Intense Competition Observed in E-Commerce - Article Example

Electronic commerce is doing business online. It is about using the power of digital information to understand the needs and preferences of each customer and each partner to customize products and services for them, and then to deliver the products and services as quickly as possible. There are many benefits arising out of E-Commerce because of which many businesses have turned to sell their products online. (Techarena).

The four main reasons for intense competition in E-Commerce are:

• Global reach
• Higher profile
• 24 × 7 availability
• Targeted focus and Cost savings

Global Reach - A small organization no longer has to be a local organization. Anyone with Web access (in a living room in Chicago, in a log cabin in Alaska, or in a café in Bordeaux) can spend their time, and their money, at any online business.

Higher Profile - A company can have a significant Web presence and profile, even with relatively modest depth and breadth to its inventory. On the Internet, a small but very efficient company can have the profile of a much larger, deep-pocketed competitor.