The Perks of Applied E-Business - Essay Example

Applied E-Business Client’s inserts his/her name Client inserts tutor’s name Subject of Study Date Karen, P. (2007, pg 83) explains E-business as a business conducted on the Internet, which involves not only exchange of goods and services, but also providing customer service and creating business partnerships. It entails using online technologies to provide quality customer service, business processes streamline, reduce costs, and increase in sales volumes. E-business uses websites, online banking, email, web-based customer relationship management, and supply chain management software. The growing importance of electronic business to the growth of the company, its development and ability to survive in a competitive environment cannot be ignored in light of the current dynamism of the technological environment. It has introduced new ways of purchasing goods and services, changed established logistical channels and opened newer markets not hitherto conceived. Another advantage is the fact that it is neither constrained by time nor physical facilities. This means that business can be conducted anytime, any day. He points out another advantage that by using e-Business companies are able to save on costs by allowing customers to serve themselves. Additionally, e-business makes it possible for companies to reach many consumers in a much broader economic market compared to actual markets. (Scott, C. 2008, pg 492) An example of e-business is eBay. It is a platform which allows on-line auction and shopping website in which individuals and established businesses buy and sell a different set of services and products. It can also be described as a meeting place but not necessarily a store. This means that eBay does not necessarily sell stuff itself rather they are sold and delivered by third parties. For eBay to enjoy the success they now have, they have to strategise and come up with plans that would allow them to curve a niche for themselves in the market. Among these strategies is the corporate level strategy which was to, become a diversified business. They wanted not only to diversify the products they offered but also their global reach and customer base. EBay has not only managed to diversify their customers and product, but has also developed their business by opening up branches into domestic markets, as well. Another strategy adopted by eBay is its business level strategy. Under this strategy, e-bay would create and maintain a person-to-person trading community. This model has been helpful in that it has enabled the company to make revolutionary changes and improvements, build strategic partnerships, and monitor its external and internal environments for possible future opportunities. This strategy was also beneficial in that the company was able to gain competitive advantage over its rivals by way differentiating their service. The eBay’s broad differentiation strategy has ensured that they create value through various business strategies that appeal to their customers, and make them distinctive from the competition. To do this, they made sure that they offered a variety of products, and created an eBay Community which gives customers a sense that they are cared about and are a part of something. This gives feedback to customers that their opinions, feelings, and feedback are appreciated. In so doing, e-bay has gained considerable ground and trust from their customers. EBay website is another factor in their differentiation strategy. This innovative site sets makes them unique from their competitors. The site has a number of facets that reach a wider range of visiting sellers and buyers. The site is also easy to use and entertaining making it very attractive for online shopping and trading. The eBay brand name has also served to put them above their competition. It has become so successful such that every time customers think of online buying, they immediately think of eBay. Additionally, eBay has a global reach. The differentiation strategy works best for eBay, and this can be widely attributed to a wide range of products offered, global expansion, and community which enables all customers to join eBay. This has created a typical value unmatched by its rivals. Strategies adopted by eBay are sustainable in the long-run. This can be demonstrated by various factors. EBay is eco-friendly. This can be attributed to the fact that it offers a site where goods that are no longer being used can be sold as opposed to being trashed or having to be recycled through a process that would have taken up a lot of resources that could have been invested to other uses. Examples of these goods are electronics such as computer parts, mobile phones among other electronics which play, a major role in environmental degradation by releasing toxics and other harmful substances. By embracing eco-friendly services, it endears itself to customers who extol it for checking against environmental degradation, and make it their preferred shopping destination. Another reason why their strategies are sustainable is because it prides itself as socially responsible. This is so in that it eliminates middlemen and lowers barriers to buying and selling. This brings about an increase in cultural understanding between populations and new economic opportunities to developing areas. This has in turn cemented eBay as one of the most interesting and exciting trans-national ambassadors in the world. Another reason pointed out by Caaz, M. (1999, pg 770), is that it recognizes the fact that one may encounter both honest people and crooks on eBay. To counter this eBay has designed a feedback system among other systems that are designed to guarantee the security of eBay members. Sepetu, W. (2010, pg 356) states that in as much as e-business has revolutionized the process of doing business, they are several critical and controversial issues that need to be looked into. Among these issues is the issue of trust. Many people still consider purchasing products over the Internet as not entirely compared to purchasing products in stores. This is compounded by the fact that people on both ends of the computer cannot see each other and as such they might have issues purchasing products. Lack of consumer's trust can significantly impact sales and overall success. Another critical issue is that of internet technology. Internet technology can pose a challenge in that by conducting e-business, these businesses must ensure that their websites stay up and functional. This is the same as a physical store being available throughout. If an Internet business goes offline because of technical hitches, it can cost them in terms of profits and customer confidence. As such, businesses have to ensure that they have someone the company with the required technical skills to keep the company operations functional at all times without any technical hitches. (Mohini, S. 2004, pg 400) Another issue raised by Singh, G. (2001, pg 40) is that of sector limits. Some sectors are standing not to benefit at all from e-business. This is so because the majority of them are restricted by their physical structures and have little or no change at all. Examples are stores which sells fruits and vegetables and other food and beverage industries. This implies that they will be locked out of enjoying the benefits that come with e-business. Muneesh, K. (2009, pg 350) argues that time is also one of the critical and controversial issues surrounding e-business. Just like other convectional businesses, e-businesses require considerable time in order for it to succeed. This is contrary to the notion held by many that these businesses are an instant hit. However, this is not always the case, and owners starting out should not be shocked to learn that they ought to be patient as they anticipate these businesses to blossom and become productive. Harry, M. (2005, pg 200) argues that the importance of people in conducting business cannot be underestimated. Opposed to online business, conventional businesses have always interacted with customers’ physically. There are also employees with whom customers often come into contact. While conducting e-business, one is left to work with the computer for the most part of the day. This can be quite challenging for a person who is prefers to work with people, as opposed to a computer. Additionally, it has always been argued that conducting businesses online eliminates the need for employees. This in turn, results in increased cases of unemployment and raises poverty levels. There has been extensive empirical research on e-business. One such research is the one conducted by Roger, C. (1984, pg 25). In his research, he states that information systems research is challenging enough, but research in e-business poses even greater challenges. This is so because of its distinctive features which more often than not, are in contrast to a majority of assumptions characterising a wide range of educational researches. Brian, J. (2004, pg 435), states that information systems are important in searching for appropriate ways to undertake research in e-business. However, this has been confronted by many challenges. The purpose of his research is pointing and reviewing these challenges and looking up alternative means of carrying out the research. He begins his work by analyzing the scientific research and pointing out its assumptions. He then proceeds to delineate the characteristics of e-business and provides an account of the prospects embedded in e-business. He addresses the challenges and provides suggestions on better ways of conducting research in order to achieve excellent results. It is important to note that there are several users of research on e-business. Their interest is generated from the fact that e-business is continuously growing, and they are always looking for ways on how to capitalize on it. They include inventors of new technologies, the users of these technologies and technicians who craft new ways in which these technologies can be used in organizational contexts. Investors also are equally enthusiastic about any new information on e-business since this offers them an avenue to identify new ideas in which to channel their funds and expect to reap maximum benefits. Policy makers not only within governments, and applied social research organizations, but also within multinationals, the work force and even the citizenry are interested in these researches. (Roger, C. 1984, pg 25) Roger, C. (1984, pg 30) has cited several ways of conducting research when it comes to e-business. These include secondary research, drawing on existing sources such as questionnaires, surveys, interviews and field studies. It is important to note that their limits too should be taken into consideration, and their shortcomings addressed and ways suggested on how to make sure that they do not interfere with the research results. In conclusion e-business can be beneficial to all types of businesses. E-business is not exclusively limited to businesses dealing in technological products and services only but rather it is accessible to all types of consumer goods. It also offers a mechanism through which companies are able to network which is very crucial in conducting business. Finally, any business owner who uses the internet to expand or improve their job is most certainly conducting e-business. References Brian, J., 2004. E-business, E-government & Small and Medium-sized Enterprises, vol 4, pp.431- 867. Caaz, M., 1999. Technological Horizons in E-Business, vol26, pp.756-889. Karen, P., 2007. The Independent Guide to IBM- Standard Personal Computing, vol7, pp.1-90. Harry, M., 2005. Journal of Small Business and Enterprise Development, vol 12(2), pp.149-345. Muneesh, K., 2009. Integrating E-Business Models for Government Solutions, vol 9, pp. 313-400. Mohini, S., 2004. E-business Innovation and Change Management, vol4 pp.283- 545. Sepetu. W., 2010. Technological Horizons in Education, vol 28, pp.356-439. Singh, G., 2001. The Journal of e-business, vol1 (2), pp.34-45. Scott, C., 2008. Internet Riches: The Simple Money-making Secrets of Online Millionaires, vol 13, pp.293-500. Roger, C., 1984.Electronic Support for Research Practice, vol 3, pp.20-55. Read More