Advantages And Disadvantages Of Online Business Information Technology Essay

Advantages And Dis advantages Of Online Business In digitation Technology Essay or so(prenominal) decades ago nobody could have imagined that breeding of technologies would lead to radical changes in line management. Moreover, we did non even suppose that a usual routine of buying and selling which was implemented through real communication amid buyer and trader would fix so handy and accessible. Till some particular moment communication was the yet way of pull ining negotiations we got devoted to, which now is being gradu in ally replaced by this new possibility to do line of credit by using the Internet technologies. From year to year online wrinkle method that was intended only for privileged is comely more(prenominal) than and more demanded and available for e trulyone in the cyberspace. Electronic task has a significant continue on compevery performance and new ways of fatherth and utility argon opened for its subsequent prosperity. This improvement is achi eved by changing the plan of operations and establishing c bearr relationship with customers. The economic basis of electronic business is radically expanding the audience, increasing tradeing utileness, accelerating the process of buying and selling of all kinds of erects and attend tos (Shelly Vermaat, 2009, p.737).We used to refer the phrase electronic shop (Shelly Vermaat, 2009, p.738) to a specialized website where web visitor is able to purchase all goods straight off online and acquaints preliminarily with their descriptions. Customers process of buying in an electronic shop differs from the traditional form of purchasing items in usual shops. This trend of modern trade continues to grow and this is the reason why most companies are now actively converting ceremonious business models and are focused on multi-marketing strategy. Today, investment in electronic business is a priority for umteen of them. However, its solution is necessary for pass away understanding of the key situationors which determine the success. Although electronic business definitely has blue-chip advantages over former(a) types of business, it has disadvantages which should non be overlooked.It can non be denied that the main benefits of online business are its low start up cost and fast victimization in comparison with the common one. There is no need in renting a physical space as the cyberspace is unmeasured area to some extent and the seller can suggest a wide range of products. Therefore the clients have more extensive choice. The more things the customer has to choose the more satisfied he/she is. For the generation of online shops it does not require a part of efforts and time to set it up. At the head start of the business a websites developer should register the project and promote it through various(a) advertising companies. All these costs do not require a lot of money expenditures while in conventional business it does. Thus, any business process, i n which you can use the electronic interaction amidst volume, has the potential for reducing expenditures, which, in turn, entails lower impairments for customers (Fields, 2007).Another important advantage of online business is its capability to attract not only local customers alone also a creative activitywide audience with minimal effort. Of course, it is practicable to refer international public through other forms of advertising kindred traditional ones television, radio and print media. But all to demoralizeher they are not as effective in reaching potential clients around the world as electronic marketing is. Basically, any product or service that is registered on the World Wide Web has a limitless market that transcends age, culture, geography and time zone (Campbell, 2007). No matter of wherever and whenever the clients are, it is not a problem now to get the things they require within the shortest period. At the same time, it unites people of all ages, races and o ccupations into one whole community of online buyers in some meaning. Having a discussion with each other on the forums, the clients from antithetical countries exchange their knowledge about some kind of products and get both(prenominal) useful information and also an international experience of communication.Online business gives traders a possibility to earn money even if they sleep as their shops march 24 hours a day, 7 days a week. The important indication of the Internet is that it has automatic operating mode of websites and at that placefore the probability of absentminded clients is minimized in this situation because they can purchase goods at any time they involve and what is of lofty importance is that sellers save a lot of their time. Thousands of people can surf website simultaneously without making a displace while it is rarely happens in offline business. In addition, traders can spend comely time doing the things they like and working at the time they pref er. It is very convenient for them to manage daytime in this way as they can set up the work aside whenever they like and get some rest or vice versa (Smith, 2005).A very strong side of starting online business is the fact that in the situation of business failure the businessperson does not lose his/her life parsimonys. Usually the activity of electronic business has to be stopped because of the deficiency of profit and thereby the businessperson has to end his/her activity. The only thing the owner can lose is his/her money that were spent for the development and promotion of business. The risk of such failure can be more bigger if business was granted franchise. It means that all the efforts the seller move into activation of business, the list of his/her patrons and customers in common, a respectful position in the business sector, communication with persons of consequence, all these life benefits disappear in a moment.Electronic business has transformed its customer servic e into the convenient and effective one. Auspicious conditions were created for maintenance of confidential relationships between clients and traders. The customer can tie a commercial agent in an interactive mode to get more information about the product or service. Furthermore, the clients can examine recommendations and reviews of different people within website who already have opinions about items that they want to buy or already purchased and used them. If some product the customer wants to buy is not available for the current time and so it is possible to send a request to inform him/her about its appearance via e-mail. What is more convenient is that pay backments can be implemented online and the items can be delivered to the customers without their community (Iyer, n.d.).Remember the situation in the shop when people have to go through different departments to take in the items they need. It takes a lot of time and originator and as a consequence the amenities of sh opping disappear. Fortunately, online shops have a very smart option the possibility to essay products in catalogues except by entering the keywords into search form. After several seconds the integrated search engine would control all the possible offers of goods. It is a very winning option for people who do not like to waste a lot of time on selecting the products (Shelly Vermaat, 2009, p.745).The last advantage I want to pay attention is a lack of necessity in hiring force-out like software system engineer to run online business. The basic thing to travel online store is to create and upload it to the Internet. Even if hire a overlord programmer, it would be a kind of a temporary work which does not require permanent control. One way around this is to outsource as many of your business functions as possible (Kaarakainen, 2010). If later the shop owner could fulfill such things like monitoring of the website, observation of clients requests and some other stuff by himse lf/herself then there is no need in outsourcing anymore, maybe except the situations like technical problems when it is almost impossible to hold down a job without specialists help.Having considered the main benefits of online business it is important to pay attention to the drawbacks as they put obstacles in the way of taking the spark advance position of online business running.A use of electronic communications is becoming one of the key conditions for the survival of companies in a huge militant environment however competition is also one of the most appalling problems. Because competition comes in all forms and shapes, your sales pitch would have to be truly attention-calling (Campbell, 2007). One of the necessities in the competitive activity is occasional price reduction when only the most stable business could survive. The customers often become victims of a warm work of competitive organizations and sometimes can find it difficult to make the right decision in choosing t he right goods for themselves. So the only possible constructive tool in clients attraction could be the proper marketing strategy in the cruel wars of the business rivals.As online shops became accessible for all the visitors so the tendency of copying ideas which were put there is of high possibility. People tend to do these things following the main demand of gaining as much profit as possible. In view of the fact that if ones online business is not officially registered as the trade mark then stealing the project of website construction is not taken as a copyright offence. So that means that everyone who would take the same concept of already existing website could live with no worry. It is a very grievous boldness of open business activity when all your marketing strategies are discernible and clear (Kaarakainen, 2010).Another disadvantage that also should be observed is a security threat of supposed electronic transaction which customer ordinarily accomplishes during the p urchase. People are still worrying about security of electronic commerce in spite of the wide spread of modern software that helps to protect their personal information. Through the growing number of fraudulent schemes people in most cases are afraid of giving details of their business relationship until they are sure about the reliability of the payment system. And such air is fully justified as no one would like to lose his/her money (Campbell, 2007).As all the talks of customer and trader are implemented via the Internet it is really hard to build a good and trusting relationships (Burton, 2008) between them because of their isolation from each other. Most of people find it almost impossible to negotiate in this way as they do not have any idea of who they are contacting with. Therefore, the seller should aim a lot to satisfy all the needs of the clients and try to dungeon positive and friendly relationships in order to attract as many new customers as possible for the furthe r possible collaboration.In windup I would like to stress that all the mentioned advantages of online business are very strong and have conclusive proofs that maintaining business with the help of modern high technologies is optimized as much as possible and continues to develop day aft(prenominal) day. For those who have never tried it, electronic business could be perceived as not serious occupation but this system really works. Just look at the real examples of such successful online companies like Amazon or eBay as they are the parts of the list of online giants with overwhelm profit made since their creation. Unfortunately, we should admit the fact that deficiencies hamper subsequent come on of online business techniques and traders have to cope with them. In the near future it seems to be the full dominance of high technologies in the commerce sector and its improvements would be interpreted as a fertile soil for the effectiveness of peoples saving time (Shelly Vermaat, 2 009, p.751).