Application Of Electronic Commerce ( E Commerce ) On Small Medium Enterprise ( Sme )

The Internet over the past few years has seen a huge increase in online businesses and consumers. Electronic-commerce is expected to generate $36 billion in revenue during 1999, up 140% from last year alone.[1] With such a huge amount of money to be made on the Internet it is becoming very appealing for small businesses and start-up companies to try and make their niche in e-commerce. The Internet is drastically affecting the way companies and people conduct business now. E-commerce encourages growth in existing as well as new businesses because of lower overhead costs, the huge consumer base and the freedom of information flow. However the online revolution has created a large

I am choosing to do my Business Analysis paper on e-commerce. I will explain the importance of it as well as the effects on the global economy. I will discuss the advantages of telecommunications and information technologies in a business versus those businesses without e-commerce. I will also discuss the marketing strategies involved with e-commerce and how it helps businesses. Due to the global nature of internet business, electronic commerce (e-commerce) standards have become a priority on the national and international level. While most traditional businesses are subject to local, state, and national

Many organizations industriously look for the opportunity to gain the competitive advantages in their industries. One of the opportunities that frequently used by the organization is the implementation of e-commerce. Thus, the e-commerce and the online sale transaction become popular in each industry. E-commerce provides many benefits, such as the saving of shopping time, the cost savings, convenience, and free from geographical constraints.

Small medium sized enterprises and small and medium sized businesses are often referred to as SMEs. These are companies whose number of employees or turnover falls underneath certain limits. The EU defines companies with fewer than 50 employees as small, and those

E-commerce has been considered to be a primary element to change the global economy and the method which business is conducted. (Shin, 2001) It impels enterprises to search for new sources and new measures to expand the markets for growing profits. With its flexibility to the changing trends, E-commerce allows business to have instant response to this continuous change.

SME is a term defined in EU law (EU Recommendation 2003/361) with the definition of all three types of SMEs – micro, small and medium sized businesses defined by their level of turnover and number of employees. Micro businesses employ < 10 employees and turnover < 2 million Euro; small business have <50 employees and turnover < 10 million Euro and medium sized businesses have <250 employees and turnover < 50 million Euro. (European Commission 2013) None of the respondents said that they employed less than 10 people so there were no micro business participants in this survey.

E-commerce means today, to take care of their own website, constantly updates to publish and in social networks to be present. The recent studies from the 2014 show for the first seven indicators for the successful marketing of products and services on the Internet. And this study was not focused on the largest and most successful companies, such as Amazon. Their marketing methods are usually not feasible for smaller companies without large marketing budget.

In today’s global economy, E-commerce has created a very cost effective way of reaching out to the customers. In this assignment, a clear description of ecommerce opportunities, strengths, technological advancement and how e-commerce is helping out businesses are briefly explained. The role of- ecommerce is studied by an e commerce business Souq.com.

The authors state that the Internet has become a necessary part of people’s lives, and it also enables the fast development of E-commerce. E-commerce shows its importance in enhancing business performance and providing better services to customers. E-commerce is also making steady progresses with more people are involving the online business environment. This research is focused mainly on the B2C segment of E-commerce.

In this globalization era, new businesses are emerging and developing very rapidly where competition between businesses is becoming more aggressive. Raymond, Bergeron and Blili (2005) mentioned that todays’ market is more effective and efficient since the use of technology that has eliminated distance and time. This situation may impact on small business or known as Small and Medium Enterprise (SME) to compete with bigger business. In order to survive and stay competitive, SME implements various strategies, such as adopting internet-based or web based (e-commerce) strategy in their business. Many studies argued that e-commerce is very useful for SME in

Small and medium enterprises (SMEs) normally share the characteristic of limited scale in their operations, and they play significant important role in economic development in many countries around the world (Kotelnikov, 2007). Although SMEs contribute lots of stimulus to the national economy, they commonly suffer from a lack of nationwide geographical presence and an inability of provide their services 24 hours a day and 7 days a week. The implementation of e-commerce eliminate these adverse conditions and promotes SMEs to extend wider markets without expanding their physical presence (Quaddus & Hofmeyer, 2007). E-commerce has a strong appeal to SMEs because it is able to make geographic locations, distances and time

e-business is more than just buying and selling of products and services through the means of digital media. Whereas e-commerce concentrates on buying and selling, e-business encompasses e-commerce and a whole lot more. For example, e-business includes both front – and back-office applications that form the engine for modern business. e-business is redefining old business models through the aid of technology, to maximize customer value. e-business is the use of the Internet and other networks and information technologies to support electronic commerce, enterprise communications and

Firstly, SME can be defined as the companies that employ less than 500 employees in public companies or private businesses . This means that who is using less than 500 employees of the company are measured SMEs. These small and medium business operates in a small production company like small bakeries, small shops, large shopping malls, with branch offices, a limited number of small shops around the corner, away, small hotels, small restaurants, etc., there are many definitions of SMEs, they come from a different country to country, one economy to another.

Electronic commerce or ecommerce allow consumers to exchange goods and services. Most business or companies are using this service to reach their customers. Ecommerce have expanded rapidly over the past few years and it is still expanding widely. As we can see nowadays, lot of companies are investing more money on ecommerce to expand their business because they can see that the business can reach international market and make more profit [1][2].

Being a large topic, the evolution of e - commerce is discussed as a component of the disadvantages of e-commerce. The use of the e - commerce and e - commerce selling invention hit the internet marketing with a thud on its invention in the late 1990s with its revolution of transforming the computer and internet industries. The use of the e - commerce came with several advantages that saw connections both in the internet and intranet easier and transfer of files become much easier between and among foreign businesses too but also came with disadvantage as it placed most businesses under