Catholic Institute of Business and Technology
What are the major limitations on the growth of e-commence? Which is potentially the toughest to overcome?
Discuss why new and improved security measures are not enough to stop online crime? What is the missing ingredient?
How have the unique features of Electronic Commence technology changed industry structure in the travel business?
What are the major limitations on the growth of e-commence? Which is potentially the toughest to overcome? 1. High Financial cost involved
The cost involved in setting up an electronic business for is very expensive specially for starting businesses. Cost is a crucial issue. The opening investment for the adoption of a new technology is fairly heavier for small than for large companies. The high cost of computers and Internet access is a barrier to the uptake of e-commerce. Faced with budgetary constraints, small business, starters or SMEs consider the additional costs of ICT spending as too big an investment without immediate returns. Therefore, many SMEs find marketing on the Internet expensive. Having a Web site is not equivalent to having a well-visited Web site. One reason is that the business might find it tough to attract many users. Another reason is the challenge of privacy for SMEs. Because of the presence of numerous entrepreneurs in the Internet, it seems that brand recognition matters in order to be competitive. Moreover, it is not enough that a Web site is informative and user-friendly; it should also be updated frequently. Search engines must direct queries to the Web site, and news about the site must be broadly disseminated. Significantly, the experience of many OECD countries attests to the fact that the best e-marketing strategies are not better substitutes for the conventional form of media. One solution may be to encourage several SMEs to aggregate their information on a common Web site,...
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