IMAT5211 E Commerce Systems and Impact of E-business

Bottlenecks Facing E Commerce Business

In the advent of the web development and internet technologies, E-business has developed worldwide reaching a great number of enterprises advertising their products in online marketing effectiveness. As reported by (Asiedu 2006, p 70), E-commerce business has been invented as the latest domain in business, becoming a requirement in open market with a high drive for technology. Besides this, there are challenges facing its prowess in many of the organizations and developing countries. This simply means problems encountered while transacting E-commerce business, for example, insufficient ICT facilities, lack of online marketing knowledge, poor payment services, etc.

Statistics Communicating The Problem

Currently, many investors are diverting their business to shopping malls which have greatly absorbed a lot of people nationwide. The impact of this is a decrease of people engaging in online E commerce business. For example, the current trends in social media are the upcoming malls, strategies to successful shopping mall businesses, Government finance to shopping mall investors .etc. These trends are key communication to the fact that online E commerce business is highly challenged.

Causes Of The Problem

The absence of government ICT strategies has created a great barrier in embracing the E-business.  As the number of internet users continues to be large, scarcity in telephones PCS and other software/hardware materials needed to access the internet becomes a hindrance. Odedra-Straub (2003, p: 456) in his journal reported this to cause stunted growth in E-business. In addition to this, the operational cost that is installation; maintenance, training, and support to E-business is very high In comparison with the enterprise's ability to afford it becoming a strong disparity in the level of E-business access.  

The infrastructural barrier is another limitation slowing down the growth of E-business. This includes lack of credit cards which are highly valued in E business, poor transport facilities where access to eligible E business organizations is limited and unsecured payment for online purchases due to online frauds as per (Coltman et al. 2007, p 100) journal.

Again achieving regulatory and legal framework from the set institutions becomes a hindrance. This comes about. As a result, inaccessibility brought about by poor physical infrastructures. Moreover, connectivity is another bottleneck faced by consumer markets.This counts in where payments, deliveries and willingness to purchase is limited by low economic development, social trends and small per capita income as reported by Odedra-Straub (2003, p 505), in his article.

Poor Title display that there is a failure to display a unique title hinders prowess greatly in E business. This happens with the respect that there is a lot of information being fed on the internet as E business deals with products from different categories,  identifying once target becomes harder.

Social and cultural barriers still affect most developing countries.In that E business is not highly supported and accepted. Efendioglu et al. (2004, p 67) stated clearly that "people didn't have confidence in online culture and steady prowess in technology."

Despite online transaction being a basic element in E business, facilities to E business such as telephone sales and catalog are not recommended in the culture way of doing business. The founders of business are not linked to such a methodology. It's also identified that primary cultures such as personal contact limitations, trust in shopping places, institutions and language barriers still stand as strong barriers hindering E business growth.

Political and government barriers also have become a major hindrance in the development of E business. Great levels of poverty, poor states in network and telecommunication have contributed to this. As per the research, most developing countries are associated with an imbalance in budget brought about by political instability. Lack or poor policy implementation in ICT, by the government, has slowed down the growth of E business. No progress can be made in E business where a government fails to give an initiative regarding promotion of ICT education and Implementation of a clear adequate regulatory framework for E business.

Unavailability of reliable and authorized payment services in E business is another bottleneck facing E business.  lack of institutional environment which process credible payment channels such as debit, smart cards or online currencies, which makes the payment over the internet possible, hinders online consumer market.This happens since no transaction can be made without them. As shown from a study by frauds Oxley and Yeung, (2001, p 400) other means of payment are subject to frauds.

People have different tastes and priorities in that they largely differ in opinions about a product on the consumer market. Others follow what they here and comments they come across in their day to day operations. Following (Goose et al. 2008, p 140) statement on his article, this comes as a result of lack of product review where customer buyer relation is poor In E-business.  Many organizations nowadays are not ready to tap into logistics.

Attaining capabilities of third party organizations that provide it demand the ability to handle returns at a faster rate and a lower cost. (Kim 2010, p 90), narrates that This brings about competition in E business since a quick response is a great differentiator since many people need day purchase delivery.

Penalties regarding duplicate content have become a rampant hindrance discouraging many organizations from practicing E-business. This comes as a result of the closure of websites which have not obliged with the required standard. It also happens in conjunction with a poor presentation. In this case, it is shown that companies present products in categories and sub divisions resulting in the generation of multiple URLs. This brings about display of the same product now and then resulting to website penalty.

 As a result of this, E business diminishes since the cost of recreation is high and unplanned. Drawing illustrations from (Kumar 2007, p 1) showed that including intermediaries in E business is also an undermining factor regarding operational cost since the chain supply created is associated with poor quality delivery, inflation, and disorganized customer relation.

Interest Of The Problem

These problems hindering E business give an evaluation of what can be done to improve the level of its prowess.Referring from (Yi 2007, p 848) journal showed that measures imposed on them give a winning negotiation globally. It also alerts financial institutions about the efficiency of the payment systems opening a wider market for E business. It is also evident that Through E business realization a country or an organization can scale down its operational cost. This comes about since online business requires no much physical transport hence improving countries economic growth. It could also fuel countries or an organizations ICT sector by opening other fields in industrialization globally. (Baines et al. 2007, p 1550) in his abstract commented that Improvement on connectivity worldwide creates a variety of business ideas, mentorship, and significant social trends.

Despite E-business being curbed by a lot of challenges, there are strategies which a country or an organization can employ to overcome them. These strategies can result in a great improvement in E commerce business as a core factor in economic development (Jelassi 2005, p 670). To achieve this, a procedure criterion has to be followed.

 One of this is an adequate supply of ICT facilities. That is the provision of PCS and mobile platform services which give real and on time notifications, click to activate maps and product information. These facilities tend to improve E business since the relationship in the customer market is perfect. Through this, a steady target to an online audience can be achieved. These results to the creation of a unique market design site where reaching an audience with a common interest can be achieved. Moreover, one can sell a product or a service with the specialized offering.

 Another measure is for a government or an organization to initiates policies and budgets on Provision of ICT education, people are equipped with browsing knowledge and skills which help them to create appropriate site designs and structured navigations which result to attraction of audience of interest and keep them coming back across platforms laid online (Chaffey 2007, p 11). Reported that “through ICT skills one can use vibrant slide shows and colors with flashy design to stipulate a sense of the audience of interest."

Investing in network and communication channels is another measure identified to give a significant impact in E-business since the market layout can be made efficient and reliable. People will be able to offer experience across channels by ensuring promotional strategies, availability of products, and brand notification is consistent across all the channels.

 Adoption of the new E-business strategy culture as a measure to solve E-commerce business challenge can hand in competent E-business strategy. The internet creates an environment for customer lifecycle management. It does this through the provision of services such as up to date information on their accounts done online by entitlements based on one's profile. (Oliveira 2010, p 1340) in his article reported that “This creates room for interaction and collaboration supporting customized solution to an online problem.”

 Critical Payment review is another measure found to give a great significance for any E business running the country.  Uses of credit cards, smart cards, and online currencies, have made people to develop an aspect of relying on the opinion and comments they hear about them. Such opinions and comments are the use of invalid credit cards from some countries and distinct fluctuation rate in online currency.

 In his article Evangelista (2006, p324), attributes that It is important for a country to integrate on this and appreciate the method stipulated by the set organization. This will include an evaluated procedure such as the set of institutions to process the due methods of payment, ease access to these institutions, unifying the website to this organization and global linkage.

When an organization practices a procedure product review as a measure to fight challenges in the E-commerce business, customer buyer relation can be improved.Referring from a statement by (Barnes 2004, p 130) it does happen since there is an exchange of opinions. This can be done by creating an interface or an app review on the web page of an organization. This will facilitate E business since the organization can move with customers taste and preferences.

If title tags are structured in a unique way, such as item-model-brand type, use of unique numerics and use of key tags, the effect of losing customers on target due to the unstructured title can vanish. This measure has been termed to improve E business across many regions. In the case of website penalties resulting from duplicate content, as reported by HernáNdez ( 2009, p 103. )  “an organization can try to avoid areas that bring about duplicate content such as archives and sub category pages." Addition to this, opinions, comments and reviews create their URLs depending on the structure of the website. (Sin Tan 2009, p 230), explains in his article that This Page can be excluded from the index, by having a version which is canonicalized at the page of the root of the website.

 Tapping into logistics that function similar or close to third party organizations which provide them, can be a measure employed to solve the identified challenges. By adopting this, organizations can be at a point to provide quick response in customer purchase as required, and accommodate the desired growth in E business. Furthermore, it can help cope up with the stiff competition existing in between, as reported by Evangelista  (2006, p 10). Bypassing the middlemen is a benefit set to withdraw constrictions and inflation brought about by chain distribution this will reduce operational cost and enhance maximum benefit reap.

Global alliance Corporation Company

Through today's adoption of E business in the online consumer market, the research has it that many organizations have been cubbed with the inability to maintain its standards leading to operations on low-level scales.  (Eikebrokk 2007, p 370)in his article outlines that Following a large number of internet users, the available internet facilities have become scarce limiting people from engaging in online E business.

 In remedy to this, the organization should provide adequate ICT facilities such as invest on large scale installation of computers, internet connection, telecommunication and network facilities. This will create affordable and convenient ways to access the internet and conduct marketing most efficiently.

For E business to run smoothly, people need to be educated on ICT network interface and telecommunication. This will give them creativity and innovation on online E business such that a person can create a website, a customer interface, an attractive advert design and be able to attract more customers and retain the existing ones. (Shah Alam 2008, p 130) Tells the readers that today being a world of daily technology advancement, some integrations need to be made on the analog ways of conducting online business. The society should be guided on how to shed off from the stipulated analog culture methodology. And embrace the updated ways of online E business.

Inaccessibility to the accredited modes of payment is another hindrance that has been observed to slow down the growth of E business. People have still not yet appreciated this mode of payment such as credit cards, debit cards smart cards and online currency. The organization should create institutions lending these facilities and also initiate policies that create room for easy access to them as reading from (Zhu 2005, p 68) journal. This will create confidence and trust in online E business and also improve customer relations.

Addition to this, online fraud that has discouraged many people from engaging in online business as they fear being conned will terminate and encourage many people to engage in online E business. This at large will help achieve organizations goals and ambitions and also improve people living standards.

Product review has been found to be essential in online E business since people have a way of paying heed to comments and opinions they hear about a product. Following a statement by (Constantinides et al. 2008, p 240), it would be suitable for a company to develop a system or a review app on the E business website. This can give customers room to place their opinions about the purchase of a product and also get feedback about the product.

 The structure of the title used in advertising and displaying the products need to be keenly observed. For a product to meet the targeted customer, the title of access needs to be unique and attractive. It has been found that E-business deals with a variety of products and brands from different categories such that customer determination is limited by unstructured titles (Chaffey 2007, p 343) in his journal justified this to be a great hindrance in E-commerce prowess.

Another limit .is the case of duplicate content it has been found that web penalties resulting from this can be eliminated by avoiding areas that bring about duplicate content such as sub categories and archives. Also, pages for opinions and comments can be excluded from the index by having a version which is canonicalized at the page of the website root.

Failure to tap into logistics running across third party providers has been found to be another limitation slowing down E business growth. This has been observed to cause stiff competition in customer purchase and on time delivery since people are in need of a quick response. To remedy this in E business, organizations are encouraged to adopt the third party criteria of the online market, to move hand in hand with the logistic providers.

There are also existing middlemen who have been termed to increase operational cost in E business. they lower down the expected profit due to inflation and constrictions imposed on E-business by the chain supply created by the middlemen. To evade this, the organizations are encouraged to avoid chain supply and be independent in online E-business, and this will result to maximum benefit reap and reduce operational cost.

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