E-Commerce Walmart and Business Term Paper

Pages: 12 (4027 words)  ·  Style: APA  ·  Bibliography Sources: 12  ·  Level: Master's  ·  Topic: Business

SAMPLE EXCERPT:

[. . .] Using e-business, companies can pay their suppliers almost instantly. (Rekha, 2007)

E-business, however, reduces the level of reliability as the system depends a lot on things that have a probability of crashing. As a result, backups are made to ensure that important data is not lost. (Rekha, 2007)

The advent of e-commerce has also brought in a security risk. As huge sums are transferred via internet, there is a chance of theft and hacking. (Rekha, 2007)

Effects on Retailing

Retail businesses have also benefitted from e-business. As the cost of supplies is reduced, the retailers can offer a lower price to customers online and can therefore get more customers and profits. (Steel & Daglish et al., 2014)

In addition, the retail businesses can provide the customers with a wide range of products online. As keeping a wide range requires physical space, the benefit of e-commerce to retailers is that instead of displaying the stock, they can stack it and can show a picture on the website. In this way, the demands of the people will be met efficiently. (Steel & Daglish et al., 2014)

Product availability is also improved after the advent of e-business. As mentioned earlier, the retailers can get a smooth supply of products using e-business and therefore they have optimum stocks all the time. As a result, more customers are attracted towards them. (Steel & Daglish et al., 2014)

On the other hand, e-business has somehow damaged the goodwill of the retail business. In conventional retail business the customer used to go to the shop, buy a thing and pay for it but in e-business there is a great chance of fraud and therefore people do not trust it. (Steel & Daglish et al., 2014)

Effect on Entertainment

E-business has enhanced the performance of entertainment industry as the industry has now got a global market. DVD's and other entertainment items can be sold over the internet to a wider range of customers. (Hoffert, 2000)

In addition, different web hosting services have also started. They provide the service of online entertainment to the audience and are used by a lot of people. In addition the number of people following these websites is also increasing day by day. (Hoffert, 2000)

On the contrary, the e-business has also made copyright infringement easier. The copyrighted material can be changed easily if it is made available on the internet. Therefore care must be exercised in this matter. (Hoffert, 2000)

Effect on manufacturing

E-commerce will also have an effect on the manufacturing sector as this sector is required to be more flexible. The customer may demand more of one product and may also demand some customization as well. As E-commerce can make the customers more demanding, it can also make the manufacturers more flexible by ensuring quick delivery of raw materials etc. (Soliman & Youssef, 2003)

E-business can make the business relationships better and as a result, supply of raw materials to the manufacturers is improved. Therefore, the cost of manufacturing is cut down and the manufacturers get extra profit. Therefore, e-business is advantageous to the manufacturing sector. (Soliman & Youssef, 2003)

On the other hand, the use of e-business creates some problems as well. The companies have to be very competitive as a minor mistake can replace them with a more efficient manufacturer as the progress of all manufacturers will be clear to the other companies. Lastly, due to increased transparency, the manufacturing companies may also find it difficult to act according to their strategy. (Soliman & Youssef, 2003)

Analyze e-business operations from each of the following four perspectives:

Online Payments

Online shopping is increasing in volume and profit everyday as the people prefer using the internet to go shopping rather than using a car. Despite the fact that the notion of online shopping is cozy, some problems arise in the case of e-payments. These problems are discussed below. (Paunov & Vickery, 2006)

The first and foremost issue that a customer and the vendor is worrdied about is the security of the funds that are being transferred online. From the customer's point-of-view, the information and funds of the credit card, which is being used to make payments, are very sensitive. The customers are reluctant to give their credit card numbers because of the high risk of fraud and theft. (Paunov & Vickery, 2006)

The vendor, on the other hand, is worried whether the customer is real or not. If a product is bought online, the customer should be real or else the company will face losses. In addition, the sellers have to make sure that the customers are going to pay for the things they are buying. In case of e-checks, the vendors may not get the funds they were promised from the bank. Moreover, in the cash on delivery method, the vendor is always at risk that the customer may deny placing an order. Therefore there are security concerns on both sides. (Paunov & Vickery, 2006)

In online shopping, the customers are not able to see the product before buying it. This makes them concerned about further frauds. In addition, the customers are also made subject to credit card and shipping charges, which, increases the cost of goods bought online. Many credit card companies charge a transaction fee of up to 2.25% on average. (Paunov & Vickery, 2006)

Customer Satisfaction

E-commerce has created a new way of buying and selling goods. It has transformed the market from a place where people used to go, into a place that comes and visits people at home. This convenience makes people prefer online shopping to the normal one. There are, however, some drawbacks, which are latched on to e-commerce. (Khatibi & Ismail et al., 2003)

The people expect a lot from e-commerce websites nowadays. The level of expectation was quite low when in the beginning but nowadays; people expect these websites to be picture perfect. This leads to dissatisfaction when a company fails to fulfil the expectations of a customer. In addition, the customer does not need to stick to one company as there are a lot of companies operating in e-commerce sector. (Khatibi & Ismail et al., 2003)

Secondly, a huge number of companies is dealing in e-commerce these days. This makes the internet rather overcrowded. A customer looking for a commodity over the internet will get so many options that he may get confused. This eventually leads to customer dissatisfaction as the customer has to leave the marketplace empty handed. (Khatibi & Ismail et al., 2003)

Moreover, some customers also have a knack for shopping malls and super stores. This kind can never be satisfied by e-commerce, as they will always prefer going out to shop. (Khatibi & Ismail et al., 2003)

Supply Chain Management

Supply chain management is improved drastically with the coming of e-commerce. The direct link between suppliers and retailers lead to optimum level stocks. Therefore, the customers return with what they wanted almost all the time. However, the Supply Chain Management is faced with some problems after its integration with e-commerce. (Yang, 2012)

E-commerce has created a great deal of transparency in the operations of suppliers and retailers. As a result, there is a fierce competition between different companies. If a supplier is not able to meet the demand, it is replaced with a more efficient one. The companies, however, might not always have a competitive edge over each other and in that case, the decision making becomes difficult for the management. (Yang, 2012)

In addition to that, e-commerce demands the business partners to be very cooperative. It requires the companies to change with a greater speed than the market and the result is a lag between the two. As the market conditions may not always support cooperation between business partners, the supplier and the retailer will then be paranoid about their partners as there will be little or no reliability. (Yang, 2012)

Lastly, the smooth application of e-commerce on supply chain management requires the two business partners to share information as well. As mentioned earlier, market conditions may not always support the exchange of information as well and in these conditions, the management cannot fully reap the benefits of e-commerce. (Yang, 2012)

Advertising

Although e-commerce has provided the companies with a whole new platform to advertise their products. This affect the advertisements and the marketing process positively. However, there are some challenges that should be kept in mind. (Gao & Koufaris et al., 2004)

First of all, the huge influx of companies to e-commerce has created a plethora of advertisements. This adversely affects the advertisements of every company as it may get lost in the heap. Therefore, the advertisement may not reach the customer at all. (Gao & Koufaris et al., 2004)

Secondly, the attitude of customers towards online advertisements is getting worse. As there are many ads, the customers have gotten fed up and many customers may not even pay attention to the ads. In addition, the consumer preferences may… [END OF PREVIEW]

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