E-commerce and business opportunities
Electronic commerce involves conducting business with computers and data communications. It focuses on the use of transaction Medias such as telecommunication, network and mostly depending on internet (Costa, 2001). Online marketing allows internet retailers to present their products, market to the willing and potential customers that may otherwise be difficult to acquire and meet. The examples of the leading company, on the services of the electronic commerce, are Amazon and eBay companies. They deliver to shoppers who bypass the search engines through advertising and provision of the marketplace.
In the electronic marketing, has taken over the marketing and changing the traditional way of marketing. This is by incorporation of the technology to the business (Development., 1997). Extensible Business Reporting Language as played the role in the electronic business of allowing the financial information to flow between the trading partners. This is widely accepted due to its advantages and importance in enhancing the wellbeing of the business in the following ways. It transmits the business information and financial reports in a standard format that is accepted in the code. Therefore, data is never distorted as it is well and uniquely defined.
On the same note, in XBRL search for items is made easier, there is the reduction of errors due to the standard financial information in a standard format and the flexibility of the language. This makes different users to be accommodated in the online marketing with no language barrier and restriction. In additional to the importance of the XBRL is the automated and reliable exchange of the financial information across all software platforms. Therefore, it is easier to apply it while connected in the internet.
The opportunities of the e-commerce to the business can be categorized according to the players in the markets (Haegele, 2001). The market can be business to business market where the business do buy and sell to each other over the internet. Their communication and transactions are carried through internet. This is done to the point of closing the deal. The second category is the business to customers market. This involves the customers buying the product from the business through internet. The business as got a huge sale due to large scope of the customers. This has resulted due to the greatest and rapid development of the commercial internet. Free on-line services and discounted shopping has tremendously attracted customers to the internet trading. The number of the online customers is growing at a huge rate due to connectivity and high level of technology. This has opened out the diversity, and the opportunity of businesses to exercise the free trade at a lower cost (Kohl, 2000).
Electronic commerce has widely accepted by the both buyers and sellers moreover, making marketing easy and convenient. For overseas trading, one is not supposed to travel to purchase the product. This has been much efficient and lowering the cost due no transport cost incurred to travel to market. Through the internet, insurance of the product for shipment and the arrival check in are done easily. This has contributed much to the development and growth for minimizing the cost and maximizing on the productivity in the market. The other area where the e-commerce has great roots is in the banking sector. The use of the Automated Teller Machine (ATMs) has widely accepted by the bankers and the customers. Together with the ATMs are the credit cards. This has featured the in the market efficiently by easing the bank customers hustle of queuing in the banking hall.
Credit cards have ventured in the market as the mode of payment. This is mush convenient and much secure. The traders are free from having cash with them, because in the newly evolved business, they are accepted as the mode of payment. Paying the bus fare has been digitalized where the cards are used instead of cash. In additional, any domination of the involved currency is much easily deducted at the exact amount required because the payment is done through the involved bank on the exact amount deducted to the card(Clarke & Flaherty, 2005). The business development as a result of the electronic commerce has assisted them to have a competitive advantage in the market. This is through attaining profitable and sustainable position easily thus shining over other business which has not embraced the internet and online marketing.
In competitive advantage, the business strategies are based on the customers to believe that what they have received from the product or service from the business is much greater than what they had to pay and the value of the competitor (Sheehan, 2010). The satisfactions of the customer contribute to the competitive advantage of the business. This is what customers cannot get from other business and is provided in abundant by the competitive firm. Information technology has shaped the competition of the business in the market (Janal, 1995). The more the business applies the technology, the more it becomes competitive. The information technology has supported the competitive advantage in various aspects and strategies. Taking the cost leadership and the differentiation strategies has been the leading strategy that has helped the business entities to emerge competitive.
This has changed the way the industry operates in attracting the customers using the available technology. The online marketing has various strategies of operation where they use in the promotion of their businesses (Ginty, et al., 2012). Technology has enabled this firm to have several businesses' software that has the record of their customers. This helps in strategizing on how to get wider market share as in accordance to their fragmentation of their customers. Devices of attracting more clients, on the best moving product are done through advertisement on the promotional language of subscribing to the product online. Due to the technological advancement, the industry has enjoyed simpler ways of winning the customer thus making good sales.
Technology has as well improved the integration in the supply chain. It has provided the means that are viable and simple in connection of various players in the chain. This has promoted the competitive advantage because the integration is in a manner that involves the stakeholder in the supply hence coordinated move with one similar objective of competing effectively. The business opportunity is focused on the sources that are targeted by the business production. This may be broad or narrow market as per the product. Using the information technology, the focus of the business is guided either by use of the selective mean to the targeted customers. The business targets customers according to the class, lifestyle, and price discrimination among other categories. This is according to the objective of the business and their focus on their strategy.
Systems
Electronic commerce has enabled the business to enjoy various businesses systems that have helped in improving the productivity of the business. Taking the accounting field, many systems including the quick books and sage systems has made the work of the accountant be simpler. In addition to this, the accounting systems has simplified the work of the accountant and saving it in a manner that is easily to be accessed. Therefore, in reference of the accounting details can be retrieved back as per the auditor wish. This helps in accountability and the transparency of the accountant (Grossnickle & Raskin, 2001).
Other system incorporated in the business is tracking sales that help in following the performance of the sales department in the business. This aids in the business manager to assess the level of the sale and the market demand comparison. The billing customer, receiving payment from customers and tracking purchase are some of the businesses systems that are integrated in the performance of the business. They are of importance in making complex work of the firm easy and manageable. This has reduced the cost that the firms incur in the processes that are involved in the business.
E-commerce has created many opportunities for the business and the entire field. This from production to the point of marketing and the media involved. This has made the improvement of the entire market due to the strategy involved and the competition. This has shaped today's market and the processes that are involved (Patten, 2008). Finally, the technology has become the backbone of the business. This has led to increased productivity and the competitive nature of the marketing. Customers and businesses have benefited mutually from the technology advancement and electronic commerce at large.
References
Clarke, I. & Flaherty, T., 2005. Advances in electronic marketing. Hershey PA: Idea Group Pub.
Costa, E. d., 2001. Global e-commerce strategies for small businesses. Cambridge: MIT Press.
Development., O. f. E. C.-o. a., 1997. Electronic commerce : opportunities and challenges. Paris : OECD.
Ginty, M., Vaccarello, L. & Leake, W., 2012. Complete B2B online marketing. Hoboken: J. Wiley & Sons.
Grossnickle, J. & Raskin, O., 2001. Handbook of online marketing research. New York : McGraw-Hill.
Haegele, K., 2001. E-advertising and e-marketing : online opportunities. New York : Rosen Pub. Group.
Janal, D. S., 1995. Online marketing handbook : how to sell, advertise, publicize, and promote your products and services on the Internet and commercial online systems. New York: Van Nostrand Reinhold.
Kohl, S., 2000. Getting attention : leading-edge lessons for publicity and marketing. Boston: Butterworth Heinemann.
Patten, D., 2008. How to market your business : a practical guide to advertising, PR, selling, and direct and online marketing. London: Kogan Page Ltd.
Sheehan, B., 2010. Basics Marketing : Online Marketing.. London: AVA Publishing.
