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Introduction of E-Business: Organization And Strategy Assignment
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Digital information technology (IT) has abridged the inconvenience cost, and time occupied in communication inside and outside an enterprise. An E-business organizational unit is a structure in which a corporation operates its online trade. This assignment sample in UK will discuss the application of E-Business in a specific Organizational sector as a classification that draws how assured activities are directed to attain the goals of a business. This activity includes roles, rules, and responsibilities and an online business organizational structure also determines how information flows between levels within the company (Setyowati, et. al. 2021). the basic restriction and requirements for these business units are frequently defined within the framework of E-Business circulation strategies. There are 3 parties involved in E-Commerce i.e. retailers, online marketplace, and affiliates. An E-business provides a great speed than any traditional organization before commercialization.
Online business is also characterized by innovation because of the wide distribution of decision-making in the company. Most companies invest in e-business to expand their business globally and gain a competitive advantage. The essay also highlights how companies in e-business need to use the right tools, strategies, talent, and innovation to gain benefits in a large global market. Online commerce connects sellers and buyers through products over the internet (Kollmann, 2019). E-Business follows the functional, divisional, and matrix structure in an organization. The essay will also highlight e-business models which are the methods adopted by companies to sustain themselves in the long-term using technology, the internet, and customers. These models allow customers various approaches on the website showing multiple businesses for services.
Focus
E-Business in online retailing is growing rapidly worldwide; online selling is now an office for around 1 quarter of the total retail markets. E-business provides company the facility to use online marketing tools to target large customers and website analyzing tools to add imminent to customers' needs. E-business was evaluated in 1970 that created internet for a first time in the world which is accessible for commercial purpose. E-businesses were offered product information from the text-based websites. It is also known as E-tailing which includes a business-to-consumer and business-to-business model to sell products and services online. E-business is generalized back in the 1990s and continued the growth to reach efficiency operationally. The various typology followed by e-business is related to the organizational sector in which the relationship management of customer is important known as CRM. The other two are ERP and SCM which are known as supply chain management and enterprise resource planning. The electronic retail business allows a broad range of industries and companies to trade on online platforms. However, there is a connection between most online retail companies that contain an online marketing strategy, engaging websites, a well-organized supply of products or services, and consumer data analytics. Successful e-business requires efficient branding and marketing of products. Retailers who avoid e-business may see their trade decrease as customers continue to shift towards ordering products online. Online retailing provides easy access to the market for business (Aktymbayeva, et. al. 2018).
Online business markets like Etsy, eBay, Amazon, and many others allow customer to simply order their product online within minutes. Selling through the internet can get rid of the need for costly retail buildings and customer-facing staff which allows the business to invest in better customer experience and marketing on online sites. Effective digital marketing strategies and plans can speed up the responses and boost sales. E-business allows retailers the ability to expand their trade further as compare to local consumers. They can discover a tough demand for products in other countries which can offer websites in a different language, target marketing, and possibly collaborate with oversea companies. Websites must be attractive, simply crossable, and regularly, updated to meet consumers changing demands and needs. Trading online needs to place it out from challenger offerings and add value to customer satisfaction. Business offerings must be competitive cost so that customers do not support one business over another just on a cost basis (Lukiyanchuk, et. al. 2020). Retailers need supply networks that are efficient so that consumer do not have to wait for a longer period for the delivery of the products. Simplicity in trade practices is also significant, so customers can trust and stay faithful to a business.
There are 2 types of online retailing which are also models of e-business, the first one is business-to-consumer (B2C) retailing which is most common for all businesses and mostly used by Internet users. This business unit of retailing includes the company selling finished products to final consumers online straightly through websites. The goods are shipped and delivered from the warehouses. One of the main necessities of a booming B2C retailer is to maintain better customer relations. On the other hand, Business-to-business (BSB) retailing engages corporations that sell their products or goods to other companies. These retailers embrace freelancers, wholesalers, consultants, and software developers. Wholesalers sell their goods in bulk from their manufacturing plants to companies (Gongbu and Jianqiang, 2018). These companies sell goods to final consumers. Business units can move products fast and accomplish a larger purchaser base online rather than in traditional physical locations. E-business also allows the corporation to close unbeneficial stores and sustain the beneficial ones.
Convenience is the biggest advantage for customers in buying online. Online stores give the customer the opening to shop 24*7, and also provide remuneration with a sustainable shopping experience. Researching products and comparing prices is much more convenient for the customers. E-business shopping goes directly to consumers through websites, voice assistants, applications, chatbots, and many other ways on the internet. This allows companies to expand their business in the large global market without much investment in physical locations. E-business allows faster buying and selling processes for customers and retailers. It offers online store and product listing creation which reduces costs for businesses and also for customers traveling expenses. Online shops can provide more profits to business units that are no longer restricted by the number of consumers that can physically visit the location.
An online marketplace can be an application or website where the retailer can trade goods in return for money. The company is responsible for listing its products and accepting the order from the buyer and delivering them on time. The marketplace provider manages the dispensation of the transactions. The company can also use an online platform such as social media or websites. The company can grow its sales and increase revenue by focusing on the expansion of business overseas. Before exporting the companies should have sound knowledge of the global market and should have essential resources that can generate greater performance. In operating an online business it is not necessary that the company store products in a physical space. Different companies function online where they only show all their stock through their electronic commerce. Businesses running through physical stores limit by the geographical areas in providing services, whereas e-business websites provide an opportunity to increase the outreach to a large number of customers in large areas. It will offer products or services to consumers around the world, despite time and distance.
Conceptual Model
Business models are the methods of how the business will create revenues, value-added services, and sources, identify their products offering, and target consumers to sustain. E-business models are the methods by which the company sustains in long term using (IT) information technology, and the internet, which contains its value proposition for customers as well as its revenue stream (Zebari, et. al. 2019).
E-business models can be generalized into various categories that are:
- Business-to-business (B2B): in this model the business trade their product and services with another business. The company following this model sells products and services to middle buyers who then trade the product to final consumers. B2B identifies both the seller and buyer as a business entity. This covers a large number of submissions, which enable the company to form relations with their distributors, re-sellers, suppliers, and many more business entities [Figure1]. There are various technologies to trade in BSB e-commerce such as internet, intranet, extranet, electronic data interchange, and back-end information system integration. For example, a wholesaler sells their product in bulk to a retail company, which then sells their products to final consumers
- Business-to-consumer (B2C): an online company following the B2C e-business model sells its product directly to the final consumers. These units sell their products directly to the end users. The decision-making process in B2C is quick because of the short trade cycle. B2C E-business selling occurs almost completely over the internet, separately from the delivery process, so this gives the seller and buyer relief and independence to make a transaction at place and time (Mkansi, 2021). This has increased the effortlessness of buying and selling on the online platform. B2C e-commerce is one of the rapidly growing sectors in the global markets [Figure 2]. Online intermediaries are the mediators who use the website to bring customers and businesses together. They do not own any services, brands, or products. They form a path between seller and buyer through an application such as eBay and
- Consumer-to-consumer (C2C): The Company following this model can help the consumer to sell their products like cars, property, vehicles, rented rooms, etc. through online websites. It is referred to as a market where the consumer can exchange the product and make money by charging fees. It enables consumers to trade with one another easily through an online environment. The model has merged with sharing economy and technological advancement. It characterizes a market environment where customer purchases goods from another consumer using a third-party platform to make easy transactions. It provides higher margins as there is the absence of wholesalers or retailers. It not only provides a stage for trading products but also posts monthly classify advertisements, such as listing and employment opportunities. This platform needs the consumer to distribute products directly to the buyer [Figure 3]. Customer to customer market has grown rapidly over time, as most companies have entered this market.
- Consumer-to-business (C2B): The businesses focus on generating feedback from their customers to enhance their performance used the model of C2B. In this customer review the product and services of the companies [Figure 4]. These customers often use tools and talent that help in promoting businesses. For example, sharing a post on social media platforms, uploading videos or photos, and writing blogs.
- Business-to-government (B2G): this model is used by the company that sells their product to the government or public entities. The government usually initiates B2G trade by recognizing the needs of the public. It is the marketing of goods to state, local agencies, or federal government. The B2G e-business model is difficult and requires exact observance of company laws and conditions because of government agencies and supervision. This model provides the government unit to take more time to approve and start work on the project [Figure 5]. These projects require a lot of time and paperwork and are more stable than private project work. Companies working with the B2G model are not familiar with government groups as they engage in heavy legal documentation and regulations. B2G e-business offers significant profits for a business if the order is successful. The worth of a scheme to the government is usually wonderful and steadier than a private project.
- Government-to-citizen (G2C): Governments use this model to move toward residents in general. Such companies support auction machinery, vehicle, or any other product. Such websites also offer services like marriage or death certificates, or registration for birth. The main objective of G2C business is to decrease the standard time for satisfying consumer needs for a variety of government services. This is an online activity that includes registration, paying taxes, and providing information [ Figure 6]. These transitions take place between citizens and government through various platforms, which provide essential services to the citizens.
Problem statement to the Findings of the research
Some of the limitations of e-business are as follows :
Lack of personal touch: it is complicated for the consumers to ensure the quality of a product, as the human touch is missing. In the traditional model, the companies can contact with the salesperson that lends it a touch of credibility and humanity. It also builds faith with the customer.
Delivery time: delivery of the products takes time, as in traditional business, the company get the product and buy it which is not possible in online trading. This pause time often discourage customers. Though, e-businesses are trying to resolute such issues by promising very inadequate delivery times. For example, Amazon now assures one-day delivery which is an improvement but does not determinate the issue completely.
Security issues: lot of people who cheat through online business, it is easier for hackers to get customers financial details. It has a few integrity and security issues which can causes distrust among prospective customers.
Analysis of organization and e-Business transition and theoretical framework
The Conceptual models used for e-business in a specific organizational sector provide a description of customers and their value propositions. It also describes business processes with products and services and the model also gives the list of resources and the business supply chain. It provides a list of online business strengths and weaknesses, market shares, and major competitors (Cristofaro, 2020). The E-business model helps leaders or managers of Amazon to easily communicate with the stakeholders through the internet. A formalized model can help in recognizing the related procedures to follow in Amazon’s online business.
E-business transitions
In E-business transitions large funds have to be dedicated on an ongoing basis to take the organization through the E Business strategy which is the requirement for the future. E Business transition has to be its own by the administrative and functional managers and calls for continuous involvement during deployment. Amazon Prime has completely conditioned customers to get what they want rapidly without paying for delivery. Whatever the company’s strategy, if they have certain products that are completely sold on own website, consumers have a motive to come to store for their purchase, somewhat than sticking to Amazon.
Amazon is a popular online marketplace used by both people as well as businesses. The company encourages products as well as the app store. The commerce sector of Amazon is comprehensive in various areas like goods for daily use, fashion clothing, delivering food products, gifts, etc. The company uses e-commerce models like B2C, B2B, C2B, and C2C, but the company mainly uses B2C and B2B models. As an online retailer company, Amazon products range from clothing, furniture, footwear, electronic gadgets, books, accessories, and many other items (Jelassi and Martínez-López 2020). The company has an official website where the registered traders approach the consumers who are interested in purchasing the goods from this online site. The dealers all around the global market can access an enormous base of customers just by registering on the online selling platform of amazon.com.
Amazon has developed itself into a global brand name that has expanded its business in every country. The traders are at the present capable to find a vast market on the global platform for the products they supply in the limited and isolated markets. This e-commerce operates in several trade models which are planned to confine and retain consumers while keeping up with developing technological customer demands and needs. The company's online retail services allow the business to trade its products on a similar stage as the Amazon retailer. After making an account, businesses can list their products, sell them and take their payments online. The retail company offers affiliate programs that allocate businesses to receive money by promoting Amazon’s products (Yang, 2020). The company earns a referral fee when customers buy the company's items after connecting to the affiliate advertisement links. Amazon creates a unique website with user-friendly attributes. The company focuses on continuous innovation and effective marketing strategies. Amazon has a unique customer experience, wins customer loyalty, and controls its accounts.
Theoretical framework
A theoretical framework is composed of ideas and explanations, and the reasoning behind the use of these concepts to conduct some study or use these concepts as the foundation to develop a business strategy or launching an enterprise.
The case firm considers the following aspects when choosing the best framework:
Language appropriateness: The Company chosen the language which is easily understandable by the user or the user friendly graphics were shown for the online sales.
Convenience in Use: The online platform should be more feasible for the customer in order to use it regularly.
Ability to explain: There should be user manual before subscribing or login to the website for the guidance of customers.
Retail companies can use web analytics tools to collect, analyzes, and reports web data. The focus of e-business is on identifying procedures based on organizational goals. The company can implement various strategies in its business operation to satisfy its customers' demands and needs. These tools report important information on websites where the customer visit and their online activity on different sites. The software frequently filters out non-human visitors such as robots, spiders, and website crawlers. E-business sites allow the company to track the user's drive from products viewed through products purchased.
Evidence Based Findings
Global reach: Amazon allows the company's transactions on the global markets which is more effectively reachable. The customers depend on the reach of the product in global markets. Amazon helps consumers with a variety of brands and products on a single platform.
Richness: promotion and advertisement of the products are important for every E-business nowadays. Amazon provides effective and attractive advertisements to its customers through online channels effectively. This helps the company to attract a large number of customers to buy the products. The traditional businesses were not able to reach huge customers through physical stores (Zulfikar and Rahmatillah, 2019). The company allows traders to register themselves on the company platform and sell their products efficiently.
Interactive: the company activity of trading online connects the seller and customers on the same platform. Customers can search for the goods they want to purchase, on the other hand, sellers manufacture the products according to the demands of the customers.
Information density: the company reduces the information search on various brands and communication costs which increases the quality of the search to satisfy the demand for the product. Amazon can discover the consumers' interests and filter their products according to their demand. This helps them to discover goods in terms of cost, quality, and brand.
Customization: the website is designed based on the location of various countries. The platform provides strong customer relations through personalized services. These features help the company to increase customer satisfaction. This also allows Amazon to understand the behavior of customers on their past purchasing behavior.
Ubiquity: E-commerce platform allows customers to shop from anywhere online, rather than traveling to physical outlets. The customers can purchase the goods on the website and this also gives them a variety of choices (Ritter and Pedersen, 2020). The company offers various products and brands on one single platform and they focus on satisfying the needs of the customers.
Mobile friendly and responsive: The authorized website of Amazon has an extremely responsive design that makes it easier and convenient for customers to enter it through smartphones, laptops, or tablets.
Easy checkout process: the company provides a hassle-free checkout experience to their customers. The e-commerce platform of Amazon provides a different method for checking out systems, such as wallets, smart cards, net banking, and cash on delivery (COD).
Product discoverability: Amazon always makes sure that the chosen product does not get misplaced among other products (Latifi, et. al. 2021). Sometimes the product recommendations also prove to be extremely helpful.
Conclusion
The essay has discussed electronic business which includes selling and buying of products or goods through online platforms specifically in organizational sector. E-business is a technique of making use of advanced communication technologies and digital information to make more efficient use of different business processes from the initial to the implementation phase. They are in the form of websites or applications, where products are available in online stores. Any customer can buy goods online and make payments through online payment via banks and. The E-business saves a lot of cost for the seller, as they are not required to operate their business in physical stores. This also saves time for the customer for traveling to different stores for buying products with lesser choices. The essay also highlighted the role of E-business in the online retail business by taking the case evidence of Amazon. Online retailing allows retailers to expand their business in the global market with fewer costs and investments. This also allows customers a variety of choices regarding various products and brands. The companies can target a large audience through online business and can gain competitive advantages.
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