Future Of E-commerce

The modern line of crinkle is characterized by a mettlesome train of battle and as a lead businesses fight to evermore reengineer their internal operations in to build and maintain a competitive edge . The high aim of competitiveness is the go out of fast-paced technological sophistication . As a ensue , modern business organizations be more and more making practice of information technology in to ameliorate the level of their motion . Along with technological progress advancements in charge view are also contributing to the growth of new practices that bowdlerize be and enhance profitability . twain trends in ground of technological sophistication and managerial education have light-emitting diode to the widespread adoption of the profit as the delivery programme for products and services . This is the busine ss fabric that is delineate as e-commerce (cited in Schnieder , 2005 .One of the most important factors driving the facing pages influence of the e-commerce business model is the reduction of woos . Companies like virago relying totally on the Internet for delivering their products and services do not have to maintain brick-and-mortar sales centers . Nor do they have to bring forth the appeals of managing distribution in marginediaries These cost savings leave alone put out to receive largely in the likely development of the e-commerce business modelThere is rough doubt as to whether businesses employed in e-commerce impart be qualified to maintain the requirement financial structure need to support the business model . This is because the competitive payoff inwrought in e-commerce is the availability of junior-grade scathes . As a turn out businesses competing in the e-commerce environment are locked in a price war which recoils their profitability . Custom ers obtain online also do not exhibit the l! evel of rat loyalty characterizing customers who shop traditionalisticly . According to one study , customers shop online are passing price-sensitive (cited in Martinez Aguado , 2008 . As a result businesses practicing e-commerce have to reduce their prices on a continuing primer in to prosecute away trade share from traditional businesses .

This is not a problem in the short term given the cost savings that the e-commerce business model facilitates . In the long term however , these businesses may not even so be able to break even as margins track to shrink . In this respect , the time to come of e-commerce is uncertain . however , businesses will continue to take advantage of the scope for cost reduction that the Internet facilitates . As a result what will most belike happen is that business organizations in the future will be using a combination of traditional distribution intermediaries and the e-commerce business model to maintain profits (cited in Laudon Traver , 2007As mentioned before , the catamenia business level is characterized by a high level of competitiveness and this is the result of fast-paced channelise . As a result businesses have to devise a performance management system which looks to the future rather than to the sometime(prenominal) . According to the traditional metrics used in step performance , lucky past practices were considered to suffice for maintaining the competitive advantage in the future . However that strategy was effective because market forces were more or less...If you want to get a upright essay, order it on our website: OrderCustomPaper.com
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