E-business and e-commerce comparison

The phrases e-business and e-commerce are used interchangeably. They do, though, have various meanings and have a significant impact on the industry today. The only thing they share in common is that they both use the internet for Electronic Funds Transfer (EFT) and Electronic Data Interchange (EDI) (EDI). Any corporate exchange conducted over the internet is referred to as e-commerce (Needle, 2010). It makes it easier to purchase and sell products and services. E-company, on the other hand, covers e-commerce transactions as well as the introduction of internal business processes such as banking, supply control, and inventory management, among other things. Thus, e-commerce is a type of e-business, but not the other way around. E-commerce only caters to outward-facing operations (Needle, 2010). These are online buying and selling of products and services that include paying, delivering, dealing and receiving (Needle, 2010). It is an interactive commercial business where a buyer and seller can interact without meeting physically. E-commerce offers convenience for shopping and aims at understanding the consumer behavior to help them provide functional, reliable and user-friendly services. E-commerce is aa narrower discipline of e-business.

E-business, on the other hand, has become the major solution for many businesses. E-business focuses on the general business and is not limited to commercial transactions only. The concept involves automated and streamlined development and maintenance of business processes across production, corporate infrastructure, development and product management (Needle, 2010). Though the external and internal connectivity through the intranet or internet, an e-business strategy aims at improving productivity while reducing operational costs. It further facilitates transparent communication, improved vendor relations and responsiveness to customer needs. Differences between a Brick and Mortar Business and E-Commerce

Brick and mortar is a traditional street-side business that deals with its customers face to face in a store that it rents. Examples of brick and mortar businesses include the local banks and grocery stores that are found in the neighborhood (Parsons & Oja, 2009). Customers using these stores have the opportunity to touch and feel the product, return the product in case it does not meet their needs and also have a personal touch with the staff. It is also characterized by price issues, parking issues and queueing at the cash counter.

A SWOT Analysis is a model that involves conducting an analysis of the strengths, weaknesses, opportunities and weaknesses of an organization. The SWOT analysis of an e-commerce site is as follows:

Strengths

Weaknesses

24-hours operations

Some customers prefer making purchases by personally reaching the market

Fast and effective shopping

The number of customers who can buy through the internet is still not large enough.

Availability of comparison shopping by customers

In some instances, the transportation cost increases the product cost

Customers get products directly from consumers at lower prices

No direct customer-seller interactions

Global presence

Low staff cost

The start-up capital is lower compared to brick and mortar business

Financial transactions through electronic fund is fast

Affordable advertising

Opportunities

Threats

Rapidly increasing internet users

Damage of consumer confidence and faith by dishonest online businesses

Increased security and comfortability in buying products exclusively through the internet

No barriers to entry, hence competitors can easily enter the market

Rapidly improving technology that offer customer-friendly experience

The threat of legal and regulatory changes may affect businesses negatively

Low cost promotions through social media

Identity and privacy issues may make consumers skip giving personal information though the internet

References

Needle, D. (2010). Business in context: An introduction to business and its environment. Andover: South-Western Cengage Learning.

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Parsons, J. J., & Oja, D. (2009). Computer concepts. Mason, Ohio: South-Western.

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