Comparison Between E-Business and Traditional Business

INTRODUCTION Electronic Business (E-Business) is a perplexing practice referable to the numerous aspects it involves. In todays rapidly changing environment, organizations soak up E-Business to respond to several vexation drivers. The progressions of the macro-environments are creating innovative business environments, in which E-Business is subscribe toed a normal practice. This paper attempts to model the business environment and assess its competitive characteristics by comparing the traditional business with E-Business. Kreplin.K, et al (2000), set Reality and Virtuality terms these terms differentiates traditional business from E-Business. According to Kreplin. K, et al (2000), E-Business is based on a virtual (digital) business process with a virtual agent, and virtual product. Traditional Business is a physical business process with respect to the macro-environments. The macro-environment components can influence the vogue entrepreneurs use the lucre to coordinate expo rt businesses. Analysis of the macro-environment comprises of cultural, frugal, tilt, political and legal factors that assume the way business transactions are made today.CULTURAL CHALLENGES In the cultural dimension, traditional business entrepreneurs leave behind face a study challenge. In this case, radical cost is what worries traditional businesses of today. As opposed to E-businesses, online business transactions cause minimal cost (Robertson. B & Sribar. V, n. d. ). Whereas, traditional businesses depart study to feel a significant amount of cost in order to sojourn competitive in the market. This is due to the fact that in that respect is a substitution class shift towards a more innovative market alongside the consumers.Through the enshroud it is assured that in the long term infrastructure cost give be the key impediment for traditional entrepreneurs as newer technological basiss unsay place (Robertson. B & Sribar. V, n. d. ). Opposing to the traditional method of business, E-businesses in any case mystify their share of cultural challenges. Firstly, entrepreneurs will develop a transfer in the nature of inventforce (Parreiras. F , n. d. ). According to Heerwagen. J, Kelly. K, Kampschroer. K (2010), the structure of work is now more cognitively complex, team-based, nd time pressured. This movement causes entrepreneurs to be more competitive. Secondly, there is resistance to change when an organization moves towards adopting E-business (Parreiras. F, n. d. ). In a question done by Ahmed. Z and et al. (2006), it was determined that the resistance to change will cripple the organization. Thus, it is important for the entrepreneurs to adapt to rigid cultures. ECONOMIC CHALLENGES In the aspect of economy, the nations currency plays a vital role. Thus, it also poses as an obstacle for traditional businesses.In areas of importing and exporting, entrepreneurs emergency a in return agreed upon currency (e. g. U. S dollar) due to dif ferent payment methods. Furthermore, cosmos sensitive towards exchange rates of currencies is vital as it will affect the buying decisions (Kavas. F, 2011). As compared to E-business transactions, the fluctuation in currency is harder to depict thus, decent a challenge for traditional businesses. On the other hand, E-businesses also experiences economic challenges. Firstly, the free entry into the digital market will be a problem for entrepreneurs.As there are minimal barriers to entry, it would mean that E-businesses are run in a highly competitive market whereby competitive vantage is almost impossible as highlighted by M. Hassan & E. Harris (2007). With this tight tilt among entrepreneurs the import of imitation of products will arise. As described in the related investigate paper, it was revealed that a massive amount of imitation took place as it was a cost effective method to most entrepreneurs. Therefore, it becomes an obstacle for E-business entrepreneurs. COMPETITIONW hen it comes to traditional businesses, entrepreneurs will definitely face competition. One major factor that entrepreneurs have to consider plot of ground exporting their products is the difference in time zones. An article compose by Henricks. M (2006) explains that the time zone differences will cause a lot of difficulty in terms of decision making, planning shipment, organizing logistics and more. As opposed to E-business, E-business have online softwares that enables smooth communication through digital platforms heedless of time zone differences.For E-business entrepreneurs, the first challenge here is the difficulty to grow capital large enough for any ventures. This includes the research and development required for the product. In the report Managing Worldwide operations & Communications with Information applied science (2007), it was highlighted that many venture capitalist will incur higher peril with large sums of capital. This is because there is high uncertainty of success for entrepreneurs to compete in an open market environment. In addition, another factor arises which is also cognize to be labour market exuberance.This is described as an irrational competition that arose with the increasing need of technical skills (e. g. software programming). Therefore, firms will likely experience a short supply of skilled workers (Wright. P & Lee. D , 2000). semipolitical & LEGAL CHALLENGES In the area of political and legal, there is a major solicitude of the rurals policy for traditional businesses. Entrepreneurs need to abide by both the local and the other countrys laws and regulations while selecting to export goods over. This is due to several laws are made according to the countrys culture and beliefs (Kavas.F, 2011). For instance, products that contain pork are restricted in Islamic countries due to their religious beliefs. Apart from that, there is an essential concern of the security and privacy of E-businesses (Parreiras. F, n. d. ). A research on Security and corporate give in E-Business by Valmurugan,M. S (2009) discussed the unawareness of E-business transactions and the degree of confidentiality of E-business transactions. Without the trust of consumers, entrepreneurs in the E-business line will be facing serious competition to obtain their share of the market.Another major concern is the government regulations. The government needfully to play a role to protect the consumers against unfair and deceptive occupation especially when it comes to Internet banking (Kay. A, Hafeez. K & Siddiqi. J, n. d. ). Therefore, this would become a small obstacle for E-business entrepreneurs as they need to adhere closely to government policies. CONCLUSION This research paper covered numeral aspects of traditional businesses and E-businesses with respect to the macro-environmental challenges faced by the entrepreneurs.Because we live in a rapid changing environment, businesses will incessantly face multiple challenges. T he traditional way of business may have been successful in the past, but now is the time for change. E-business enables organizations to reach globular markets thus, crossing borders with less restraint from trade barriers. Evidently illustrated by Fleenor. C & Raven. P (n. d. ), the adoption rate of internet is growing tremendously and that governments of global countries recognises such(prenominal) growth hence, promoting it as well within their country (e. . E-government). Although there may be areas that E-business is a challenging area to pursue however, without such obstacles businesses will never revolutionalize. Therefore, it goes to show how businesses have evolved over the decades. Business entrepreneurs need to be more innovative as traditional business will soon be uncompetitive. 1,111 words Reference List Ahmed, Z. et al. 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