CRITICAL EVALUATION

Systems and Operations- Critical Evaluation of the Issues in E-business

Systems and Operations- Critical Evaluation of the Issues in E-business

Introduction

The purpose of this study is to expand the boundaries of our knowledge by exploring some relevant material relating to the scenario analysis of a firm conducting E-business. In this study, the author will examine the scenario which states that the technological advancement of the modem era has substantially contributed to offer innovative products and services to customers. For the organization conducting E-business is even more important to exploit technology in a manner that can offer an advantage over the competitors. In this effort the efficiency and effectiveness of the operations is also key to success. E-business is generally defined to encompass any commercial activity that uses the transmission of electronic data to facilitate buying and selling. E-business therefore spans a wide variety of industries, not only those trading in tangible goods (as traditional brick-and-mortar storefronts do) but also those brokering the transfer of intangible ownership rights. It also uses a wide variety of technologies, ranging from the simple buying and selling of products using electronic mail to more complex inventory-tracking systems that automatically replenish stock based on sales (Laudon, 2009, pp. 414-456).

Although the death of distance has been overstated, E-business does help ameliorate the friction of distance, sometimes by directly replacing traditional sales channels but more importantly by operating in the background to make them proceed more efficiently. Many individuals engage in e-commerce, of course—either shopping directly through online retail stores or buying and selling items through intermediaries such as eBay or Amazon. These exchanges may be the most visible form of E-business, and they have experienced positive growth in many countries around the world, but they actually make up a rather minor portion of it. For example, retail transactions, also known as business-to-consumer (B2C) sales, account for only a quarter of e-commerce shipments in UK. The bulk of E-business activities are concentrated in the manufacturing and wholesale sectors—which is to say business-to-business (B2B) sales. E-commerce can make it easier for businesses to overcome the friction created by physical distance. It provides a cheaper means of communication with workers, suppliers, and customers located in various places around the world. For example, when a customer buys an item from Wal-Mart, the product supplier (who may be located on the other side of the world) immediately receives notification of the point-of-sale purchase and can begin processing a new shipment for that particular store. Although this is a vast oversimplification of an extremely complex supply and distribution chain, by changing the organization and geography of their distribution network, companies such as Wal-Mart successfully blend e-commerce with the physical movement of goods. E-commerce is undoubtedly changing the spatial economy, but geography is still an important and relevant factor in economic exchanges (Boone, 2011, pp. 132-156).

Company Overview

The company that we have chosen for our analysis is Bohoo.com. Boohoo.com offers a wide range of trendy apparels to its customers through its online web ...