Free Management for Information Systems Essay Sample
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E-commerce refers involves the carrying out of business transactions over the internet. The use of e-commerce to carry out business transactions facilitates the reaching out of a wide customer base since the internet is widely available and internet users are growing day by day (Laudon & Traver, 2009). Therefore e-commerce offers an effective way of marketing and selling of a company’s products and services.
A notable challenge associated with the implementation of e-commerce is due to its selective nature in the sense that e-commerce does not work all products and services. The challenges and complexities of e-commerce are derived mainly from two sources including organizational challenges and challenges posed by the customers. The most pronounced challenges include an increase in the online presence by businesses, changes in demand, changes in the paradigms for marketing and distribution from conventional methods to modern methods and an increasing competition (Meier & Stormer, 2009).
A significant drawback associated with e-commerce is that most businesses are increasing their internet presence, which translates to increased competition. This implies that companies aiming to increase their presence in the internet using e-commerce must develop a distinguished e-business framework that outperforms their competitors. In addition, business over the internet is increasingly becoming dynamic, which is a significant challenge in the implementation of e-business because of the increasing security and privacy issues over the internet (Plant, 2000).
Online presence does not necessarily bring you over to business success; it needs the firm to accurately determine the needs of its customers, which is a significant challenge prior to the implementation of e-business platforms. It is important for businesses to ensure that their online presence is an accurate depiction of the nature of their businesses. This requires e-business frameworks that are still simple and comprehensive. It is also vital for the company to ensure its website is top ranked by the search engines that are frequently used like Microsoft Bing, Google and Yahoo. This comes with additional expenses when a firm wants to successfully implement e-commerce (Meier & Stormer, 2009).
Another crucial challenge during the adoption of e-business is the facet of consumer protection. Many state laws prohibit the use of e-business in terms of bans that aim at hindering online orders, online advertising on commodities and services that are produced out of the state and the legal requirements for setting up e-business.