SCHOOL OF BUSINESS INNOVATION AND TECHNOPRENEURSHIP
E-Business BFT 104
Question 1 : Differences between E-Business & Traditional Business
Since the surge of popularity of the Internet, many entrepreneurs have capitalized on it by starting businesses completely based on an online platform. These are called e-businesses or e-commerce sites. The typical e-business follows a different business model than traditional businesses. These differences have created completely separate business strategies for profit, operations and management.
The logistics of e-business typically have lesser constraints than traditional business. E-businesses are not limited to venue; they can be located anywhere and still serve the same customer. Their product capacity is "infinite" in that they are not limited to the space of a brick-and-mortar store. E-businesses mainly depend on shipping methods to deliver and receive items, while traditional stores conduct an instant exchange. This timing difference can be a significant factor for some consumers; for example, refunds would typically take much longer to process for e-businesses than in a neighborhood store. Human Resources
The two types of business differ in talent recruitment. E-businesses significantly emphasize technology and hire more people from the web design and development fields. In some cases, every employee may be required to have a technical background or receive in-house training for basic web development. On the other hand, traditional businesses are more diverse in hiring for nontechnical positions, such as sales representatives and display managers. Marketing
In marketing for traditional business, marketers can focus on all five human senses to influence the sale. For example, maintaining a proper display keeps the product aesthetically appealing. Consumers can...