Advantages and disadvantages of E-business

Advantages and disadvantages of E-business Using Internet technology to provide improved customer service, make more efficient business processes, increase sales, and reduce wastage is called E-business. E-business uses the internet tools such as websites, online banking, and web based customer relationship. Advantages of E-Business: There are many benefits an organisation can get with having an E-Business solution for the business. Worldwide Presence: The major advantage of engaging business online, to have presence nationwide or worldwide. IBM uses the e-business term to provide services to the customer and was one of the first companies uses this term. Dell Inc. and Amazon are the other success stories using E-Business to flourish their business. Cost Effective Marketing and Promotions: using internet to market products is a very nominal method which guarantees the worldwide reach. Pay per click advertising is a effective technique which ensure the business only pay for the advertisement that actually viewed. Better Custo mer Service: E-Business has change the customer services image enormously. Number of customers can visit or the website at same time. Some website have online chat feature to help the customer to find out more about the product they are interested in. moreover orders can be placed online by processing payments securely over the internet and products can be shipped to the customer. In this case customers even do not have to leave the house. Disadvantages of E-Business: Even above mentioned advantages there are some disadvantages of the E-Business. Some of them are listed below. Sartorial limitation: the main disadvantage of E-Business is lack of growth in some sectors i.e. food. Consumer prefers to look the food products physically before buying. Costly maintenance: substantial recourses are required to setup online business which requires computer upgrade, personnel trainings and website upgrade. This can be a disadvantage for some organisation. Security concern: The security concer ns also lead to privacy issue. There are many examples of contact lists and personal details were hacked or exposed due to weak E-Business system security. Virus threat. Physical products constrain. Perishable goods. Types of business organisation: There are two major types of the business. Private sector: Private firms are owned and run by private individual. There is further classification in private sector firms. Sole traders: A sole trader owns and runs a business. They contribute capital to start the enterprise, run it with or without employees, and earn the profits or stand the losses of the venture. Sole traders are found mainly in the retail trades (local newsagents), small scale service industries (plumbers), and small manufacturing and craft industries. Advantages: Easy to setup Can keep all the profits Make key decision. Flexibility Disadvantages: Unlimited liability Limited access to capital Pressure of being solely responsible. Partnership: Partnership is defined as â⠂¬Ëœthe relation who subsists between persons carrying on a business in common with a view of profit’. A partnership is not a separate legal person distinct from its members; it is merely a ‘relation’ between persons. Each partner (there must be at least two) is usually personally liable for all the debts of the firm.