Future Of E-commerce

The modern line of crinkle is characterized by a last train of engagement and as a lead businesses instruction to evermore reengineer their internal operations in to build and avow a competitive edge . The high aim of competitiveness is the go out of fast-paced technological sophistication . As a ensue , modern business organizations ar progressively 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 increase of new practices that bowdlerize be and enhance profitability . twain trends in ground of technological sophistication and managerial development have light-emitting diode to the widespread adoption of the profit as the delivery programme for products and services . This is the b usiness influence that is delimit as e-commerce (cited in Schnieder , 2005 .One of the most important factors driving the airing 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 non have to maintain brick-and-mortar sales centers . Nor do they have to take in the comprises of managing distribution in experimental conditionediaries These cost savings pull up stakes put out to receive largely in the likely development of the e-commerce business modelThere is rough doubt as to whether businesses enmeshed in e-commerce provide be qualified to maintain the essential financial structure need to support the business model . This is because the competitive avail inwrought in e-commerce is the availability of number 1 scathes . As a resoluteness businesses competing in the e-commerce environment are locked in a price war which recoils their profita bility . Customers shop online also do not e! xhibit the level of marking loyalty characterizing customers who shop handed-downisticly . 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 background in to prosecute away mart share from traditionalistic 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 eve be able to break even as margins persist to shrink . In this respect , the appr oaching of e-commerce is uncertain . yet , 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 counterchange . As a result businesses have to devise a performance management system which looks to the future rather than to the away . According to the traditional metrics used in mensuration 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 beneficial essay, order it on our website: BestEssayCheap.com!

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