E-BUSINESS

E-Business

E-Business

Describe the environment in which e-business is conducted and business transaction types

The environment in which the e-business is conducted consists of some major components. These include the technology in which the firm requires innovations, and there is a need to cope up with the new and quick trends of the industry. The next component is the international situations, this includes the economic factors, legal constraints and the international cultural factors that wants to cater and to follow. Moreover, the firm or the company which promotes the environment of following the national and local legal constraints, economic factors and local cultural factors of the country of origin also comes in the environment where e-business is conducted. The e-business also requires having a high level of ambiguity tolerance and adaptation to change is also required for the e-business environment. The environment having high preferences for the needs of the customers is also one of the elements of the environment in which e-business is conducted (Ray, 2003, 3-33).

The business transaction types involved in the e-business are of several types:

B2B

This is business to business transaction or simply a commercial transaction in which two or more businesses gets involved in buying or selling or the goods through internet (Osterwalder, 2002, 17-19).

B2C

This is business to consumer transaction or simply the commerce between a company and a consumer. This involves the consumers purchasing goods, gathering information about the firm and products and other features of the consumer and business transactions, but, with the use of the internet (Ray, 2003, 3-33).

B2G

This is the transaction between the business and the public sectors using the internet and online procurement. This kind of transaction involves the government operations and the buying and selling that the government make with the private online businesses (Osterwalder, 2002, 17-19).

C2C

This is the transactions which occur in between the two or more private consumers. In this transaction, business is done between the two private instead consumers or parties which involve buying and selling on the private level (Ray, 2003, 3-33).

1.2 Explain the benefits and barriers to businesses considering an online presence

There are several benefits of e-business and the presence of the business online. These benefits include cost reductions and savings, enhanced internal and external communications, improved focus on the customers and on the customer services, better productivity and efficiency, advanced and enhanced speed of the responses towards the queries of the customers and potential customers, increased sharing of knowledge and the information amongst the employees and with the customers, reduction in the levels of inventory. The e-business also leads to the increased and larger customer base and new customers with a simultaneous increase in the sales of the firm (Gordijn, 2001, 11-17).

On the other hand, there are some barriers of the online presence of business. The first and foremost barrier is the security threat to the firm internet is still not fully secured, and the firm needs to handle a lot of problems due to the illegal encryption and hacking of ...