E-commerce and E-business

E-commerce and E-business

Introduction

E-commerce is the use of internet platform to carry out business transactions. It entails digitalization of all business activities between an organization and its customers or clients. On the other hand, e-business refers to digitalization of transactions and processes within an organization. However, the two concepts have similarities owing to the fact that they intersect in many processes of an organization.

In the contemporary business environment, e-commerce and e-business have become critical elements of organizations’ strategies. The rationale is that they act as catalysts for improved financial performance. This implies that businesses have integrated information and communication technologies (ICT) in their activities and transactions considerably (Chan et al. 56).

By adopting internet and web technologies, a business that has a competitive advantage over rivals will be able to revolutionize business relationships within an organization (Nissanoff 160). This involves the improvement of communication between an organization and other organizations as well as individuals.

As such, the use of internet and web to conduct business activities leads to improved performance, increased customer involvement, reduced operational costs and enhanced customization (Kotler 52). This research paper is a literature review of e-commerce and e-business.

It analyzes ways in which businesses have benefited from internet and web technologies. Besides, the paper analyzes ways in which e-commerce and e-business have become an integral component of modern organizations. This is in addition to the impacts of the internet and web technologies on organizations.

Literature Review on E-commerce

Kotler asserts that e-commerce has developed speedily over the past few years (2). Also known as electronic commerce, e-commerce involves a myriad of concepts. While many people know of the phrase ‘e-commerce’, they do not understand many things about the business platform. According to Kotler, e-commerce goes beyond purchasing and selling of goods over the internet and web technologies (32).

It involves electronic exchange of goods, data and information between organizations and individuals. It also includes transfer of funds through electronic means and use of smart cards among many other business transactions that are possible over the internet. Chan et al. assert that e-commerce aims at integrating all stakeholders of an organization into one platform where they communicate effectively (45).

There are various distinct categories of e-businesses and e-commerce. First, e-commerce can take the form of business-to-business (B2B). It refers to a category of e-commerce where an organization exchanges goods and services with other business entities and organizations. For instance, an organization may embark on supplying raw materials to another organization that uses the raw materials to produce finished goods.

According to Dave, such transactions are classified as B2B (23). Moreover, B2B transactions such as selling certain capital equipment, contracting other firms to provide specific services and purchasing insurance policies qualify to be B2B transactions (Nissanoff 162). In such transactions, organizations use the internet platform to enhance their efficiency and productivity.

In other words, B2B transactions over the internet enhance the efficiency of supply chains and procurement processes in general. Second, business transactions between an organization and the client or customers are referred to as business-to customer transactions (B2C). The transactions reflect the exchange of goods and services between an organization and the customers.

Like B2B transactions, B2C transactions takes place in the context of internet technology and enrich the relationships between an organization and customers. B2C transactions are common in organizations that sell goods and products directly to the consumers.

It is imperative to assert that B2C transactions have increased tremendously to include online banking services, real estate websites and online information among many other services that consumers enjoy via the internet.

Third, e-commerce can take the form of consumer-to consumer business transactions (C2C). In this category, consumers that participate in internet business are able to sell and buy goods from each other. As elucidated by Dave, C2C transactions have been in existence even in the traditional business environment (32).

However, the development of ICT industry has made the transactions to become more efficient and fruitful than earlier on. Undoubtedly, there are numerous internet platforms where consumers can interact with each other and make the transactions. Ran