Discuss about the Challenges And Opportunities Of The Electronic Business.
Within the contemporary business world the technology is evolving at a rapid Pace and along with that the experience of consumers of purchasing goods and services changing at the same time. New products Markets and services emerging in such a quick speed sometimes it is difficult for the regulator and Consumers to keep pace with it. As indicated by Burns (2016) within this new market consumers frequently tend to have difficulties in figuring out the effective technologies to be used for them. Electronic business All the E-Commerce refers to the commercial transaction of purchasing and selling services and products over different electronic systems including varied numbers of stakeholders, marketers, manufacturers, service providers, Government and consumers. This facilitates the online purchasing of services and products. At this time the consumers can purchase almost everything online such as electronic goods, laptops, groceries, apparels, jewelleries and various other services as well (Ngai et al., 2017). The consumer can also avail the electronic system for different other purposes as well such as buying air or train tickets, insurance payment, consulting lawyers, manufacturers, retailers or other service providers who are also using the channel in order to offer services for their potential clients. However the regulators need to recognise specific segments that can be addressed within this emerging market and can later be a potential benefit for their business. Within the past few years the E-Commerce in Australia has involved to a great extent resulting into a more complicated supply chain and more challenging situation for online businesses such as eBay along with bringing plenty of opportunities in expanding their business at the same time (Wamba et al., 2015). Therefore it is significant for the electronic business regulators to ensure that the address all the potential challenges in the electronic business along with utilising the potential opportunities in in favour of their Business expansion. Therefore this people will address this specific challenges and opportunities of the electronic business within the backdrop of the business of eBay in Australia.
The objective of this project is to determine the challenges and opportunities of the Electronic business.
As the electronic business is a growing industry, thus there is significant scope of researching regarding the challenges and opportunities for this industry.
Generally the electronic business means conducting business activities with the help of internet referring to online trade digital businesses and internet commerce. As stated by Chaffey, (2015), the electronic business is the utilisation of the internet and computer network for improving the organisational performance. In addition to that it can also be defined as the procedure of purchasing, exchanging or selling services products and various information so the internet. Fast researches have indicated that the Electronic Commerce tend to help the business in increasing their market share profitability improved customer service and help the businesses to deliver the product and services in a much faster way then it was before. However there are a wide range of businesses which is adopting the electronic business systems for improving their current business performance. As shown by Otoo et al. (2017) there are four fundamental kinds of electronic business relationships namely: business to business including the primary supply chain activities wheat electronic information interchanging data sharing and electronic payment systems; business to consumer relationship including the direct online marketing and purchasing activities that occurs between the consumer and organisation including Internet banking online retailing and post sales services; administration to business relationship including the provision of data between the government and the business even though both the parties and walking to provide more such online activities and administration to Citizen relationship including supporting the interest of both the citizen groups and government that lead to an improved and sophisticated service through the internet (Chaffey, 2015). Several researchers have indicated that within the electronic marketplace the development of business to business systems is five times more than the business to consumer systems.
However amongst all these business relationships the business to business e-commerce is the most effective one. During 1970 is the electronic business has started getting implemented within the Australian territory which involved a rigorous sharing of various database between the customers and the suppliers. Many such companies have adopted these business functions as its applications and technological advancements cover a wide range of varieties including production marketing and sales (Otoo et al., 2017). Even do some organisations required their stuff and management to be more advanced for dealing with these new technologies, many businesses have adopted its implementation within their business functions. With the course of time The E-Commerce and Technology is evolving and now it allows the consumer to do various transactions. Invitation NFC technology the kinds of services and goods that is available for the consumers within the E-commerce market are being diversified. This technology utilizes the Radio Communication for sending information between two different devices and process the transaction (Akter & Wamba, 2016). This technology has already been used in various countries like Japan. The systems like Mikey has started being used in Australia which indicates its rapid usage within the country. Data from a past research shows that around 88% of internet users within the Australian household tend to be actively involved with electronic system activities for different purposes such as buying product or services online banking transaction government services participating in online auctions, selling products or sharing trading (Chaffey, 2015).
Figure 1: Adoption of e-commerce by Australian household internet users in six months
Source: Otoo et al. (2017)
The below figure also indicates various kinds of e-commerce activities which has been performed by Australians. Around 26% of users have performed one to three activities and almost half of them had indicated that you have functions more than 4 electronic activities and 18% have conducted 729 activities within the span of 6 months (Aguiar & Schneider, 2016).
Figure 2: Various kinds of Electronic activities performed within six months
Source: Aguiar & Schneider (2016)
The electronic system market place is developing in a rapid speed in Australia. The authorities and governments play a big role in regulating the entire landscape. The Australian Government had released a model in order to develop the best practice model of the Australian e-commerce in the year 2000 and updated it further (Antonius, Xu & Gao, 2015). The last amendment occurred in the year 2009. The policy makers of the Australian government have considered some contemporary issues for dealing with the e-commerce transactions, such as:
The electronic business in Australia is developing in a Rapid speed as the data indicates that Australian 10 to spend around 1.95 million dollars within a month for their online shopping. The size of online market in Australia is around 7.3% comparing to other businesses and in fact according to the current data the growth rate of the online market is 6% annually. This data explains why chevron international players are getting the Australian in electronic business industry. There is plenty of room for the for the development share therefore the electronic system market is ready to expand really soon. Therefore it is almost unknown facts that the Australian electronic business market is flourishing and experiencing significance success and development. However, the population in Australia is comparatively small than the UK and USA populations. Therefore there can be several issues of potential expansion within this market unless the organisation skills it’s business internationally and more quickly. As stated by Grewal et al. (2015) the organizations are more interested in establishing a business across nation and it has been a trend in the recent times. In addition to that the small size of the online e-commerce market has also been a major challenge for the companies like EBay. Not only there are regional players in the market, but there are also big international players who are eager to capture the continuously evolving Australian market (Antonius, Xu & Gao, 2015). The data from a latest survey has indicated that the young generations of Australia are spending more on the global online retailers than the regional ones. This also becomes a major challenge for the regional players as they are most of the times left out in the market. It has also seen that amongst the top five e-commerce websites in the Australia, four of them are international marketers (Mendling et al., 2018). In fact, after its entrance in the Australian market, Amazon has soon made it to the top five lists after it overtook few of the Australian owned and made retail websites.
The companies in the Australian market are also struggling with their implementation of reliable and fast delivery timings, consumer friendly interface, free shipping and having competitive prices in the market. These features can provide them the competitive advantage in both the regional and global market but the companies are not still capable of implementing all these features. In terms of EBay’s business in Australia, the consumers have faced several issues in dealing with the payment options. Along with that, the organizations within the Australian market also face issues with having a well-managed warehouse and inventory system for taking control of their stock of goods (Valos et al., 2015). This is a major tool that can help the company to grow and gain the competitive advantage in the market also helps to enhance the efficiency of their business, however it is mostly neglected by the companies in the Australian market. The products that are coming from overseas retailers take a long time to reach the consumers; however on the other hand, if it is ordered from an online local store, it can reach the customers way much earlier (Kasemsap, 2016). This tends to pose a bigger challenge for the international businesses such as EBay operating in the Australian market (Antonius, Xu & Gao, 2015). Therefore, lack of management and inventory stalls the product delivery can also hinder the electronic business in the Australian market.
In addition to that, one major challenge that creates a hindrance for the electronic business is the lack of innovation in their online sales strategy. All the companies have an active website management system that has dynamic content for bringing more traffic to their websites; however they also have to be more innovative with their actions (Ma et al., 2015). By understanding their market thoroughly, the online businesses will have to connect to their target consumers through multiple channels.
Another challenge for the electronic business is the geographical position of the country. Australia is poorly positioned geographically compared to its any other competitors, therefore it leaves it to reflect a much higher cost of running their businesses with more complicated compliances, higher wages and a complex tax structure (Weber, 2015). Therefore the organizations have to continuously strive for making a firm decision for some functionality for keeping their cost down. If the balance is not kept between the imperative of making profit and delivering modestly priced products, the business can be in great trouble. In addition to that, the privacy concerns for the consumers have also been a great issue for the organizations and customers as well (Antonius, Xu & Gao, 2015). This may bring legal problems for the organizations operating with the online data of their consumers.
Online business is a major opportunity for delivering and expertly executed profound personal experiences to the consumers in a way which cannot be gained being install consistently. The brands which delivering a high standard and memorable experiences through each single place across multiple channels they can set themselves up for unwavering loyalty from the customers and a much easier success. In order to achieve that the organisation within the electronic business market in Australia should take advantage of the upcoming opportunities to make their business expand (Sakr, 2014). The successful electronic businesses in Australia are utilising intelligent Technologies that are integrated with very structured business intelligence software for making this procedure most sophisticated. As an outcome to that the organisations are capable of personalising their promotional activities on the basis of the past order history of an individual customer that gender choices, therefore offering them a service or a product which is relevant to their past research online all their engagement with their social media platforms (Madden & Ahmad, 2015). Despite some claims the customers tend to share their personal information with the online businesses if they are demonstrating something that make the life much easier and give them better value. Furthermore the organisation can use this data and make the digital strategies more personalized which can help them to gain more business within the market.
The organisations operating in the electronic businesses have to take a multi channel approach in order to connect to the potential or existing consumers such as mobile applications, emails, online stores social media channels such as Snapchat, Instagram, Facebook, bricks and mortar stores (Hajkowicz et al., 2016). These oil channels help the organisation to understand online behaviour of each of their car consumers which can be helpful for personalizing the promotional activities for specific customers. This can be a major opportunity for the e-business was in increasing their existing customer base.
Other than this some new Paradigms such as transaction based payments collaborative services sharing information and space through along with memory or processor have made a major influence on the business functions (Golder & Macy, 2014). Plenty of modern technologies and new business Paradigms have developed the strategic management implementation of electronic businesses which enables the organisation to overcome the difficulties in a much easier way.
With the on demand stories and services along with new technologies, infrastructure and information helps these businesses to set with a limited infrastructure. Kolhapur it is an integrated approach of the business allows them to do so. The power of proceed Singh can be shared the storage and memory can be shared along with the bandwidth. Therefore the service providers can use the infrastructure only on demand and for a specific time period as well (Goggin et al., 2017). However it can also raise privacy concern regarding business data and information. However it can also be resolved by allowing the technology to only use a controlled and private yet collaborative and shared framework.
The conventional gadgets have been replaced by the new and more innovative gadgets which have high level of communication abilities and more intelligence. The e-paper and other electronic Technologies have been designed for providing a sense of real newspaper and giving the experience almost similar to real people reading (Golder & Macy, 2014). Therefore the gadgets have changed the traditional experience of consumers and it has advanced the communication channels among various stakeholders. Therefore it has developed the experience of business communication to the next level.
The consumers of Australia have a great preference for shopping online. A recent survey indicates that on an average four individuals out of ten tend to buy goods from the online store minimum of once in a month. Therefore the market of Australia has been quite used to buying things online and a large section of consumers prefer online shopping that the traditional shopping experience (Sakr, 2014). Also with a strong economy and a high GDP, the Australian population is having a disposable income and higher purchasing power.
Conclusion
This paper has exhibited the development of electronic business in Australia and how it has still been growing. However such development also brings both the challenges and opportunities for the businesses operating in the industry. The potential challenges and opportunities have been discussed. It can be observed that the electronic business is evolving in a rapid speed; therefore the businesses should make their strategies more innovative in order to gain a competitive edge in the market.
References
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