In addition, creation of new markets and ma… The most important form of e-business used by banks is the online banking which has help cut down cost. Read also: Positive and negative effects of eCommerce. Ecommerce has affected businesses positively and negatively. We are witnessing a boom of new technologies, especially in the service sector (IT, Telecommunications, Internet, etc.). Also, the time required to learn good security measures is a major hindrance. 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 … Our academic experts are ready and waiting to assist with any writing project you may have. 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 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. Koellinger, P. (2008). 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 can offer specific advantages, such as reaching out to a wider customer base and faster transactions. 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. Taking the internet for example, it has had a very high impact on the air travel industry. 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. April 27, 2010, C Kapoor, Comments Off on Benefits Of E-Business. E-business has been recognized as an important contributor in the economy of many countries. 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). 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. With ecommerce, there is no requirement to acquire expensive shops in high streets. When consumers buy online, they typically input a credit card number and other personal information. An e-business offers no such opportunity to its customers. In 2004 the EU retail sector, the industry comprised of approximately 17 million firms that employed people in the EU27 (e-business watch 2007). Electronic Commerce provides the capability of buying and selling products and information on the internet and other on-line service. 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. Notify me of follow-up comments by email. One prefers buying a physical good from a local store rather than ordering it online. Reference this. In total, there are 12 articles in the special issue, which are summarized below. This information is enticing to hackers and particularly vulnerable to data breaches, so e-business website owners are responsible for incorporating methods, … In this way, e-business breaks down the time barrier that a typical business encounter and increases flexibility. *You can also browse our support articles here >. E-business advocates often make e-business models sound like a no-hassle solution to business and financial woes. Free resources to assist you with your university studies! 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. applicable as an ideal business purpose. E-business supplies numerous e-services and is a superior platform for services such as teaching. 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., , . E-commerce has a significant impact on business costs and productivity. 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. Here are few reasons why businessmen prefer e-business over conventional one. Registered Data Controller No: Z1821391. Copyright © 2003 - 2020 - UKEssays is a trading name of All Answers Ltd, a company registered in England and Wales. In the last few years travel pattern has changed in the EU. Registered office: Venture House, Cross Street, Arnold, Nottingham, Nottinghamshire, NG5 7PJ. In recent years, e-business has developed rapidly and the e-purchasing is becoming more popular over the world. 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. 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. Cyber attack is a major concern in an e-business. 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. In this manner, it encourages transparency and honesty in certain business transactions. E-commerce has had a considerable impact on how business is conducted. Unauthorized persons could access this information through flaws in the merchant's computer system. For an online shopping, the customers need to provide a shipping address, credit card details, and contact details. They utilize them in the production of finished goods. Electronic business is also known as online business. 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. Risks of E-Business. An individual with excellent knowledge in a specific field, say physics, can start online classes and educate children regardless of their location. E-business changes the macroeconomy in several beneficial ways. In this way, e-business can impart similar and reliable knowledge among young kids of different nations and promote equality. Economic Factors Affecting Businesses. 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. 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. Benefits Of E-Business. An e-business eliminates the need for a physical location to set up a business. Thus it has a large economic impact. 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). Your email address will not be published. Companies implement technology to create a competitive advantage in the business … In International Journal of Information Management, 28(3), 203-214. And using web technology to Introduction to E-business. Thus, a few companies can participate in an e-business. David Liederbach, IBM Director of e-commerce marketing defined “ E-business is extending any business process from one company to its trading partners. You can view samples of our professional work here. 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 e… 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. Here, the buyer and the seller don’t meet personally. The main benefit of e-commerce stems from being able to integrate business operational processes across organizational boundaries and time zones. Due to the increased internet benefits in the commercial sector, e-business is expanding at a rapid pace. 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. Due to technological advanc… 138 on Minimum Age and ILO Convention No. Positive and negative effects of e-business. on Positive and negative effects of e-business, Positive and negative effects of E-Cigarette. 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. E-business, also known as e-commerce, is the avenue companies use to sell goods and services via the Internet. E-business may take place between firms (B2B), between firms and their customers (B2C), or between firms and the government (B2G). Sharing of private information can put them in danger if hacked. Due to this reason, an e-business finds it difficult to attract customers. Though internet grants indefinite benefits, the online stores still face several challenges. In the retail sector, e-business has had great impact on the value chain. Required fields are marked *. The use of IT to conduct business online is known as Electronic Commerce (E-Commerce). If you need assistance with writing your essay, our professional essay writing service is here to help! But an e-business requires limited man force to complete an online transaction. E-business benefits little to the consumer in such cases. Overall, e-business benefits the economy in many ways. The term commerce is viewed as transactions conducted between business partners. 1.Provides Flexibility: E-business interacts with more customers, can entail more,and can offer an innovative experience through website. Easy jet has never used the travel agent network, they rely on the internet because all their flights are booked online by customers. Also, the online payment processing software eliminates the need for a store clerk. We're here to answer any questions you have about our services. The last revolutionary effect of eCommerce on strategy stems directly from the fact of its very virtuality. According to Whiteley (2000), e-business operations can be grouped into three categories; Electronic categories, Electronic Data Interchange (EDI) and Internet business. 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. 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. Ecommerce Exploring the effect of strategic positioning on firm performance in the e-business context. 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. Kim, Y.J., Song, J., & Koo, C. (2008). In essence, retail companies will want to rationalize and reduce costs of supply and management of the supply chain, starting with purchasing cost. Retailing is one of the most important industry sector in the world, with no exception of the EU. It also highlighted the relevance of inter-business exchanges. Electronic commerce is an emerging concept that describes the process of buying and selling or exchanging of products, services and information via Looking for a flexible role? 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. One prime necessity of an e-business is an internet. E-business tactics offer advantages such as reaching a wider customer base and faster transactions, but they also come with associated risks. It consumes cheap phones, rents and utility bills than traditional businesses. Here, the internet is an alternative to a salesperson. Hence, e-business makes transactions cost-effective and limits the burden on the companies. Such business transactions take place among businesses or individuals. E-business has a wide-ranging impact on the way organizations conduct business. Develops global economy. The travel sector in the EU is so large that even a small share of it produces a major online market. 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