E-Business-business is the largest emerging trend in business today. The movement into e-business is dramatically changing the way people buy and sell. Business is no longer a one for all concept, that concept is being replaced by a consumer economy that is driven by choice. These choices are not only in product and price but in supply chain Activities">shopping environment as well, where their transactions can take place face to face or in an online environment.
Not only are traditional businesses completing their transactions with other businesses in such an online format, but such transactions are taking place between businesses and consumers as well as consumers to consumers. The following paper outlines some of the differences and similarities of each of these e-business models. Business to Business E-Business There are many companies that offer e-business solutions, but I will be using Intel for an example. Intel is a leader in this field when it comes to the solutions they offer their clients. By utilizing a product based web experience for their business customers they have tailored their organization to effectively manage their supply chain as well as customer relations (David and Malone p.
103).
Intel realizes that e-business is not only about selling products over the Internet but the involvement of managing the supply chain and customer service is also crucial. Tremendous value is added to the process of getting raw materials and also of supplying goods to retailers and distributors in a manor that is desired is required (David and Malone p. 106).
The Essay on Consumer Product Safety Act
Consumer Product Safety Act The Consumer Product Safety Act states that any company that receives numerous complaints about a products defects must report these claims to the CPSA. According to the CPSA reporting responsibilities belong to manufacturers, importers, distributors and retailers of consumer products. Each is required to notify the Commission if it obtains information which reasonably ...
The main use of business to business e-commerce is the simplification of all business communications. Intel is able to link with all business customers via the Web, which gives them instant access to each other.
Their business based site allows things such as their inventories to be linked. Thus, an entire stage of business, product ordering, is eliminated. Intel is a leader in e-business supply chain management. One product they have is called Trans Connect, which is an end-to-end shipping and fulfillment solution.
Corporations can combine a product like Trans Connect with custom-made solutions from Intel Supply Chain Consulting and experience new levels of efficiencies and customer service. This allows Intel to be more responsive and productive when meeting the needs of their customers (David and Malone p. 106-107).
Business to Consumer E-Business Benefits The development of the Internet combined with decreasing technological costs, the trading between buyer and seller is once again being redefined as E-business. I have outlined some strengths and weaknesses of business to consumer e-business and the way it is affecting the relationship between the consumer and merchant using Amazon. com’s Virtual Retailing Model as an example.
Virtual retailing involves the request for and closing of a transaction over the medium of the Internet, via a web page (web).
While the processing of the transaction, itself, is key to the existence of a virtual retailer, it is not the most important piece. The key to the success of a virtual retailer, according to Peter G. W. Keen, is the ability of that virtual retailer “to build strong customer relationships.” Amazon. com has by far been one of the most successful virtual retailers in building strong customer relationships.
70% of Amazon’s customers are repeat customers; this is no surprise when Amazon. com invests 20% of its revenue in attracting consumers and develops different techniques to “bond with the customers”, such as “My Amazon” (web).
The Essay on An Internet Perspective Social Business Customer
A man and computer scientist Robert Taylor had developed a new system of communication that would change the world. Taylor would connect two separate computers that were capable of communicating small bits of information between one another. This was only intended to send simple text messages and numbers using an analog signal, but would prove to be a bigger help than originally imagined. ...
Traditionally businesses had to locate themselves, plant themselves several times over in order to establish themselves within a close proximity to their customers. However with the development of the internet and e-business this is no longer the case.
The physical location of a store is thing of the past to many consumers. E-business greatly expands the choices available to consumers. From the comfort of their home, place of work, local library or any other location with the internet a consumer can visit stores all over in less time than it takes to drive to a local shopping mall, fight traffic and make their purchase only if they can find the item they wanted. Stores are limited in the number of items they have available, but this is generally not the case when shopping online.
This marketing concept can be observed currently among large retailers such as Amazon. com. They can offer their customers the most specialized products just as easy as everyday products. Most consumers cite convenience as being a prime motivator for online transactions. Customers no longer have to arrange their schedules around the business hours of a local retailer. Shopping at three in the morning is as easy as twelve in the afternoon.
In addition to the convenience, education behind the transaction is greatly enhanced. For example, Amazon. com is able to give brief summaries of their products, so that easy comparison is possible. Threats The number one threat to the consumer when shopping in a virtual environment is security. Vast improvements have been made in the area of Internet security. Unfortunately, rumors and breached security can have a bad effect amongst consumers with less knowledge of their surroundings.
In the area of e-commerce, security perception reigns over reality, especially since reality is hardly defined in such areas. According Melanie Menagh, associate editor of Computerworld, states that “even percent of those online have fallen victim to credit card fraud” (Menagh p. 134).
The Essay on Benefit Of Online Shopping
Now a day online shopping is offering great advantages compared to the conventional forms of business. The online economy is massive, with billions of dollars changing hands every single day. Online shopping has brought consumer lower prices, incredibly diverse choice and an ease of buying that simply can’t be matched in the physical world. At the same time, however, it’s not without its perils ( ...
While this number seems relatively low, it translates into six million users.
During 1998 online auction sites registered the highest number of complaints. Auction site complaints were up six hundred percent over 1997 (Menagh p. 134).
Security is not the only threat a consumer faces when shopping online. The risk of purchasing items and never receiving the item can also wreak habit on the online environment. Most e-stores have policies which cover such mishaps but many do not leaving the consumer is responsible in the end.
Another issue is in the underlying quality of the products purchased. If advice can be given, it would be to shop wisely at accredited stores to avoid such hassles. Consumer to Consumer E-Business Consumer to consumer e-business (C 2 C) comes with many benefits as well as many downfalls. One of the most well known sites for C 2 C is Ebay.
Ebay utilizes a type of virtual retailing. but with a twist. Items are provided at discounted rates as each consumer bids against another for the item they desire. The benefits that firms reap from virtual retailing may also applies to consumers whom wish to sell to other consumers. Because firms can cater directly to consumer’s individual needs through their ability to highly segment their markets, consumers benefit greatly; a consumer can always find exactly the right product for them at exactly the right price in the virtual retailing model. If a consumer (seller) mimics this model the consumers (buyer) who purchase from them benefit.
Ebayers, by utilizing stores for the product information and then purchasing at discounted rates find themselves in a win-win scenario. Ebay has utilized internet search engines for their advertising needs, reaping benefits from advertisers while providing millions of consumers a home for selling their goods world wide, of course at a small fee. There are security issues as well as benefits from the transactions that take place on Ebay. Security issues, such as purchasing items and not receiving them exist and are most likely the main apprehension for a fist time Ebay buyer. Ebay has conquered this problem by offering a money back guarantee.
This guarantee only takes place if you follow the rules that have been set in place for the transactions to take place. If you accept payment or make payments outside of the guaranteed realm you loose. Other security issues are the same as in any online environment. Another issue may come from product quality or lack there of. There are not guarantees so shop wisely. Benefits from C 2 C transactions come from discounted pricing.
The Business plan on Ebays Swot Analysis From An It Stand Point
... (May, p. 123) Another issue that EBay faces in managing its business for profitability, growth, and dominance ... markets include the categories of collectibles, practical items, computers, used autos and parts, and the ... benefit. (Ghosh, p. 117) Words Count: 1,511.Bibliography: Fellenstein, S. and Wood R. Exploring E-Commerce, Global E-Business ... the Battle for Internet Consumers. Harperbusiness, 2001..
Items can be purchased at relatively inexpensive rates when compared to the brick and motor retail environment. Another benefit is the ability to shop for items and compare pricing, patients is a virtue in this setting. Conclusion Businesses of all sizes in all sectors are using the Internet in many different ways. However, the Internet is just like other information technologies, change management, good implementation practices and clear business objectives are required. At its most developed level, e-business aims to reduce costs and improve efficiencies by integrating business systems and eliminating duplication of effort. The main benefit for all types of e-business, business to business, business to consumer or consumer to consumer, is that the business can be run in a more efficient manor, achieving more with fewer resources and for less cost while benefit your customer.
Business is no longer a one for all concept, that concept is being replaced by a consumer economy that is driven by choice. References David, W. and Malone M. “Virtual Corporations.” Forbes, 7 December 1992, p. 102-107. Menagh, Melanie.
“Virtues and vices of the virtual corporation” Computerworld, 13 November 1995, p. 134. “Definition of Online Retailing”; January 10, 1997. web Peter G. W. “Secret to E-Commerce”, June 14, 1999; Computer World.
web.
