The organization that I selected that originally started as a traditional organization and incorporated the click and mortar business model, is Blockbuster, Incorporated. Blockbuster, Incorporated elected to enter into the E-Business to gain a competitive edge on competitors such as Netflix. The decision that the corporation made to enter into the E-Business contained both advantages, disadvantages, challenges that pertained to regulations, and the obligation the organization has to protect current and prospective clientele. This change, vertically saved the corporation for a while but bad business decisions can be made so many times before the giant collapsed. Advantages associated with an E-Business
One specific advantage of electing to enter the E-Business is that an organization such as Blockbuster, Incorporated can broaden their clientele. Typically, consumers who have access to the Internet instantly can become a prospective client. Customers no longer have to visit a store location to view movies and make selections. The customer can simply access the Internet site from the comfort of his or her homes, which not only increases sales but also enables the organization to compete on an equal playing field with competitors. “Computerized, E-Business processes have made many businesses turn to the Internet for increased productivity, greater profitability, and global clientele. It is mainly due to the IT industry that business have been able to make their processes more streamlined, thereby becoming more cost-effective and consequently more profitable (Advantages of Information Technology, 2012). ” Disadvantages and Risks associated with an E-Business
When Blockbuster, Incorporated elected to open an E-Business, the organization faced many advantages and disadvantages. The disadvantage associated with E-Business included startup costs, computer hardware investments, data protection, and E-business regulations. The Internet has...
References: Advantages of Information Technology. (2012, January 19). Retrieved from http://www.buzzle.com/articles/advantages-of-information-technology.html
E-Business. (2010, September 23). Blockbuster Seeks Fresh Start With Bankruptcy Plan. Retrieved from http://www.ecommercetimes.com/story/70891.html
Logan, J. (2013). There Are No Rules To Business. Retrieved from http://www.allbusiness.com/finance/cash-management/3874570-1.html
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