Essay On E-Business

THE ROLE OF ELECTRONIC BUSINESS IN INDIA


ABSTRACT:

The study focuses on role of electronic business and its success in India. Though the internet users in India are very less compared to other countries and the E-business has not yet become practice in India. Many Organizations in India trying to transform their traditional business in to e-business. Where the organizations serve an individual customer and this study also explains the importance of internet for any organization to reach the customer. The usage of internet is increased constantly over the years and the population of using internet has been increased to 81% in 2009[1] The percentage of people shopping online has increased to 20 million in 2008 and there has been subsequent growth in the online booking in India, which is considered to be the biggest activities of e-commerce. In India most of the people use internet for emails, online booking, online shopping, matrimonial services and blogs.


Chapter 1


1.0 Introduction

This chapter provides general background, problem statement, purpose of study, research objectives, major research questions and structure of dissertation.


1.1 General background

The rapid growth of internet in the few years has been extraordinary. Companies both small and large are using the internet as a tool to expand their business, which helps them to enlarge globally in market. The evolution of e-business has made extreme changes in the business and Every organization is adopting e-business strategy because everyone realized that key way to succeed in the modern business is by using e-business strategy. Initial companies use internet as a tool for marketing purposes. The purpose of e business or internet websites have become more important, companies use their websites to provide the information about the company, searching for particular product, delivery, customer satisfaction. E-business has set up a new opening for small and large organizations to fight in the global market. E-business in nothing but just doing business over the internet for doing e business you need a website through which we can sell or buy our goods, information search, providing the required information or services to the customers. An e- business can be an addition of your business or sometimes it can be independent of physical location and the E-business offers easy way to do business over the internet. E-business allows the organization to be connected when it is extended. That means customers, suppliers, employees, stakeholders and E-business allows data flow form business-to-business or system-to-system. The main function of e-business is connecting organization and the customers/users as a result of these human functions will be removed from different functions. E-business is the conduct of business on the internet, not only buying and selling but also serving the customers.IBM has first launched e-business in October, 1997. Now-a-days many organizations are thinking of doing their business on internet. Many organizations are using the internet to buy parts and supplies from other organizations, and to do work in partnership on sales and promotions and to do research jointly. Due to the convenience and availability of internet throughout the world, many firms like amazon.com have founded out how to sell books using internet successfully (Turban, 2000). The internet has completely changed the way companies interact, how they communicate information with the business partners, it also changed the company's investment with changing internet technology. As the companies start their e-business many are thinking on return on investment and business strategy whether to concentrate on customer satisfaction, people aware of internet.


1.2 Problem discussion

Many People in India still don't know how to use internet they are not aware of internet and people in India likes to buy the products in store rather than on the internet which is convenient because they wants to feel the goods physically, which shows there is not much growth in e-business.

1.3 Research objective

The main objective of this research proposal is to show the role of e- business in India and the factors responsible for not adopting e- business in India and The factors responsible for growth in the field of e-business in India are security and the need intention of looking physically. The main objectives of e- business (http://www.e-adoption.co.uk/)

? Improve better customer service

? To save time of both customers and organizations

? Reduce the cost

1.5 STRUCTURE OF DISSERTATIONChapter 1

This chapter provides general background, problem statement, purpose of study, research objectives, major research questions and structure of dissertation.

Chapter 2

This chapter explains about e-business, e-commerce, relation between e-business and e-commerce, adoption of e-business, types of e-commerce, e business in case of small and medium sized enterprises and current state of e-business in India and benefits of e-business.

Chapter 3

This chapter explains about the methodology carried out and the research approach used and the research strategy, questionnaires and data collection

Chapter 4

This chapter explains about the data analysis and findings of research and results.

Chapter 5

This chapter explains the conclusion, limitations and future recommendations.

Chapter 2

This chapter explains about e-business, e-commerce, relation between e-business and e-commerce, adoption of e-business, types of e-commerce, e business in case of small and medium sized enterprises and current state of e-business in India and benefits of e-business.

2.0 LITERATURE REVIEW

2.1 DEFINITION OF E- BUSINESS

Chaffey (2007) e-business defines to all electronically mediated information exchanges, both within an organization and with external stake holders supporting the range of business processes. In E-business the relationship and collaborative has created a lot of oppurnities to enter the new markets and to enhance customer, supplier and business perspective interactions. Customer relationship management, supply and valve chain management, Infrastructure and technology have created a change in the E-commerce. For example, the traditional method of order can be reported and communicate electronically. Electronic marketing and bidding on the internet and search on the internet has modernized Business, increasing business activities, increasing the competition, provide better customer service and provide at a cheaper cost. E-commerce refers to electronic buying and Selling. This requires the structure of systems, and building a relationship to support the most effective way of buying and selling. It highlights the importance of technology and the success in the business and the demands of the customer needs. E-business is nothing but doing business on the internet to make easy for buying and selling. According to IBM corporation the definition of e-business is "e-business is exploiting the combined power of the internet and information technology to fundamentally transform key business strategies and process." The use of e- business is it can be helpful as a technical and customer support. An e- business which uses chat instead of traditional phone saves the time and it also provides more opportunities than phone and the example of technical support is operators can approach remotely on customer's computer and help them in solving the problem.

2.1.1 E- COMMERCE

As Dave Chaffey defines e -commerce as all electronically mediated information exchanges between an organization and the external stake holders.

From the 1990 s business and the customer has conduct the new way of trade business which is called e- commerce. E- Commerce is changing the results from both business and the customer's perspective. E- Commerce has changed the thoughts of conducting the business particularly in the field of internet. Many customers and the organizations are trying to get maximum profit from the e- commerce (Laudon and traver, 2002).

E-commerce is important in two sectors particularly business -to -business (b2b) and business - to- consumer (b2c) e- commerce. B2b e- commerce allows the customers to have better specification about the product such as how the product is delivered and what is the price of a particular product. E-commerce also provides the easy way of shopping and information about the product. E-commerce helps the customers to find out the desired products and services which are required for the customers and compare the prices (Vulkan 2003).

2.2 Relation between e-business and e-commerce

Though e-business and e- commerce are different, they hold same relationship. E-commerce is less complex than e-business, a company should start with e-commerce proposal before starting e-business proposal. Whenever an organization implements its e-commerce functions successfully then it work on e-business functions. Without e-commerce infrastructure an organization cannot work on e-business functions and the organization can use the information collected for e-commerce to implement e-business functions.

2.3 ADOPTION OF E- BUSINESS

WHY ORGANIZATIONS IMPLEMENT E- BUSINESS?

Directly selling to the customers without intermediate

Before organizations used to sell their products to the customers directly without intermediate where the products are directly sell to the customers in the exchange of money. This process increases the interaction between buyers and sellers, where products and services are supplied for money. It like dealing directly to the customers and satisfying the customer needs. This process involves not more than one intermediate. But after some days goods reach the customers through an intermediate because of the no perfect supply of goods to the customers. The opportunity for the intermediate has made large changes for the market because of the evolution of e-commerce and the changes in the technology (Damanpur 2001).

2.4 SELLING TO THE CUSTOMERS WITH INTERMEDIATE

Intermediation is defined as a process where an organization is acting as a means of another organization, whether it may be the buyer or the seller. This type of intermediation affects the other agents in the market in order to increase interaction with them. In the formation of value in the market an intermediate plays number of roles, such as information aggregation on suppliers, buyers and the products, search facilitation of the products, information reduction of asymmetries by supplying the information concern to the products in the market.

Barnes et al (2007) have given various types of intermediaries depending on the type of operation taken place. According to the Barnes et al the different type of intermediaries are there and they are traditional intermediaries and digital intermediaries. Traditional intermediaries are those intermediaries who have ability to deliver their goods to the customers with economically and maintain a close interaction with the customers. Digital intermediaries are the intermediaries are the intermediaries who have ability to communicate with customers over the internet. Many organizations will conduct their business and to reach the customers using the intermediaries. In between the organizations and the customers Intermediaries are benefited by charging heavily to the customers in doing business. Customers are happy being overcharged by the intermediaries because of the convenience and delivering the desired products to the desired places (Turban.e 2002). The interaction between the organizations and the customers involving any business and delivering to the customers is done by the intermediaries. The process of intermediaries was previously started by the street sales persons where the intermediaries recognized the needs of the customers and demanded extra money for delivering the products to the customers. Customers are also ready to pay extra because of the convenience and delivering the goods to their desired places. This process is continued and the situation occurred where the customers cannot get the product without the help of intermediate. Even today the business is taking place only through intermediaries (Thrift 2001).

2.5 EFFECTS OF E -BUSINESS

the main effects of electronic business are disintermediation, digital convergence, and disaggregation.

Disintermediation neglecting both whole saler and retailer

The removal of intermediaries such as whole salers and retailers that are linked to an organisation and the customers.


2.6 Disaggregation

Disaggregation involves seperating organisations activities in to different types such as customer service, distribution channels,production and marketing. Even today many firms do not have their physical products, only the information is moved due to disaggregation, e-business and e-commerence have great effect on the organisation because of the values changing with the information.

2.7 Digital convergence

Digital convergence involves linking the value chains with the other organisations, this process has changed the organisations limits for the traditional organisational and deals with organisations and technology called convergence (Olson.j.s 2000). Televisions advertising pc is best example of convergence between television advertising and pc.

2.8 Types of e- commerce

                           CONSUMER             BUSINESS             GOVERNMENT

(source : chaffey,dave (2007): e- business and e- commerce management.

Business -to-business(b2b) : it involves transcations between two firms. In this process business is carried by advertising because in this process there is no customers involved(chaffey 2007).

Business -to- consumer (b2c): it involves transcations between the organisation and the customers . in this business is carried out through the advertising in the market through online and the other sources example for this type of business is amazon.com(chaffey 2007).

Consumer -to- business (c2b): it involves transcations between the customer and the organisation. In this of business involves each individuals and offers services individually.

Consumer -to- consumer (c2c): it involves transcations between informal groups and the consumers. They run their business through the business website. C2c is most popular in the market as it involves consumers. Example of this type is e- bay where the business takes place between consumer and consumer not the consumer and the organisation.

Business -to- government (b2g): it involves transcations between the non government organisations and the government organisations.

Government-to- business (G2B): it involves transcations between the government services and the business organisations. It involves activities like legal regulations.

Government -to- government (G2G): it involves transcations between two governments organisations.

Government -to- government (G2G): it involves transcations between national government and the local government(chaffey 2007).

2.9 Indian scenario

According to the indian market research bureau e-commerce in india will grow up to Rs.50,000 crore (US$11.54 billion) in the few years. Internet retailing will provide opportunities for customers and retailers in india. The three main factors for increase of e- business are

1) Customers having less time to spend on shopping.

2) Improvements in both software and hardware technology.

3) Gradually increase in the number of customers using internet.

An survey was conducted on e-business in banks, rediff, micro bosch are the propelling e- business in india. Most of the small and medium sized enterprises in india are family owned and they cannot invest for software development unless they have viable opporunity to make profits and expansion of their business with less risk and less investment, but with e- business this case will be reverse. Every retailer, big or small industry needs to have e- business and use of internet for the future should be simple and user friendly. Customers should be guided from first step to next step of buying process. Company should launch innovative offers such as a customer visits a website for a many number of times, should be treated with good effect in future.


2.10 SMALL AND MEDIUM SIZED ENTRIPRISES ADOPTING E- BUSINESS

ELECTRONIC BUSINESS IN CASE OF SMALL AND MEDIUM SIZED ENTREPRISES (SME'S)

according to benbasatal et al smes are the essential sector of any country as It contributes about 90 percent of the business. The role of smes in markets is based on e-commerce and is a major policy issue for governments. Smes can benefit more compared to large scale industry and from the opportunities provided by the internet and e-commerce. The internet can extend the company irrevalent, because internet allows small companies to extend and reach the new customers across the geographical areas. The implementation of e- commerce in smes is successful, potential benefits to smes and increase profits, productivity is increased, quality of serve is increased. The use of internet technology by small and medium sized enterprises makes a contribution to the economy (Maskell et al. 1998). E- business is nothing but selling the goods through the internet where the internet is acting as a distribution channel. e-business is about making business in a traditional way and maintaing relation ships and the process such as selling, marketing and customer services by adopting e-business. business can run over the internet and can reduce the price, increase the profits and better customer satisfaction. Large number of small and medium sized enterprises have the right to use internet and they can use the internet very easily. In case of less developed economics sme's the percentage of accessing the internet is less compared to more developed econimic, but in case of japan almost 50% of small and medium sized enterprises have enough technology to use the internet. From the above case it is proved that now-a-days even a small business can access the internet and they enough technology to adopt the internet for their business (Dixon et al.2002). In case of small and medium sized enterprises e-business have provide a lot of oppurnities for business because of well developed and advanced technology.this suitation is not same in case of all countries, Many developing countries like India where they don't have enough technology to adopt internet for the small business. Many developing countries economic growth will depend on the small and medium sized entriprises. Advanced countries like Korea and Japan have invested many shares in small and medium sized entriprises. Sme's should develop in the field of technology and they develop like large scale industries ( Whiteley 2000). The main reason for the success of large scale industries compared to the small scale industries is that the product manufactured by the large scale industries have brand image in the market. Which helps them to sell their products easily and the Small and medium sized enterprises doesn't brand image to sell their products in the market. By using the electronic business the organisations will develop in the field of finance, but they can develop in the other areas such as online ordering to the suppliers,ordertracking etc (Feindt et al., 2001). E-business provides opportunity for small and medium sized enterprises because it helps to reduce the transcation costs and the level of playing field. The benefits include from internet is reaching new markets, scope for existing markets reducing the operations cost (Drew,2003). The e-business provides evoiution and growth of business in small and medium sized enterprises because it will be taken place over a short time period. Many small and medium sized enterprises will make use of e-business to produce new business or to improve existing practies. Companies with of innovation are on a full-scale e-commerce stratgey. Companies trying for innovation use e-commerce for company growth and e-commerce enables business to expand quickly. According to levy and powell the two drivers for finding out sme use of internet are in some small and medium sized enterprises business growth is planned and the investments are made more than required. In some small amd medium sized enterprises business growth is not planned but it occurs.

Second one is business value from use of internet many companies do not know the value of internet to grow their company. Internet is the main stratgey to expand the business and the Companies adopt the internet for various purposes such as from simple internet to business transform operations. Internet adoption will be of different levels, Different levels can make different types of business activies at level1 the company has only email account but does not have an official website this level is called non-adopters. At level2 the company have decide to implement website but, still in process( Tan,M 2000). The purpose of this level is to provide information about the company in the website. At level3 company have website and their will be limited use of internet. The purpose of this level is to provide information about the product, email support and search. Level 4 at this level the company has internet stratgey is intergrated with companies business stratgey. The purpose of this level is to provide information about the product will be more comprehensive and more advaced options in search functions. Level 5 at this level company has high level of internet adoption. The purpose of this level is to transform all business operations through the internet (Anderson,s 2003).


2.11 Use of e-business:

� Chance of exploring the business to the world wide .

� Product information can be provided on the internet.

� By providing the information on the internet there is no need of priting the literature this can reduce the cost of the product.

� Increasing the customer services by which profits can be increased.

� Providing the useful specifications about the product can attract the customers.

� Providing on-line service.

� Customers can search about the particular product on the internet.

� Understanding the needs of the customers.

2.12 Current state of e- business

From The 2008 onwards the number of companies adopting the e-commerce and the Internet usage in India has increased. Many e-commerce websites how has been targeting towards the customer satisfaction through online delivery services among them are Audio and videocassettes, books etc. Major part of the Indian portal sites shifted towards e-commerce instead of advertising. The Indian companies decide to sell their products effectively through online ranging from mouse's, groceries and computers. One of The major companies in this field is Rediff (WWW.rediff.com). Internet using and the e-commerce websites have started selling everything like groceries, books, gifts. e-commerce in India does not have big websites like amazon.com, but have 1to5 web sites like Indiabookshop.com(Cheffy 2001).This is not to say that the e-commerce scenario has not been enough success in India as highly successful e-business like big bazaar and India mart have proved. Indian Banks are been very much successful in adopting e- commerce to provide better services to the customers with online account checking, online transfer of money to current and savings account, online payment facilities. ICICI Bank, Global TRUST BANK AND UTI-Bank will provide electronic banking over the internet. E-commerce in India provides checking the status of speed posts (Levy 2002).


2.13 BENEFITS USING THE INTERNET

Benefits to the customers: by using the internet the customers can find more variety of products among them and they can choose the best because they have a lot of options to choose the product and it provides to select the products of different companies. E- Business helps them to buy online which saves the time and e -commerce helps them to buy and sell the products through the online. For example taking the e-bay case where customers can buy or sell their products depending upon their price comparison. E- Commerce customers to buy or sell from anywhere in the world.

2.14 BENEFITS TO THE COMPANIES:

e- commerce allows the companies to sell their products through the world. E- Commerce helps the companies to reduce the transportation cost because there is not necessary transportation to the stores and it also helps them to reduce the distribution channels. If the companies do their business only through online there is not necessary of distribution channels. E- Commerce helps the small companies to compete with large companies. It helps the organizations in initial investment cost because they will produce according to the online order

2.15 LIMITATIONS

After completing the literature review I have noticed that topic I have chosen "The role of e- business in India" is a vast topic and it is very difficult for me to cover all the topics related to e- business in India. I tried my level best to cover all topics but in the given time it is not possible for me.

2.16 conclusion

From the above study explains role played by the e- business and internet in India. Though the e- business exists in India there is no much development in the field of e- business comparing to the other developed countries. The main reason for this the percentage of using the internet is less compared to other countries and the other reason is that security problem many customers in the not willing to give their card details in the internet because of the less security. This study also explains advantages of e- business and internet.



Chapter 3

This chapter explains about the methodology carried out and the research approach used and the research strategy, questionnaires and data collection.

METHODOLOGY

3.1BACK GROUND

Evolution of e- commerce

Although the internet has made online shopping easy for many businesses and individuals, in a simple way, e-commerce has existed for many years. From many years, banks have been using electronic transfer which allows them to transfer from one account to another account. Many organizations will do their business by engaging in a form of electronic commerce, known as electronic data interchange, since few years. Electronic Data Interchange (EDI) occurs when business transmission occurs (Kim, H.M 2004). E-commerce have offered the platform for the internet users, Sellers and buyers came in to the progress for both buying and selling of the products and services, no question from which location. In short we can say E-commerce as end-less trade means in the era of the internationalization. It has incredible growth and it also helps to create the monetary growth in a country. It is important for any country to realize that e-commerce offers a different atmosphere in which new activities can be successfully developed and in order to bring these new activities there is a need to recognize the potential growth of e-commerce to make changes for the economic development of the country (Lee,C 1999). The number of internet users for primarily for entertainment purpose is about 9 percent. The report further showed that online shopping (e-commerce) were steadily increasing. The Young Men, Older Men and Working Women segments were the ones using it the most. These segments, along with the Non Working Women segment, were also using applications like jobs and dating sites in significant numbers.

3.2 Role of e- business in India

India is developing country in the field of e-business although the internet users are less in India compared to the other countries. In the few years' e- business have developed in the India however the internet users are increasing rapidly according to the IAMAI (1-04-2009) it was 15 million internet users in the 2004. It was increased to 50 million in 2007 and this shows that internet users are increased rapidly in the recent years. The main reasons are people in India are not willing to give their card details in the internet because of the security problems and they want to buy the products by noticing physical rather than noticing on the internet. The number of Internet users in India have increased from 2.5 million to 3.8million in 2004-05, the increase is 54 per cent, according to Internet & Mobile Association of India (Bakos, J.Y. 1998). According to the latest report of IAMAI the demand for the growth of online shopping for services such as airline ticketing, railway ticketing and product categories like electronic gadgets and home appliances are increased. The current e-commerce market of Rs 1,180 million in India expected to increase to grow up to Rs 2.3million by 2008.

3.3 Research objective:

The main objective of this research proposal is to show the role of e- business in India and the factors responsible for not adopting e- business in India and The factors responsible for subsistent growth in the field of e-business in India. They are security and the need intention of looking physically. The main objectives of e- business[2]

? Improve better customer service

? To save time of both customers and organizations

? Reduce the cost

? Reduce the errors in the process.

3.4 Research methodology

The study of literature review of e- business explains the factors responsible for the role of e- business. For doing remaining part of the research on role of e- business in India there is a need to consider the factors responsible for e- business in India. So there is need to identify which type of survey will be useful for conducting the research.

3.5 Research question:

1) The factors influence e- business in India?

2) The influence of internet on Indian SMES?


3.6 Research Strategy:

According to Yin (1994) there will be five types of strategies for doing research i.e. experiments, survey, ethnographic, case studies. Different conditions exist for different strategy to be used.

Experiments: this type of research is carried for marketing experiments they possess the greatest potential to maintain casual and effective relationship. An experiment allows observation of changes in one variable for example sale, while adjusting one or more variable like price.

Surveys: A survey is one of the techniques in which the data is obtained from sampling of questionnaires. For writing a questionnaire, we have to design the questions and obtain the results from the people and generation the data from results obtained.

Case studies: in this case the information is obtained from information provide on the internet, books, journals and annual reports.

History: it deals with past

Archival analysis: This possess goal to describe the incident of a phenomenon.

From the above discussion I decided to use questionnaires

The main aim of this dissertation is to get an image of the current position of electronic business in India and the role of e business in India. In this study I need to find out the main issues that are responsible for role of e-commerce in India. In order to find out this, a questionnaire was developed. The data for doing this will be obtained for the questionnaire which is filled by the participants.


3.7 Research approach

The two different types of approaches involved in doing this research they are

1) Quantitative approach

2) Qualitative approach.

Quantitative approach includes examining the correlation of two or more elements. It can also be explained by giving the effect of the relationship connecting these two variables which are used and observed in the study.

Qualitative analysis which involves finding the data from the questionnaires and gathering the data from the interviews conducted.

I will be using quantitative approach because my research is about examining the study.


3.8 Research Method

Research methods are of two types, primary research and secondary research. In which primary research is like collecting the information individually by conducting interviews, surveys, self-observations or analysis and case studies. Whereas secondary research is to gather information from journals, books, magazines, market reports, indexes, online databases, e-journals research reports, internal records of organizations.

As I am using quantitative approach because I will be collecting the data from the internet, journals and conducting the surveys and the questioners like will this project be useful for anyone.


3.9 Questionnaires

For doing any research the easy way to get the data is conducting the questionnaires. Questionnaires are said to be successful until it gets constant results.

The second way of getting the data is questionnaires which measure whether the data obtained is measuring what exactly they required to measure. A questionnaire only can measure what it wants to measure because measuring devices only can guarantees that the procedure involved doesn't have any errors. In this proposal the questionnaires is that will there be a success in India in the field of e- business.


3.10 SAMPLING

Sample plays a very important role in obtaining consistent results, because it is not possible to take data from the entire population that's why certain people will be taken for doing research or else to find the correct representatives. It also depends on the person doing project to select an appropriate sample based on the information he/she is looking out for. In order to achieve this one of the following sample methods can be chosen.

Probability Sample: This is when every person from the population is considered and chosen for the sample.

Non-Probability Sample: This is exactly opposite to the above ones because not every person from the population is considered as sample.

In this study the population was chosen through the non-probability sampling where people who regularly use internet are measured for the sample. So, every one didn't have the chance take part in this study.

Determining Target Population

? Well thought out research objectives

? Considering all the alternatives

? Knowing the market values.

? Considering the appropriate sampling unit

? Specifying clearly what is excluded


3.11 DATA COLLECTION

The major sources for data collection are through questionnaires and by conducting the survey on role of e-business in India. This survey is conducting through questionnaires and generating the data through the findings from the questionnaires.



Chapter 4

This chapter explains about the data analysis and findings of research and results.

DATA ANALYSIS

4. 1USE OF INTERNET IN INDIA

According to the IAMAI (4-10-09) the two main reasons for the technology undeveloped in India is use of pc and many people in India don't know how to operate pc and the other main reason is English language which drives the usage of internet. There has been a substantial growth in the practice of internet from the India online report 2008 is clear that there has been a growth in e-commerce.

The usage of internet is increased constantly over the years and the population of using internet has been increased to 81% in 2009[3] The percentage of people shopping online has increased to 20 million in 2008 and there has been fast growth in the online booking in India, which is said to be the biggest performance of e-commerce. In India most of the people use internet for emails, online booking, online shopping, matrimonial services and blogs ( Hackbarth 2000).


4.2 INTERNET USERS IN URBAN INDIA

According to the IAMAI (5-10-09) report around 89% of the populations in the urban areas use the internet for online shopping. Among 89% internet users 54% of the internet users are graduates and post graduates and 15% are executives and 20% of them are professionals. People use the internet for different purposes among them most popularly used for (Roggins 1999).

� E mailing

� Information search

� Job search

� Online booking

� Sports

� Matrimonial

� News

� Social networking

� Online banking

� Downloading

� Instant messaging

� Chatting

� Listen to music


4.2.2Popularly used online activities

RankRankRankRank
Rankonline activitiesIn 2008In 2009
1E mailing93%95%
2Information search67%72%
3Job search61%70%
4Chatting59%68%
5News58%65%
6Matrimonial57%64%
7Downloading45%55%

(Source: India online report 2009)

4.3.3 among them most popular used websites

Online activitieswebsite% use
Online shoppingRediff, eBay76%
MailingYahoo, orkut62%
Information searchGoogle80%
Job searchNaukri52%
ChattingOrkut, Yahoo, Google,55%
NewsAajtak48%
MatrimonialShaadi45%
MusicAmaderforum40%
downloadingTorrent28%

(Source: India online report 2009)


4.3USE OF INTERNET IN DIFFERENT STATES OF INDIA

Andhra Pradesh: according to the India online report 2008 Andhra Pradesh occupies 3rd position for online shopping and for railway tickets. It also occupies 2nd position in India for online movie tickets and It ranks 5th position for booking hotels online, flight tickets, home appliance etc.

Karnataka: In Karnataka Bangalore city is said to be software city of India. But it occupies 5th position for internet users and it occupies 6th position for hotels booking, flights booking, railway tickets, movie tickets etc.

Rajasthan: Rajasthan occupies 7th position for internet users and for other categories like home appliance, online travel bookings, health and fitness, sports materials.

Maharashtra: according to the India online report 2009, Maharashtra occupies 1st position for online shopping. It contributes around 30% of online shopping in India; it also occupies 1st position for airline tickets, railway tickets, movie tickets. As Mumbai is one the big city of business it occupies No.1 position for people buying shares online.

Delhi: it occupies 2nd position for internet users in India and it also people shopping online. As Delhi is the biggest city in India it occupies 2nd position for people shopping online jewelers and for home appliance, airline tickets, railway tickets and the people buying shares online (Subramanian 1992)


4.4The influence of internet on small and medium sized enterprises

Case of ALPHA NET TECHNOLOGIES is a software development company it provides custom development services to the customers and it also provides training in advanced technologies to the clients in corporate sector. The main aim of ALPHA NET TECHNOLOGIES is to provide it consulting services, web designing, software development and other business applications. Number of employees less than 200 and annual turnover of Rs. 10crores (�10 million) and its office is in Chandigarh city in India. ALPHA NET TECHNOLOGIES provides custom application services to the end users and it also provides offshore software outsourcing to other companies. It provides highest quality standards to starting to ending and also provides b2b and b2c websites development. Internet has provided the people to involve in the project, even if are away from the location. Previously company has to hire the experts for quality and control, but after the implementation of internet there is not necessary for hiring. The company connects the internet to the test equipment to get the results. Alpha net technologies use the internet to achieve the information required for technology.

ALPHA NET TECHNOLOGIES is using the internet for website and the website provides the information about the company, products and services information, email support and information search.

Alpha net technologies uses internet for various purposes in product development and sometimes for meetings over the internet. Internet allows the organization to growth both internally and externally. Company develops products based on the requirements for the customers and company uses internet and e-business resources to expand the company globally and to attract the customers


4.4.1Organizational chart

Source: www.alphaitworld.co.in [accessed on 10-10-2009]

The internet allows in making the right decision for new products and services in each zone. Internet allows the companies to understand market and target the customers efficiently. Alpha net technologies use the internet as a tool for improving new products. Employees involved in the development of the product and share information throughout the world through internet. They discuss the information through the internet for in making fast development of the product. Internet allows the people to access the data internationally which allow the organizations to develop the new products. Alpha net technologies implement the internet to gather the information which is required for new product development. Internet allows the companies to produce large variety of new product ideas from large variety of sources. Alpha net technologies take new product ideas from customers, distributors and end users. The internet provides information about the competitor products as soon as they introduced in the market. Alpha net technologies uses the internet to approach the publish papers in pre study phase about the product. Alpha net technologies develop the new products with the help of R&D department in India, china. They exchanged the information over the internet between two countries and they conduct the meetings and discussions over the internet. The company has developed a network with corporations which help them in developing new product. Alpha net technologies use the internet to gain the new customers and the company exams the customer companies from the websites and calculate on the basis of economical conditions. The company previously used to appoint agencies to calculate customer's economical conditions. With the introduction of internet in the company can calculate the customers and market observation from the internet and they can calculate immediately[4]. The internet has allowed the company to expand internationally and open the new markets, which enables them to facilitate growth strategy. Alpha net technologies will use internet for advertising purposes by taking the advantage of low cost. Alpha net technologies the entire administration system is connected with the website for customers. They provide the data about the deliveries, order status and it carrier's customer support through the internet (Malhortra, N.k 1996)


4.5 E-COMMERCE AND ITS APPLICATIONS IN AIRLINE INDUSTRY

In the business world, airlines could be the major success of e-commerce or internet. This is because of nature of airline business and its cost structure. Any airline industry consists of two types of operating costs: direct operating costs and in direct costs. Direct operating costs are the costs such as aircraft, fuel and airport charges and staff salaries. This altogether makes up about 60% of the total cost and the in direct operating costs are the distribution costs and this makes up about 40% they cannot decreases the direct operating costs. Therefore most of the airlines would like to decrease their indirect operating cost. In this view e-commerce would play a major role and its distribution costs (Sekhar, s.c 2001)

� Reservation cost

� Advertising cost

� Agent commission

� Ticketing fees

Airlines pay 3-25% of commission to the agents for selling tickets. To decrease all these costs airline industry would like to turn in to e-commerce. Airlines sell their tickets at different prices. The same ticket and the same flight can be different price depending upon the when and where you sold. The early you book the ticket the cheap will be ticket (Subramanian 2006). E-commerce has made drastically changes in airline industry in India and after the entry of low cost carrier's online travel bookings has been increased substantially. Currently, 50% of the revenue generated by e-commerce in India is through online travel industry. To boot online travel industry is growing at 125% (compounded annual growth rate) annually (Joseph 2001)) Making an income of around Rs.1350-2250 crores (� 200- 300 million). Currently, in the entire travel industry online travel industry occupies around 2% and is expected to become Rs.100 crores (�1billion) industry in 2010. In India low cost carriers like Air Deccan and railways which considerably led to increase in e-commerce. However the advantages of e-commerce is exploring the airline industry at present, e-commerce is being is used for e-ticketing in the domestic airlines through e-ticketing access in India is as low as 18% against the world average of 50% and 43 % in air pacific. But according to the UN's international telecommunications union, around 450 million travelers across the worldwide are expected to book online. In India Air Deccan has launched its operations with 100% internet ticket booking service within a no time. It has become the India's largest e-commerce site, with Rs.30 crores (� 3million) worth of bookings per day (Patton 2004). In Air Deccan bookings around 35-40% of the tickets are sold by online booking. E-ticketing not only profitable to the travelers by 24/7 but it also eliminates the investment cost to the airline industry through ticketing offices, staff, building and operational cost. It also saves time and money for the travelers by avoiding long queues and service charges payable to travel agents. In kingfisher, being a 100% e-ticketing but also it provides electronic check in, wherein after printing the board card online the passenger can use internet enabled check in on the airline website and the passenger can board the flight directly passing through only mandatory security check at the airport, the advantage of e-ticketing is that passenger never lose the ticket.


4.6 E -COMMERCE AND ITS APPLICATIONS IN RETAIL INDUSTRY

According to Bakos Online shopping is not only convenient to the customers with busy life styles, but also gives a better deal for money. Online shopping also has significant benefits to the customers in terms of product, price and accessibility. Online shopping also has commercial benefits and it allows retailers not much inventory cost, infrastructure and overheads. One of the biggest advantage of online shopping is cost effective and the online shopping is available not only at a zero real estate but, also with no inventory cost. Online customers in India have recognized the convenience of online shopping as it reflects the internet users who buy wide range of products from daily use to occasional use (Turban 2002). According to the recent survey on e-commerce, the top online shopping is for airline tickets followed by clothes, mobiles, Watches, Car, motorcycle, food, watches and groceries. Online retailing provides advantages in terms of cost effectiveness, easy to use, profitability and can be used at different products and services in both grocery and non-grocery items. Online retailing allows different kinds of products and it also allows suburbs to obtain a different variety of goods and services and at the same time online retailing allows customers to compare the price. When it comes searching, emailing and other web services have achieved enormous fame (Archer 1999). Unlike other developed countries Indians are excited of non-store retailers and Indian customers likes to touch and feel items before buying they wants to feel physical by touching not by watching pictures on the internet and the products are not perfect, There will be different varieties of products and sizes ( Anonymous 2001). The best example for the above case is purchasing a shirt on the internet and the store that's why the companies in India adopt both online and offline retailing such as Fabmall (India) private India have decided to implement both online and offline shopping. Fabmall online shopping and offline models will be same but the difference will be time spent on the internet and travelling to the store. Many people in India order online and they pick up offline because during busy times there is not necessary to queue up at the checkouts. The online retailing also provides a customer loyalty program, that increase direct contact at lower cost and help Fabmall to increase market share. Fabmall has 23 percent share in 2005 and by 20 percent market share. In the few years online shopping in India has increased a lot by increasing the business growth of the retailers who will be providing online shopping services. There has been a growth in shopping lovers looking for the best shopping at the comfortable distance. The online shopping has not only taken the world storm but everyday new collection features will make the online shopping easy felicitators. In India online shopping has been less in comparison to the other developed countries. There has been a significant growth in retail sector, yet the retail industry in India is at beginning stage, the main reasons for this is lack of internet facilities and there is not sufficient online transaction facilities available in Indian markets.


4.7 ONLINE CLASSIFIEDS

B2c online classifieds is driven by customers in the market and it provides internet users to place their offerings, including profile for matrimony, CV's for jobs, advertisements to sell/buy property and automobiles on the internet through classifieds market targets. The required segment for example customer updates is profile in matrimonial portals for wedding if anyone interested is his/her profile will contact him. Online classifieds portals will set up offline counters that use database from the required portals, the size b2c online classifieds are calculated by money spent by the customers at the online and offline counters of the online classified companies (Atif, Y 2002). According to the e-commerce market report advertisement through newspaper, radio are costly compared to the online advertisement because through online the cost to reach the thousand people is low. A customer who buys a column in online can use the same column for 15 to 30 days. Not only providing convenience, flexibility and ac

4.9 Digital downloads

Digital Downloads has got a major importance in the e-commerce industry. Data downloaded from mobile phones and from the internet are considered as digital downloads. In India due to the more number of mobile and internet users, digital downloads has been developed rapidly these days by taking into thoughts and the WEB and WAP based digital downloads account from Rs. 300 crores (�3billion) by the end of the year 2008-09 and this will constantly grow by about 60% and reach up to Rs 400 crores (�4 billion) by the end of the year 2010 (Nair, K.G.K 2002)


4.9 FINDINGS

The data which is obtained from the 35 fully filled questionnaires. Out of 70 only 35 members answered my questionnaires among them 20 of them are Indians and 15 of are staying in UK residents of India. To obtain the data from questionnaires the sources which I have used is orkut (similar to face book). I have send the questionnaires through orkut to all the orkut communities among them some are MBA students and some them are professionals and the other source I have used is Bangor webmail to all Indian students in Bangor university.

1. USE OF PC AND INTERNET

When it comes to use of pc and internet, 25 out of 35 people know how to use pc and internet and they are not familiar with the applications of the computer. Only 4 percent of them don't know much about pc and 6 percent of them know how to use the pc, but they are not familiar with the pc.

2. Customers shopping on the internet

Among 35 participants 15 participants are Indians and 20 participants are Indians residing in UK. Out of 15 participants in India 4 of them never shop online because for shopping online need credit card they don't have credit cards. In India it is not easily possible to get credit cards. 6 of them will do shopping online but not regularly because of security problems. All sites in India or not trusted sites, they do shopping only on trusted sites like dell, eBay, Rediff etc and the remaining 5 will do online shopping regularly because they don't have enough time to go and do online shopping in stores. Online shopping will be comfortable as the customers are not necessary to visit the stores. They will be delivering to the address, when it comes to people residing in UK 10 out of 20 will do online shopping regularly and 10of them will do, but not regularly. 42.85 percent of the people will do shopping regularly and 45.7 percent will do shopping but not regularly and 12 percent of them will not do shopping online. From the above results is has been clear that majority of the people will do shopping online.

3. AMOUNT OF TIME SPENT ON THE INTERNET

When it comes to time spent on the internet out of 11 out of 35 spent around 2 hours a day because of internet will be slow (maximum internet speed is 256 kbps) So they have to wait to open pages. 15 of them spend more than 2 hours a day as they will be using internet for downloading movies, e-mails, chatting and online shopping. 9 of them will be using less than a 1 hour as they don't have internet connection in their house. They have to go out for internet and internet is expense outside. So when it comes to results 31.4 percent of the people use internet more than 2 hours a day and 25 percent of the people use less than 1 hour.

4. Regularly used Indian websites

When it comes to regularly used Indian websites 20 out of 35 use orkut (similar to face book). Orkut is the main source for chatting and sending e-mails and updating photos. 15 use yahoo for sending and receiving e-mails and yahoo messenger for live chatting. This is special advantage from yahoo compared to orkut and two people can do chatting by seeing their faces. 30 percent of the people use Rediff and eBay for shopping as it is one of the trusted site for shopping online 20 percent yahoo and 50 percent of them use orkut.

5. WHO IS GOING TO PROFIT FROM E- BUSINESS

When it comes to who is going to benefit from e- business 15 percent of the people replied that it will be profit to the buyer as the customer will be buying directly from the whole seller there is no intermediate in e- business. Customers can get the product at a cheaper price compared to when they buy in store and it is comfortable to the customers as they don't need to carry weights. 10 percent of the people replied that it will be profitable to the sellers as they sell directly to the customers there is no need to give margin to the intermediaries and 75 percent of the people replied it will be profitable to both buyers and sellers.

6. MORE CHANCES WITH E-BUSINESS

When it comes to more chances with e-business 60 percent of the total participants agree that e- business provides more opportunities and 36 percent of the total participants don't agree that e- business provides more opportunities and 6percent of the participants are not sure. From the above results it is clear that e- business provides more opportunities because if we take an example of shirt in the online. The shirt has different colors in the online then the store because there is not necessary to ready shirt before order in online.

7. The problems influence the development of e- business in India

When it comes to problems influence the development of e- business in India. As I explained before I would like to include that one for options. 36 percent of the participants agree that many people in India don't know how to use pc and lack of internet knowledge and benefits of e- business. 35percent of the participants believe that technology is not supporting in India and 29% of the participants wants to experience the goods physically. They don't want to buy online just by seeing the picture. From the above results of the participants I conclude that the main reasons for not developing e-business in India are many people in India don't know English and the majority of the people are not aware of internet and benefits of e- business. From the view of some participants it is clear that technology is not supporting the e- business for example the maximum internet speed is 256kbps. From the view of some participants they want to experience the goods and the other reasons are security problems.

8. ACTIONS TO BE TAKEN FOR THE DEVELOPMENT OF E- BUSINESS IN INDIA

When it comes to actions to be taken for e- business development, I have attached suitable options. 65 percent of the participants agree that e- business can be developed by educating and making the people aware of internet and the benefits of e- business. 30 percent of the participants agree that e- business can be developed by improving the technology like the internet line has to be replaced by 8 mbps internet line. Many people want to buy online because of security problems (fraud websites) and 5% of the participants are not sure.

9. E- BUSINESS IN INDIAN FUTURE

From the above results it is clear that people in India are educating and they are learning how to use pc and internet 90% of the participants agreed that India will be developed in a few years and only 10% of the participants are not sure. From the above results I can conclude that e business is developing in India.

4.10 Discussion

In the last few years online shopping has become an import part, now-a-days many people are feeling comfortable with online shopping and people are encouraging online shopping. Technology also improved a lot in recent years. On the internet mobile phones are highly promoted for online shopping. Internet has become the major source for high scale of phones.

From the above results it is clear that the main factors for lagging e-business in India is many people are not aware of pc and internet. Though there is a significant growth in the number of internet users in the few years, many people in India don't know how to use internet. Even though today many people in India likes to shop in the store then online shopping. from the results it is clear that number users spending time on the internet is very less, the average time spending on the internet is just one hour and that one hour will be using for sending and receiving e-mails, chatting etc. From the question 2 it is clear that people shopping online regularly is less compared to shopping in store.

When it comes to who is going to benefit from e- business some of the people replied that it will be profit to the buyer as the customer will be buying directly from the whole seller there is no intermediate in e- business. Customers can get the product at a cheaper price compared to when they buy in store and it is comfortable to the customers as they don't need to carry weights. Some of the people replied that it will be profitable to the sellers as they sell directly to the customers there is no need to give margin to the intermediaries and most of the people replied it will be profitable to both buyers and sellers

When it comes to main reasons that influence the growth of e business in India many people replied that due to lack of internet knowledge and not aware of benefits of e- business and few people replied that technology is not supporting e- business. When it comes to actions to be taken for development of e-business many of the participants replied that by educating the people and explaining the importance of internet and the benefits of e-business. It can be done only if people are aware of technology, use of internet, improving technology and reducing fraud websites. By adopting e-business in Indian small and medium sized enterprises have great advantages both for buyers and sellers because now-a-days everyone is knowing and pc and internet and The internet can extend the company irrevalent, because internet allows small companies to extend and reach the new customers across the geographical areas. The implementation of e-business in smes is successful, potential benefits to smes and increase profits, productivity is increased, quality of seve is increased due to which we can create business opportunities in India.

____________________________



Chapter 5

This chapter explains about conclusion, Recommdations, limitations.

5.1 CONCLUSION

The dissertation conducted on the factors influence e- business and internet in India and the influence of internet on Indian small and medium sized enterprises. Each question is analyzed with appropriate data. Questionnaires have been developed to obtain the data and from the questionnaires it is clear that though e- business exists in India there is no much development in the field of e- business comparing to the other developed countries. The main reason for this the percentage of using the internet is less compared to other countries and the other reason is that security problem many customers in the not willing to give their card details in the internet because of the security problems. From the questionnaires it is clear that e-business is developing in India. From the questionnaires ways to improve the e- business in India is by educating the people and reducing the technical problems and the security problems and By making the people aware of the e-business and the advantages of e-business like saving the time and comforts like no need to carry, it will be helpful for e-business development. Participants who filled questionnaires replied that e-business will develop in India then we can see India vast growth in couple of years. When it comes to small and medium sized enterprises companies use internet to expand the organization globally and they adopt e-business for product and market development strategies and they use e-business for new products and the existing products. SMEs use middle level internet for better planning and operational performance and they use internet for strategies in product development and market development. SMEs use the internet to understand the market needs and to target the customers and they never use internet for advertising purposes. SMEs use internet to expand quickly in geographical markets.


5.2 Limitations

The dissertation on role of e-business in India is a vast topic so getting a data is difficult because there is no much adoption e- business in India and the time given is enough to cover all this topics. The thesis is carryout on the basis of questionnaires filled by the participants and out of 70 participants only 35 filled the questionnaires. The data is conducted only on the basis of participants but the data has to be generated on the common people. The participants who filled the questionnaires are professionals and students they don't have much time to fill the questionnaires. Most of the participants how filled the questionnaires use internet in different way, so the results may be wrong sometimes the calculation will be different if they provide the wrong data. For obtaining the data only one method is used that is through questionnaires.


5.3 RECOMMDATIONS

The thesis role of e-business in India can do in easy way in future. In the last few years online shopping has become an import part, now-a-days many people are feeling comfortable with online shopping and people are encouraging online shopping. Technology also improved a lot in recent years. On the internet mobile phones are highly promoted for online shopping. Internet has become the major source for high scale of phones. E-business can be developed by improving the technology like the internet line has to be replaced by 8 mbps internet line. Many people want to buy online because of security problems (fraud websites). When it comes to small and medium sized enterprises

� Find out how e-business can be adopted to overcome the problems in terms of brand recognition for SMEs.

� Find out how e-business can be used successfully to expand globally.

� Further study should concentrate on how e-business can be used successfully for advertising.


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WEBSITES

1. (www.internetworldstas.com)

2. www.alphaitworld.co.in , information on alpha net technologies.

Appendix

Questionnaires

1. Do you know how to use pc and internet?

a) Yes

b) No

2. Do you shop online?

a) Sometimes

b) Always

c) Never

3. How much time you spent on the internet?

a) Less than 1hour

b) 1-2 hours

c) More than 2 hours

4. Which of the Indian websites you will be using regularly?

a) Orkut

b) Yahoo

c) Rediff/ eBay

5. To whom do you think e-business will profit?

a) Buyers

b) Sellers

c) Both

6. The major problems influence e-business in India?

a) Technical problems

b) People are not aware of internet

c) People wants to fell the goods physical

7. Actions to be taken for the development of e-business in India?

a) Educating the people

b) Improving the technology

c) Not sure

8. e- business in Indian future?

9) E -business provides more opportunities for small and medium sized enterprises?

a) Yes

b) No

10. E-business provides more opportunities?

a) Yes

b) No

11. Do you think that the small and medium sized enterprises will grow globally with e- business?

a) Yes

b) No

c) Not sure


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Impact of E-Business on Organization

Electronic business is utilization of information and communication technologies so as to support the business activities. As commerce is one of the essential activities for practically any business, the concept of e-commerce is topical in today’s world.Electronic commerce is focused on the use of IT in establishing external relationships and activities of business with customers and other companies. But e-commerce is just a part of the e-business strategy, which usually involves a wide variety of processes that cover the whole value chain: electronic processing of the orders, supply chain management and electronic purchasing, establishing online customer care service and cooperation with business partners.

By implementing e-business strategies, companies aim at exploiting the availability, convenience and worldwide reach of Internet. With their help, it is possible to work more closely with suppliers and partners, better understand the needs of customers and satisfy them, as well as link external and internal data processing systems much more effectively.

Today practically all the companies try to make use of the advantages e-business offers. Moreover, without this component of business, it is often impossible to stand the competition and be successful in the majority of fields. On it the profit of the company considerably depends, as well as its image and reputation. Fortunately, the developments available in the field of e-business make its integration affordable and optimal. If highly qualified experts are employed to handle this aspect of business, the company is sure to attract many customers and create successful and interesting image.

Firms should pay proper attention to…

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