E-Commerce and the New Economy Essay
1437 Words6 Pages
E-Commerce and the New Economy
The web has transformed our global economy. It is a powerful tool that has changed the way we produce, market and distribute goods and services. Finances and culture have been altered. New styles of commerce have developed. For example, a business call placed in North America could be handled by a technical expert in Asia as business is conducted internationally as well as transnationally. The purpose of this essay is to examine the issues, challenges and opportunities related to commerce in the “new economy”.
The internet became popular in 1995. It creates many opportunities in different kind of industries. Ecommerce is one of the successful examples of buying and selling on the web. It is like a…show more content…
Online business is further developed, because sellers can keep track of what is important to sellers, and sellers can discuss concerns with buyers (Charles Steinfield). They can keep improving their services and quality of the products. This is both benefits to these two parties.
However, there are some challenges that online business has to face. Although internet is now an indispensable tool in developed countries and wealthy family, yet many people who live in underdeveloped nations have no access to internet. This disparity limits the expansion of online business because online purchasing seems like a superior knickknack, only designed for rich people.
Another challenge that affects firms directly is the web measurement problem and maintenance of their sites (Donna L Hoffman, Thomas P Novak and Patrali Chatterjee). It is hard to estimate how many people will visit the site, even after a survey has been done. The actual number of people who visit the website is still not determinable. As a result, it is a hard job for the firms to make the investment decisions. As it has been mentioned at the beginning of this essay, the set up cost for an online business is low; however, the maintenance cost is always high. Firms have to hire somebody to keep track on the web to make sure everything is running fine (Donna L Hoffman, Thomas P Novak and Patrali Chatterjee). If there are
Essay Electronic Commerce (E-Commerce) and the Global Economy
1178 Words5 Pages
Electronic Commerce (E-Commerce) and the Global Economy
The world we live in today, revolves around technology, new innovations and constant change. The global economy incorporates these changes into its daily applications forming a technological driven world where businesses thrive on information and competitive markets. Computers and communication networks have planted a seed in this information age where enterprises flourish forming revolutionized market economies. One of the most profound changes emerging in the world of business today is the introduction and use of Electronic Commerce or EC. The impact of EC on customer services as well on businesses is dramatic enough to affect any and every organization.…show more content…
Founded in September 1995, eBay is the World's largest Online Marketplace for the sale of goods and services by a diverse community of individuals and businesses. It is a global trading platform where people can trade almost anything, from buttons to big ticket appliances. Some other uses of Business to consumer EC applications include:
also known as cyber banking. It allows its clients to pay their bills, view their accounts and any other financial information without having to physically go to a bank. One can access their account by submitting a password at their own convenience. For instance, SNFB- Security First Network Bank was the first virtual bank offering secure bank transactions on the Web. Bank customers can transfer money between accounts, review past statements and credit card transactions, pay bills, check balances of all accounts etc. Their operations were so successful that in 1998 they accepted a buyout offer for its online banking operations from Royal Bank of Canada that continues to operate successfully today. (IT 403)
Online stock trading
An Online trade usually costs between $5-$30 as compared to an average fee of $100 from a broker. The advantages of online stock trading include quick access, orders can be placed from anywhere, any time, and