Question

Distinguish between Traditional business and E-business.

How is e-business different from traditional business?

Distinguish between the following:

Traditional business and E-business

Write any two differences between traditional business and E-business.

Answer 1

Sr. No.	Point of distinction	Traditional business	E-Business
1.	Formation	A traditional business takes a lengthy and complicated procedure to form.	E-Business is easy to form.
2.	Setting up cost	It takes huge capital in order to setup.	It takes a very nominal cost.
3.	Risk involved	Less risk is involved as parties have personal interaction.	High risk involved as there is no direct contact between the parties.
4.	Scope of business	Traditional business is limited to a particular area, so the scope is limited.	E-business covers the entire world and so the scope is vast.
5.	Customer interaction	Face to face interaction is possible.	In e-business, there is an absence of face-to-face interaction.
6.	Physical inspection	Goods can be inspected physically before purchase.	E-business resources focus on demand-side.
7.	Resources focus	Traditional business resources focus on supply-side.	E-business resources focus on demand-side.
8.	Delivery of goods	In traditional business, delivery of goods is instant.	In E-business delivery of goods takes time.
9.	Usage	It is ancient and still in usage where the digital network is not reachable.	It is used to save valuable time and money.
10.	Accessibility	It is available during the limited time.	It is available round the clock.
11.	Scope	It is difficult to perform more business in this model.	More business can be done easily without any hassles.