The world of business in changing e-business and outsourcing are two most obvious expressions of this change. The newer modes of business. E-business and BPO are not new business, but simply the new ways of doing business. Interestingly, the two trends of e-business & BPO are continuing to evolve, and that is why these are referred as “Emerging modes of Business”.
e-Business - Electronic Business :
Meaning - Means conducting industry, trade and business using computer network 24×7×365 days a yr. Business (24 hrs. × 7 days × 365 days a year business), there by dismantling the time & space / locational constraints of its performance.
means buying & selling products & services over the internet. It makes use of e-mail, electronic fund transfer etc.
Scope of e-business :
B2B Commerce :- Business to Business - Both the parties are business firm, e.g. Manufacturer of an automobile requires assembly of a large number of components which are being manufactured by different firm; Maruti Udyog, Bajaj auto etc. use B-2-B commerce.
B2C Commerce : - Business to Customer - Transaction taking place between business & individual customers :
It facilitates promotion of products on line. e.g. music or film
Companies sell products & services on line to customer e.g. Amul.com sell Amul products online.
It is fast & 24 hrs.
Intra - B. Commerce :- Parties involved are from with in a given business firm. It makes it possible for the marketing department to interact constantly with the production department to get information about customer requirement.
C2C Commerce :- Consumer to consumer - Business originates from the consumer & the ultimate destination is also consumer.
Its area of application is the formation of consumer forum. e.g. selling used books over the internet.
Comparative Study e-business & Traditional business :
2. Physical presence
3. Locational requirement
4. Cost of setting up
Low/no requirement of physical facility
BENIFITS OF E-BUSINESS :
Ease of formation & lower investment requirements :- It is relatively easy to start, no huge stock & capital.