The Impact of E-business on the Retail Market

The surface of new technologies has forced businesses in the retail industry to change their strategies in order to keep up with the demands of the modern world. Participation in e-business world has opened numerous doors for these industries such as online shopping.

With the retail industry adapting the attributes of e-business, customers can now shop around the clock from the comfort of their own homes. Not only does this increase the likelihood of sales, but it allows the consumer draw together large amounts of information. In this process, products can be compared to others. This helps the buyer make an informed decision and thus increases satisfaction levels and boosts the popularity of e-commerce.

U.K. retailer Tesco, ranked no.5 the most valuable retail brands online, has invested heavily in e-commerce offering customers the ability to order their groceries online from their PC, laptop or through their mobile phones. (internetretailer.com) The customers most likely to avail of these services will be those under the age of 60. These generations have grown up with computer technologies by their sides, continuing to mature as the technological world aids their daily lives.

While these services are still under development, they are nonetheless here to stay. The customer drives e-commerce, like most markets. Flexibility in this modern market plays a key role as it allows the consumer to work with companies in their own time.

“E-business has strong benefits like reducing costs of production, increase sales, access markets across the globe, provide more information, and improve customer service familiarity, improve employee motivation through more flexible working methods, provides convenience and comfort for customers, etc. So it will continue to improve and increase in usage for a long time.” (Rachana Ghayal)

References:

 Impact of E-Business on the retail Market: A Short Study, Rachana Ghayal

http://www.seekdl.org/nm.php?id=489

Tesco is going Global with E-commerce- Stephen Cotterill

https://www.internetretailer.com/2012/10/05/tesco-going-global-e-commerce

Security Concerns of E-Business

E-business can be seen as one of the most important fundamentals to running a business. For many entrepreneurs, the Internet can seem like an ideal location to set up shop with the removal of location limitations, little to no running costs and an endless supply of ‘ready to buy’ customers. But along with all the benefits of e-business comes some definite risks to watch out for such as security risks.

In order for business to run smoothly across the web, e-businesses rely on their service providers and the corresponding computers to stay clear from downloading any malicious software such as viruses or worms which might cause internet services to stop working properly and result in a lose of trade.

Other active threats to online businesses include hackers.

 Most e-businesses allow users to interact with the website in order to create relationships with potential customers/clients. But this open interaction will sometimes attract experienced web users to gain access to forbidden parts of the website. Once exposed, the hackers will have access to private information such as customer’s names, credit card details and passwords. This in turn can lose the customer’s trust towards online trading and lose existing customers business.

In order to build the foundation of a customers trust, ‘the e-business must guarantee the users that all their private information will be kept safe, well maintained and up to date’. Having a well-constructed defense against any unwanted hackers will prove to be valuable so the website can perform well and at full speed and therefore maintaining trade.

Cloud Computing

The term cloud computing refers to any form of web-based shared computing services. These can range from anything as small as a skype account to storage backup for a business. The main reason small and medium sized businesses have started to adapt these cloud computing services is to improve their results at a reduced cost. For the system to work, all of the business’s computing needs will exist in a separate cloud (or utility), which is accessible through any device that is capable of connecting to the internet. A service provider manages the technology and businesses can share the costs of the infrastructure.

The use of cloud computing services can have many benefits. Some of which include:

Cost savings- Cloud computing eliminates the need for IT infrastructure and manages and maintains its own IT systems.

Easy access- You can easily access your data via any device that is connected to the internet.

Protection- Cloud computing can provide better data privacy and protection measures than many small businesses maintain. This in turn can create trust between the company and the customer.

Along with the positives of cloud computing come some risks as well.  For example:

Security- Although cloud computing is known to have excellent security walls in place to defend private information, there still remains the threat of outside hackers breaching these walls whether the motive is a claim to fame or simply just the competition.

Dependability – Before a business chooses its supplier, they must first pick a dependable firm to deal with. This will ensure less trouble when it comes to the smoothness of operations and therefore the provider keeping its promises.

References:

http://www.onebusiness.ca/sites/default/files/MEDI_Booklet_Cloud%20Computing_accessible_E_final.pdf

Social Networking in E-business

Social networking has become more and more popular in recent years. Throughout this blog we will take a look at how the development of social media has impacted the world of business and how e-business has helped companies expand in ways never imagined before.

Social networking has grown to be much more then the original simplistic idea of connecting two social actors by means of the Internet. Today, social media sites have been developed to cater for large online communities with multiple age groups.  In terms of e-business, this has helped companies develop more effective customer services, market their product faster and expand their market to a global scale.

The incorporation of e-commerce with social media sites has also created a low budgeted medium for advertising. The growing use of adverts on sites such as Facebook has helped redirect potential customers to e-commerce websites where it is possible to purchase the product advertised. Although these shortcuts to online stores have great potential, they still lack the glue that holds all business deals together, which is trust. If a customer is unfamiliar with an e-commerce site they automatically deem it to be untrustworthy. This leaves the potential clients short of the required time to make a purchase, as these sites are unfamiliar.

Before making sales online, companies need to firstly establish relationships with the customers. Creating brand awareness through discussions is one way of creating customer relations. This can demonstrate the quality and expertise involved in the brand. Spreading word-of-mouth is another powerful way to create a positive brand image. “46 percent of social network users are reported to have posted something positive about at least on brand. Companies which have small but loyal following can increase that following by encouraging customers to spread the word on social media sites.” (vendorseek.com)

References:

The Role of Social Media Networking in E-Commerce Web Development-

http://www.vendorseek.com/Social%20Media-Networkings-Role-in-E-Commerce-Web-Development.asp