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Unit 29 Internet and E-Business Assignment Copy
E-Business is gaining consideration all over the world. It has got a number of benefits to the businesses as well as customers. However it is important that different aspects that have an impact on e-business and thus create barriers have to be studied so that it is successfully implemented. Further the future developments and role of technology has also been studied in this report. Overall the Unit 29 Internet and E-Business Assignment Copy has been quite beneficial in providing and covering all the aspects of online business. The key aspects covered in the report are as follows
- E-Business Models
- Barriers & Benefits of E-Business
- Modes of Communication
- Role of Technology
- Consideration of Website design and impact on usability
- Future developments in E-Business
- Apart from the other factors a lot of other aspects have also been covered in the report.
E-Business is the administration in the way business is conducted by using internet. This includes various aspects such as sale and purchase of goods and services, providing technical support by using internet or using internet to manage internal business processes that may use operations, distribution etc. (Hodge& Cagle, 2004). The type of transactions may be classified based on market relationship of the supplier with the customer. These have been shown below
- Business to Business (B2B): Both participants are businesses in this type of Ecommerce. The business requirements originate that are fulfilled by another business entity by selling the product to intermediate buyers.
- Business to Consumer (B2C): It is the Ecommerce business wherein the product is sold directly to the customer. The products are shown on the website to the customer (Nikov). The customer can make a choice and place the order.
- Consumer to Business (C2B): It is the ecommerce business model wherein the customers directly approach the business (Nikov). The example of this model is the tour and travel website wherein the customers explore the various options that best suit their needs.
- Consumer to Consumer (C2C): It is the Ecommerce model wherein the consumers approach other consumers. The example of such websites is the residential sale or product sale websites.
Based on the above discussion it can be said that for Concord Textile Ltd B2C & B2B would be best suited. The company can highlight the products and services available for sale, offers and also provide information on how to contact the company.
Benefits and Barriers to a Online Business
There are several benefits and barriers that are there for online business. These have been discussed below (Chaffey, 2011)
- Reach & Richness: It is the most convenient way to reach huge customer base without development of infrastructure that may be require in case of physical stores. Further detailed product information can be provided to the customers. Further online platform gives opportunity in the form of new market and new customers. Another advantage of the online business is that it results in cost reduction associated to supply chain, marketing, customer services and printing & distribution cost. Lastly it provides an easy way to the customers to give feedback.
- Considering the barriers to online business is very important in order to understand whether online platform will be beneficial for the Concord Textile Ltd. E-Business requires high initial setup. It is important that the feasibility study is conducted before setting up the business is concerned as it will have severe impact on the viability of the business.
- Further it will require employing skilled technical personal and professional for maintaining the website and other platforms. Further the technological changes would make the existing system obsolete. Lastly there are security and protection concerns due to threats related to virus attack or system malware.All these barriers have to be considered before considering the online business opportunites and application.
Security and Legislative Issues
The E-Business is subjected to various security and legislative issues. Firstly the use of internet is vulnerable to virus attacks and hacking. It also results in challenges related to privacy, fair use and unethical & unauthorized access to information published on websites. Another issue that is associated with online business is the fraud related to credit card and payments. In order to protect the interest of both buyer and seller it is important that the issues are resolved by having suitable law in place. Laws such as Electronic Communications Privacy Act of 2000 ensure that privacy of employee at workplace is maintained. Cyber laws governing the internet activities cover wide range of topics including email privacy, identity theft and such issues. It is important that such laws are developed that can safeguard the privacy and enhance the online independence (Chaffey, 2011). At the same time the technology should be implemented in such a way that such threats are minimized and the impact such as of theft of information or unauthorized access to credit cards and bank account is not there.
Modes of Communication
Communication is the most important aspect of the business. Different modes of communication are available to an e-business. The mode of communication includes desktop computers, laptops, mobile and tablets. Laptops, mobile and tablets are portable while desktops are fixed devices. These devices are used to have communication between customers, suppliers and business employees. The postal mails have been replaced by emails. Meetings have been replaced by audio and visual conferences. Further communication related to new products, reviews, feedback and highlighting the key aspects (FAQs)can be done by chat or through messages. These modes of communication are used in different ways in different businesses.
Different e-business models can be used by companies to generate revenue. These are as follows (Afuah&Tucci, 2001)
- Brokerage Model: model in which the broker brings the buyers and sellers on the same platform.
- Advertising model: The website provides a platform to advertise products in the form of banners.
- Merchant Model: Used by wholesalers and retailers for sale of goods or services
- Manufacturer Model: Allows manufacturer to reach buyers directly.
Apart from the models that have been mentioned above the classification can be made for certain other models such as subscription model wherein the users are charged periodic fee or utility model in which the users pay based on the usage. The two models that can be used effectively by Concord Textile Limited are manufacturer model and merchant model. The manufacturer model will be based on efficiency improved customer service and better understanding of the customer preferences. The manufacturer model will be developed for direct sales of the products. The merchant model can be based on the virtual merchant wherein the online transactions will take place as virtual merchant in between the producer and the buyer. The virtual merchant in a way acts as virtual merchant. Another way the merchant model can be used is by providing web based catalog. This would provide the information to the customers on the new products, features of the brand. It also enables online ordering.
The two models that have been mentioned have combined benefits as well as certain benefits that are specific to the model. Both the models have huge capacity for generating revenue for the company. Firstly the number of online users is increasing. The popularity of online business is increasing and the users are finding it extremely useful. The merchant model will add to the cost of the company as the manufacturer will have to pay brokerage to the merchant. But this will be beneficial for the company as the number of potential customers visiting the website will be more. The manufacturer model will be more beneficial for the company as it will result in reducing the cost related to brokerage and at the same time result in efficiency in improved customer service and better understanding of the customer preferences.
E-Business has certainly revolutionised the retail market. There have been certain aspects like reduced cost and better client or customer need and project evaluation and opportunities in terms of the business growth. Currently the e-business models are focused on generating revenue for the However there are certain aspects that need to be considered for the future development of the e-business. These are as follows
- Potential penetration in countries like China: E Business has been quite successful in developed countries. However the penetration in markets like China and India has not been there. The future developments in e-business models will focus on under developed and penetrated markets as these markets have huge potential and can have a huge impact on the revenue generation. The business models that are suitable for these markets willhave to be developed.
- Focus on business development: This means the focus will be on tier 2 cities where the potential is more in comparison to the tier 1 cities as these markets have been unexplored. It is expected that the business growth will be higher in such cities.
- Different models for business development: Currently four business models based on transaction are prominent. These are Business to Business (B2B), Business to Consumer (B2C), Consumer to Business (C2B) and Consumer to Consumer (C2C). The focus would also be on developing new business models such as C2C. Further specialization would be there in B2B which will be B2M i.e. Business to Manager and B2A i.e. Business to Administrations.
- Relevant aspects related to business practice: As discussed above, the focus has been primarily on generating sales for the company through online. However once the market is developed the consideration to customer management, business management and taxation management have to be there. The focus on such factors will result in better customer satisfaction and at the same time improved efficiency in business management and compliance to auditory aspects.
Internet marketing is the revolution for the next generation. It has certainly opened up new avenues for business and at the same time created a lot of options for the customers. There are various benefits and limitations of the online or e-business for the companies and the various ways in which it can be used by the companies. The Unit 29 Internet and E-Business Assignment Copy highlights and discusses different aspects that have an impact on the business strategies for new users as well as for existing businesses. The report clearly highlights the different models, issues, modes of communication, security issues role of technology and other important factors that have a role to play in online business. Overall the report has been important in identifying the key factors that are important from the viewpoint of making successful ventures in e-business.
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