The Advantages And Disadvantages Of Consumer Adoption

Published Date: 02 Nov 2017

E-business (Electronic – business) is a term used to describe businesses running on the Internet or utilizing Internet technologies to improve the productivity or profitability of their business (Nelson, 2005). This includes managing internal processes as well as external processes. (Ebusiness, 2012) Well to me, E-business referrers to anything that utilizes internet or any other modern technology to increase their sales and efficiency at minimum cost.

Example: - EBay, amazon, BestBuy etc.

E-commerce follows the same basic principles as traditional commerce that is, buyers and sellers come together to swap commodities for money. But rather than conducting business in the traditional way in shopping stores, the buyers transact business over networked computers. (King, 2006) Trading of goods from help of technology may seem a perfect idea, but such facility doesn’t come without a price. In most part of the world, people still use traditional method to run a business. Since, one of the core parts of doing e-business depends on internet, the accessible of such facility to general people play a huge role in running a successful e-business.

A firm engage in e-business can have a commonly or a worldwide existence. IBM was one of the first companies to use the phrase e-business to refer to servicing clients and collaborating with business associates from all over the world. The use of internet medium is a sure assurance of spreading of business all over the world. The use of such technology helps in managing promotional phase of the business in fast, convenient and in a reliable way. Similarly, a business engaged in e-business, has a worldwide existence (Iyer, 2012). People all over the world who uses internet can know of it. It is one of the greatest advantages of doing e-business. Online dealing of goods and services is one of the cheapest medium of doing business. No huge capital is required to establish which gives opportunity to company to provide better services at low cost. In context to convenience, the business can come to where ever the customer is. Customer can easily access the business from anywhere, even from their home or office. It gives the business competitive edge against other local companies.

The use of internet may seem a very easy and convenient way of running a business, but such easiness doesn’t come without drawbacks. Internet the main part needed in e-business hasn’t been able to reach every consumer, at least not in a convenient way. People still trust and believe doing business transaction from visiting concerned people and doing their work. The main drawback while doing e-business is security. Since, nothing is private in web, there are chances of customer personal information like bank accounts be leaked or hacked by third party. Information is vulnerable at any point in this chain, and hackers are becoming more sophisticated. (Mann, 2008) Another huge problem while running such business is privacy. It’s one of the important sectors, where e-business companies have to focus. Since everything is based upon online, chances are their personal data also being published or leaked. E-business can’t access all the areas, area like automobile, grocery can’t be done by just sitting online. The most important drawback while doing business is trust, as even now people don’t trust while doing business through internet. People still follow the traditional way of doing business, where the customer and the seller are face to face. Getting the trust of people, while doing business is an important sector, in which e-business companies have to keep in mind.

What are the risks and challenges of conducting international business? How can eBay overcome the risks that need management? (2.1)

2.1.

In both types of businesses(online or offline), they have to face financial challenges, but an international business will be facing many factors related to global financial markets that don't affect domestic businesses as much (King, 2007). The whole business environment changes when the business moves to international level. Everything changes from location to consumers and even problems.

One of the risks while conducting an International business is financial and economic challenges. Arranging fund to start international business may depend on fluctuation of exchange rates, global economic crisis, and shift of oil prices and depends on the law passed by government. For a business like eBay, fluctuate rate of dollar will greatly affect the transaction between customer and the site. Even, politics plays a very important role while operating at international level. If some policies were suitable for our business, a change in ruling party can bring a very drastic change in those policies. Political chaos brings down the economy and also the business. Also, the threats like natural disaster or warfare play a very important role while running business in international level. Companies will face threat if some natural disaster like flood, earthquake or some kind of civil war breaks out in the host country. For international companies, running on this condition is very hard. One of the important risks while running business in international level is culture and language barriers. Researching about local culture and knowing the same language spoken in host country is not enough for a business to communicate efficiently (Larmore,2012) .It is very important to find out more about local religion before conducting a business as it affects their decision making and communication.

These are the risk and possible challenges a business might and will face while running their business at an international level. Since, the businesses are running at international level even a small crisis can make the business lose its reputation and even may result in shutdown of the business.

2.2.

EBay can overcome the risk factors by focusing on factors like goal, clear direction and effective communication. No matter what crisis occurs in business the initial goal of business should never be forgotten. The movement of information from one department to another is very important, keeping efficient communication helps EBay to see the clear future to where its company is heading. Similarly, to overcome threat like privacy and trust issue, EBay can focus on getting proper and secure security services to assure customer security.(Hosting, 2010) Since, EBay business is related to technology, keeping up to date with current and latest technology is very much essential to have competitive edge against its competitors. These days sites like yahoo, amazon and other many shopping sites have reduced the consumers of EBay. It is even said that e-bay has been pulled out of Japan. EBay should really think of regaining the trust of their consumers. There has been many complains of fake services in EBay as well. EBay really needs to check the services before making it available to general public, to ensure consumer safety.

What kind of marketing strategy has EBay undertaken? If you were a marketing officer for the company what marketing strategy would you take? And why? (3.2)

3.1

EBay the shopping and web payments business was launched in 1995 and currently has more than 94 million users globally. EBay itself currently has its own marketplace in over 23 countries around the world where people can access to service of buying or selling products staying in their home. As part of its growth strategy, eBay recently launched a daily email offers service and it is also putting a focus on fashion sales. EBay also is applying push sales strategy, by advertising through TV (Joseph, 2012) and also seeking customers through offline retail sector by using mobile to drive footfall into bricks and motor outlets(Shields, 2012). EBay also uses strategy tools like E-Mail marketing, where the customers will be notified for any new items available on their inventory. Even EBay is spreading items like promotional flyers to spread their name to general public. EBay is promoting its brand name by passing and encouraging people to use their services. In terms of technology, EBay has utilized and taken the help of Search Engine Keyword Management. EBay promotes their sales by syncing keywords searched in search engines, resulting in promotion of their site. Even in case of customer satisfaction EBay has taken the liberty of proving the buyers right product at the right time. It’s one of powerful toll which gives buyers more option during their shopping experience.

In conclusion, EBay is providing an excellent service to the customers and is reaching to the millions of customer on daily basis.

3.2.

Today’s world is a digital age world, if I had been given the responsibility of a marketing officer to promote a company, I would probably use digital mediums like internet, email or even TV or website adds to promote my product. These are the most effective medium to reach out to every people all over the world.

Starting from website, the company product will be displayed in eye catching layouts and styles. So, that when the customers visit the site, at least they remember the product name. In case of search engine, the use of Search Engine Optimization (SEO) will be used. It is the most efficient way of letting people aware of the products and also about the company. Even the use of social networking sites will be used to promote the product. Since, today’s youth is highly engaged in social networking sites, it will be an effective way of reaching out to the youth (Jack, 2000) Furthermore, the push services like email will be used to let people know of the products.

The use of information technology will give the customers depth analysis of the company. It basically helps them to differentiate between many different companies and us. Also, the marketing strategy that I have decided needs less funding to initiate. Basically, it’s cheap and reliable way to spread information and advertise about the product and company in wide sectors.