The Impacts of Building E-commerce Websites for Business - Coursework Example

Electronic commerce or e-commerce is the use of Information Technology (IT) systems to conduct the buying and selling of goods and services, electronically (Wigand, R.T. 1997). It is not just about having a website, since a company's website may provide useful information to potential customers but unless there are mechanisms to also transact a sale, it is simply an online brochure. With Internet technology fast becoming an integral part of the business environment, most e-commerce is conducted over the Internet, though not exclusively.

Smart card technology and electronic kiosks that do not utilize the Internet are also considered e-commerce applications.
Although the website is substantial the potential benefits are enormous in providing most types of business with a competitive advantage.

1.0. Introduction & Background:
In the organizational landscape, the new and reasonable means that is perhaps the most encouraging of all drivers is E-commerce. It seems to have revolutionized the manner in which business processes and procedures are being undertaken (Margolis, 1999). Some of the goals that it has been able to effectively carry out are the improvement of the dealings among buyers, vendors, and suppliers, greater cost-efficiency, and widening the E-commerce website’s scope in the global economy. This has accorded businesses more opportunities for growth and expansion (PC Week, 1999). Through the advocacy of more personalized approaches in business, it has given a new definition to competitiveness. Customer information and data are now being yielded by vendors from their consumers. The significant volume of data also allows these individuals to leverage promotional offers and the best buys. Online trading has been successful at endorsing price competitiveness and compels online vendors to work towards this end goal (Munk, 1999).

Within the retailing industry, the increased availability and accessibility of cyber trading have been the key to its immense popularity and steady rise. This also implies high-cost efficiency, without the necessity of expenses such as rent, manpower cost, or labor. The intense competition in physical markets and the very high fixed costs are just grateful for this innovative solution (PC Week, 1999). The broad array of products and services are appreciated and patronized by consumers. The substantial volumes of online data also compel online vendors to leverage on cost. The relative ease accorded by online shopping has allowed consumers to optimize their management of time (Mellahi & Johnson, 2000). Numerous online vendors have adapted the online store and a novel online shopping experience as concepts in the new online age. An outcome of this occurrence is the birth of the terms "cyber shops, virtual shops, e-tail, and online shops" were brought forth (Mellahi & Johnson, 2000). Physical vendors are pressured to cope or run the risk of being tagged obsolete. This resulted in the mushrooming of websites (PC Week, 1999).

A contemporary investigation conducted by the World Trade Organization has indicated that a specifically promising future is waiting for firms who are engaged in trading products and services through cyber trading.