E-Business refers to any form of business (exchange) that uses an electronic medium to simplify a transaction.
E-business has affected how businesses and organizations achieve their business duties. The effects brought about by e-business includes; developing a more cost-effective Communication and Marketing Strategy. E-business entails "upgrading" that it gives an organization or business an essential web presence. In an upgraded "e-Business environment" a company or business website becomes the focal point of communications and marketing strategy.
Second, the creation of new markets globally, the internet offers exciting ways of reaching new markets that could only be dreamed of in the past. There are methods of promoting products online that allow people to precisely target the customers you are after whether they are in your town or on the other side of the world.
Third, accessing local customers and prospects more effectively has been achieved because of e-business. Previously, Companies and businesses offering a product or service to local customers could not see the benefits of having an online presence. But as more and more people become comfortable with using the internet instead of traditional advertising sources like classified advertisements or yellow pages, having an aggressive web presence makes better business sense even for local companies. This may also offer a springboard to developing new markets further afield.
Fifth, businesses can streamline the Ordering Process by taking orders online - Implementing an online ordering system allows businesses to remove manual paperwork or telephone order taking. It also offers the possibility of integrating business sales order system with order fulfilment and delivery so customers can be up to speed on the progress of their orders always.
Last, e-business has helped reduction of communications and telephone Costs - While the costs of voice communications using long-distance telephone services have been coming down rapidly over the years, switching to e-business model offers the possibility of totally removing many of these costs. Services like "Live Help" where customers can chat live with support or sales staff is enhanced. Further, VoIP (Voice over
However, e-business has brought about negative effects of business such as;
E-business has contributed to unregulated buying which has become a social problem as the spread of e-business spread.
Second, e-business has contributed to inefficiency in markets and increased social costs ranging from reduced productivity, disrupted families, and ruined lives to personal bankruptcy
It has also contributed to unregulated buying and rocketed lack of self-control in people involved in online buying.