe. The past several years have seen an explosion in the world of business technology. Benefits Of E-Business. Positive effects of e-business: Here are few reasons why businessmen prefer e-business over conventional one. In the last few years travel pattern has changed in the EU. Though it possesses stressful limitations, one can still eat desired fruits by implementing effective measures. Reference this. Read also: Positive and negative effects of eCommerce. E-business, on the other hand, relates to the use of information networks to gain a competitive advantage and is much more than just having a website for your business. VAT Registration No: 842417633. 11th Dec 2017 Looking for a flexible role? Recent studies shows that firms that have reinforced their e-business strategy in the airline industry has had an increase in sales volume for airlines’ website. Registered Data Controller No: Z1821391. The last revolutionary effect of eCommerce on strategy stems directly from the fact of its very virtuality. Google Scholar provides a simple way to broadly search for scholarly literature. Electronic Commerce provides the capability of buying and selling products and information on the internet and other on-line service. Any successful organization pictures out the external factors that affect the business, anticipates the prospective market situations and work to minimize the costs while maximizing the profits. Studies also shows productivity growth rose in the EU from year 2000 onwards, while average working hours per employee has decreased subsequently, this study tells use e-business investment is largely substituting labour particularly in retail banking. Though internet grants indefinite benefits, the online stores still face several challenges. E-business tactics offer advantages such as reaching a wider customer base and faster transactions, but they also come with associated risks. From simple essay plans, through to full dissertations, you can guarantee we have a service perfectly matched to your needs. Key Factors When Applying E-Commerce To The Travel Industry 81 7.4 Traveler‟s Trip Planning Behaviour 82 7.5 The Future Of E-Commerce In Travel 90 7.6 The Effect Of E-Commerce In Travel 91 7.7 E-Commerce In Airline Business 92 7.8 E-Commerce Impact On The Travel Agency Industry 97 7.9 Information Technology In The Tourism And Travel Industry 98 Easy jet has never used the travel agent network, they rely on the internet because all their flights are booked online by customers. Figures say that the climbing internet usage rate assures e-business growth. Accounting for trends in the overall economy can help business … This report will be analysising the impact of e-business on the economy (EU) and the importance of e-business, stating the critical issues and challenges involved in e-business. To assess the economic impact of e-business in an organisation, I will concentrate on the important sectors in the European union which are the Retail industry, Banking industry and the Travel and tourism industry. Economic factors that influence the business are the collective of the nature of the country’s economic system, its structures, and economic policies, how the capital market is organized, and nature of factors of production, business cycles, and socio-economic infrastructure. In recent years, e-business has developed rapidly and the e-purchasing is becoming more popular over the world. However, a key insight from our results is that the effect of e-business technology on operational development decreases over time at least in the subsequent periods. Hence, e-business makes transactions cost-effective and limits the burden on the companies. The purpose of this paper is to show the effect of e business as a trend in affecting the activities of large companies and their way of doing business. No plagiarism, guaranteed! E-Commerce has a chance to be widely adopted due to its simple applications. The internet has contributed strongly to the growth of most budget airlines taking easy jet as an example. The term “e-business” was coined by IBM’s marketing and Internet team in 1996. We are witnessing a boom of new technologies, especially in the service sector (IT, Telecommunications, Internet, etc.). E-business advocates often make e-business models sound like a no-hassle solution to business and financial woes. Such business transactions take place among businesses or individuals. A conventional business requires workforce who helps in completing the entire transaction. 182 on Worst Forms of Child Labour. Security and credit card fraud are also huge risks when dealing with online shoppingconsumers run the risk of identity fraud and other hazards as their personal details are captured by e-commerce businesses while businesses run the risk of phishing attacks and other forms of security fraud; both can suffer from credi… This write-up weighs the pros and cons of e-business for you. Registered office: Venture House, Cross Street, Arnold, Nottingham, Nottinghamshire, NG5 7PJ. A physical touch and smell of a product influence a person’s decision to buy it. Thus, it delivers win-win results for both business owner and consumer. This, in turn, affects its profitability and growth. Electronic commerce is an emerging concept that describes the process of buying and selling or exchanging of products, services and information via International Journal of Information Management, 28(3), 203-214. Positive and negative effects of e-business. This special issue is a global effort to address some of the pandemic-related issues affecting society. They utilize them in … Benefits Of E-Business. Required fields are marked *. At the aggregate level, productivity and economic growth could rise, at least for some time, as a result of more efficient management of supply and distribution, lower transaction costs, low barriers to entry and improved access to information. Retailing is one of the most important industry sector in the world, with no exception of the EU. It can provide a direct connection between airlines and customers without the need to use travel agents or Computer Reservation Systems (CRS), thereby leading to cost savings in the distribution of air tickets (Law and Leug, 2000) the internet has become very extensive in the travel industries and its impact has been particularly significant on the distribution channel for air travels and the use of the Internet for searching and purchasing airline tickets has become common in travel markets. *You can also browse our support articles here >. Governments across the world are making productive policies in this specific field. Online business is a business where the transaction takes place online. E-business stands for electronic business. Online Business or e-business is any kind of business or commercial transaction that includes sharing information across the internet.Commerce constitutes the exchange of products and services between businesses, groups and individuals and can be seen as one of the essential activities of any business. In the supply chain, e-business has increased levels of collaboration, reduced transaction costs and improved responsiveness to change. Your email address will not be published. At the aggregate level, productivity and economic growth could rise, at least for some time, as a result of more efficient management of supply and distribution, lower transaction costs, low barriers to e… In this special issue, we have invited scholars from different areas of business and management to write brief papers on various aspects of the effects of the COVID-19 pandemic. Interestingly, one can run a business from home by transacting through a website. E-business may take place between firms (B2B), between firms and their customers (B2C), or between firms and the government (B2G). Electronic business also known as E-business is the conduct of business on the internet and other computer networks, not only does it involve buying and selling of products but also customer servicing and collaboration with business partners. Sharing of private information can put them in danger if hacked. Due to the increased internet benefits in the commercial sector, e-business is expanding at a rapid pace. Internet banking is nowadays supported by advanced ICT solutions which enable most everyday banking services to be conducted online (www.ebusiness-watch.org). In the retail sector, e-business has had great impact on the value chain. For the start-up businesses, it is a productive tool. Your email address will not be published. Thus it has a large economic impact. I will now discuss economic factors that have an impact on E-business. E-business can offer specific advantages, such as reaching out to a wider customer base and faster transactions. E-business, sure, is beneficial; however, its limitations need acknowledgement, as well. In addition, creation of new markets and ma… To share the fruits of all the manufactured goods produced across the world, international community stresses upon globalization. Electronic business (e-business) is a general concept covering any form of business transaction or information exchange executed using information and communication technologies (Whiteley, 2000). No single country produce all the goods we use today. E The Children’s Rights and Business Principles set out corporate actions to respect and support children’s rights, as outlined by the Convention on the Rights of the Child and ILO Convention No. E-business has enabled banks to redefine their boundaries and also gained competitive advantage through it. It is often used to describe the use of technology to improve your business processes. applicable as an ideal business purpose. The trade in e-services provides employment to young people in several developing countries. For an online shopping, the customers need to provide a shipping address, credit card details, and contact details. With ecommerce, there is no requirement to acquire expensive shops in high streets. We've received widespread press coverage since 2003, Your UKEssays purchase is secure and we're rated 4.4/5 on reviews.co.uk. Economic Factors Affecting Businesses. Due to technological advanc… An individual with excellent knowledge in a specific field, say physics, can start online classes and educate children regardless of their location. E-business supplies numerous e-services and is a superior platform for services such as teaching. Disclaimer: This work has been submitted by a university student. Due to this, groceries and confectionery product e-business makes small profits. Electronic business is also known as online business. In the emerging global economy, e-business has increasingly become a very important and a necessary component of business strategy and a strong catalyst for economic development. Operational benefits of Web use for industrial sellers are reduced errors, time, and overhead costs in information processing; reduced costs to suppliers by online bidding, submitting of bids, and awarding of bids electronically. E-commerce has had a considerable impact on how business is conducted. This information is enticing to hackers and particularly vulnerable to data breaches, so e-business website owners are responsible for incorporating methods, … In 2004 the EU retail sector, the industry comprised of approximately 17 million firms that employed people in the EU27 (e-business watch 2007). In essence, retail companies will want to rationalize and reduce costs of supply and management of the supply chain, starting with purchasing cost. Electronic business or e-business refers to trade in goods and services using the internet. In this way, e-business can impart similar and reliable knowledge among young kids of different nations and promote equality. Entrepreneurship tends to focus on identifying and fulfilling consumer needs in specific niche markets, but all businesses can be affected by large-scale economic trends. The introduction of e-business to the airline industry has enabled most travellers to bypass travel agents alltogether, with most agreeingthat the most current air market will shift form traditional travel agents to internet based agents like www.opodo.com. E-business benefits little to the consumer in such cases. While it may appear that e-commerce is the perfect choice to solve your business problems, there are still a number of disadvantages to switching from selling at a physical location to using online retail. According to Goldman Sachs (2000) study these gains range from between 2 and 40 percent of total input cost depending on the industry which may subsequently reduce the price in the overall economy. E-business has been recognized as an important contributor in the economy of many countries. Also, the online payment processing software eliminates the need for a store clerk. Like everything there are positive and negative economic factors in relation to E-business, I will start off by discussing the positive effects, efficiency can be largely increased and while costs of a business can be largely decreased if the right automation is used. Ecommerce It consumes cheap phones, rents and utility bills than traditional businesses. Over the past decades e-business has helped and provided various methods in which buyers and sellers can transact In the decades to come, exploiting the full potential of developments could have profound impacts in individual sectors of the economy as well as for macroeconomic performance and economic policies. Also, extra hands mean increased amount. If you need assistance with writing your essay, our professional essay writing service is here to help! It has made a great difference in terms of shelf life of products and stock rotation time. Another negative effect of e-commerce is its potential threat to the security of consumers' personal information. The companies across the globe face numerous challenges which include technology unavailability, expertise dearth, and shipping of grand products. Cyber attack is a major concern in an e-business. In general it is suggested that the development of e-business results in higher firm productivity and efficiency as a result of lower search and transaction costs. Hackers manipulate business websites to gain financial data and initiate theft. Study for free with our range of university lectures! The continued development of e-business models has triggered a dramatic transition of customer's role in a variety of service production and delivery process. Search across a wide variety of disciplines and sources: articles, theses, books, abstracts and court opinions. In total, there are 13 papers that cover different industry sectors (e.g., tourism, retail, higher education), changes in consumer behavior and businesses, ethical issues, and … One prime necessity of an e-business is an internet. But an e-business requires limited man force to complete an online transaction. Over the past decades e-business has helped and provided various methods in which buyers and sellers can transact In the decades to come, exploiting the full potential of developments could have profound impacts in individual sectors of the economy as well as for macroeconomic performance and economic policies. Drawing on a survey of more than 5,800 small businesses, this paper provides insight into the economic impact of coronavirus 2019 (COVID-19) on small businesses. This article will look at some of the impacts that have resulted from the advent and development of e-commerce. One prefers buying a physical good from a local store rather than ordering it online. All work is written to order. Risks of E-Business. This is not an example of the work produced by our Essay Writing Service. E-business, also known as e-commerce, is the avenue companies use to sell goods and services via the Internet. Every country in this world produces different raw materials as per their abilities and capacities of their land surface. This factor is a major obstacle to the expansion of various online stores such as garments, leather or shoes among others. (Journal of Air Transport Management, Volume 12, Issue 5, September 2006, Pages 253-260). Taking the internet for example, it has had a very high impact on the air travel industry. They utilize them in the production of finished goods. When consumers buy online, they typically input a credit card number and other personal information. Due to this reason, an e-business finds it difficult to attract customers. And using web technology to The loss of notable industry events like Mobile World Congress, Facebook's F8 and the Adobe Summit can have significant costs for both conference hosts and the attendees—53% of US B2B marketers consider in-person events and trade shows an effective … The travel sector in the EU is so large that even a small share of it produces a major online market. The introduction of E-business (ICT) in the European banking system has had a significant impact on banks operating system and their operations within physical branches. Any opinions, findings, conclusions or recommendations expressed in this material are those of the authors and do not necessarily reflect the views of UKEssays.com. In addition to buying and selling products and services online, it includes supply chain management, electronic order processing, and customer relationship management. An e-business offers no such opportunity to its customers. Kim, Y.J., Song, J., & Koo, C. (2008). 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One can still eat desired fruits by implementing effective measures Kapoor, Comments Off on benefits e-business!, the internet and other on-line service eliminates the need for a store.! Business encounter and effects of e business flexibility for scholarly literature there are 12 articles in world! An explosion in the retail sector, e-business can impart similar and reliable knowledge among young kids of nations... Need acknowledgement, as well as business models out to a wider customer and! Supplies numerous e-services and is a revolution in business practices ( Ohidujjaman, et al 2013 ) cons we... The term “ e-business is expanding at a rapid pace the expansion of online. The last revolutionary effect of strategic positioning on firm performance in the last revolutionary effect of eCommerce to an... Questions you have about our services breaks down the time of ordering kind has pros and cons which we discuss. 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