Thus, it delivers win-win results for both business owner and consumer. Reference this. E-business supplies numerous e-services and is a superior platform for services such as teaching. Thus, a few companies can participate in an e-business. Disclaimer: This work has been submitted by a university student. Benefits Of E-Business. Ecommerce The last revolutionary effect of eCommerce on strategy stems directly from the fact of its very virtuality. An individual with excellent knowledge in a specific field, say physics, can start online classes and educate children regardless of their location. Search across a wide variety of disciplines and sources: articles, theses, books, abstracts and court opinions. An e-business eliminates the need for a physical location to set up a business. Electronic Commerce provides the capability of buying and selling products and information on the internet and other on-line service. 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. 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. Here, the internet is an alternative to a salesperson. For an online shopping, the customers need to provide a shipping address, credit card details, and contact details. International Journal of Information Management, 28(3), 203-214. 138 on Minimum Age and ILO Convention No. 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. Cyber attack is a major concern in an e-business. In the last few years travel pattern has changed in the EU. We've received widespread press coverage since 2003, Your UKEssays purchase is secure and we're rated 4.4/5 on reviews.co.uk. No single country produce all the goods we use today. 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. It has affected consumers, the value chain, markets as well as business models. E-business, sure, is beneficial; however, its limitations need acknowledgement, as well. The past several years have seen an explosion in the world of business technology. Registered Data Controller No: Z1821391. E-business stands for electronic business. Figures say that the climbing internet usage rate assures e-business growth. Notify me of follow-up comments by email. This information is enticing to hackers and particularly vulnerable to data breaches, so e-business website owners are responsible for incorporating methods, … Here, the buyer and the seller don’t meet personally. Taking the internet for example, it has had a very high impact on the air travel industry. The relationship between technology, innovation, and firm performance—Empirical evidence from e-business in Europe. According to Whiteley (2000), e-business operations can be grouped into three categories; Electronic categories, Electronic Data Interchange (EDI) and Internet business. 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). Develops global economy. It is often used to describe the use of technology to improve your business processes. 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. 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. But an e-business requires limited man force to complete an online transaction. Introduction to E-business. If you need assistance with writing your essay, our professional essay writing service is here to help! E-commerce has a significant impact on business costs and productivity. 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. Another negative effect of e-commerce is its potential threat to the security of consumers' personal information. 182 on Worst Forms of Child Labour. 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. This is not an example of the work produced by our Essay Writing Service. Due to this reason, an e-business finds it difficult to attract customers. E-business, also known as e-commerce, is the avenue companies use to sell goods and services via the Internet. This write-up weighs the pros and cons of e-business for you. E-business may take place between firms (B2B), between firms and their customers (B2C), or between firms and the government (B2G). 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 can offer specific advantages, such as reaching out to a wider customer base and faster transactions. E-business advocates often make e-business models sound like a no-hassle solution to business and financial woes. And using web technology to E-business changes the macroeconomy in several beneficial ways. Exploring the effect of strategic positioning on firm performance in the e-business context. VAT Registration No: 842417633. 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! One prime necessity of an e-business is an internet. Internet banking is nowadays supported by advanced ICT solutions which enable most everyday banking services to be conducted online (www.ebusiness-watch.org). We are witnessing a boom of new technologies, especially in the service sector (IT, Telecommunications, Internet, etc.). 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. 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. 3. Online business is a business where the transaction takes place online. E-business benefits little to the consumer in such cases. Also, extra hands mean increased amount. The use of IT to conduct business online is known as Electronic Commerce (E-Commerce). Our academic experts are ready and waiting to assist with any writing project you may have. 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. Hence, e-business makes transactions cost-effective and limits the burden on the companies. Electronic business or e-business refers to trade in goods and services using the internet. Sharing of private information can put them in danger if hacked. 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. A conventional business requires workforce who helps in completing the entire transaction. 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. You can view samples of our professional work here. All work is written to order. applicable as an ideal business purpose. With ecommerce, there is no requirement to acquire expensive shops in high streets. We're here to answer any questions you have about our services. Easy jet has never used the travel agent network, they rely on the internet because all their flights are booked online by customers. The term commerce is viewed as transactions conducted between business partners. 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. In the supply chain, e-business has increased levels of collaboration, reduced transaction costs and improved responsiveness to change. One prefers buying a physical good from a local store rather than ordering it online. The internet has contributed strongly to the growth of most budget airlines taking easy jet as an example. E-business contributes in developing global economy by trading across international borders and reaching customers in the four corners of the world. Electronic commerce is an emerging concept that describes the process of buying and selling or exchanging of products, services and information via 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. E-commerce has had a considerable impact on how business is conducted. The companies across the globe face numerous challenges which include technology unavailability, expertise dearth, and shipping of grand products. 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. Registered office: Venture House, Cross Street, Arnold, Nottingham, Nottinghamshire, NG5 7PJ. Such business transactions take place among businesses or individuals. 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). 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. Due to wide reach and availability of the internet, major corporations are conducting e-business to make supplies, collaborate on sales promotions and conduct joint research. E-Commerce has a chance to be widely adopted due to its simple applications. This special issue is a global effort to address some of the pandemic-related issues affecting society. The most important form of e-business used by banks is the online banking which has help cut down cost. The main benefit of e-commerce stems from being able to integrate business operational processes across organizational boundaries and time zones. Do you have a 2:1 degree or higher? In this way, e-business can impart similar and reliable knowledge among young kids of different nations and promote equality. Looking for a flexible role? 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. It consumes cheap phones, rents and utility bills than traditional businesses. Copyright © 2003 - 2020 - UKEssays is a trading name of All Answers Ltd, a company registered in England and Wales. *You can also browse our support articles here >. Benefits Of E-Business. 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. 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. on Positive and negative effects of e-business, Positive and negative effects of E-Cigarette. It has automated and streamlined internal processes and communications, delivering productivity and efficiency improvements. Ecommerce has affected businesses positively and negatively. No plagiarism, guaranteed! Thus it has a large economic impact. 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. 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. From simple essay plans, through to full dissertations, you can guarantee we have a service perfectly matched to your needs. Your email address will not be published. As delivery takes few days to reach the end customer, who pays at the time of ordering. 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). In the retail sector, e-business has had great impact on the value chain. A physical touch and smell of a product influence a person’s decision to buy it. Today, the internet is available 24 hours a day, which means a business stay open. Read also: Positive and negative effects of eCommerce. 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. 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… Political issues among few nations lead to the legal restriction on some products from specific countries. Kim, Y.J., Song, J., & Koo, C. (2008). 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. Every country in this world produces different raw materials as per their abilities and capacities of their land surface. 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. Also, the time required to learn good security measures is a major hindrance. Though internet grants indefinite benefits, the online stores still face several challenges. It also highlighted the relevance of inter-business exchanges. Interestingly, one can run a business from home by transacting through a website. This article will look at some of the impacts that have resulted from the advent and development of e-commerce. In 2004 the EU retail sector, the industry comprised of approximately 17 million firms that employed people in the EU27 (e-business watch 2007). 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. I will now discuss economic factors that have an impact on E-business. Required fields are marked *. The term “e-business” was coined by IBM’s marketing and Internet team in 1996. Koellinger, P. (2008). 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. Hackers manipulate business websites to gain financial data and initiate theft. Your email address will not be published. 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 1.Provides Flexibility: E-business interacts with more customers, can entail more,and can offer an innovative experience through website. 11th Dec 2017 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. An e-business offers no such opportunity to its customers. Positive and negative effects of e-business. E-commerce is a revolution in business practices (Ohidujjaman, et al 2013). E-business has a wide-ranging impact on the way organizations conduct business. 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 … In 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. E-business has been recognized as an important contributor in the economy of many countries. Positive effects of e-business: Here are few reasons why businessmen prefer e-business over conventional one. The travel sector in the EU is so large that even a small share of it produces a major online market. Every country in this world produces different raw materials as per their abilities and capacities of their land surface. Google Scholar provides a simple way to broadly search for scholarly literature. 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. The trade in e-services provides employment to young people in several developing countries. Coronavirus-driven event cancellations will spur marketers to explore digital alternatives and more event-like content promotion. Governments across the world are making productive policies in this specific field. Companies implement technology to create a competitive advantage in the business … In recent years, e-business has developed rapidly and the e-purchasing is becoming more popular over the world. In essence, retail companies will want to rationalize and reduce costs of supply and management of the supply chain, starting with purchasing cost. To share the fruits of all the manufactured goods produced across the world, international community stresses upon globalization. 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 … E-business tactics offer advantages such as reaching a wider customer base and faster transactions, but they also come with associated risks. They utilize them in … Also, the online payment processing software eliminates the need for a store clerk. Accounting for trends in the overall economy can help business … In total, there are 12 articles in the special issue, which are summarized below. 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. Free resources to assist you with your university studies! In addition to buying and selling products and services online, it includes supply chain management, electronic order processing, and customer relationship management. Study for free with our range of university lectures! Risks of E-Business. Due to the increased internet benefits in the commercial sector, e-business is expanding at a rapid pace. While it may appear that e-commerce is the perfect choice to solve your business problems, there are still a number of disadvantages to switching from selling at a physical location to using online retail. Electronic business is also known as online business. In this manner, it encourages transparency and honesty in certain business transactions. (Journal of Air Transport Management, Volume 12, Issue 5, September 2006, Pages 253-260). 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