What is Force Driving For E-Commerce?
Force Driving E-Commerce
E-commerce is becoming popular, it is worth while to examine today's business environment so let us understand the pressures it create on organisation and the responses used by organisations.
Market,economical,societal and technological factor are creating a highly competitive business environment in which consumer are focal point. these factors change quickly,sometimes in an unpredictable manner and therefore companies need to react frequently not only in the traditional actions such as lowering cost and closing unprofitable facilities but also innovative activities such as customising product,creating new products or providing superb customer service.
- Economic Force That Drive E-Commerce:- Economic force one of the most evident benefit of e-commerce is economic efficiency resulting from the reduction in communications costs, low-costs technological infrastructure,speedier and more economic electronic transactions with suppliers,lower global information sharing and advertising costs and cheaper customer service alternative.
- The cost of installing and maintaining a website is much cheaper than owning a physical store.This motivates the growth of E-Commerce.
- Increase in competition and the rise in consumer power,'globalization wave' have forced the business organisations to penetrate into Internet world.
- E-commerce generates greater profits due to less human intervention, lower overhead cost, few clerical error and more efficiency.
- E-Commerce enable customer to make product comparison ,place order,track order and make payment at ease.
- Business organisation are able to reach international markets by using electronic medium for enhanced customer support and service.
- Due to convenience ,customers prefer to purchase their desired goods or services over Internet in the on line marketplace
- The growing Internet population stimulates business to switch over from an additional business to e-business.
- The growing population of cyber cafe has created a big role in attracting Internet population towards e-commerce.
- Technological change have given confidence to consumers to make electronic payments in settlement of financial obligations.
- Technological advances have made business communication faster, easier, economical and efficient.
- It has enabled the business to switch over from the local market to the global market.
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