• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month
  1. 1
  2. 2
  3. 3
  4. 4
  5. 5
  6. 6
  7. 7
  8. 8
  • Level: GCSE
  • Subject: ICT
  • Word count: 2586

E-commerce strategy

Extracts from this document...


INTRODUCTION: E-commerce is about doing business electronically. It's more than just buying and selling using the internet, though the Internet and World Wide Web play a fundamental role, but includes any form of business or administration transaction or information exchange executed using information and communication technology (Rowley, 2002). Organisations are now building E-commerce Strategies into their Business Strategies in an effort to increase their competitive advantage and market share. Organisations must take careful consideration of many factors when designing and implementing an e-commerce strategy. It is important to consider factors in the internal and external environments, the external being the operating and remote environments (Finlay, 2000). The immediate marketplace shaped by customer needs and the way in which services are provided to them via competitors, intermediaries and upstream suppliers has the most significant influence on an e-commerce strategy. Wider issues such as government pressures and actions, legal and ethical issues, local and international economic conditions, demographic trends, information technology developments and the society at large (Chaffey, 2004) also need to be examined and understood to ensure potential problems facing organisations wishing to develop a revenue stream through B2C e-commerce are overcome. An effective e-commerce strategy establishes goals and objectives and sets out how objectives will be achieved. It is therefore important that organisations develop e-commerce strategies as effectively it creates a framework for future operational decisions and planning (Rowley, 2002). ...read more.


The following will highlight potential problems e-commerce strategies will face relating to the elements of the remote environment: 2.1: SOCIAL Society's reluctance to adopt the internet can effect organisations implementing e-commerce strategies. This reluctance stems from the following: 2.1.1: Cost of access: purchasing a PC/laptop and the additional equipment/services necessary to connect to the internet are not cheap. As a result fewer people have access to the internet and the ability to operate online. However, Internet cafes have been a huge hit in all quarters of the world and do provide access to PCs and the Internet at a relatively cheap cost. 2.1.2: Value Proposition: for the internet to be adopted there needs to be a perceived need for its use. Society needs to be shown what the internet offers that other media does not - if not fewer people will access the internet and operate online. A good example of how the UK Government has tried to enforce the value proposition of the internet is through the Tax Return Online scheme (www.inlandrevenue.gov.uk) with the added benefit it will do all the financial calculations for you. 2.1.3: Ease of Use: with difficulties first connecting to the internet and navigating through web-sites, less people access the internet and operate online. Email and even different systems can be a problem. 2.1.4: Security: much of society's perception is that the internet is unsafe - mainly exacerbated through the media - resulting in fewer people wishing to provide their bank and personal details over the internet and operate online. ...read more.


in international shipping and the regulatory and customs handling legislation that is coupled with it * organisations need a prior and in-depth understanding of foreign market environments Organisations that lack this type of knowledge and experience will find it difficult succeeding with e-commerce strategies. Further problems of globalisations is the lack of ability organisations have in developing multi-language versions of their web sites due to lack of revenue and resources, again making it difficult to operate on a global scale. A solution to problems associated with globalisation is localisation. Organisations could identify the specific needs of the countries/regions they were operating in and tailor their products and services to their needs, however, this is an expensive task and one possibly only the largest organisations could implement. 2.6: TECHNOLOGICAL Finally, organisations wishing to implement an e-commerce strategy will need to decide which technological innovations to use to create competitive advantage. Although not immediately seen as a potential problem, organisations which choose to ignore new technological innovations, or wait for its competitors to test and implement new technologies first so as to identify where potential problems may lie can fall 6-12 months behind if the new technologies prove a success. For those organisations that take the risk of immediately implementing new technologies to support their e-commerce strategies the rewards can be high, but at the same time any problems there are with the new technologies will effect the organisation badly and play into the hands of the competition. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our GCSE Communications section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related GCSE Communications essays

  1. Marked by a teacher

    Using ICT for Communication, Data, Commerce and Entertainment

    3 star(s)

    Also when using video phone the other will have to pay money as well as the person calling, it will drain your credit money fast when using video phone, and not all phone support video phone calling. Video conferencing: Advantage: Video conferencing is a another good way to communicate with

  2. Peer reviewed

    Disney's E-Commerce Strategy.

    5 star(s)

    Another reason Disney must boost its use of e-commerce is because it cannot feasibly build tourist attractions in every country in the world due to political, cultural and or economic barriers. However effective use of the Internet would afford the company easier penetration of most markets and profit even in regions where parks can't be built.

  1. ICT Systems in Everyday Life: Your Local Community

    Projection - how the theatre presents the movie 1. Production - With an �400 consumer digital camcorder, a stack of tapes, a computer and some video-editing software, we could make a digital movie. But there are a couple of problems with this approach. First, our image resolution won't be that great on a big movie screen.

  2. special needs

    Email software keeps her in the comfort of her own armchair and thus allows her to communicate with friends she desires too. This meets her social needs proficiently. As with many technologies and software's, email software's have advantageous features and a few number of drawbacks.

  1. Information Security.

    Every connection to your mail server(s) passes through IronMail. IronMail is the first product designed to provide application-level security for email. What does this mean? It means that IronMail will not allow exploitation of vulnerabilities in your email systems or allow your email system to be used as a delivery vehicle for attacks.

  2. SK-II has already established as a leading brand within its' skin-care industry. By empowering ...

    over the web, and the tracking of individuals' surfing habits by marketers. While 36% are paying "somewhat close" attention to these matters, nearly half, 48%, admit to paying little or no attention. The survey also notes other privacy issues that concern many web users including: * The potential for government

  1. Development of a set of marketing recommendations, marketing mix campaign and customer care initiatives.

    It also important to keeping adding the benefits to products and services which customer may require. Should be asking the question: ''Does each product or service we offer provide relevant and desired benefits for today's customers needs?'' (Christopher and McDonald 1995, pp.25)

  2. Unit 23: Investigating Communications and Networks

    Ongoing costs: There are several options available. The most basic is to set up a 'free' account and pay for the phone call costs. This works out to be very expensive if you are more than an occasional user. With the advent of flat rate, you can sign up with

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work