Benefits Of E-Business. E-business, sure, is beneficial; however, its limitations need acknowledgement, as well. 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. Such business transactions take place among businesses or individuals. Cyber attack is a major concern in an e-business. 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., , . Every country in this world produces different raw materials as per their abilities and capacities of their land surface. In addition, creation of new markets and ma… Online business is a business where the transaction takes place online. An e-business offers no such opportunity to its customers. Notify me of follow-up comments by email. Due to the increased internet benefits in the commercial sector, e-business is expanding at a rapid pace. Positive and negative effects of e-business. Your email address will not be published. David Liederbach, IBM Director of e-commerce marketing defined “ E-business is extending any business process from one company to its trading partners. E-Commerce has a chance to be widely adopted due to its simple applications. 138 on Minimum Age and ILO Convention No. Google Scholar provides a simple way to broadly search for scholarly literature. Due to this reason, an e-business finds it difficult to attract customers. One prefers buying a physical good from a local store rather than ordering it online. 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. 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. Koellinger, P. (2008). E-commerce is a revolution in business practices (Ohidujjaman, et al 2013). Company Registration No: 4964706. Retailing is one of the most important industry sector in the world, with no exception of the EU. To share the fruits of all the manufactured goods produced across the world, international community stresses upon globalization. Reference this. 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. 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. E-business, also known as e-commerce, is the avenue companies use to sell goods and services via the Internet. We've received widespread press coverage since 2003, Your UKEssays purchase is secure and we're rated 4.4/5 on reviews.co.uk. Also, the online payment processing software eliminates the need for a store clerk. Study for free with our range of university lectures! Here, the buyer and the seller don’t meet personally. In addition to buying and selling products and services online, it includes supply chain management, electronic order processing, and customer relationship management. Due to this, groceries and confectionery product e-business makes small profits. 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. Read also: Positive and negative effects of eCommerce. VAT Registration No: 842417633. 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. I will now discuss economic factors that have an impact on E-business. Positive effects of e-business: Here are few reasons why businessmen prefer e-business over conventional one. 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. This special issue is a global effort to address some of the pandemic-related issues affecting society. 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 … 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. 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). E-business has a wide-ranging impact on the way organizations conduct business. Do you have a 2:1 degree or higher? 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. Risks of E-Business. Thus it has a large economic impact. 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. The last revolutionary effect of eCommerce on strategy stems directly from the fact of its very virtuality. Customers frequently consult the Internet to … 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. Free resources to assist you with your university studies! Ecommerce has affected businesses positively and negatively. Interestingly, one can run a business from home by transacting through a website. Looking for a flexible role? The use of IT to conduct business online is known as Electronic Commerce (E-Commerce). They utilize them in … A physical touch and smell of a product influence a person’s decision to buy it. The internet has contributed strongly to the growth of most budget airlines taking easy jet as an example. It is often used to describe the use of technology to improve your business processes. According to Whiteley (2000), e-business operations can be grouped into three categories; Electronic categories, Electronic Data Interchange (EDI) and Internet business. All work is written to order. E-business supplies numerous e-services and is a superior platform for services such as teaching. 182 on Worst Forms of Child Labour. From simple essay plans, through to full dissertations, you can guarantee we have a service perfectly matched to your needs. 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. Required fields are marked *. We're here to answer any questions you have about our services. April 27, 2010, C Kapoor, Comments Off on Benefits Of E-Business. The trade in e-services provides employment to young people in several developing countries. Registered office: Venture House, Cross Street, Arnold, Nottingham, Nottinghamshire, NG5 7PJ. A conventional business requires workforce who helps in completing the entire transaction. 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. No single country produce all the goods we use today. One prime necessity of an e-business is an internet. applicable as an ideal business purpose. Hence, e-business makes transactions cost-effective and limits the burden on the companies. 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… The companies across the globe face numerous challenges which include technology unavailability, expertise dearth, and shipping of grand products. 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. Electronic business or e-business refers to trade in goods and services using the internet. In essence, retail companies will want to rationalize and reduce costs of supply and management of the supply chain, starting with purchasing cost. The most important form of e-business used by banks is the online banking which has help cut down cost. The term “e-business” was coined by IBM’s marketing and Internet team in 1996. Thus, it delivers win-win results for both business owner and consumer. Every country in this world produces different raw materials as per their abilities and capacities of their land surface. This is not an example of the work produced by our Essay Writing Service. 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. E-business changes the macroeconomy in several beneficial ways. Though internet grants indefinite benefits, the online stores still face several challenges. In recent years, e-business has developed rapidly and the e-purchasing is becoming more popular over the world. 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. This, in turn, affects its profitability and growth. In the supply chain, e-business has increased levels of collaboration, reduced transaction costs and improved responsiveness to change. The negligible demand for man force reduces the cost of paying employees. In the retail sector, e-business has had great impact on the value chain. Hackers manipulate business websites to gain financial data and initiate theft. 1.Provides Flexibility: E-business interacts with more customers, can entail more,and can offer an innovative experience through website. 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. This article will look at some of the impacts that have resulted from the advent and development of e-commerce. And using web technology to Today, the internet is available 24 hours a day, which means a business stay open. 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). Internet banking is nowadays supported by advanced ICT solutions which enable most everyday banking services to be conducted online (www.ebusiness-watch.org). Electronic business is also known as online business. E-commerce has a significant impact on business costs and productivity. When consumers buy online, they typically input a credit card number and other personal information. 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. Figures say that the climbing internet usage rate assures e-business growth. The relationship between technology, innovation, and firm performance—Empirical evidence from e-business in Europe. E-business stands for electronic business. It has affected consumers, the value chain, markets as well as business models. Electronic Commerce provides the capability of buying and selling products and information on the internet and other on-line service. Taking the internet for example, it has had a very high impact on the air travel industry. Also, the time required to learn good security measures is a major hindrance. Another negative effect of e-commerce is its potential threat to the security of consumers' personal information. An e-business eliminates the need for a physical location to set up a business. E-business can offer specific advantages, such as reaching out to a wider customer base and faster transactions. This factor is a major obstacle to the expansion of various online stores such as garments, leather or shoes among others. 11th Dec 2017 Sharing of private information can put them in danger if hacked. 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… E-commerce has had a considerable impact on how business is conducted. Our academic experts are ready and waiting to assist with any writing project you may have. 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. Benefits Of E-Business. It has automated and streamlined internal processes and communications, delivering productivity and efficiency improvements. 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. E-business tactics offer advantages such as reaching a wider customer base and faster transactions, but they also come with associated risks. This write-up weighs the pros and cons of e-business for you. 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 the last few years travel pattern has changed in the EU. 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 Accounting for trends in the overall economy can help business … The past several years have seen an explosion in the world of business technology. We are witnessing a boom of new technologies, especially in the service sector (IT, Telecommunications, Internet, etc.). International Journal of Information Management, 28(3), 203-214. In this way, e-business breaks down the time barrier that a typical business encounter and increases flexibility. 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. 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 … In fact, retailers, beside their relationship with suppliers and consumers, have significant impact on intercompany exchanges through CEDI (centre of distribution). Though it possesses stressful limitations, one can still eat desired fruits by implementing effective measures. In 2004 the EU retail sector, the industry comprised of approximately 17 million firms that employed people in the EU27 (e-business watch 2007). 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. The main benefit of e-commerce stems from being able to integrate business operational processes across organizational boundaries and time zones. For the start-up businesses, it is a productive tool. It consumes cheap phones, rents and utility bills than traditional businesses. E-business has been recognized as an important contributor in the economy of many countries. 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). Kim, Y.J., Song, J., & Koo, C. (2008). 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. In this way, e-business can impart similar and reliable knowledge among young kids of different nations and promote equality. Here, the internet is an alternative to a salesperson. Due to technological advanc… 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. E-business has enabled banks to redefine their boundaries and also gained competitive advantage through it. Search across a wide variety of disciplines and sources: articles, theses, books, abstracts and court opinions. With ecommerce, there is no requirement to acquire expensive shops in high streets. 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. It has made a great difference in terms of shelf life of products and stock rotation time. 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. Registered Data Controller No: Z1821391. Ecommerce Easy jet has never used the travel agent network, they rely on the internet because all their flights are booked online by customers. Electronic commerce is an emerging concept that describes the process of buying and selling or exchanging of products, services and information via Your email address will not be published. For an online shopping, the customers need to provide a shipping address, credit card details, and contact details. Unauthorized persons could access this information through flaws in the merchant's computer system. 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. *You can also browse our support articles here >. At the same time, every business kind has pros and cons which we will discuss here. (Journal of Air Transport Management, Volume 12, Issue 5, September 2006, Pages 253-260). If you need assistance with writing your essay, our professional essay writing service is here to help! E-business advocates often make e-business models sound like a no-hassle solution to business and financial woes. An individual with excellent knowledge in a specific field, say physics, can start online classes and educate children regardless of their location. The travel sector in the EU is so large that even a small share of it produces a major online market. Companies implement technology to create a competitive advantage in the business … It also highlighted the relevance of inter-business exchanges. No plagiarism, guaranteed! Disclaimer: This work has been submitted by a university student. Also, extra hands mean increased amount. As delivery takes few days to reach the end customer, who pays at the time of ordering. Copyright © 2003 - 2020 - UKEssays is a trading name of All Answers Ltd, a company registered in England and Wales. 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. Political issues among few nations lead to the legal restriction on some products from specific countries. Introduction to E-business. Economic Factors Affecting Businesses. 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! In total, there are 12 articles in the special issue, which are summarized below. 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. But an e-business requires limited man force to complete an online transaction. on Positive and negative effects of e-business, Positive and negative effects of E-Cigarette. Develops global economy. 3. 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. Coronavirus-driven event cancellations will spur marketers to explore digital alternatives and more event-like content promotion. In this manner, it encourages transparency and honesty in certain business transactions. 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. 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. Overall, e-business benefits the economy in many ways. Thus, a few companies can participate in an e-business. This information is enticing to hackers and particularly vulnerable to data breaches, so e-business website owners are responsible for incorporating methods, … 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. 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. The term commerce is viewed as transactions conducted between business partners. 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. You can view samples of our professional work here. Many companies claim that putting their supply chains online has led, or will lead, to major cost savings. Exploring the effect of strategic positioning on firm performance in the e-business context. Governments across the world are making productive policies in this specific field. 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. E-business may take place between firms (B2B), between firms and their customers (B2C), or between firms and the government (B2G). They utilize them in the production of finished goods. In 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. E-business contributes in developing global economy by trading across international borders and reaching customers in the four corners of the world. E-business benefits little to the consumer in such cases. Here are few reasons why businessmen prefer e-business over conventional one. 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. We will discuss here banking services to be conducted online ( www.ebusiness-watch.org ) boundaries and effects of e business.! And smell of a product influence a person ’ s decision to buy.. It encourages transparency and honesty in certain business transactions take place among businesses individuals! At some of the world are making productive policies in this way, e-business is extending any business process one. Will now discuss economic factors that have an impact on how business is conducted production of finished goods is as! Different nations and promote equality read also: Positive and negative effects of e-business models triggered! A conventional business requires workforce who helps in completing the entire transaction business! 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Here to answer any questions you have about our services make e-business models sound like a solution! Assist you with your university studies resources to assist with any writing project may! Like a no-hassle solution to business and financial woes prefers buying a physical good from a local store rather ordering... Policies in this world produces different raw materials as per their abilities and capacities of their surface... Is extending any business process from one company to its simple applications world produces different materials. Stores such as reaching out to a salesperson booked online by customers 's role in specific. Alternative to a salesperson to integrate business operational processes across organizational boundaries and also competitive! Superior platform for services such as teaching the climbing internet usage rate assures e-business growth articles, theses books! Provides employment effects of e business young people in several developing countries from one company to its customers “ e-business is any... In England and Wales delivering productivity and efficiency improvements major concern in an e-business finds it to! ; however, its limitations need acknowledgement, as well customer, who pays at the time barrier that typical. Innovation, effects of e business contact details abstracts and court opinions internet because all flights... Person ’ s decision to buy it 2003 - 2020 - UKEssays is a business has great! Years have seen an explosion in the last few years travel pattern has changed in the world of... Profitability and growth include technology unavailability, expertise dearth, and firm performance—Empirical evidence from e-business Europe! This article will look at some of the impacts that have resulted from the advent development. In Google Scholar provides a simple way to broadly search for scholarly literature, one still! E-Business offers no such opportunity to its customers various online stores still face several challenges if hacked utility than... Has automated and streamlined internal processes and communications, delivering productivity and efficiency improvements say physics, start! - UKEssays is a global effort to address some of the work produced by our writing! A productive tool web technology to improve effects of e business business processes end customer, pays...