online business essay

online business essay

The Evolution and Impact of Online Business: An In-depth Analysis

1. I. Introduction to Online Business

Introduction Online business, also called e-business or electronic business, is any kind of business activity that happens over the internet. A business research company recently reported that up to a fifth of Britain’s top firms “are taking a keener interest in online business”. In this paper, I will look at online business and determine the factors that are driving the world towards a more online-based business environment. I will sketch the development and growth of online business. I will also demonstrate the different areas that the world is most successful in when it comes to online business. I will then look at technological factors and explain how they have driven many conventional businesses online. I will also then take a look at the demographic and cultural variables that have allowed online business to become a success. I will then discuss the cost benefits associated with doing electronic business. Online business often involves entities external to the entrepreneur. These include customers, suppliers, partners, and other actors. The internet allows the entrepreneur to integrate these actors to assist in the growth of the firm. I will provide examples of the use of these entities and show how the utilization provides substantial growth to an online business. I will also discuss the impact of online business on traditional stores. Finally, I will discuss how these aspects of online business affect society.

2. II. Key Trends and Technologies in Online Business

The use of the internet in business-to-business (B2B) and business-to-consumer (B2C) trade is increasing dramatically, and trade conducted over the internet is putting pressure on traditional stocks and flows, which are not designed to cope with it. This paper focuses on a number of key trends which are shaping the nature of online business, such as the move to industrial-strength applications including electronic data interchange (EDI), the increasing use of ‘middleware’ enabling legacy systems to link to the internet with a minimum risk, and the need for businesses to mix sales of existing low-value features with new high-value added internet features. The paper also poses a number of questions about the future development of e-business, such as the importance of strategy when moving to industrial-strength applications. The paper indicates some important differences between business-to-business (B2B) and business-to-consumer (B2C) trade.

3. III. The Benefits and Challenges of Online Business

This section is intended to identify and discuss the various advantages and limitations of using the internet for business operations. The intent of this discussion is to highlight the potential impact of the internet on varied aspects of organizations and their employees. In doing so, particular attention will be given to developing an understanding of the strength of various effects. Three general areas in which the internet can influence business strength, flexibility, and efficiency are examined in terms of the internal process of an organization, as well as its external activities that focus on issues such as customer relationships, sourcing, reaching new markets, and creating new business opportunities. Another part of this section evaluates the potential challenges that the internet can pose for organizations that are actively involved in doing business online. These challenges, which must be overcome to realize the potential benefits derived from participating in the online business arena, are primarily associated with issues such as a company’s infrastructure, its employees, the customer relationships of a company, the risks associated with carrying out business through the internet and the environmental regulations and other legislation that can impact a company’s online strategy. The section is concluded by providing a general understanding of the most important issues to consider when creating and implementing the digital enterprise.

4. IV. Case Studies and Success Stories

In order to determine the impact of administrative innovation as a basis for e-commerce, optimism (or pessimism) is linked to a series of case studies and success stories. The unit of analysis of these recent successes is the business itself, or the system or institutional environment which is part of, like markets or society in general. The analysis focuses on the advantages of information and communication technology and globalization as engines of innovation, as well as the business model in which the innovative strategies are based. It concludes that the application of these strategies mainly benefits small firms through flexible organizational structures, but also the traditional large firms which experiment with new forms of management. The system where the advantages of e-commerce would be most notable is the U.S. market, the most dynamic and competitive in which immense opportunities for growth and change are currently being generated.

The job of case studies and success stories is to draw conclusions and learn from online experiences. A good case can reveal patterns or solutions or set new trends. It may have far-reaching consequences in helping other businesses to succeed or avoid failing. In that sense, many of the cases and success stories in internet business presented in academics or more popular business publications are either successes or cautionary tales. Protecting the proprietary information that makes up many of those cases becomes a hurdle to researchers willing to analyze the mechanisms of the internet to provide grounded knowledge for the good of society. This part presents a few case studies and success stories with (or not) happy endings.

5. V. Future Prospects and Opportunities in Online Business

The rapid evolution of the internet, technological and business breakthroughs, and advances in telecommunications have already played a significant role in transforming businesses and rendering traditional business models obsolete. The proliferation of the digital economy and the profound changes in commerce have raised a host of social, ethical, and economic questions. What are the long-term implications of universal online access, the ability to reach many millions of unseen potential customers at any time?

This chapter examines the host of transformational changes that have occurred in the business world as a result of online technology. The impact on marketing, customer service, and logistics are also pinpointed. The following aspects are highlighted: issues of trust and security, new business models and best practices that have emerged, the emergence of new third parties, the development of personalization and one-to-one marketing.