E-Business Pros and Cons

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The E-business is a new trend in business, and it is still in infant stage, people have misunderstand it in some cases, and this new growing business has its good sides as it has its negative sides too. In this small paper we will have an overlook over the pros and cons of e-Business.

I.What is e-Business


B. False concept

II. Pros

A. For Business

B. For customers

III. Cons

A. Technical

B. Non-technical

IV. Conclusion

Date: 25-April-2003


Pros and cons

About e-Business.

Definition of e-Business

We are shortly about to talk about pros and cons of e-Business, but first a question comes to the mind, what is e-Business?

E-Business (electronic business) "is the conduct of business on the Internet, not only buying and selling but also servicing customers and collaborating with business partners. One of the first to use the term was IBM, when, in October 1997, it launched a thematic campaign built around the term. Today, major corporations are rethinking their businesses in terms of the Internet and its new culture and capabilities. (1)

But E-business is not only Business done on the Internet, since E-business has changed traditional business. "E-Business is the creation of new, and the redesign of existing, value chain and business processes through the application of information technology."(2). In e-Business the linear value chain has disappeared and in its place is a constantly revolving exchange that has altered the relationship between buyers, sellers, and those who inhabit the space between. (3)

False concept about e-Business

When we think about e-Business, and think about the Internet, some people may begin to fantasize. It's true that an e-Business can offer products or information to its clients at any time of day, in any location around the world. It's true that an e-Business has a presence in markets far beyond traditional bricks and mortar businesses. It's even true that transactions are faster, cost less, take less time, and involve fewer errors.

But, e-Business shops ´websites` can't market themselves. Customers can't touch or feel your product before making a financial commitment. And furthermore, many customers are extremely doubtful of making a financial transaction on-line.

A General overview on the pros and cons of E-business may give us a clearer picture about what it really means to do E-business


For business

Global Market: e-Business facilitates international marketing and sales. "Whether the enterprise uses an Internet to implement one product or more than one, each product can be accessed and exploited from any point on the globe" (4), this special feature of e-business has helped with no doubt in opening new markets for the companies gone on the net, this property of reaching everybody at their place of work or home, without the need for them to make a move and waist time on transportation, for sure gave marketing a great advantage and widened its horizons. The Internet implemented the concept of cyber space, this concept diminishes the national boarders, and makes international business easier to conduct and perform (5). Thus we see that in E-business, old concepts of marketing and business relations are forced to change, we see the emerge of what is called the CBC (Collaborative Business Communities), which is becoming more and more a need in the new market of e-Business, where companies share vital information.(6) Competition is wider and bigger and customers are more; the sharing and collaboration will be the trend of the new economy.

Cost affectivity: this means decreased costs for creating, processing, distributing, storing, and retrieving paper-based information. The Internet plays an important role in reducing the costs, through the capacity of the technical system to hold and share information, in much less space and time (7). Emails are sent instead of a phone call or a business...
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