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. E-Commerce has a chance to be widely adopted due to its simple applications. 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-commerce is a revolution in business practices (Ohidujjaman, et al 2013). E-business supplies numerous e-services and is a superior platform for services such as teaching. 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). For the start-up businesses, it is a productive tool. 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. 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! To share the fruits of all the manufactured goods produced across the world, international community stresses upon globalization. Looking for a flexible role? 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. Our academic experts are ready and waiting to assist with any writing project you may have. Thus it has a large economic impact. Accounting for trends in the overall economy can help business … Political issues among few nations lead to the legal restriction on some products from specific countries. This, in turn, affects its profitability and growth. Thus, a few companies can participate in an e-business. Benefits Of E-Business. E-business changes the macroeconomy in several beneficial ways. Due to this reason, an e-business finds it difficult to attract customers. Required fields are marked *. Positive effects of e-business: Here are few reasons why businessmen prefer e-business over conventional one. 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. Coronavirus-driven event cancellations will spur marketers to explore digital alternatives and more event-like content promotion. This write-up weighs the pros and cons of e-business for you. 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. 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. Economic Factors Affecting Businesses. E-business tactics offer advantages such as reaching a wider customer base and faster transactions, but they also come with associated risks. But an e-business requires limited man force to complete an online transaction. Risks of E-Business. An e-business offers no such opportunity to its customers. 1.Provides Flexibility: E-business interacts with more customers, can entail more,and can offer an innovative experience through website. E-commerce has had a considerable impact on how business is conducted. In the last few years travel pattern has changed in the EU. You can view samples of our professional work here. In total, there are 12 articles in the special issue, which are summarized below. Unauthorized persons could access this information through flaws in the merchant's computer system. Read also: Positive and negative effects of eCommerce. Every country in this world produces different raw materials as per their abilities and capacities of their land surface. We are witnessing a boom of new technologies, especially in the service sector (IT, Telecommunications, Internet, etc.). 182 on Worst Forms of Child Labour. A physical touch and smell of a product influence a person’s decision to buy it. 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 this manner, it encourages transparency and honesty in certain business transactions. Figures say that the climbing internet usage rate assures e-business growth. 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. Easy jet has never used the travel agent network, they rely on the internet because all their flights are booked online by customers. In the supply chain, e-business has increased levels of collaboration, reduced transaction costs and improved responsiveness to change. Electronic commerce is an emerging concept that describes the process of buying and selling or exchanging of products, services and information via In fact, retailers, beside their relationship with suppliers and consumers, have significant impact on intercompany exchanges through CEDI (centre of distribution). The last revolutionary effect of eCommerce on strategy stems directly from the fact of its very virtuality. Search across a wide variety of disciplines and sources: articles, theses, books, abstracts and court opinions. Sharing of private information can put them in danger if hacked. David Liederbach, IBM Director of e-commerce marketing defined “ E-business is extending any business process from one company to its trading partners. In addition to buying and selling products and services online, it includes supply chain management, electronic order processing, and customer relationship management. 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. As delivery takes few days to reach the end customer, who pays at the time of ordering. 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. Taking the internet for example, it has had a very high impact on the air travel industry. We've received widespread press coverage since 2003, Your UKEssays purchase is secure and we're rated 4.4/5 on reviews.co.uk. April 27, 2010, C Kapoor, Comments Off on Benefits Of E-Business. 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. We're here to answer any questions you have about our services. E-business advocates often make e-business models sound like a no-hassle solution to business and financial woes. 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. 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, also known as e-commerce, is the avenue companies use to sell goods and services via the Internet. Reference this. Due to technological advanc… 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. It has made a great difference in terms of shelf life of products and stock rotation time. 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 … 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. Overall, e-business benefits the economy in many ways. When consumers buy online, they typically input a credit card number and other personal information. *You can also browse our support articles here >. The main benefit of e-commerce stems from being able to integrate business operational processes across organizational boundaries and time zones. Google Scholar provides a simple way to broadly search for scholarly literature. E-business has been recognized as an important contributor in the economy of many countries. E-business may take place between firms (B2B), between firms and their customers (B2C), or between firms and the government (B2G). The companies across the globe face numerous challenges which include technology unavailability, expertise dearth, and shipping of grand products. 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. 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. Customers frequently consult the Internet to … An individual with excellent knowledge in a specific field, say physics, can start online classes and educate children regardless of their location. Registered office: Venture House, Cross Street, Arnold, Nottingham, Nottinghamshire, NG5 7PJ. International Journal of Information Management, 28(3), 203-214. At the same time, every business kind has pros and cons which we will discuss here. E-business stands for electronic business. Today, the internet is available 24 hours a day, which means a business stay open. Copyright © 2003 - 2020 - UKEssays is a trading name of All Answers Ltd, a company registered in England and Wales. (Journal of Air Transport Management, Volume 12, Issue 5, September 2006, Pages 253-260). Though it possesses stressful limitations, one can still eat desired fruits by implementing effective measures. Another negative effect of e-commerce is its potential threat to the security of consumers' personal information. 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., , . The internet has contributed strongly to the growth of most budget airlines taking easy jet as an example. 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