Factors of E-Commerce Environment - Essay Example

E-commerce refers to the process of trading (purchasing and selling) using the internet; in this scenario, the people straight away bring to mind consumer retail chopping from online sellers for instance Amazon. However, e-commerce deals with much more than just internet based money transactions between companies and consumers. In addition, the e-commerce strategy refers to the process through which applications of internal and external electronic transactions or dealings can influence and support overall strategy of the company (Chaffey 10,255). This paper presents analysis of some of the important elements of an organization macro environment that impact on an organization’s e-business and e-marketing strategy. In this scenario, this research will assess the impact of legal, privacy and ethical constraint or opportunities on a company. E-business and E-commerce E-commerce (electronic commerce) is a process of carrying out business tasks using internet. However, there is a small difference between e-business and e-commerce. E-business does not engage commercial transaction, is an online company, a transition made on the web, however that does not essentially comprise a commercial transaction. In this scenario, the executive of e-commerce business, for instance, that professional is in-charge for dealing and managing relationship between the business and consumers on the web. On the other hand, the executive of e-business, actually, is accountable for consulting the business's internet. In this scenario, one has to work on company’s sales tasks and the other does not. This is the major dissimilarity (Chaffey; Cristina, Villanova and Nese).  Impact of legal, privacy and ethical constraints or opportunities on a company With the developments in the information technology there have emerged a large number of opportunities and prospects for the businesses. Though, the information technology has offered countless opportunities to businesses however also caused a number of legal, privacy and ethical issues. In this scenario, the web based businesses are facing a more open and less secure arrangement that can cause various serious problems for business arrangement. This can lead to a number of business and corporate issues. In this scenario, the customer security management is one of the main issues that need to be resolved in order to improve corporate performance. Additionally, the implementation of information technology offers an excellent support for the business as a result improves corporate performance but also causes danger of exposing business customer details (Wolverton). In addition, in past few years we have seen a number of security and privacy attacks to the world’s big business corporations. In this scenario, one of the major corporations is Amazon.com that has experienced attacks from a website hacker who attacked the business network servers and hacked the records of more than 98,000 customers and forced the company to go offline. On the other hand, there are many cases in which business firms faced massive credit card frauds. Additionally, these situations caused serious issues and challenges for businesses for maintaining customer belief on business. Thus, the impact of legal and privacy and ethical issues extensively influence the business performance. In this scenario, business firms can face issues regarding customer loyalty that can negatively affect the business position in the marketplace. Such business arrangement can lead to some serious issues which create problems for business management. Thus, these all issues need to be effectively managed in order to improve the business performance (Wolverton). Impact on Organization’s Opportunities  E-business also offered a great deal of opportunities to business sector. At the present, businesses are more and more concerned with business performance and operational management. In addition, at the present business sector is having a lot of opportunities and ease of web and smartness of operations. These all aspects lead towards the effective business management. In scenario of web based marketing or internet marketing, e-marketers have to look at both internal and external aspects and issues while building an e-marketing strategy like developments in both micro and macro situations influencing corporate capability to carry out business activities. In this scenario, some of well-known instance of micro-environment elements could be the suppliers, pricing and customers. And instances of macro environment could involve political, socioeconomic, demographic and legal aspects. Thus, in an attempt to create a feasible e-marketing strategy, e-marketers have to initially recognize the present circumstances of the business and its situation, objectives, segment the objective and choose right marketplace and then deliberately place the products in order to attain best response from the target market. For this purpose, e-marketers can use marketing tools such as SWOT and PESTEL analysis. Additionally, by determining business’s powers and weaknesses and seeming at present prospects and threats one could be able to derive an e-marketing strategy that is able to develop the business’s bottom line (Chaffey; Dejan). Macro Factors A macro-environment encompasses an unfocused scenario in the organization's environment that has the power to influence the business's policies. However, when it is compared with a corporate mission situation, the influence of macro-environmental elements is less direct as well as the business has a more restricted influence on these elements of the environment. Additionally, the macro-environmental elements comprise technological, socio-cultural, economic, political-legal and international variables. As well, a corporation considers these elements an important element of its environmental scanning to improve reorganization of threats as well as opportunities developed by the variables and how well-organized plans require being accustomed so the corporation is able to attain and retain competitive benefit (Thomas and Mason; Chaffey). In addition, the macro-environment consists of forces that are generated outside of an organization and normally are not changed due to the events at the business. Alternatively, a corporate can be influenced by the transformations inside the element of its environment, however are not able to control the environment. Given below are some of the important organization’s macro environment factors that can have an influence on a business’s e-business and e-marketing strategy (Thomas and Mason; Chaffey). Socio-cultural Factors The socio-cultural dimensions of the environment encompass lifestyles, customs and values that distinguish the society in that the particular corporation operates. In addition, the socio-cultural elements of the environment control the capability of the corporate to get resources, create its goods and services, and carry out business operation inside the society (Chaffey; Dejan; Thomas and Mason). Population Changes Transformations in national population demographics have a lot of possible impacts on business. As the whole population transforms, the demand for products and services as well changes (Chaffey; Dejan; Thomas and Mason). Rising Educational Levels Rising educational levels as well have an influence on business. In this scenario, the excellent educational levels allow people to get superior incomes than would have been probable otherwise. In addition, the increase in earnings has developed prospects to purchase extra goods as well as services, and to lift the general standard of living of a huge segment of the national population (Chaffey; Dejan; Thomas and Mason). Norms and Values Standard acknowledged forms of behavior are acknowledged as norms and attitudes in the direction of right and wrong are acknowledged as values; vary across time and among geographical areas. In addition, lifestyles would be different in different ethnic clusters (Chaffey; Dejan; Thomas and Mason). Social Responsibility Social responsibility is the anticipation that a company or individual will thrash about to develop the welfare of society. On the other hand, from a company’s viewpoint, this translates into the community expects a company to get energetic steps to formulate society better through virtue of the business being in survival (Chaffey; Dejan; Thomas and Mason). Environment Factors This section discusses environmental factors from e-commerce’s point of view: Social Factors The use of internet for the business improves the social aspects of the business. In this scenario, a business can use social networks to improve the business performance. For this purpose, there exist a lot of social networks and social business websites. In addition, with the new developments in information technology the current society is getting more engaged in daily life and technology based artifacts, especially the emergence of social networks has offered excellent support and capabilities for making new relations, finding new business partners and meeting friends. Thus, the new technology has offered an excellent support for improving the business and professional relationships. Legal Factors In web based business structure, there can emerge some of the legal aspects and issues those can hinder in the smooth progress of the business and corporate processes. However, these legal issues can be resolved through the application of enhanced security measures. On the other hand, the social networks have also brought several serious issues such as personal information hacking and information theft. At the present, we see businesses facing various issues and concerns. These issues and concerns lead toward the non-effective image of social networks and it has a negative effect on business information security. However, there exist various legal actions and laws for managing such issues. Economic Factors The new web based business is presently contributing to a lot of worldwide economic factors. The new web based business arrangements contribute to the business economy. The social network based marketing evolution is also one of the latest and innovative trends in technology sector. The new technology of social network has offered a great deal of support and less expensive features to corporations and businesses to make use of less costly business marketing through the social network based platforms and offer less expensive business management solutions. In addition, the business marketing through social networks also reduces business expenses and allows for more targeted and effective business management. Political factors The internet based business has presently less control over business political aspects. These political aspects should be well managed in order to improve the business performance. Social network based technology has also offered an excellent support for political areas. In this scenario, the new technology of social networks has offered support for political areas in an attempt to highlight their motives, concerns and future plans. For instance, in US presidential elections, the social networks based platforms have performed a vital role and offered high level support to political parties. Moreover, social network offers a quick and high level method to transmit a dedicated message to more targeted audience. Technological factors Technology can positively affect the web based business performance. The new technology based artifacts contribute to the security and operational management of the business and corporate areas. The technology of social networks also revolutionized the web developed technology. At the present, most of the business websites offer online links and contacts to social network based community. On the other hand, there are emerging new developer groups of social networks which are specialized in social network based programming. In addition, the social networks based programming has turned out to be a hot job nowadays. Moreover, each business desires to attract customers to its online community for taking more effective business reviews, new promotions and products usage comments. Conclusion E-commerce is the process of trading (purchasing and selling) using the internet. However, e-commerce is much more than just selling and buying the products on internet. Most of the businesses use the internet for marketing purpose. The process of carrying out marketing activities using internet is known as e-marketing. There are various macro and micro factors of an organization which can have an influence on corporation’s e-business and e-marketing strategies. This paper has discussed some of the important factors which can affect the e-business and e-marketing strategies of a business. Works Cited Chaffey, Dave. E-Business and E-Commerce Management: Strategy, Implementation and Practice, 4th Edition. Harlow: Pearson Education, 2009. Cristina, Ana, et al. Importance of eBusiness. 2011. 02 November 2011 . Dejan. e-Marketing. 24 November 2010. 02 November 2011 . JasonChannel. Archive for the ‘ Internet Marketing Chapter Summaries ’ Category. 07 June 2010. 03 November 2011 . Thomas, Joe G. and Wendy H. Mason. MACROENVIRONMENTAL FORCES . 2011. 04 November 2011 . Wolverton, Troy. Amazon subsidiary admits security breach. 05 March 2001. 06 November 2011 . Read More