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. In essence, retail companies will want to rationalize and reduce costs of supply and management of the supply chain, starting with purchasing cost. E-Commerce has a chance to be widely adopted due to its simple applications. For the start-up businesses, it is a productive tool. They utilize them in … 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. Due to the increased internet benefits in the commercial sector, e-business is expanding at a rapid pace. 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. The most important form of e-business used by banks is the online banking which has help cut down cost. Due to technological advanc… The term commerce is viewed as transactions conducted between business partners. 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. 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. An e-business eliminates the need for a physical location to set up a business. 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. The main benefit of e-commerce stems from being able to integrate business operational processes across organizational boundaries and time zones. The use of IT to conduct business online is known as Electronic Commerce (E-Commerce). In this way, e-business breaks down the time barrier that a typical business encounter and increases flexibility. Electronic commerce is an emerging concept that describes the process of buying and selling or exchanging of products, services and information via Due to this reason, an e-business finds it difficult to attract customers. I will now discuss economic factors that have an impact on E-business. Thus it has a large economic impact. 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… Thus, it delivers win-win results for both business owner and consumer. In addition, creation of new markets and ma… This write-up weighs the pros and cons of e-business for you. 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. Hence, e-business makes transactions cost-effective and limits the burden on the companies. This special issue is a global effort to address some of the pandemic-related issues affecting society. Positive effects of e-business: Here are few reasons why businessmen prefer e-business over conventional one. E-business benefits little to the consumer in such cases. In this way, e-business can impart similar and reliable knowledge among young kids of different nations and promote equality. Cyber attack is a major concern in an 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. 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. It has automated and streamlined internal processes and communications, delivering productivity and efficiency improvements. Here are few reasons why businessmen prefer e-business over conventional one. 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 information is enticing to hackers and particularly vulnerable to data breaches, so e-business website owners are responsible for incorporating methods, … 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. Due to this, groceries and confectionery product e-business makes small profits. Here, the internet is an alternative to a salesperson. 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. Though it possesses stressful limitations, one can still eat desired fruits by implementing effective measures. 11th Dec 2017 Ecommerce The past several years have seen an explosion in the world of business technology. Risks of E-Business. Positive and negative effects of e-business. When consumers buy online, they typically input a credit card number and other personal information. And using web technology to With ecommerce, there is no requirement to acquire expensive shops in high streets. Interestingly, one can run a business from home by transacting through a website. E-commerce has had a considerable impact on how business is conducted. Governments across the world are making productive policies in this specific field. Reference this. Benefits Of E-Business. E-business advocates often make e-business models sound like a no-hassle solution to business and financial woes. Read also: Positive and negative effects of eCommerce. The trade in e-services provides employment to young people in several developing countries. 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. It has affected consumers, the value chain, markets as well as business models. Figures say that the climbing internet usage rate assures e-business growth. E-business has a wide-ranging impact on the way organizations conduct business. 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. Though internet grants indefinite benefits, the online stores still face several challenges. Overall, e-business benefits the economy in many ways. No single country produce all the goods we use today. 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. Study for free with our range of university lectures! An individual with excellent knowledge in a specific field, say physics, can start online classes and educate children regardless of their location. April 27, 2010, C Kapoor, Comments Off on Benefits Of E-Business. *You can also browse our support articles here >. Electronic business or e-business refers to trade in goods and services using the internet. In the last few years travel pattern has changed in the EU. 182 on Worst Forms of Child Labour. Company Registration No: 4964706. 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 last revolutionary effect of eCommerce on strategy stems directly from the fact of its very virtuality. 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. 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. This, in turn, affects its profitability and growth. Our academic experts are ready and waiting to assist with any writing project you may have. 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. 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. Also, extra hands mean increased amount. As delivery takes few days to reach the end customer, who pays at the time of ordering. 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. Hackers manipulate business websites to gain financial data and initiate theft. 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. But an e-business requires limited man force to complete an online transaction. The negligible demand for man force reduces the cost of paying employees. All work is written to order. 138 on Minimum Age and ILO Convention No. Another negative effect of e-commerce is its potential threat to the security of consumers' personal information. E-commerce has a significant impact on business costs and productivity. We've received widespread press coverage since 2003, Your UKEssays purchase is secure and we're rated 4.4/5 on reviews.co.uk. In (Journal of Air Transport Management, Volume 12, Issue 5, September 2006, Pages 253-260). You can view samples of our professional work here. The companies across the globe face numerous challenges which include technology unavailability, expertise dearth, and shipping of grand products. It consumes cheap phones, rents and utility bills than traditional businesses. VAT Registration No: 842417633. Notify me of follow-up comments by email. Electronic Commerce provides the capability of buying and selling products and information on the internet and other on-line service. 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! Electronic business is also known as online business. 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… Every country in this world produces different raw materials as per their abilities and capacities of their land surface. This article will look at some of the impacts that have resulted from the advent and development of e-commerce. E-business, also known as e-commerce, is the avenue companies use to sell goods and services via the Internet. In total, there are 12 articles in the special issue, which are summarized below. A conventional business requires workforce who helps in completing the entire transaction. Required fields are marked *. Also, the time required to learn good security measures is a major hindrance. 1.Provides Flexibility: E-business interacts with more customers, can entail more,and can offer an innovative experience through website. Many companies claim that putting their supply chains online has led, or will lead, to major cost savings. It is often used to describe the use of technology to improve your business processes. 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 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 tactics offer advantages such as reaching a wider customer base and faster transactions, but they also come with associated risks. One prefers buying a physical good from a local store rather than ordering it online. E-business has been recognized as an important contributor in the economy of many countries. 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. 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. 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. Online business is a business where the transaction takes place online. Koellinger, P. (2008). For an online shopping, the customers need to provide a shipping address, credit card details, and contact details. Your email address will not be published. In fact, retailers, beside their relationship with suppliers and consumers, have significant impact on intercompany exchanges through CEDI (centre of distribution). E-business can offer specific advantages, such as reaching out to a wider customer base and faster transactions. Taking the internet for example, it has had a very high impact on the air travel industry. Registered Data Controller No: Z1821391. In the supply chain, e-business has increased levels of collaboration, reduced transaction costs and improved responsiveness to change. E-business may take place between firms (B2B), between firms and their customers (B2C), or between firms and the government (B2G). From simple essay plans, through to full dissertations, you can guarantee we have a service perfectly matched to your needs. 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). Every country in this world produces different raw materials as per their abilities and capacities of their land surface. Economic Factors Affecting Businesses. 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. Benefits Of E-Business. Introduction to E-business. One prime necessity of an e-business is an internet. Easy jet has never used the travel agent network, they rely on the internet because all their flights are booked online by customers. 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. 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). No plagiarism, guaranteed! 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. Do you have a 2:1 degree or higher? 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. Exploring the effect of strategic positioning on firm performance in the e-business context. If you need assistance with writing your essay, our professional essay writing service is here to help! Kim, Y.J., Song, J., & Koo, C. (2008). To share the fruits of all the manufactured goods produced across the world, international community stresses upon globalization. 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. In recent years, e-business has developed rapidly and the e-purchasing is becoming more popular over the world. Political issues among few nations lead to the legal restriction on some products from specific countries. Coronavirus-driven event cancellations will spur marketers to explore digital alternatives and more event-like content promotion. Copyright © 2003 - 2020 - UKEssays is a trading name of All Answers Ltd, a company registered in England and Wales. 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. Your email address will not be published. The internet has contributed strongly to the growth of most budget airlines taking easy jet as an example. Sharing of private information can put them in danger if hacked. 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. 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. E-business changes the macroeconomy in several beneficial ways. E-business supplies numerous e-services and is a superior platform for services such as teaching. The travel sector in the EU is so large that even a small share of it produces a major online market. 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. 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