Comparison Between E-Business and Traditional Business
INTRODUCTION
Electronic Business (E-Business) is a perplexing practice due to the numerous aspects it involves. In today’s rapidly changing environment, organizations adopt E-Business to respond to several business drivers. The progressions of the macro-environments are creating innovative business environments, in which E-Business is considered a normal practice. This paper attempts to model the business environment and evaluate its competitive characteristics by comparing the traditional business with E-Business.
Kreplin. K, et al (2000), identified “Reality” and “Virtuality” terms; these terms differentiates traditional business from E-Business. According to Kreplin. K, et al (2000), E-Business is based on a virtual (digital) business process with a virtual agent, and virtual product. Traditional Business is a physical business process with respect to the macro-environments.
The macro-environment components can influence the way entrepreneurs use the internet to coordinate export businesses. Analysis of the macro-environment comprises of cultural, economic, competition, political and legal factors that affect the way business transactions are made today.
CULTURAL CHALLENGES
In the cultural dimension, traditional business entrepreneurs will face a major challenge. In this case, infrastructure cost is what worries traditional businesses of today. As opposed to E-businesses, online business transactions incur minimal cost (Robertson.B & Sribar.V, n.d.). Whereas, traditional businesses will have to incur a significant amount of cost in order to remain competitive in the market. This is due to the fact that there is a paradigm shift towards a more innovative market alongside the consumers. Through the report it is assured that in the long term infrastructure cost will be the key obstacle for traditional entrepreneurs as newer technological innovations take place (Robertson.B & Sribar.V, n.d.).
Opposing to the traditional method of business,
Electronic Business (E-Business) is a perplexing practice due to the numerous aspects it involves. In today’s rapidly changing environment, organizations adopt E-Business to respond to several business drivers. The progressions of the macro-environments are creating innovative business environments, in which E-Business is considered a normal practice. This paper attempts to model the business environment and evaluate its competitive characteristics by comparing the traditional business with E-Business.
Kreplin. K, et al (2000), identified “Reality” and “Virtuality” terms; these terms differentiates traditional business from E-Business. According to Kreplin. K, et al (2000), E-Business is based on a virtual (digital) business process with a virtual agent, and virtual product. Traditional Business is a physical business process with respect to the macro-environments.
The macro-environment components can influence the way entrepreneurs use the internet to coordinate export businesses. Analysis of the macro-environment comprises of cultural, economic, competition, political and legal factors that affect the way business transactions are made today.
CULTURAL CHALLENGES
In the cultural dimension, traditional business entrepreneurs will face a major challenge. In this case, infrastructure cost is what worries traditional businesses of today. As opposed to E-businesses, online business transactions incur minimal cost (Robertson.B & Sribar.V, n.d.). Whereas, traditional businesses will have to incur a significant amount of cost in order to remain competitive in the market. This is due to the fact that there is a paradigm shift towards a more innovative market alongside the consumers. Through the report it is assured that in the long term infrastructure cost will be the key obstacle for traditional entrepreneurs as newer technological innovations take place (Robertson.B & Sribar.V, n.d.).
Opposing to the traditional method of business,