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Emerging Modes of Business

The document discusses emerging modes of e-business and their scope. It describes different types of e-commerce including B2B, B2C, C2B, Intra-B, B2E, and C2C. It then compares traditional business and e-business based on factors like location requirements, cost, communication structures, and opportunities. Finally, it outlines benefits of e-business such as lower costs, global reach, convenience and speed.

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Abhirami Arya
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42 views3 pages

Emerging Modes of Business

The document discusses emerging modes of e-business and their scope. It describes different types of e-commerce including B2B, B2C, C2B, Intra-B, B2E, and C2C. It then compares traditional business and e-business based on factors like location requirements, cost, communication structures, and opportunities. Finally, it outlines benefits of e-business such as lower costs, global reach, convenience and speed.

Uploaded by

Abhirami Arya
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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EMERGING MODES OF BUSINESS

e-business is the conduct of industry, trade and commerce using computer networks.

e-commerce includes the firm’s interactions with customers and suppliers over the internet.

e-business is a much broader term and includes e-commerce as well as other electronically
conducted business functions like production, inventory management, product development etc.

SCOPE OF e-BUSINESS
B2B Commerce

 Involves business firms


 Creation of utilities or delivering value requires a business to interact with other firms which
may be suppliers or vendors of different inputs
 To reduce dependence on a single supplier, businesses may cultivate more than one vendor
for each of its inputs
 Distribution systems may be improved by real-time control over stock-in-transit with
different middlemen in different locations
 Example – automobile manufacturing, warehouse consignments

B2C Commerce

 Involves business firms and customers


 Helps in promotion, selling and delivery of products at low cost but high speed
 Enables a business to be in touch with its customers on round-the-clock basis
 Allows business to cater to the customers’ requirements
 Example – ATMs speed up money withdrawals

C2B Commerce

 Provides consumers the freedom of shopping-at-will


 Call centres allow customers to make queries and lodge complaints at no extra cost

Intra-B Commerce

 Involved from within a business firm


 Enables flexible manufacturing and constant interaction between marketing and production
department, allowing business to easily cater to customized requirements
 Contributes to greater utilization of plant & machinery, effective human resource
management and effective inventory and cash management
 Facilitates multimedia and 3D graphic communication for better coordination, faster
decisions, and speedier workflows

B2E Commerce

 Involves firm’s interactions with employees


 Personnel recruitment, interviewing and selection, training, access inventory information,
send field reports via email – all made possible through B2E
 Virtual Private Network (VPN) enables employees to be able to work from wherever they
are, at their own speed and time
C2C Commerce

 Involves consumers
 Most suitable for goods with no established market mechanism
 Internet allows persons to search for potential buyers globally with e-commerce providing
market security to such transactions such as in eBay which uses a rating system, and PayPal
which provides a payment intermediary
 Consumers’ forum and pressure groups where customers can share their experiences as well
as alert others about a certain product/service/vendor

TRADITIONAL BUSINESS AND e-BUSINESS

Basis of distinction Traditional business e-business


Ease of formation Difficult Simple
Physical presence Required Not required
Near source of raw
Location requirements None
material or market
Cost of setting up High Low
Operating cost High Low
Nature of contact with
Indirect through intermediaries Direct
suppliers & customers
Nature of internal
Hierarchical Non-hierarchical
communication
Response time for
Long Instantaneous
meeting requirements
Shape of Horizontal due to direct
Vertical due to hierarchy/chain
organizational structure communication
Business processes Sequential precedence, Simultaneous processes,
and cycle length hence longer cycle hence shorter cycle
Opportunity for
Much more Less
interpersonal touch
Opportunity for pre-
Much more Less
sampling
Ease of going global Less Much
Govt patronage Shrinking Much
Semi-skilled and Technical and professionally
Nature of human capital
unskilled manpower qualified personnel
High due to distance and
Transaction risk Low due to face-to-face interaction
anonymity of parties

BENEFITS OF e-BUSINESS
 Ease of formation and lower investment requirements – Relatively easy to start as
compared to industries, with low investments as internet caters to big and small businesses
alike. Networked individuals are more efficient than networthed individuals; contacts are
more essential than investment is.
 Convenience – 24 hours x 7 days a week x 365 days a year. Offers advantage of accessing
anything, anywhere, anytime.
 Speed – Everything is possible at click of a mouse. This is more efficient for information
intensive products such as software, movies, music, e-books.
 Global reach/access – Allows seller access to global market and affords buyer the freedom
to choose products from any part of the world. Globalization would have been restricted in
scope and speed without internet.
 Movement towards a paperless society – Greatly reduces independence on paperwork and
‘red tape’. This also speeds up process of granting permissions, approvals, and licenses.

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