Benefits to Organizations That Use E-Commerce

In: Business and Management

Submitted By cera8461
Words 1251
Pages 6
Benefits to organizations that use e-Commerce (e-Business). What are the pros for the businesses which use e-commerce? Give specific examples.

Instructor: W.E. Simonpietri

Course: Fundamentals of E-Business – BUS107

Date: January 29, 2011

Schneider (2010), author of Electronic Commerce, explains that electronic commerce, or also called e-Commerce, means “shopping on the part of the Internet called the World Wide Web and also includes many other activities, such as businesses trading with other businesses and internal processes that companies use to support their buying, selling, hiring, planning, and other activities.” The methods involved with conducting business on the Internet and opening an e-Commerce shop to sell from, have several benefits to both merchants and the customers who buy from them. The biggest benefits of conducting business through the Internet includes a cheaper upfront cost to the merchant, it's easier to set up and open the store and it's faster to get an Online business up, running and making sales. Marketing through e-Commerce has several benefits that include less costs than print advertising, helps build customer relationships, brand credibility and it costs less to get an e-Commerce marketing campaign running and operational. In the following paragraphs, I will show you more in depth of the benefits of e-Commerce in a business. One the greatest advantage that e-Commerce brings to a business is global expansion. Due to the wide range reach of the Internet, businesses are able to communicate globally and explore new markets. Because of this global reach of e-Commerce, businesses are now breaking down geographic limitations. Through the Internet, “businesses now offer a wide range of choices and higher levels of customer information and details for individuals to search and compare” (Yun Tze Pien, 19 Sep 2005, para 1). There…...

Similar Documents

E-Commerce

... This is also referred to as the information age. Digital technology has changed the economy. The new terminology being used is e-marketing where the primary source of value creation for consumers has shifted from physical goods to services and information. This does not mean that everything we previously knew about business becomes irrelevant and obsolete, but it does mean that significant changes in business environment justify new approaches to thinking of the best marketing strategy and management. In summary E-commerce can be defined as an exchange of goods and services between parties, individuals and organizations as well as the electronically based intra and inter organizational activities that facilitate such exchanges.(Dave.C.,2007,p,4) There are four categories of E-commerce:- a) Business to business b) Business to consumer c) Consumer to business d) Consumer to consumer Most business still carries out the traditional ways of conducting business. This is by having a physical address where they have their products and services and translations are made there. Due to the new dot com community and ways of doing business many businesses have taken up the opportunity of conducting business online. This is because of the benefits brought about by doing business using electronic medium, some of these benefits are:- 1) Increasing market share 2) Expanding their geographical reach 3) Venturing into new markets i.e. niche...

Words: 3079 - Pages: 13

The Use of E-Commerce in Today's Business

...are using e-business to broad their companies, so for the new one is very difficult to compete with them and they need to find smart ways to get on the global market. For the new company on the global business market is a very good step for next level of competitiveness to make a website. Nice and simple designed website with correctly structured information and few nice pictures on it could attract more interest of people for that new business. To move your company for e-business is a very good idea. It gives you a lot of opportunities. Internet is most popular source of searching information, so presence of your website on the World Wide Web is a good chance to be noticed and attract new customers. Internet opens door for opportunity and innovation. Because internet doesn’t have borders your company gets available for any country in the world, anywhere where is internet. Actually just with basic website your business isn’t yet as flexible as could it be, but there are always opportunities to develop it and expand your business. Website will give you more functionality. There you could put information about your services or products, open hours and your contacts. Then you could be easily contacted by someone who is interested in your services. The aim is to provide access to yours company services 24 hours a day, 365 days a year. You can easily put on your website order or booking form, so customers could make orders or booking at any convenient for them time. Today......

Words: 959 - Pages: 4

E-Commerce

...Bushry (2005) defines electronic commerce as „an emerging concept that describes the process of buzing and selling or exchanging of products, services and information via. telecommunication and computer networks including the Internet“ (p. 1). Bajaj and Nag (2009) notice that „E-commerce not only automates manual processes and paper transactions, but also helps organizations move to a full electronic environment and change the way they operate“ (Nansi, 2004, p. 14). In a word, E-commerce today involves business information sharing, business relationships maintaining, and business transactions conducting by telecommunications networks (Web catalogues, advertazing and other). Besides, e-commerce considers electronical orders of products and services, payments (traditional payment, by credit cards, EDI, digital money), form filling (Web form, e-mail, faxing and others), services and technical support (Frequently Asked Questions, e-mail, bulletin boards and others). One of the major advantages of e-commerce is low connection and usage prices and multichanelled access and delivery. On the other hand, M-commerce reffers to mobile commerce and it “is defined as the exchange or buying and selling of commodities, services, or information on the Internet through the use of mobile handheld devices.” (p. 1-2). In another words, mobile commerce refers to the implementation of e-commerce over wireless devices. It is commercial mobile computing application based on wireless......

Words: 2197 - Pages: 9

How Walmart Uses E-Commerce in Its Supply Chain

...How Walmart Uses E-commerce in Its Supply Chain In 2011, Walmart’s sales amounted to $419 billion and were ranked first in Fortune 500’s list of world’s largest companies by revenue. (Walmart 2011). What contributed to Walmart’s success? With heavy investment into their supply chain management system it has enable them to reduce overall costs, minimize inventory levels, and optimize logistics and distribution thus making them more successful. Analysis will be made as to why Walmart is concentrating on supply chain projects, why some suppliers are not in compliance with mandatory RFID tags, and how e-commerce improves transaction processing. Why Walmart is Concentrating on Supply Chain Projects Walmart is investing heavily in projects to constantly improve their supply chain which will allow them to lower overall costs and increases profit margin. An illustration of this is that prior to the efforts on supply chain management in 2002, on sales of $218B, they generated a return of 3%. In 2011, their profit margin increased to 6.1% while doubling revenue. By constantly upgrading the management of product through the various distribution channels and the process in which consumers receive products, time and money can be saved by Walmart which in turn benefits the consumer. In order for Walmart to remain successful on a global level, being competitive is the key. To be competitive in the “front of the house”, they must remain competitive in the “back of the house”. ...

Words: 1850 - Pages: 8

E-Commerce

...Running head: E-Commerce Commerce over the Internet is Relatable Safe Insert Name Insert Grade Course Insert Tutor’s Name 23 November 2010 Outline Introduction This section defines the term internet commerce and gives a brief overview of its history. Requirements for E-commerce It gives some of the major requirements involved in starting up an E-business. This includes; 1. Online store- for processing or transactions, and making purchases 2. Website- for marketing products 3. Secure interface- for preventing unauthorized people from accessing critical information Benefits of E-commerce This section gives some of the benefits and opportunities accrued to a business involved in E-commerce. They are; 1. Large number of potential customers- A large number of people rely on the internet thus they are likely to access information pertaining a particular product 2. Timeliness- transactions are facilitated quickly and customers get their products on time 3. Reduced marketing cost- requires very minimal marketing costs as compared to direct marketing 4. Reduced communication cost- communication is done online which is a bit cheaper than use of mobile phones or mails Limitation and challenges This part of the research paper gives some of the disadvantages associated with E-commerce 1. Limitation on the type of product- not all products can be sold over the internet......

Words: 3226 - Pages: 13

E-Commerce

...Introduction of e-commerce Electronic commerce can be defined as sales or purchase of goods and services or any commercial transaction through electronic systems such as internet, telephone and e-mail. There are several forms of e-commerce, including: Business-to-Business (B2B) is the electronic transactions between enterprises for conducting business. Business-to-Consumer (B2C) is the business sell of products or services directly to customers, such as Gmarket, Alibaba etc. Consumer-to-consumer (C2C) is the business conduct between consumers. This usually is a form of auction or forum site, such as E-bay. Consumers post what they intend to sell on the webpage, other consumers can access and bid for the item. Customer-to-business (C2B) is a form of business offered by consumer to business to exchange for money. For example, designers sell a design to a multimedia manufacturing company online. One of the major subset of E-commerce is mobile commerce. It is the sale and purchase of goods or services or conducts any business activities through internet connection using handy devices such as mobile phones and tablets. Mobile commerce is getting popular and can be defined as the next generation of e-commerce. Businesses conduct e-commerce to stay competitive. Some of the businesses are successful with the use of e-commerce, such as online shop Amazon and DBS Bank. Amazon provides a massive range of products. They are focus on their selection, price and convenience. Customers......

Words: 3739 - Pages: 15

E-Commerce

...Glossary |Term |Definition | |Electronic Commerce |Electronic commerce is the buying and selling of goods and services on the Internet, especially the World Wide | | |Web. | |Etsy/Pinterest |Online websites for buying and selling products and ideas. | Executive summary The main objective of this report is to identify and analyse the benefits and problems associated using the E-commerce. The case study evolves the client, Miss Amanda Jane Walter in which her horse riding apparel business is threaten as many customers search and buy the products online compared to Amanda Jane who only sells the items directly to their customer. This report explains how E-commerce can be incorporated to help the company, Amanda Jane Horse Wear, to improve its business operations and improve on its advertising to outreach to a greater target audience within the horse-riding community. Some benefits identified include increased business efficiency, reduced operations cost, providing additional convenience to customers and expanding the company’s current customer base. On the other hand, the report will highlight the challenges that the business might face......

Words: 2826 - Pages: 12

E-Commerce

...KENYATTA UNIVERSITY MOMBASA CAMPUS Management Science Department BMS 501: MANAGEMENT INFORMATION SYSTEMS ELECTRONIC-COMMERCE AND MOBILE-COMMERCE PRESENTED BY: LEONIDA CHEPKORIR SOI D53/MSA/PT/25210/2012 PRESENTED TO: Athman Fadhili Lecturer, Management Science Department Kenyatta University, Mombasa Campus. 9th OCTOBER 2013 1 TABLE OF CONTENTS CHAPTER ONE INTRODUCTION……………………………………………………….……………….3 CHAPTER TWO 2.1 DEFINITION OF COMMERCE……………………………………….……………5 2.2 DEFINITION OF E-COMMERCE……………………………………….…………5 2.3 E-COMMERCE PROCESS…………………………………………….……………5 2.4 ORIGIN OF E-COMMERCE …………………………………………….…………5 2.5 DIFFERENCES BETWEEN E-BUSINESS AND E-COMMERCE….……………7 2.6 CLASSIFICATION OF ELECTRONIC-COMMERCE ……………….…………….8 2.7 FACILITIES THAT SUPPORT E-COMMERCE……………………….……………9 2.8 BENEFITS OF E-COMMERCE…………………………………………….………..10 2.9 LIMITATION OF E-COMMERCE……………………………………………….…..12 CHAPTER THREE 3.1 DEFINITION OF M-COMMERCE…………………………………………………..15 3.2 CHARACTERISTICS OF M-COMMERCE………………………………………….18 3.3 PARTICIPANTING ENTITIES IN M-COMMERCE VALUE CHAIN…………….18 3.4 FUNCTION OF THE MOBILE NETWORK OPERATOR IN M-COMMERCE …..18 3.5 BILLING……………………………………………………………………………….19 3.6 AREAS OF APPLICATION OF M-COMMERCE………………………………...…20 3.7 REASONS FOR HIGH ADOPTION RATE OF M-COMMERCE…………………..21 CHAPTER FOUR CONCLUSION…………………………………………………………………………….22 REFERENCES …………………………………………………………………………...23 2 CHAPTER ONE INTRODUCTION Internet revolution has made......

Words: 4756 - Pages: 20

Benefit of E-Commerce

...1|P ag e INTRODUCTION E-commerce is the short form from “electronic commerce”. E-commerce means it does a business transaction like buying and selling of product and service between services and consumers conduct over the web. Every transaction is made without used any paper document. Electronic commerce operates in all four of the major market segment: business to business (B2B), business to consumer (B2C), consumer to consumer (C2C) and consumer to business (C2B). E-tailing is the traditional retailer. E-tailing is business to customer (B2C) typed business model. There are three types of e-tailing for example virtual merchants like pure-plays (100% online) and bricks (offline) and clicks (online), Manufacturer-direct, and catalog merchant. For example of pure-play e-tailing used internet as its primary means of retailing. So does not have physical storefront. For example are Dell and Amazon.com. A brick and click e-tailing uses the internet service to push its good and service but also it has the traditional physical storefront (general store) available to the customer. By combining this new type of retail and the old of general store is a new type of store which is a part of the green economics movement, promoting ethical consumerism. There are advantages and disadvantages of e-tailing from this table below: Advantages Disadvantages Pure plays allows for a retailer to be able to E-tailing is failing to meet the need of the reach customer worldwide. online customer......

Words: 3550 - Pages: 15

E-Commerce

...2/24/2015 Carolina Guerraz John Cabot University E-commerce Industry Analysis Contents Introduction 2 Industry Background 2 PEST Analysis 4 Political 4 Economic 5 Social 6 Technological 7 Michael Porter’s Five Forces Analysis 7 Threat of New Entrants 7 The Power of Suppliers 8 The Power of Buyers 8 Threat of Substitutes 9 Rivalry 9 Conclusion 9 Bibliography 11 Introduction The objective of this paper is to analyze e-commerce industry in Italy and to determine its attractiveness by applying PEST analysis and Michael Porter’s Five-Force Analysis. E-commerce is defined as the sale of products and services through computer networks.  As the world changes and technology advances, firms must adapt to new trends so that new competitive advantages can become part of the industry. In e-commerce industries, information and communication technologies (ICT) and merchandise are the suppliers, online retailers are the players, and end-consumers are the buyers. After having described the e-commerce industry background and its trends, both on a global perspective and specifically in Italy, an environmental analysis will be described as a way to determine the industry attractiveness. Industry Background The e-commerce industry is one of the fastest growing industries throughout the world even though differences exist in the stage of development from country to country. According to Euromonitor, global online retail sales have increased 17% from 2007 to 2012. In......

Words: 2657 - Pages: 11

E-Commerce

...Greenwich School of Management / plymouth university | E- Commerce | PC303 | | Sonny Tella Leshie : SN/129122 | | | Table of Contents 1.0 Executive Summary 2 2.0 Introduction 2 2.0 E-Commerce 3 3.1 Benefits of E-Commerce 3 3.2 Limitations of E-Commerce 4 4.0 Features of E-Commerce 4 4.1 Ubiquity 5 4.2 Global Reach 5 4.3 Universal Standards 6 4.4 Richness 6 4.5 Interactivity 7 4.6 Information Density 7 4.7 Personalisation/Customisation 7 4.8 Social Technology 8 5.0 Privacy and Security Issues 9 5.2 Security 9 6.0 Ethical Factors 10 6.1 Privacy 10 7.0 Recommendations 11 8.0 Conclusion 11 9.0 Bibliography 11 Appendix 13 1.0 13 2.0 14 3.0 15 4.0 16 5.0 17 1.0 Executive Summary This is a report of a critical review of the E-Commerce website of “Alfasud Parts Online”. The report will look at the general role of e-commerce in contemporary business and the advantages or otherwise for Alfasud. A critical analysis of the implementation of the unique features of E-Commerce shall be undertaken and their business significance for the company will be evaluated. This report will evaluate the security provisions on the e-commerce website and the employed technologies and methods for ensuring security and privacy. An evaluation of necessary ethical considerations and others issues arising on the website will also be conducted. The report will draw conclusions and make recommendations to the......

Words: 2846 - Pages: 12

Social E-Commerce That Xiaomi Uses

...Social E-Commerce That Xiaomi Uses At 22:00 on 8th April, 2014, Xiaomi’s total transaction amount in the latest round of “Mi Fan Festival” came to a halt at 1.5 billion yuan (USD 243.35 million), setting a new domestic record for single-day transaction amount in independent e-commerce companies. 1.3 million smartphones, nearly 4.8 million pieces of accessories, all sold out in 12 hours. Xiaomi’s unique visit of the day hit 15 million. When Lei Jun founded Xiaomi in 2009, the first product was MIUI operating system. Lei Jun didn’t want to spend money on marketing, so his crew began building brand awareness in forums. Their staff spent a lot of time on forums, making comments, sending posts and advertising. And they also searched for senior users in forums and picked out 100 out of 1000 to join their operating system design and feedback. These 100 senior users were the base of MIUI operating system, and they also became the first batch of “Me Fan”, meaning Xiaomi fans. Later, Lei Jun decided to manufacturer smartphone. They used the same method to do marketing with zero budget. They set up MIUI mobile phone forum, which became the base camp of “me fan”. In 2010, MIUI forum already had 1 million registered users. Naturally, the 1 million users became the first “Me Fan” of MIUI smartphone. “Me Fan” participated in product research, development, test, spread, marketing and public relation. Except a variety of online activities, fans also organized offline city gatherings. 42%...

Words: 1185 - Pages: 5

Benefits and Limitations of E Commerce

...QUIZ 1: Explain the benefits and limitations of E-commerce. Ecommerce or electronic commerce: involves carrying out business over the Internet with the assistance of computers, which are linked to each other forming a network.  To be specific Ecommerce would be buying and selling of goods and services and transfer of funds through digital communications. THE BENEFITS OF USING E COMMERCE Benefits to Organizations • Using E-Commerce, organization can expand their market to national and international markets with minimum capital investment. An organization can easily locate more customers, best suppliers and suitable business partners across the globe. • E-Commerce helps organization to reduce the cost to create process, distribute, retrieve and manage the paper based information by digitizing the information. • E-commerce improves the brand image of the company. • E-commerce helps organization to provide better customer services. • E-Commerce helps to simplify the business processes and make them faster and efficient. • E-Commerce reduces paper work a lot. • E-Commerce increased the productivity of the organization. It supports "pull" type supply management. In "pull" type supply management, a business process starts when a request comes from a customer and it uses just-in-time manufacturing way. Benefits to Customers • 24hour support. Customer can do transactions......

Words: 976 - Pages: 4

E-Commerce

...[pic][pic] E-Commerce Management (Lecturer: Mr Damien Yam) Individual Assignment Assignment Question: Explain how the use of Information Communication Technology (ICT) and E-Commerce has produced competitive advantage to Hospitality Industry Done by: Jane Lim Chiew Ping Submitted on: 19th November 2009 Table of Contents Page 1.0 Introduction……………………………………….. ………03 2.0 E-Commerce Applications for Hospitality Organizations…05 3. Lodging……………………………………………….........06 4.0 Food Industry………………………………………………12 5.0 Meetings and Events………………….……………………14 6. Entertainment/Recreation………………………………….15 7. Airlines………………………………. ……………………16 8. Travel Agents……………………………………………....19 9. Cruise Lines ………………………………………………..21 10. Conclusion……………………………………………….. ..24 11. References………………………………………………….25 [pic] Introduction When most people think about hospitality industry, they have visions of hotels, airlines, cruise ships, restaurants, health spas, and the like, based on their personal experiences. All aspects of the industry are involved in business processes at the operations level. Business processes consist of transactions and interactions with guests or customers, employees and even other businesses. A transaction is an activity such as checking in to a hotel or placing an order in a restaurant. Interactions include the relationships......

Words: 3132 - Pages: 13

E-Commerce

...considerable time after the so called ‘Internet revolution’, electronic commerce, commonly known as e-commerce or eCommerce, remains a relatively new, emerging and constantly changing area of business management and information technology. There has been and continues to be, much publicity and discussion about e-commerce. According to the editor-in-chief of the International Journal of Electronic Commerce, Vladimir Zwass, ‘Electronic commerce is sharing business information, maintaining business relationships and conducting business transactions by means of telecommunications networks’ (Zwass, 1996). However, the term may refer to more than just buying and selling products online. It also includes the entire online process of developing, marketing, selling, delivering, servicing and paying for products and services. The amount of trade conducted electronically has grown extraordinarily with widespread Internet usage and is predicted to continue at this rate, or even accelerate. Electronic commerce covers a range of different types of businesses, from consumer based retail sites, through auction or music sites to business exchanges trading goods and services between corporations (Beyon-Davies, 2009). It is currently one of the most important aspects of the Internet to emerge (Curtis and Cobham, 2005). Although "conventional" commerce is still used by many companies, there is a growing tend to use electronic commerce, as more and more businesses move sections of their......

Words: 2589 - Pages: 11