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). 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. 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. Hence, e-business makes transactions cost-effective and limits the burden on the companies. Though it possesses stressful limitations, one can still eat desired fruits by implementing effective measures. We're here to answer any questions you have about our services. E-business, sure, is beneficial; however, its limitations need acknowledgement, as well. Many companies claim that putting their supply chains online has led, or will lead, to major cost savings. In 2004 the EU retail sector, the industry comprised of approximately 17 million firms that employed people in the EU27 (e-business watch 2007). applicable as an ideal business purpose. No single country produce all the goods we use today. Ecommerce Thus it has a large economic impact. 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. As delivery takes few days to reach the end customer, who pays at the time of ordering. Search across a wide variety of disciplines and sources: articles, theses, books, abstracts and court opinions. Due to this, groceries and confectionery product e-business makes small profits. 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. Such business transactions take place among businesses or individuals. Google Scholar provides a simple way to broadly search for scholarly literature. A conventional business requires workforce who helps in completing the entire transaction. on Positive and negative effects of e-business, Positive and negative effects of E-Cigarette. This special issue is a global effort to address some of the pandemic-related issues affecting society. It consumes cheap phones, rents and utility bills than traditional businesses. Free resources to assist you with your university studies! And using web technology to 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. *You can also browse our support articles here >. Also, extra hands mean increased amount. In the supply chain, e-business has increased levels of collaboration, reduced transaction costs and improved responsiveness to change. Thus, a few companies can participate in an e-business. The trade in e-services provides employment to young people in several developing countries. It also highlighted the relevance of inter-business exchanges. This write-up weighs the pros and cons of e-business for you. Also, the time required to learn good security measures is a major hindrance. E-commerce is a revolution in business practices (Ohidujjaman, et al 2013). E-business can offer specific advantages, such as reaching out to a wider customer base and faster transactions. Though internet grants indefinite benefits, the online stores still face several challenges. An individual with excellent knowledge in a specific field, say physics, can start online classes and educate children regardless of their location. Political issues among few nations lead to the legal restriction on some products from specific countries. Due to technological advanc… This is not an example of the work produced by our Essay Writing Service. E-business, also known as e-commerce, is the avenue companies use to sell goods and services via the Internet. You can view samples of our professional work here. 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. Another negative effect of e-commerce is its potential threat to the security of consumers' personal information. 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. Introduction to E-business. VAT Registration No: 842417633. In this way, e-business can impart similar and reliable knowledge among young kids of different nations and promote equality. It has made a great difference in terms of shelf life of products and stock rotation time. Study for free with our range of university lectures! They utilize them in the production of finished goods. Every country in this world produces different raw materials as per their abilities and capacities of their land surface. 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., , . 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). 1.Provides Flexibility: E-business interacts with more customers, can entail more,and can offer an innovative experience through website. 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-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 contributes in developing global economy by trading across international borders and reaching customers in the four corners of the world. 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 most important form of e-business used by banks is the online banking which has help cut down cost. International Journal of Information Management, 28(3), 203-214. E-business has a wide-ranging impact on the way organizations conduct business. E-business tactics offer advantages such as reaching a wider customer base and faster transactions, but they also come with associated risks. This, in turn, affects its profitability and growth. Your email address will not be published. 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. Electronic business is also known as online business. 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. 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. 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. This information is enticing to hackers and particularly vulnerable to data breaches, so e-business website owners are responsible for incorporating methods, … 182 on Worst Forms of Child Labour. 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. Governments across the world are making productive policies in this specific field. Positive and negative effects of e-business. 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. We are witnessing a boom of new technologies, especially in the service sector (IT, Telecommunications, Internet, etc.). 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. Due to this reason, an e-business finds it difficult to attract customers. 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-business changes the macroeconomy in several beneficial ways. They utilize them in … Customers frequently consult the Internet to … Today, the internet is available 24 hours a day, which means a business stay open. Develops global economy. The relationship between technology, innovation, and firm performance—Empirical evidence from e-business in Europe. 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. A physical touch and smell of a product influence a person’s decision to buy it. Looking for a flexible role? Company Registration No: 4964706. 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). April 27, 2010, C Kapoor, Comments Off on Benefits Of E-Business. Internet banking is nowadays supported by advanced ICT solutions which enable most everyday banking services to be conducted online (www.ebusiness-watch.org). Also, the online payment processing software eliminates the need for a store clerk. 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. 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. 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. In the last few years travel pattern has changed in the EU. 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. 138 on Minimum Age and ILO Convention No. The term commerce is viewed as transactions conducted between business partners. Overall, e-business benefits the economy in many ways. Online business is a business where the transaction takes place online. One prime necessity of an e-business is an internet. The companies across the globe face numerous challenges which include technology unavailability, expertise dearth, and shipping of grand products. E-business stands for electronic business. Electronic Commerce provides the capability of buying and selling products and information on the internet and other on-line service. Exploring the effect of strategic positioning on firm performance in the e-business context. We've received widespread press coverage since 2003, Your UKEssays purchase is secure and we're rated 4.4/5 on reviews.co.uk. E-business has been recognized as an important contributor in the economy of many countries. Hackers manipulate business websites to gain financial data and initiate theft. In this manner, it encourages transparency and honesty in certain business transactions. E-business has enabled banks to redefine their boundaries and also gained competitive advantage through it. When consumers buy online, they typically input a credit card number and other personal information. Coronavirus-driven event cancellations will spur marketers to explore digital alternatives and more event-like content promotion. Figures say that the climbing internet usage rate assures e-business growth. For the start-up businesses, it is a productive tool. 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. The negligible demand for man force reduces the cost of paying employees. 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 From simple essay plans, through to full dissertations, you can guarantee we have a service perfectly matched to your needs. Cyber attack is a major concern in an e-business. It has affected consumers, the value chain, markets as well as business models. 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… To share the fruits of all the manufactured goods produced across the world, international community stresses upon globalization. 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. 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 … 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. The travel sector in the EU is so large that even a small share of it produces a major online market. Easy jet has never used the travel agent network, they rely on the internet because all their flights are booked online by customers. Every country in this world produces different raw materials as per their abilities and capacities of their land surface. In addition, creation of new markets and ma… Here, the internet is an alternative to a salesperson. Benefits Of E-Business. Read also: Positive and negative effects of eCommerce. In total, there are 12 articles in the special issue, which are summarized below. 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. An e-business offers no such opportunity to its customers. 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. This factor is a major obstacle to the expansion of various online stores such as garments, leather or shoes among others. Electronic commerce is an emerging concept that describes the process of buying and selling or exchanging of products, services and information via 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. 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. The last revolutionary effect of eCommerce on strategy stems directly from the fact of its very virtuality. 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