Ecommerce The last revolutionary effect of eCommerce on strategy stems directly from the fact of its very virtuality. 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). Interestingly, one can run a business from home by transacting through a website. 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. At the same time, every business kind has pros and cons which we will discuss here. Here, the buyer and the seller don’t meet personally. A conventional business requires workforce who helps in completing the entire transaction. 11th Dec 2017 Accounting for trends in the overall economy can help business … International Journal of Information Management, 28(3), 203-214. According to Whiteley (2000), e-business operations can be grouped into three categories; Electronic categories, Electronic Data Interchange (EDI) and Internet business. I will now discuss economic factors that have an impact on E-business. Required fields are marked *. 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. Looking for a flexible role? In the retail sector, e-business has had great impact on the value chain. E-commerce is a revolution in business practices (Ohidujjaman, et al 2013). It is often used to describe the use of technology to improve your business processes. It has automated and streamlined internal processes and communications, delivering productivity and efficiency improvements. Koellinger, P. (2008). In the last few years travel pattern has changed in the EU. Copyright © 2003 - 2020 - UKEssays is a trading name of All Answers Ltd, a company registered in England and Wales. No single country produce all the goods we use today. VAT Registration No: 842417633. E-business, sure, is beneficial; however, its limitations need acknowledgement, as well. E-commerce has had a considerable impact on how business is conducted. 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 … Your email address will not be published. Companies implement technology to create a competitive advantage in the business … E-commerce has a significant impact on business costs and productivity. 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. An e-business offers no such opportunity to its customers. Kim, Y.J., Song, J., & Koo, C. (2008). Here, the internet is an alternative to a salesperson. The companies across the globe face numerous challenges which include technology unavailability, expertise dearth, and shipping of grand products. 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. 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. Also, the time required to learn good security measures is a major hindrance. The term commerce is viewed as transactions conducted between business partners. Develops global economy. 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. Figures say that the climbing internet usage rate assures e-business growth. For the start-up businesses, it is a productive tool. 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. 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). Though it possesses stressful limitations, one can still eat desired fruits by implementing effective measures. Online business is a business where the transaction takes place online. 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. 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. In this way, e-business can impart similar and reliable knowledge among young kids of different nations and promote equality. We are witnessing a boom of new technologies, especially in the service sector (IT, Telecommunications, Internet, etc.). 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 … We're here to answer any questions you have about our services. E-business tactics offer advantages such as reaching a wider customer base and faster transactions, but they also come with associated risks. Every country in this world produces different raw materials as per their abilities and capacities of their land surface. Political issues among few nations lead to the legal restriction on some products from specific countries. Unauthorized persons could access this information through flaws in the merchant's computer system. 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. 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. One prime necessity of an e-business is an internet. Thus, a few companies can participate in an e-business. E-business, also known as e-commerce, is the avenue companies use to sell goods and services via the Internet. Electronic business is also known as online business. 1.Provides Flexibility: E-business interacts with more customers, can entail more,and can offer an innovative experience through website. 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. 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. 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. Notify me of follow-up comments by email. If you need assistance with writing your essay, our professional essay writing service is here to help! 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. Study for free with our range of university lectures! The travel sector in the EU is so large that even a small share of it produces a major online market. 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. 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. *You can also browse our support articles here >. Exploring the effect of strategic positioning on firm performance in the e-business context. 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. In recent years, e-business has developed rapidly and the e-purchasing is becoming more popular over the world. Every country in this world produces different raw materials as per their abilities and capacities of their land surface. E-business advocates often make e-business models sound like a no-hassle solution to business and financial woes. We've received widespread press coverage since 2003, Your UKEssays purchase is secure and we're rated 4.4/5 on reviews.co.uk. Cyber attack is a major concern in an e-business. Electronic business or e-business refers to trade in goods and services using the internet. Electronic commerce is an emerging concept that describes the process of buying and selling or exchanging of products, services and information via Customers frequently consult the Internet to … Economic Factors Affecting Businesses. They utilize them in the production of finished goods. To share the fruits of all the manufactured goods produced across the world, international community stresses upon globalization. Search across a wide variety of disciplines and sources: articles, theses, books, abstracts and court opinions. In fact, retailers, beside their relationship with suppliers and consumers, have significant impact on intercompany exchanges through CEDI (centre of distribution). Coronavirus-driven event cancellations will spur marketers to explore digital alternatives and more event-like content promotion. 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-business supplies numerous e-services and is a superior platform for services such as teaching. For an online shopping, the customers need to provide a shipping address, credit card details, and contact details. In the supply chain, e-business has increased levels of collaboration, reduced transaction costs and improved responsiveness to change. Google Scholar provides a simple way to broadly search for scholarly literature. With ecommerce, there is no requirement to acquire expensive shops in high streets. E-business can offer specific advantages, such as reaching out to a wider customer base and faster transactions. Read also: Positive and negative effects of eCommerce. Due to this, groceries and confectionery product e-business makes small profits. All work is written to order. This information is enticing to hackers and particularly vulnerable to data breaches, so e-business website owners are responsible for incorporating methods, … Another negative effect of e-commerce is its potential threat to the security of consumers' personal information. E-business may take place between firms (B2B), between firms and their customers (B2C), or between firms and the government (B2G). This special issue is a global effort to address some of the pandemic-related issues affecting society. 138 on Minimum Age and ILO Convention No. It has made a great difference in terms of shelf life of products and stock rotation time. Risks of E-Business. 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. Thus it has a large economic impact. The use of IT to conduct business online is known as Electronic Commerce (E-Commerce). Electronic Commerce provides the capability of buying and selling products and information on the internet and other on-line service. Retailing is one of the most important industry sector in the world, with no exception of the EU. When consumers buy online, they typically input a credit card number and other personal information. E-business contributes in developing global economy by trading across international borders and reaching customers in the four corners of the world. Positive and negative effects of e-business. 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. Free resources to assist you with your university studies! E-Commerce has a chance to be widely adopted due to its simple applications. Benefits Of E-Business. Our academic experts are ready and waiting to assist with any writing project you may have. E-business has enabled banks to redefine their boundaries and also gained competitive advantage through it. Hence, e-business makes transactions cost-effective and limits the burden on the companies. 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. Registered office: Venture House, Cross Street, Arnold, Nottingham, Nottinghamshire, NG5 7PJ. 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. 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. 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. Thus, it delivers win-win results for both business owner and consumer. 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. Introduction to E-business. A physical touch and smell of a product influence a person’s decision to buy it. April 27, 2010, C Kapoor, Comments Off on Benefits Of E-Business. This write-up weighs the pros and cons of e-business for you. 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). This factor is a major obstacle to the expansion of various online stores such as garments, leather or shoes among others. The term “e-business” was coined by IBM’s marketing and Internet team in 1996. 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. 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. In total, there are 12 articles in the special issue, which are summarized below. It also highlighted the relevance of inter-business exchanges. David Liederbach, IBM Director of e-commerce marketing defined “ E-business is extending any business process from one company to its trading partners. 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. Company Registration No: 4964706. Hackers manipulate business websites to gain financial data and initiate theft. An e-business eliminates the need for a physical location to set up a business. Your email address will not be published. This article will look at some of the impacts that have resulted from the advent and development of e-commerce. Many companies claim that putting their supply chains online has led, or will lead, to major cost savings. The past several years have seen an explosion in the world of business technology. Due to the increased internet benefits in the commercial sector, e-business is expanding at a rapid pace. The internet has contributed strongly to the growth of most budget airlines taking easy jet as an example. As delivery takes few days to reach the end customer, who pays at the time of ordering. No plagiarism, guaranteed! It consumes cheap phones, rents and utility bills than traditional businesses. The most important form of e-business used by banks is the online banking which has help cut down cost. Ecommerce has affected businesses positively and negatively. And using web technology to Due to technological advanc… 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. (Journal of Air Transport Management, Volume 12, Issue 5, September 2006, Pages 253-260). Also, the online payment processing software eliminates the need for a store clerk. 182 on Worst Forms of Child Labour. Here are few reasons why businessmen prefer e-business over conventional one. 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. E-business stands for electronic business. E-business changes the macroeconomy in several beneficial ways. 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 this way, e-business breaks down the time barrier that a typical business encounter and increases flexibility. on Positive and negative effects of e-business, Positive and negative effects of E-Cigarette. 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. Reference this. Disclaimer: This work has been submitted by a university student. Today, the internet is available 24 hours a day, which means a business stay open. applicable as an ideal business purpose. In addition, creation of new markets and ma… Easy jet has never used the travel agent network, they rely on the internet because all their flights are booked online by customers. Benefits Of E-Business. In this manner, it encourages transparency and honesty in certain business transactions. E-business benefits little to the consumer in such cases. Do you have a 2:1 degree or higher? Though internet grants indefinite benefits, the online stores still face several challenges. 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. 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… 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. Sharing of private information can put them in danger if hacked. An individual with excellent knowledge in a specific field, say physics, can start online classes and educate children regardless of their location. This is not an example of the work produced by our Essay Writing Service. In essence, retail companies will want to rationalize and reduce costs of supply and management of the supply chain, starting with purchasing cost. 3. 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. Also, extra hands mean increased amount. 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. It has affected consumers, the value chain, markets as well as business models. Taking the internet for example, it has had a very high impact on the air travel industry. 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. But an e-business requires limited man force to complete an online transaction. Overall, e-business benefits the economy in many ways. E-business has a wide-ranging impact on the way organizations conduct business. In addition to buying and selling products and services online, it includes supply chain management, electronic order processing, and customer relationship management. 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. E-business has been recognized as an important contributor in the economy of many countries. You can view samples of our professional work here. Registered Data Controller No: Z1821391. 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. The main benefit of e-commerce stems from being able to integrate business operational processes across organizational boundaries and time zones. From simple essay plans, through to full dissertations, you can guarantee we have a service perfectly matched to your needs. Positive effects of e-business: Here are few reasons why businessmen prefer e-business over conventional one. The relationship between technology, innovation, and firm performance—Empirical evidence from e-business in Europe. Internet banking is nowadays supported by advanced ICT solutions which enable most everyday banking services to be conducted online (www.ebusiness-watch.org). 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! 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., , . They utilize them in … 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. Such business transactions take place among businesses or individuals. 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… 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 This, in turn, affects its profitability and growth. The negligible demand for man force reduces the cost of paying employees. One prefers buying a physical good from a local store rather than ordering it online. Due to this reason, an e-business finds it difficult to attract customers. Governments across the world are making productive policies in this specific field. 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