Benefits And Limitations Of EcommerceEssay Preview: Benefits And Limitations Of EcommerceReport this essayBasic Benefits of eBusiness eCommerceo increase sales – this is the first thing that people considerwhen dealing w e-commerceo decreasing costso increase profitso understanding that profits is not the same as saleso Expands the size of the market from regional to national or national to internationalo Contract the marketo reach a narrow marketo target market segmentation allows you to focus on a moreselect group of customersDecreasing costso costs of creating the producto marketingo of promotional materialo costs of distributioneg. Netscape allowing you to download instead of waiting to get the CD by mailo costs of processing (orders from the customers)repeat activities and information processingof handling customer phone callsof handling sales inquiriesdetermine product availability (inventory management)o costs of storing informationo lowers telecommunication costs o and therefore have a competitive advantages in satisfyProvide price quotes– with a web site, you can have the prices listed, and change them– you simply edit the web page– in a printed catalogue you are stuck with the expense of printing a new version if you need to change many of the pricesBasicBenefitseBusinesseCommerceOther Benefits .o Pull-type processingo enables customization of productso allows for innovative business modelso allows for a high degree of specializationo reduces the time exposureo supports BPR – Business Process Reengineeringo increases productivityo improves customer service (in some cases). ing tA large component of business these days is dealing with other businesses (B2B) that supply parts and components since rarely do companies manufacture things from beginning to end – most things are made from component parts which are created by different companies.
This component approach to manufacturing is true for many services also. Companies supplying services often have that service broken down into sub-contracting services eg. – a building maintenance contract can be subdivided into the following services
o security serviceo access controlo alarm responseo landscaping serviceo summer – grass cuttingo winter – snow removalo janitorial serviceo heating, ventilation and air conditioning serviceo electrician serviceo plumbing serviceo window washing serviceBenefits to organizations that use e-Commerce with their business partners– manufacturers and service companieso minimizes Supply Chain inefficienciesreduces inventoriesreduces delivery delaysenables efficient e-procurement……Benefits to organizations that use e-Commerce with their business partners– manufacturers and service companieso build more collaborative and stronger relationships with suppliers. This includes streamlining and automating the underlying business processes, enabling areas such as
e-commerce marketing, data analytics, development, development, and design. A large percentage of e-commerce transactions are conducted through our subsidiaries. In addition, we participate in strategic business-related transactions with other stakeholders which are managed by us and funded by our corporate partners. E-Commerce and our business partners include many of our leading suppliers but are also important for our customers and our businesses. We rely on our subsidiaries to fulfill significant business-related requirements such as:
e-commerce services-such as:$5 billion or more ($1/2 billion in sales for 2013), and$3 billion ($4.3 billion to $5.6 billion in 2013)
e-commerce-related customer services$25 million or more ($20 million in sales for 2013), and$24 million (for 2013)
e-commerce-related retail sales, $12 million for non-customers with eCommerce+$8 million to $12 million in 2013
customers with e-Commerce+$6.6 million to $6.6 million with non-customers who apply for e-Commerce
………Benefits to organizations that use electronic- and/or mechanical goods & services in accordance with their business practices. This includes:
e-commerce-related services such as:
e-commerce-related inventory sales $25 million or more;
customer services such as:customer services like:
business analytics for e-Commerce, web-based advertising, and consumer engagement to support your business
data analytics for e-Commerce, search engine optimization, social media analytics, financial and customer data, and data storage.
…………Benefits to organizations that use e-Commerce with their business partners– manufacturers and service companies
manufacturing management assistance/automation assistance, information collection and management services, data monitoring/assessment services, and information sharing services……e-Commerce
computational analysis (e.g., user experience/behavior analysis or process analysis) of e-Commerce…customer data management…customer servicesBenefits to organizations that use electronic- and/or mechanical goods / services in accordance with their business practices.
computational analysis for electronic or mechanical goods / services, search engine optimization, social media analytics, financial and customer data, and data storage (e.g., e-Commerce)
………e-Commerce…customer data handlingBenefits to organizations that use e-Commerce with their business partners&#
direct marketing,selling,customer services, (call centres)fulfillment,procurement,replenishment andinformation management.Benefits to consumers that use e-Commerce (e-Business)o can buy when you want, from more locations (internet connected terminals) more choiceso when you have more choices you can decide on a product withbetter features at a more competitive priceo sometimes products are less expensive onlineo can receive more information about the product, make a more informed decisiongreater information leads to more confidence to make a purchase decision