First of all, the name “Electronic Business or E-Business” might confuse you but its nothing but an online business. This is the type of business where the transaction happens online with help on the Internet. In the year, 1996 e-business was founded. Its an abbreviation form of term electronic business. On the platform of Electronic Business sellers and buyers don’t interact personally. In this day and age, we are in contact with different types of Electronic business. Since its inception, it is increasing by leap and limit. Some have speculated this may before long overtake the physical stores entirely. Electronic Business has a major role in today’s global economy.
Therefore, in this article, we are going to learn about Electronic Business and its role in the profit of the business. In a case, you want to know more about management and business-related topic, you can take help from assignment help UK.
Introduction
We can describe electronic business as a comprehensive concept that embraces all aspects of the use of data technology in the industry. It does not work just with purchasing and selling, and it cooperates with servicing customers and business partners and with the organization. An example of Amazon, they are related to online sales of books and music CDs. They function as intermediaries between publishers and consumers.
In Electronic Business, Information System empowers the business process. We can divide Electronic Business into three categories i.e. business to business, business to customer and business to an employee. Today, it is, generally done with web-based technologies.
Electronic business methods enable companies to connect their internal and external processes more efficiently and flexibly, work more closely with suppliers and partners to better meet the needs and expectations of their customers.
In practice, it involves the presentation of new revenue streams using electronic commerce, enhancing the relationship between customers and partners, and improving efficiency using knowledge management systems. We can operate Electronic Business to connect internal intranet and secure private extranet.
E-Business covers business processes with the maximum price chain: digital purchases (“e-procurement”) and electronic processing orders, inventory network management, customer service, and coordinated effort with business partners. It applies to virtual and traditional associations. Special technical standard for e-business facilitates the exchange of information between companies. The e-business software arrangement permits integration of inter and intra firm process of business.
Types of Electronic Business
Presently there are really numerous types of Electronic business. Everything depends on who the ultimate consumer is. Some types of e-commerce are as per the following:
1. Business to Business (B2B)
Exchanges between the two companies fall under the category of business from the business. Manufacturers and wholesalers generally work with this kind of electronic commerce. It improves the efficiency of companies.
How Business-to-Business Selling is Different
Basically, selling to a business is strictly different from selling to a group of layman customers or an individual consumer. Here is a list of key marketing and sales differences for B2B transactions, have a look:
- The process of decision-making on a transaction or purchase may take a few days, weeks or even months. It completely depends on the way the purchasing company works its nature of the order and size.
- The value of products or services is measured in the dollar and sold much higher than on the retail level or consumer level. Thus the buyer requires to take necessary steps to minimize the proportion of risk. This at times includes requesting customization or prototype of product or service.
- The decisions on purchasing are often taken by the committees, thus all members must be educated.
- The process of selling at times may require participation in a bidding procedure by sending a response to the purchaser’s request for proposals. On the B2C side, this practice compares asking different auto dealers to offer their best offer on a particular make and model.
Customer matters, not the size of the transaction
Another thing you must keep in mind while studying B2B transactions is that the transaction size does not matter. Business-to-business transactions often revolve around high prices, quantities, and volumes. However, it does not mean that they cannot take place on a smaller scale. A small scale business gets into the transaction of products or services to another small scale business or a large scale business, this is also a B2B transaction. The hallmark of business-to-business commerce is the participants should be two businesses instead of one business and one consumer.
2. Business to Consumer (B2C)
When a consumer purchases the item from a vendor, then this is a consumer exchange business. People who shop from Flipkart, Amazon, etc. are examples of business to consumer exchanges. In such exchanges, the end consumer purchases directly from the seller itself.
The B2C sales are generally divided into five business models:
Direct Sellers
This is one of the most popular models. The online retail sites where customers buy products or services. They can be online versions of general stores, or they can be the manufactures as well. Some of the examples are Dell, Target.com, etc.
Online Intermediaries
As the name suggests, this model constitutes the “go-betweens”. It puts the sellers and buyers altogether. The online intermediaries do not own a good or service. The best examples are websites like Trivago or Expedia.
Advertising-Based
The advertising base model approaches high volumes of online traffic. This is required to sell advertising. In return, they sell goods or services to the customer. The advertising model uses high-quality content free of cost. This is because attracting customers is crucial. When a site gets a huge number of site visitors, more people will go through the ads. Media outlets that have no paid components, such as Huffington Post are the best examples.
Community-Based
The second last sale model is a community-based model. This is built around shared interests in order to assist advertisers. Furthermore, the concerned personnel then market the products or services directly to the users. It may be an online forum for marching band members, people having diabetes or any other health issue, photography enthusiasts, reading buffs, etc. The biggest example of the community-based model is Facebook and Instagram. These two platforms help the marketing teams of different businesses immensely to market their products and services for a very specific demographic.
Fee-Based
The fee-based ones are direct-to-consumer sites. They charge a certain subscription fee in return for giving access to their content or information. They generally involve publications that can offer a particular amount of content free of cost. However, they have to charge for the rest of the content. The examples can be seen in our everyday life. From Netflix to Hulu the entertainment services, there are plenty of fee-based models.
The business entities who sell directly to the customers should take into account how their target consumers prefer to shop. They should try to know how much interested they are in their competitor’s projects. These activities come under exploring the business-to-customer options. It may involve in-person or online transactions.
3. Consumer to Consumer(C2C)
A consumer who sells the item or service to some other consumer is a consumer exchange from the consumer. For example, people place advertisements on OLX’s items they need to sell. C2C type exchanges are for the most part for second-hand items. The website is just a provider of convenience and not a provider of products or services.
Advantages of C2C
When done well, a well-designed C2C marketplace is a win-win for both buyers and sellers. The biggest advantage of C2C e-commerce is that allows the sellers to retain most of the profits. It helps them in reaching a larger potential audience at a faster pace. At the same time, it enables the buyer to get a better price they have to pay while buying from the business itself.
4. Consumer to Business (C2B)
Consumer-to-business (C2B) is a business model in which the consumer (person) makes value and the business consume that value. For example, when a consumer writes a review or when a consumer gives a useful idea for new item development, the consumer is creating value for the business if the business receives the info.
Apart from advertising a service to someone and waiting for their response, customers today demand service for a price. They are happy to pay a price and wait for a business to fill the gap. This inversion of the usual manner of working has now become more common than ever before.
This has come in a huge part to the power, the Internet has brought a revolution to every section and group of people. The consumers also have a great sense of power in their hands due to the Internet. They now realize the power they wield. Thus, they are now leveraging this power for profits. In a similar way, as a brand or business uplifts its prestige, a consumer can leverage their influences.
Advantage of Customer to business (C2B)
One of the most valuable asset consumers possesses C2B is “insight”. A consumer is the target market. Thus, their preferences, their decisions, and their final purchases matter a lot. The reasons why they cannot decide to buy or to leave a product can have vast effects on business manufacturing and selling a certain product.
Thus, getting the approximate opinion of the audience on certain features and an idea of what they actually want is largely standard.
5. Consumer-to-Administration (C2A)
The consumer-to-admin model covers every electronic exchange made between people and open organization. Some examples of uses include:
- Education – Distance education, dissemination data, etc.
- Taxes – Payments, Filing Tax Return, etc
- Social Security – making payments, distribution of information
- Health – data about appointments, appointments, payment of health care, etc.
The C2A or A2C model has emerged and outgrown in the last decade. Some of the most popular examples are applications like a-voting or e-democracy which provide information about public services and health. When consumers use such services they can get a wide range of benefits. They can request instant feedback or information, they can post concerns, etc. A2C also makes direct communication between the government/ government organizations and final-end users.
Opportunities
Choosing a business model is one of the major opportunities that Electronic Business provides. With a smile, some corporation, for example, Co-operative Bank and prudential assurance with Egg have started different internet businesses, and have taken the chance to establish a new brand that represents their business vision for their business future, that is an old brand.
Digital Business also provides an opportunity for defining the associations with consumers which can be routine transactions that are under the control of the consumer. The customer is encouraged to learn the content for example, for example, the process related to submitting a request. This enhances the difficulties of switching.
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Client’s knowledge: It fixes a collection of information that gives the association the competitive advantage to the opponents, Bank is one of the examples. My bank knows my address and names which can help prevent crime.
Cost funds on exchanges can be significant because the consumer takes charge of a large portion of service exchanges.
Global Market Access: It is for the most part in exotic markets; Entrance to such worldwide markets has provided delightful opportunities for independent enterprises and it is challenging to enter the worldwide market.
When the security solution is a major concern, sustainable E-Business needs the help of privacy, strong authentication, and data integrity.
Threats
- The entry barrier is very low. A very short time is taken to start a website and new business.
- No matter of size as medium enterprise and small enterprise may be more adaptable and flexible.
- Expect the likelihood of customers to like, especially in relation to the detailed product range, the opportunity to make comparative shopping and availability of 24 hours.
- Pressure on the margin of products. The pressure market on the margin of products will arise from an extra channel of extra pressure circulation.
While much has been written about the economic benefits of Internet-enabled commerce, there is additionally a piece of evidence that some aspects of the Internet, for example, location-conscious services and maps can work to strengthen digital divisions and economic inequality. E-commerce may be the reason for the consolidation and decline of brick and mortar and mother and pop businesses, resulting in income inequality increases.
Virtual Organisations
A number of independent companies make this temporary organization – customers, supplies, even opposition – associated with data technology, restricted by conventional boundaries or places, with cost, assets, abilities, ideas to create, distributing services and products and sharing to gain access to another market.
In Electronic Business, virtual organizations don’t represent the characteristics of a firm, however, they can be considered in a different authoritative structure.
Unfortunately, finding a definite and precise definition of fundamental concepts, for example, a virtual company or a virtual organization is hard. The virtual organization is obtained from “computer-generated reality or virtual reality”, whose objective is to show the real-world with the help of images and virtual surround sound. The word virtual association means the innovative and novel relationship between people and the organization. Both technology and globalization support this specific type of corporation. The impact of e-eCommerce on business-level strategies should be studied well to understand virtual organizations.
Revenue
All those organizations which have implemented Electronic Business have a quick PDC or product development lifecycle, which helps them to retaliate very fast according to the need of the market. They exploit the market head to expand their income before entering their rivals in the market. Stock following empowers organizations to decrease understocking and overstocking, accordingly discharging the essential money for stock maintenance for different purposes, and furthermore guaranteeing that deals are lost as the items are out of stock.
Conclusion
Technology is significant for both e-business and virtual associations because these two need some kind of technology to sustain in the competitive market. For example, a virtual association can work without the help of digital technology. It requires technology to establish a communication, network, security and electronic business that cannot exist without the implementation of digital technology because technology needs to comprise data technology, for example, the World Wide Web, the internet, electronic mail, groupware like Lotus and also video conferencing.
Technology without e-business and virtual organization, such kind of technology won’t be designed or created because online exchange processing will be useless because they won’t need online transactions without e-business. Technology has additionally helped the virtual association advance data and correspondence technologies. It likewise has better security, flexibility, less expense, and better resource use. Technologies have helped in meeting or enabling meetings to allow members that are isolated from time and place and are often involved in collaborative work in geography, culture, history and the future. If you want complete and proper guidance on research papers, assignments, essays and other writing services, visit assignment expert.