Comparison Between E-Business and Traditional Business

INTRODUCTION Electronic transmission line (E-Business) is a perplexing practice referable to the numerous aspects it involves. In todays rapidly changing environment, systems con E-Business to respond to several vocation drivers. The progressions of the macro-environments are creating innovative disdain environments, in which E-Business is considered a normal practice. This paper attempts to model the business environment and prise its competitive characteristics by comparing the traditional business with E-Business. Kreplin.K, et al (2000), place Reality and Virtuality toll these terms variantiates 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 bureau entrepreneurs use the cyberspace to coordinate merchandise businesses. Analysis of the macro-environment comprises of cultural, economic, competition, political and legal factors that affect the way business transactions are made today.CULTURAL CHALLENGES In the cultural dimension, traditional business entrepreneurs leave alone face a study gainsay. In this case, foundation exist is what worries traditional businesses of today. As opposed to E-businesses, online business transactions sire minimal cost (Robertson. B & vitamin A Sribar. V, n. d. ). Whereas, traditional businesses will fall in to incur a significant amount of cost in coordinate to remain competitive in the trade. This is due to the fact that there is a paradigm shift towards a more innovative food market on base the consumers.Through the report it is assured that in the long term infrastructure cost will be the key obstacle for traditional entrepreneurs as newer proficient innovations take place (Robertson. B & antiophthalmic factor Sribar. V, n. d. ). Opposing to the traditional manner of business, E-businesses also gestate their share of cultural challenges. Firstly, entrepreneurs will experience a change in the nature of workforce (Parreiras. F , n. d. ). According to Heerwagen. J, Kelly. K, K adenosine monophosphateschroer. K (2010), the structure of work is now more cognitively complex, team-based, nd season 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 look into done by Ahmed. Z and et al. (2006), it was set(p) that the resistance to change will cripple the organization. Thus, it is important for the entrepreneurs to adapt to blotto cultures. ECONOMIC CHALLENGES In the aspect of economy, the nations property plays a vital role. Thus, it also poses as an obstacle for traditional businesses.In areas of importing and exporting, entrepreneurs aim a mutually agreed upon curre ncy (e. g. U. S dollar) due to different payment methods. Furthermore, being 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, becoming a challenge for traditional businesses. On the separate 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 correspond that E-businesses are operating in a senior high schoolly competitive market whereby competitive advantage is al more or less impossible as highlighted by M. Hassan & E. Harris (2007). With this tight competition among entrepreneurs the issue of personation of products will arise. As describe in the related research paper, it was revealed that a massive amount of imitation took place as it was a cost effective method to most entrepreneur s. Therefore, it becomes an obstacle for E-business entrepreneurs. COMPETITIONWhen it comes to traditional businesses, entrepreneurs will definitely face competition. One major factor that entrepreneurs have to consider while exporting their products is the difference in time partition offs. An article written 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 communicating through digital platforms regardless of time zone differences.For E-business entrepreneurs, the first challenge here is the difficulty to harbour capital large enough for every ventures. This includes the research and development needed for the product. In the report Managing Worldwide trading operations & Communications with Information Technology (2007), it was highlighted that many venture capitalist will i ncur higher risk 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 known 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 add up of skilled workers (Wright. P & Lee. D , 2000). POLITICAL & level-headed CHALLENGES In the area of political and legal, there is a major connect of the commonwealths 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 Muslim countries due to their religious beliefs. Apart from that, t here is an essential concern of the security system and privacy of E-businesses (Parreiras. F, n. d. ). A research on Security and Trust 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 needs to play a role to protect the consumers against unfair and deceptive trading peculiarly 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 infinitely face multiple challenges. The traditional way of business may have been successful in the past, but now is the time for change. E-business enables organizations to reach worldwide 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 staggeringly and that governments of international countries recognises such 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 espouse 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. (2006) resistivity TO CHANGE AND ERP IMPLEMENTATION SUCCESS THE MODERATING ROLE OF CHANGE guidance INITIATIVES. online visible(prenominal) at http//web. usm. my/aamj/11. . 2006/AAMJ%2011-2-1. pdf Accessed 26/9/2012. Fleenor,, C. and Raven, P. (n. d. )Barriers To Effective E-Business In exploitation Countries. online Available at http//www. google. com. my/url? sa=t&rct=j&q=&esrc=s&source=web&cd=2&cad=rja&ved=0CC0QFjAB&url=http%3A%2F%2Fcluteonline. com%2Fjournals%2Findex. php%2FIBER%2Farticle%2Fdownload%2F3912%2F3957&ei=dTRlULXHAcnlrAeTuICgDg&usg=AFQjCNFo3MqMmHHbqbtHGpyGH9MPiLUQhA&sig2=NnGIv4mCofIkSx211W9PVw Accessed 28/9/2012. Hassan, M. and Harris, E. 2009)Entrepreneurship and innovation in e-commerce. online Available at http//www. journalamme. org/papers_vol32_1/32114. pdf Accessed 25/9/2012. Heerwagen, J. et al. (2010)The Changing Nature of Organizations, Work, and Workplace. online Available at http//www. wbdg. org/resources/chngorgwork. php Accessed 26/9/2012. HENRICKS,M . (2006)How Time Zones Affect Global Businesses. online Available at http//www. entrepreneur. com/article/160228 Accessed 28/9/2012. Kay, A. et al. (n. d. )AN EMPIRICAL STUDY OF THE KEY DRIVERS AND