E-Business is a type of business that is taking place through the internet. It is also known as an online business.’ E’ stands for Electronic and Business Stands for trade practices. Trade is the activity of buying, selling and exchanging goods or services between people, firms, and organizations.
Objectives Of E-Business:
The system of E-Business is developed to fulfil the following objectives:
1. To bring a paradigm shift in business performance and to develop their competitive edge.
2. To develop a business relationship on a strong footing.
3. To find out and analyze market potential.
4. To provide better service and delight to customers.
Functions Of E-Business:
A) Service management function: Service management function is the application of technology to improve the quality of service. Mainly customer service is greatly enhanced due to the site’s capabilities.
B) Communication Function: Communication function is aimed at the delivery of information and documents to facilitate business transactions at greater speed and accuracy.
C) Transaction capabilities function: Transaction capabilities function provides the ability to buy or sell on the internet or other online services.
D) Process management function: This function covers the automation and improvement of the business process.
Types of E-business:
E-business can take place within or among three groups of economic factors. The transactions among these three groups may take place at six different levels of Electronic business:
- Business to Business ( B2B)
- Business to Customers (B2C)
- Consumer to Consumer (C2C)
- Consumer to Business ( C2B)
- Government to Consumer (G2C)
1. Business to Business(B2B):
The transaction taking place among business units are referred to as business to business transactions, popularly called B2B transactions. These transactions often involve carrying out commercial negotiations, information sharing, collaborative work, etc.
Here the business units sell to other business units. for example, Intel sells its chips to other business units producing computers.
2. Business to Consumer (B2C):
In B2c transactions, the interaction is between business to customer. This transaction is also called as consumer retail sales.
Some business units have already started offering on-line shopping with books, followers and other gift items. Fo
r example, The most popular site is Amazon.com which is the first online bookseller.
3. Consumer to Consumer (C2C):
This is not very common at present and most visible examples are auction sites. If one has someone to sells, then he can get it listed at an auction site and others can bid for it.
4. Consumer to Business(C2B):
The basic idea of this model is ”Give the consumer what he wants at the price he wants, without the merchant having to suffer public embarrassment.
5. Government to consumers(G2C):
Records of land revenue and sales documents, issue of certificate and licenses, filing of income tax returns, passports, payments of dues, etc. by individuals are some of the services which can be put in this model.
6. Intra B-Commerce:
It involves electronic transactions within the parties in a given business firm. It includes the use of the internet for managing interactions and dealings among various departments and persons within a firm and hence enables the firms to go in for flexible manufacturing.
Opportunities And Benefits of E-Business:
Benefits of E-Business could be analyzed into the following two categories:
A) Benefits to producers.
B) Benefits to Consumers
A) Benefits to Producers:
i) Worldwide Reach: The business houses may get worldwide recognition through e-commerce. Thus these houses can have a global market for their products.
ii) Display of products: The business houses can display three-dimensional images of there products on the internet. A company can improve its new products through e-commerce.
iii) Tailoring products to customers need: With electronic interaction, suppliers can collect detailed information about the needs and wants of customers and tailor their products and services to those individuals’ needs.
iv) Less personal costs: A single computer can do the job of many employees, quickly and correctly. Thus e-commerce reduces the requirement of employees and as such the business expenses.
v) Elimination of middleman: The producers may establish direct contact with the customers. This reduces the cost of distribution.
vi) Entertainment to attract customers: e-Commerce website can provide entertainment to customers through providing access to various games, music, sports, etc.
B) Benefits to Customers:
i) Global choice: For the customers, the whole world becomes a shop. they can select the best products from among different varieties of the same products produced by manufacturers, all over the world.
ii) Customer convenience: A website is open all the 24 hours. It can take orders, make deliveries and receive payment, at any time, convenient to the customer.
iii) Easy placement process: Many types of information and services can be delivered to the customer on the computer, through E-commerce. This simplifies the distribution process for the customer at a lesser cost.
iv) Products and services were available in remote areas: E-commerce has made it possible that things are available even in those areas where there are no markets around.
Applications Of E-Business:
E-business can be applied in the following ways:
A) E-Bidding/E-Auction: Many shopping sites such as airline tickets, etc have Quote Your price wherein one can bid for the goods and services online.
It also provides facilities for re-rendering whereby quotations can be submitted online.
B) e-Trading: It involves the trading of securities like shares and other financial instruments. The securities are bought and sold online.
C) e-procurement: It involves sales transactions between business firms through the internet. It includes reserve auctions and digital market place.
Reserve Auctions facilitate online trade between a single business purchaser and many sellers. The digital market place facilitates online trading among multiple buyers and sellers.
D) e-Delivery: It involves electronic delivery of photographs, videos, journals and other multimedia contents to the user’s computer.
E) e-Promotion: It involves advertisements through banners, pop-ups, customer surveys, opinion polls, the publication of online catalogues, displaying images of goods, etc.
Uses Of E-business:
E-business serves the business in the following areas:
- Customer search
- Pre-sales inquiries
- Information publishing and dissemination
- Sales and product
- Advertising product
- Sales promotions
- Purchasing goods
- Funds transfer
- After-sales service
- Intra business functions
1. Customer Search: E-commerce helps in finding customers for the product or service by sending them informative emails for the product or service.
2. Pre-Sales inquiries: Customers can contact companies’ sales executives through the companies website to have information about the product price, specification, etc.
3. Information publishing and dissemination: Companies website helps in providing the latest information about the price, discount, quality of the product, etc. The website can be accessed anywhere in the world.
4. Sales of Product: Online sales can be made on the website. Customers can choose the product from the catalogue of photographs and order online. Payments can be made through cheque, draft or credit card.
5. Advertising product: E-commerce helps in advertising of the product through emails, website, telemarketing, etc.
6. Sales promotions: Sales can be increased by online trading on the internet. It also helps to provide better customer service by receiving their complaints on the emails.
7. Purchase goods: Suppliers can be found on the internet for a particular product or service.
8. Funds Transfer: Internet banking has the facility of funds transfer from one bank to another.
9. After-sales service: Customers can be provided efficient after-sales service through contacting them via email address.
10. Intra business functions: E-business helps in bringing efficiency in business functions like production, finance, marketing, etc.