In recent years, e-business has developed rapidly and the e-purchasing is becoming more popular over the world. Positive and negative effects of e-business. E-business can offer specific advantages, such as reaching out to a wider customer base and faster transactions. Also, extra hands mean increased amount. Do you have a 2:1 degree or higher? At the same time, every business kind has pros and cons which we will discuss here. We're here to answer any questions you have about our services. Read also: Positive and negative effects of eCommerce. 11th Dec 2017 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. E-business tactics offer advantages such as reaching a wider customer base and faster transactions, but they also come with associated risks. Political issues among few nations lead to the legal restriction on some products from specific countries. 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. 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 … It has automated and streamlined internal processes and communications, delivering productivity and efficiency improvements. Registered office: Venture House, Cross Street, Arnold, Nottingham, Nottinghamshire, NG5 7PJ. Copyright © 2003 - 2020 - UKEssays is a trading name of All Answers Ltd, a company registered in England and Wales. Hence, e-business makes transactions cost-effective and limits the burden on the companies. This factor is a major obstacle to the expansion of various online stores such as garments, leather or shoes among others. Here are few reasons why businessmen prefer e-business over conventional one. E-business benefits little to the consumer in such cases. David Liederbach, IBM Director of e-commerce marketing defined “ E-business is extending any business process from one company to its trading partners. Taking the internet for example, it has had a very high impact on the air travel industry. Benefits Of E-Business. 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. E-business has been recognized as an important contributor in the economy of many countries. 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. This write-up weighs the pros and cons of e-business for you. E-business contributes in developing global economy by trading across international borders and reaching customers in the four corners of the world. An e-business eliminates the need for a physical location to set up a business. 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). From simple essay plans, through to full dissertations, you can guarantee we have a service perfectly matched to your needs. 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. 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. VAT Registration No: 842417633. E-business, sure, is beneficial; however, its limitations need acknowledgement, as well. In this way, e-business can impart similar and reliable knowledge among young kids of different nations and promote equality. 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. Reference this. A conventional business requires workforce who helps in completing the entire transaction. 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! Today, the internet is available 24 hours a day, which means a business stay open. Thus it has a large economic impact. The past several years have seen an explosion in the world of business technology. 182 on Worst Forms of Child Labour. Accounting for trends in the overall economy can help 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. Ecommerce has affected businesses positively and negatively. 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. The main benefit of e-commerce stems from being able to integrate business operational processes across organizational boundaries and time zones. 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. Electronic Commerce provides the capability of buying and selling products and information on the internet and other on-line service. In addition to buying and selling products and services online, it includes supply chain management, electronic order processing, and customer relationship management. Every country in this world produces different raw materials as per their abilities and capacities of their land surface. 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. They utilize them in … It has affected consumers, the value chain, markets as well as business models. The most important form of e-business used by banks is the online banking which has help cut down cost. Risks of E-Business. 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. The trade in e-services provides employment to young people in several developing countries. Here, the buyer and the seller don’t meet personally. 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. 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. Introduction to E-business. You can view samples of our professional work here. An individual with excellent knowledge in a specific field, say physics, can start online classes and educate children regardless of their location. International Journal of Information Management, 28(3), 203-214. 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. 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. 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 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. Notify me of follow-up comments by email. Looking for a flexible role? In this manner, it encourages transparency and honesty in certain business transactions. 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. Search across a wide variety of disciplines and sources: articles, theses, books, abstracts and court opinions. Koellinger, P. (2008). 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. E-business stands for electronic business. Interestingly, one can run a business from home by transacting through a website. The internet has contributed strongly to the growth of most budget airlines taking easy jet as an example. The travel sector in the EU is so large that even a small share of it produces a major online market. In total, there are 12 articles in the special issue, which are summarized below. 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. Electronic business is also known as online business. applicable as an ideal business purpose. In 2004 the EU retail sector, the industry comprised of approximately 17 million firms that employed people in the EU27 (e-business watch 2007). Google Scholar provides a simple way to broadly search for scholarly literature. 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. This, in turn, affects its profitability and growth. 138 on Minimum Age and ILO Convention No. Positive effects of e-business: Here are few reasons why businessmen prefer e-business over conventional one. 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. 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. In addition, creation of new markets and ma… Free resources to assist you with your university studies! Here, the internet is an alternative to a salesperson. 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. Electronic commerce is an emerging concept that describes the process of buying and selling or exchanging of products, services and information via 3. 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 … Though it possesses stressful limitations, one can still eat desired fruits by implementing effective measures. Due to technological advanc… 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. 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… 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. Unauthorized persons could access this information through flaws in the merchant's computer system. 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. Every country in this world produces different raw materials as per their abilities and capacities of their land surface. An e-business offers no such opportunity to its customers. Our academic experts are ready and waiting to assist with any writing project you may have. The term “e-business” was coined by IBM’s marketing and Internet team in 1996. 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. Ecommerce But an e-business requires limited man force to complete an online transaction. Cyber attack is a major concern in an e-business. 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. Thus, a few companies can participate in an e-business. E-business advocates often make e-business models sound like a no-hassle solution to business and financial woes. And using web technology to Your email address will not be published. Another negative effect of e-commerce is its potential threat to the security of consumers' personal information. They utilize them in the production of finished goods. April 27, 2010, C Kapoor, Comments Off on Benefits Of E-Business. Overall, e-business benefits the economy in many ways. The negligible demand for man force reduces the cost of paying employees. E-commerce is a revolution in business practices (Ohidujjaman, et al 2013). 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. Such business transactions take place among businesses or individuals. The last revolutionary effect of eCommerce on strategy stems directly from the fact of its very virtuality. Disclaimer: This work has been submitted by a university student. 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 may take place between firms (B2B), between firms and their customers (B2C), or between firms and the government (B2G). Online business is a business where the transaction takes place online. 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. I will now discuss economic factors that have an impact on E-business. E-business has enabled banks to redefine their boundaries and also gained competitive advantage through it. Exploring the effect of strategic positioning on firm performance in the e-business context. *You can also browse our support articles here >. Develops global economy. It consumes cheap phones, rents and utility bills than traditional businesses. In This information is enticing to hackers and particularly vulnerable to data breaches, so e-business website owners are responsible for incorporating methods, … Thus, it delivers win-win results for both business owner and consumer. Registered Data Controller No: Z1821391. E-business changes the macroeconomy in several beneficial ways. 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. It has made a great difference in terms of shelf life of products and stock rotation time. Retailing is one of the most important industry sector in the world, with no exception of the EU. The term commerce is viewed as transactions conducted between business partners. 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. The use of IT to conduct business online is known as Electronic Commerce (E-Commerce). In fact, retailers, beside their relationship with suppliers and consumers, have significant impact on intercompany exchanges through CEDI (centre of distribution). 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. Hackers manipulate business websites to gain financial data and initiate theft. Due to this, groceries and confectionery product e-business makes small profits. 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). 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