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E-Commerce Role in Business Environment Report

E-Business and Traditional Business

Electronic business encompasses simultaneous transfer of relevant information online. This information exists in the form of business opportunities for auction, retail, wholesale, and corporation trade. Traditional business encompasses offline transfer of information that exists in the forms of business opportunities for the parties involved. In E-business, by a click on the mouse, a potential customer is in a position to access exact product and make comparison on prices without having to appear physically in shops and stalls in the case of the traditional business model. Besides, E-business is non discriminative on the size of business since even retail chains are in a position to trade online (Malhotra and Agarwal 341).

Moreover, this model of business operation functions exclusively online. In addition, web tracking technology permits sites that practicing E-business to monitor customer satisfaction and preference, unlike the traditional business model. These aspects allow such companies re-model to customize service delivery and maintain quality. At technological advancement improves, E-business is likely to widen further. Consequently, it is will be cheaper and easy to operate and open online stores “without a brick –and-mortar presence” (Bill 1) as opposed to the traditional business model which cannot function without physical presence. In addition, E-business offers entrepreneurial opportunities to persons in all business fields unlike the restrictive traditional business model. The recorded sales data estimate progress at 4% annual across the globe (Baskerville 27).

The main disadvantage of E-business is the fears and doubts by potential customers who don’t how it works. In this case, the potential customers are afraid of purchasing products online because of doubt on reliability, practicality, and risks involved especially when delivery is done to a wrong party, which is not the case in traditional business practice. Some of these customers may be curious on appearance and reality and may develop a negative attitude after an assumption of possible fraud (Ira 24).

Besides, online stores do not give an option for wear, touch, trial of the product before purchasing like the traditional business model does. Therefore, sale of products such as furniture might be challenging. Moreover, invasion of malwares and malicious codes in online stores might turn simple business transaction into ‘hellgate’ transmitting virus to PC of potential clients (Ira 29). In addition online trading limits the social aspect of shopping in which parties involve interact physically with one another in the case of traditional business practice.

E-market Places

The models of intention, adoption, and continuance are essential in investigating the concepts of intention, adoption, and continuance on the process of e-business within e-market places. The most recent achievements in E-business industry include the remodeling of Google which has completely transformed search engines and modification of online stores. Besides, broadband penetration across the globe has succeeded in making available fast internet connection to clients (Malhotra and Agarwal 341).

Through this, many businesses have slowly but steadily embraced technology of online business. Through the Wi-Fi, User-generated content, and iTunes online business has grown to intercontinental exchange of products and services in the tourism, manufacturing, and product industries (Lee and Emile 77).

Introduction of the Wi-Fi, iTunes, Blackberry applications, and Amazon search engines have made online trade simple and reliable. For instance, the Wi-Fi and blackberry application permits potential client and seller to video conference and strike a deal irrespective of distance between these parties. Besides, potential clients are now in a position to bargain, view, and make modifications to their product before making payment (Lee and Emile 77).

In addition, these gadgets are portable and have widened access to products online without necessarily being connected to the traditional wire internet which was slow. Technology is a significant aspect of economic development that brings innovative amalgamation of labor and capital. Developing countries do not experience widespread technological growth. The use of technology remains concentrated in urban areas of the country.

The effectiveness of substitute delivery channels depends on the availability of options to clients. In case of inconvenience experienced in the bank branches, they may look for alternate delivery channels. The complexity of the financial system also affects the use of complementary delivery conduits (Liebermann and Sinl 295). For instance, clients may look for online banking or mobile banking for basic payment services or simple fund transfer, whereas they may not rely on these for complex services like applying for mortgage or seeking life insurance and go for branch-based services in such cases.

Moreover, demographic features relating to financial and technical literacy also influence the clients’ approval to net-banking (Liebermann and Sinl 296).

Due to surge in use of E-business, several security reasons have cropped up especially in safety of information exchanged. Occurrence of some security threats has compromised the principles of authentication, privacy, and non-repudiation which are fundamental in protecting security breaches such as Denial of Service (DoS) (Malhotra and Agarwal 342). The most common threats in E-business include ICM Flood, Teardrop Attack, Plashing, Distributed Denial-of-Service Attacks, and Brute Force Attacks (Malhotra and Agarwal 341). These malwares aim at compromising integrity of E-business.

Topic Summary

The global business arena is manifested with emergence of mass society in terms of social interaction, that is, mass culture, mass welfare, mass consumerism, mass communication, and numerical sense of unique demands. As the world becomes a global village, information sharing is efficient and very cost effective. At present, just by a click of a button in search engine, information becomes available. Due to the entry of technological advancement in the world today, internet has been the most common means of product and service intake for customers. E-commerce through the electronic medium started to take active role in business activities during the beginning of the last two decades.

The promise of convenience, efficiency, and ease of use has greatly influenced consumers to adopt e-commerce. Rationality in embracing e-commerce is influenced by awareness of different options available in order to maximize gain from every bundle of purchases made. From these numerous options, the rational customer will correctly rate the best and will be in a position to pick the one with the highest level of satisfaction from the information communicated through the electronic medium.

Satisfaction and positive perception is the driving force behind the rising purchasing patterns of adoption of e-commerce. Before engaging in a business activity, it is vital to access its merits and demerits, risks involved security of the transaction, and regulative organs that directly provide protection from unpredictable and unethical practices by competitors. Therefore, this part reviews the advantages, disadvantages, risks, security, and regulative agency in E-commerce.

From topic, the media contracts should recommend a tailored publisher strategy since it would be more effective in maximizing return on investment as opposed to the uniform strategy in carrying out e-commerce in different e-market places. The potential of the tailored publisher strategy approach is that it will improve the visibility of the e-commerce products among the specifically targeted customers, who may be stratified by age, preference, and product culture. For instance, a company’s website should carry out a customized link reference promotion where the website visitor is able to access customized services that are stratified.

In order to increase credibility and maintain professionalism, the current bomb internet channels used in e-commerce for reaching the consumers should be tailored to encompass processes and features that flawlessly facilitate a healthy and lifetime relationship between the centre and its clients. The e-market places may be tailored to include a unique cookie which is transferable to the visitors of a product or service website. Basically, this arrangement will restore user confidence besides making the services available just by a click of a button. Therefore, E-commerce has become a necessity since it permits clients to exchange goods electronically with zero burrier of distance or time.

Over the last half of previous decade, E-commerce has experienced rapid expansion and the same is predicted to positively accelerate further in future. In modern business environment, technology has necessitated the need for optimal performance through reducing overhead costs and maximizing profit in the process. As a matter of fact, E-commerce is the most cost effective and efficient means of transacting business irrespective of size of company. Therefore, prospects of E-commerce are promising in all sectors of business environment inspired by the need for efficient transaction at minimal cost in time and resources.

Works Cited

Baskerville, Richard. International E-business Marketing, Alabama, Al: Cengage Learning EMEA, 2004. Print.

Bill, Horace. History of E-commerce: Your Expert Guide to E-Commerce, Online Retailing & Internet Marketing, Los Angeles, California: K&A Press, 2009. Print.

Ira, Kalb. E-Marketing: What Went Wrong and How to Do It Right, Los Angeles, California: K&A Press, 2010. Print.

Lee, Kim and Turban Emile. “A Trust Model for Consumer Internet Shopping.” International Journal of Electronic Commerce 6.1 (2011): 75-91. Print.

Liebermann, Young and Stashevsky Sinl. “Perceived Risks as Barriers to Internet and E-commerce Usage.” Qualitative Market Research 5.4 (2009): 291-300. Print.

Malhotra, Kim and John Agarwal. “Internet Users’ Information Privacy Concerns (IUIPC): The Construct, the Scale, and a Causal Model.” Information Systems Research 15.4 (2004): 336-355. Print.

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1. IvyPanda. "E-Commerce Role in Business Environment." July 1, 2020. https://ivypanda.com/essays/e-commerce-role-in-business-environment/.


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IvyPanda. 2020. "E-Commerce Role in Business Environment." July 1, 2020. https://ivypanda.com/essays/e-commerce-role-in-business-environment/.


IvyPanda. (2020) 'E-Commerce Role in Business Environment'. 1 July.

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