What are the advantages and disadvantages of e-business?

Answer 1

There are many different benefits of E-commerce and E-business. Some of the benefits of E-commerce include purchases can be made 24 hours a day and 7 days a week, making it available to every place in the world, at any time. Other benefits of E-commerce include a larger marketplace, more secure then using cheques, can increase you sales potential, leads to increased productivity. Benefits of E-business include improved speed of response, cost savings, reduced in inventory, better transfer of best practices, and improved customer service. These are all benefits and advantages of E-commerce and E-Business.

Advantages

· With the use of e-commerce you can promote your product globally.

· Reduces Time and money spent

· Gives a competitive advantages

· Removes Location and availability restrictions

· Heightens customer service

Elderly and disabled people do not have to leave their home.

Disadvantages

· Security - there are still some people who don't think it is safe to buy on-line therefore as their isn't a high-street shop will loss their custom.

· You may not receive what you believe you have purchased.

· Things such as viruses could mean losing the site or affecting your customers computers while on your website.

If you book a holiday, the 'company' also knows when you are out.
E-commerce business is cost effective and easy to maintain. Running an E-commerce business requires only a head office rather then branches of business, staffs, maintenance, another costs are substituted by a single cost, Web Hosting for the eCommerce business.

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Answer 2

Advantages of E-Business

Worldwide Presence: This is the biggest advantage of conducting business online. A firm engaging in e-business can have a nationwide or a worldwide presence. IBM was one of the first companies to use the term e-business to refer to servicing customers and collaborating with business partners from all over the world. Dell Inc. too had a flourishing business selling PCs throughout the US, only via telephone and the internet till the year 2007. Amazon.com is another success story that helps people buy internationally from third parties. Hence, worldwide presence is ensured if companies rethink their business in terms of the Internet.

Cost Effective Marketing and Promotions: Using the web to market products guarantees worldwide reach at a nominal price. Advertising techniques like pay per click advertising ensure that the advertiser only pays for the advertisements that are actually viewed. Affiliate marketing, where customers are directed to a business portal because of the efforts of the affiliate who in turn receive a compensation for their efforts meeting with success, has emerged on account of e-business. Affiliate marketing has helped both the business and the affiliates. Firms engaging in e-business have managed to use cost effective online advertising strategies to their advantage.

Developing a Competitive Strategy: Firms need to have a competitive strategy in order to ensure a competitive advantage. Without an effective strategy, they will find it impossible to maintain the advantage and earn profits. The strategy, that the firms can pursue, can be a be a cost strategy or a differentiation strategy. For instance, till the year 2007, Dell Inc. was selling computers only via the Internet and the phone. It adopted a differentiation strategy by selling its computers online and customizing its laptops to suit the requirements of the clients. Thus, e-business resulted in Dell Inc. managing to capture a vast segment of the market using the differentiation strategy.

Better Customer Service: E-Business has resulted in improved customer service. Many a times, on visiting a website, the customer is greeted by a pop-up chat window. Readily available customer service may help in encouraging the customer to know more about the product or service. Moreover, payments can be made online, products can be shipped to the customer without the customer having to leave the house.

Disadvantages of E-Business

Sectoral Limitations: The main disadvantage of e-business is the lack of growth in some sectors on account of product or sector limitations. The food sector has not benefited in terms of growth of sales and consequent revenue generation because of a number of practical reasons like food products being perishable items. Consumers do not look for food products on the Internet since they prefer going to the supermarket to buy the necessary items as and when the need arises.

Costly E-Business Solutions for Optimization: Substantial resources are required for redefining product lines in order to sell online. Upgrading computer systems, training personnel, and updating websites requires substantial resources. Moreover, Electronic Data Management (EDM) and Enterprise Resource Planning (ERP) necessary for ensuring optimal internal business processes may be looked upon, by some firms, as one of the disadvantages of e-business.

Answer 3

There many advantages and disadvantages of using email in business. Some of the advantages include being cheap and an effective means of communication. Some of the disadvantages include possibility of the security of the organization being compromised and may also consume so much time.

Answer 4

Revenue models allow eBusinesses to see what will help them be successful. A disadvantage is the fact that models can't anticipate problems in the real world.

Answer 5

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