Electronic commerce Essay Example | Topics and Well Written Essays - 1750 words

Electronic commerce - Essay Example It has also resulted to a difference in the way the companies relate to each other. The increased use of the internet has been contributed to by the need to perform business on line (Baye, Morgan, 2001). Various companies have managed to place their products on internet servers, where they have managed to advertise even using virtual brochures. In order for companies to attain competitive advantage, the virtual market should be untapped so as to reach so the many internet users (Baye, Morgan, 2001). Electronic commerce is defined as the buying and selling of goods, services or information through computer networks using the internet. E -commerce offers new ways of doing business that no company can ignore. Electronic commerce has brought with it several benefits, and it is also extremely convenient. Some of the benefits of e-commerce include; shortened remittance time, companies have managed to easily promote their product, both consumers and the companies have saved on the cost; it has enhanced the provision of timely information. E-commerce has also ensured a consistent flow of information; better customer relationship, it has enhanced the customization of products, and it has also brought with it the convenience of doing business (Baye, Morgan, 2001). ... The informational strategy has proved to be productive for most companies. An example showing the use of this strategy is Insight Direct, where a discount computer cataloger marketing mostly to business, obtains only 10 per cent of its deals from its on-line collection; however, such a company manages to get more than more 75 percent new customers from the site (Baye, Morgan, 2001). Another strategy used in e-commerce is the on-line or transactional strategy, which normally uses an electronic catalogue of goods for sale. Those visiting the site can normally go through the catalog and purchase products online. Despite the fact that the informational strategy provides an electronic catalogue and ordering information, it does not enhance online business transactions. The informational strategy does not, therefore, exploit the ability of the web to be used as an interactive medium. The transactional strategy is what most consumers relying on e-commerce would expect. In e-commerce for a c ompany to increase its overall performance, it is essential that the company establishes a website. This strategy may have a disadvantage, which is transaction insecurity. Online transactions have proved to be successful both for the small and medium sized companies. Such companies that have benefitted using this strategy include; the Virtual vine yards and Amazon.com. The use of the online transaction strategy has enhanced the growth of various enterprises; this is because the web has proved to be a potential money making vehicle that can be used in e-commerce (Baye, Morgan, 2001). The two strategies, however, have both advantages and disadvantages. The advantages of using the informational strategy include;