Question

In today’s world, if a business needs to expand and survive, then it should adopt to e-commerce rather than being traditional commerce. Justify this statement.

Answer 1

Adopting e-commerce over traditional commerce can significantly contribute to a business’s expansion and survival in today’s world for several reasons:

1. Global Reach/Global Choice: The boundaries of electronic business are not defined by geography or by national borders, but rather by the coverage of computer networks. Access to the global marketplace helps to improve the operations of business firms.
2. Shorten or Eradicate Supply Chains/Rapid Response to Needs: Electronic business often allows traditional supply chains to be shortened dramatically. The cycle time involved in a transaction is considerably reduced due to the high speed of e-business. Information can be exchanged at the click of a mouse.
3. Substantial Savings/Reductions: One of the major contributions of electronic business is a reduction in transaction costs. Any business process involving “routine” interactions between people offers the potential for substantial cost savings, which can in turn be transacted into substantial price reductions for customers.
4. Speed: Much of the buying and selling involves the exchange of information. On the Internet, information can be exchanged at the click of a mouse. E-business substantially reduces the cycle time of a transaction.
5. Lower Investment: It is much easier to start an e-business than a traditional business. Capital required is much less. A small firm can obtain the same benefits of Internet technology which are available to big business. Adapting to e-commerce offers numerous benefits that can drive growth, increase efficiency, and enhance customer satisfaction.