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The international business from an internet stand point

A more complete definition is: E-commerce is the use of electronic communications and digital information processing technology in business transactions to create, transform, and redefine relationships for value creation between or among organizations, and between organizations and individuals. Is e-commerce the same as e-business?

While some use e-commerce and e-business interchangeably, they are distinct concepts. It includes any process that a business organization either a for-profit, governmental or non-profit entity conducts over a computer-mediated network.

A more comprehensive definition of e-business is: Production processes, which include procurement, ordering and replenishment of stocks; processing of payments; electronic links with suppliers; and production control processes, among others; 2.

  • In such environments, prices can be set through automatic matching of bids and offers;
  • Internal integration, on the other hand, is the networking of the various departments within a corporation, and of business operations and processes;
  • Product Development Prior to the advent of the Internet, information traveled around the world via telephone, television or print;
  • However, culture also evolves over time;
  • The gathering of a large number of buyers and sellers in a single e-market reveals market price information and transaction processing to participants.

Internal management processes, which include employee services, training, internal information-sharing, video-conferencing, and recruiting. Electronic applications enhance information flow between production and sales forces to improve sales force productivity.

Workgroup communications and electronic publishing of internal business information are likewise made more efficient. It includes e-commerce and e-business. The framework shows four layers of the Internet economy-the three mentioned above and a fourth called intermediaries see Table 1. E-markets are simply defined as Web sites where buyers and sellers interact with each other and conduct transactions. Most B2B applications are in the areas of supplier management especially purchase order processinginventory management i.

Table 2 shows the projected size of B2B e-commerce by region for the years 2000-2004. There are three cost areas that are significantly reduced through the conduct of B2B e-commerce.

First is the reduction of search costs, as buyers need not go through multiple intermediaries to search for information about suppliers, products and prices as in a traditional supply chain.

e-commerce (electronic commerce or EC)

In terms of effort, time and money spent, the Internet is a more efficient information channel than its traditional counterpart. In B2B markets, buyers and sellers are gathered together into a single online trading community, reducing search costs even further.

Second is the reduction in the costs of processing transactions e. Third, online processing improves inventory management and logistics. Through B2B e-markets, suppliers are able to interact and transact directly with buyers, thereby eliminating intermediaries and distributors. However, new forms of intermediaries are emerging.

For instance, e-markets themselves can be considered as intermediaries because they come between suppliers and customers in the supply chain. Among the more evident benefits of e-markets is the increase in price transparency. The gathering of a large number of buyers and sellers in a single e-market reveals market price information and transaction processing to participants. The Internet allows for the publication of information on a single purchase or transaction, making the information readily accessible and available to all members of the e-market.

Increased price transparency has the effect of pulling down price differentials in the market. In this context, buyers are provided much more time to compare prices and make better buying decisions. Moreover, B2B e-markets expand borders for dynamic and negotiated pricing wherein multiple buyers and sellers collectively participate in price-setting and two-way auctions.

In such environments, prices can be set through automatic matching of bids and offers. In the e-marketplace, the requirements of both buyers and sellers are thus aggregated to reach competitive prices, which are lower than those resulting from individual actions.

Economies of scale and network effects. The rapid growth of B2B e-markets creates traditional supply-side cost-based economies of scale. Furthermore, the bringing together of a significant number of buyers and sellers provides the demand-side economies of scale or network effects.

Each additional incremental participant in the e-market creates value for all participants in the demand side. More participants form a critical mass, which is key in attracting more users to an e-market. What is B2C e-commerce? Business-to-consumer e-commerce, or commerce between companies and consumers, involves customers gathering information; purchasing physical goods i. Its origins can be traced to online retailing or e-tailing.

The more common applications of this type the international business from an internet stand point e-commerce are in the areas of purchasing products and information, and personal finance management, which pertains to the management of personal investments and finances with the use of online banking tools e.

Online retailing transactions make up a significant share of this market.

File Extensions and File Formats

B2C e-commerce reduces transactions costs particularly search costs by increasing consumer access to information and allowing consumers to find the most competitive price for a product or service. In the case of information goods, B2C e-commerce is even more attractive because it saves firms from factoring in the additional cost of a physical distribution network. Moreover, for countries with a growing and robust Internet population, delivering information goods becomes increasingly feasible.

What is B2G e-commerce?

Internet's Effect on the Global Market and Small Business

Business-to-government e-commerce or B2G is generally defined as commerce between companies and the public sector.

It refers to the use of the Internet for public procurement, licensing procedures, and other government-related operations. This kind of e-commerce has two features: To date, however, the size of the B2G e-commerce market as a component of total e-commerce is insignificant, as government e-procurement systems remain undeveloped.

What is C2C e-commerce? Consumer-to-consumer e-commerce or C2C is simply commerce between private the international business from an internet stand point or consumers. This type of e-commerce comes in at least three forms: Consumer-to-business C2B transactions involve reverse auctions, which empower the consumer to drive transactions.

There is little information on the relative size of global C2C e-commerce. These sites produce millions of dollars in sales every day. Advantages of C2C sites Consumer to consumer e-commerce has many benefits. The primary benefit to consumers is reduction in cost.

Buying ad space on other e-commerce sites is expensive. Sellers can post their items for free or with minimal charge depending on the C2C website. C2C websites form a perfect platform for buyers and sellers who wish to buy and sell related products. The ability to find related products leads to an increase in the visitor to customer conversion ratio.

Business owners can cheaply maintain C2C websites and increase profits without the additional costs of distribution locations. A good example of a C2C e-commerce website is Esty, a site that allows consumers to buy and sell handmade or vintage items and supplies including art, photography, clothing, jewelry, food, bath and beauty products, quilts, knick-knacks, and toys.

Disadvantages of C2C sites There are a couple of disadvantages to these type of sites as well. Doing transaction on these type of websites requires co-operation between the buyer and seller.

It has been noted many times that these two do not co-operate with each other after a transaction has been made. They do not share the transaction information which may be via credit or debit card or internet banking.

This can result in online fraud since the buyer and seller are not very well versed with each other.

4 Things you must do before Taking-On International Business Partners

This can lead to lawsuit being imposed on either ends or also on the site if it has not mentioned the disclaimer in its terms and conditions. This may also hamper the c2c website's reputation. Companies which handle consumer to consumer ecommerce websites seem to have becoming very cautious to prevent online scams.

Electronic business

M-commerce mobile commerce is the buying and selling of goods and services through wireless technology-i. Japan is seen as a global leader in m-commerce. As content delivery over wireless devices becomes faster, more secure, and scalable, some believe that m-commerce will surpass wireline e-commerce as the method of choice for digital commerce transactions.

E-Commerce and E-Business/Concepts and Definitions

This may well be true for the Asia-Pacific where there are more mobile phone users than there are Internet users. Industries affected by m-commerce include: One of the most evident benefits of e-commerce is economic efficiency resulting from the reduction in communications costs, low-cost technological infrastructure, speedier and more economic electronic transactions with suppliers, lower global information sharing and advertising costs, and cheaper customer service alternatives. Economic integration is either external or internal.

Internal integration, on the other hand, is the networking of the various departments within a corporation, and of business operations and processes.

This allows critical business information to be stored in a digital form that can be retrieved instantly and transmitted electronically. Internal integration is best exemplified by corporate intranets.

Because of this very important link, SESAMi reaches an extensive network of regional, vertical and industry-specific interoperable B2B e-markets across the globe. Corporations are encouraged to use e-commerce in marketing and promotion to capture international markets, both big and small.

  • This shift has implications for managerial responsibilities, communication and information flows, and workgroup structures;
  • One is public and one is private;
  • First is the reduction of search costs, as buyers need not go through multiple intermediaries to search for information about suppliers, products and prices as in a traditional supply chain.

The Internet is likewise used as a medium for enhanced customer service and support. It is a lot easier for companies to provide their target consumers with more detailed product and service information using the Internet. Close to a third of the 1. To enhance customer service, Submarino has diversified into offering logistical and technological infrastructure to other retailers, which includes experience and expertise in credit analysis, tracking orders and product comparison systems.

The development of ICT is a key factor in the growth of e-commerce. For instance, technological advances in digitizing content, compression and the promotion of open systems technology have paved the way for the convergence of communication services into one single platform.

This in turn has made communication more efficient, faster, easier, and more economical as the need to set up separate networks for telephone services, television broadcast, cable television, and Internet access is eliminated.

Business Culture

At present the high costs of installing landlines in sparsely populated rural areas is a disincentive to telecommunications companies to install telephones in these areas. Installing landlines in rural areas can become more attractive to the private sector if revenues from these landlines are not limited to local and long distance telephone charges, but also include cable TV and Internet charges.

This development will ensure affordable access to information even by those in rural areas and will spare the government the trouble and cost of installing expensive landlines. For e-commerce to be a competitive alternative to traditional commercial transactions and for a firm to maximize the benefits of e-commerce, a number of technical as well as enabling issues have to be considered.

A typical e-commerce transaction loop involves the following major players and corresponding requisites: The Seller should have the following components: A corporate Web site with e-commerce capabilities e.

Banking institutions that offer transaction clearing services e.