Electronic Commerce in China

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This essay has been submitted by a student. This is not an example of the work written by our professional essay writers.
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This essay has been submitted by a student. This is not an example of the work written by our professional essay writers.

Keywords: E-commerce, small and middle size enterprise, B to B

 

1.0 Introduction

1.1 The Application Status of B2B in Small and Middle Enterprise in ChinaSmall and medium-sized enterprises in China have developed rapidly, but the small and medium-sized enterprise electronic commerce based on The Internet is still on the way. In March 1998, the Bank of China and announced the first domestic electronic trading completedit marked the electronic commerce in China, the key step in the practical application. After years of development, Internet users are increasing dramatically, due to the small and medium-sized enterprises of China that mainly is labor-intensive, about 90% of the small and medium-sized businesses using e-commerce haven't operated. Therefore, Chinas small and medium-sized enterprises from a strategic point of attaches great importance to the development of electronic commerce. It should realize that in this day, the development of economic globalization only e-commerce brought about by the new market space, accelerate the construction of information network, seize the opportunity and guarantee enterprise gain. This initiative in the field of electronic commerce has a competitive advantage in the international market. According to the e-commerce, there are three categories:

Business-to-business

Between the B2B trade both sides for the enterprise, the enterprise through the Internet technology or other kinds of a business network platform that complete the process.

Business to Consumer

B2C trading is both businesses and consumers. It is the most common mode of electronic commerce in the form of "online shop".

Consumer to consumer

C2C trade are both sides for the consumer also is to provide the services or products to consumers, the most common status is individual people provide service to consumers. Taobao ( a branch of Alibaba.inc) is typical in the field of C2C e-commerce.

1.2 Operation modes and the analysis of the current situation of the development in China

Complete business activities between small and medium-sized enterprises in China mainly adopts the B2B model electronic business turn the traditional business process to electronic, digital, much less the manpower and material resources, reduce the cost. Also broke through the time and space limit, make trading activities more convenient and quick, significantly improving the efficiency (Forbes, 2015). Specifically, it is supply and demand information released by the seller on the Internet and supplier to arrange these also to collect the information, and then contact the seller, the finally make deal.

Traditional small and medium-sized enterprises are the process of using electronic commerce, as Chinese relevant laws and regulations, industry standards and technology development, small and medium-sized enterprises through the improvement of e-commerce business, make the enterprise the information flow, logistics, cash flow to be the efficient operation (Zimmerer, 2005). Small and medium-sized enterprise itself in the process of using the electronic commerce also has its advantages: the majority of small and medium-sized enterprise scale is not large, so its internal information flow channel is very smooth, it helps decision-makers through rapid response to market information management, effective release information. At the same time due to small enterprises, the enterprises to make an adjustment of technology, structure, management way also is relatively easy. Last year China small and medium-sized enterprise B2B revenue growth, reflecting the B2B e-commerce plays a significant role in the act of trading between enterprises, but compared with the growth rate of over 30% a few years ago, it is slightly slower growth.

Size of market

B2B in the first half of 2015 investment in the field of electricity quantity increased obviously; B2B electric business started earlier, but development is relatively slow. With the penetration of the Internet on the traditional industry, many segments of the electronic commerce demand began to emerge, the capital market investment in B2B electricity number continues to grow. Areas such as agriculture, medicine, steel, the chemical industry is a hot spot in investment. Analysts say, that B2B electricity development, brings more opportunities to the market, the future for B2B in the field of electricity and related services will be the future for a period the investment hot spots.

1.3 The bottleneck problems of small and medium-sized business in electronic commerce

1.3.1 The lack of a mature business environment and legal normsAlthough in the current country e-commerce is developing rapidly, it is still in the primary stage of development. For small and medium-sized enterprises to develop electronic business they still lack a mature business environment. As a new way of business transactions, the current Chinese laws and regulations also are not very perfect, once a problem in the e-commerce transactions, it 's hard to get legal protection. And the particularity of electronic commerce, increases the risk compared to the traditional commerce setting trade both sides will be troubled about in the process of fraud or damage. And the rule of law is not sound, but also makes trade both sides feel the lack of interest to safeguard the e-commerce business model that lack confidence.

1.3.2 The fragile security

E-commerce is mainly done through the internet, and the complexity of network security is problems that bring tremendous challenges such as network virus, hacker attacks, and network fraud. The threat from the Internet emerges endlessly. In the process of how to protect the safety of online banking capital, payment security, even the security of e-commerce sites that are problems had to be taken into account.

1.3.3 The leader who lack awareness and understanding of e-commerce

Many small and medium-sized enterprise management foundation where leaders information consciousness is not strong, also didn't fully understand the economy era and the importance of market message (Handley, 2006). Small and medium-sized enterprises, leaders decide the enterprise's business direction, if the small and medium-sized enterprise managers e-commerce understanding is not enough, or they have a comparative lack of understanding how to develop the electronic commerce, then the project is likely not to be successful.

1.3.4 Lack of e-commerce technology, skills and funding

Small and medium-sized enterprises are to develop e-commerce that requires both technology and the skills; however the enterprises lack these resources. Shortage of funds is the common obstacle in small and medium-sized enterprises, and many small and medium-sized businesses do not have enough for understanding e-commerce, the money is very weak in electronic commerce. The lack of money often makes small and medium-sized enterprise electronic commerce not bring much effect, which makes the low return on investment; it 's hard to obtain eternal development momentum.

Chapter II

2.0 Introduction of Alibaba and development

E-commerce service platform is a real proof of the network effect theory. Online sales of goods are far greater than the number of the types and quantity of real retailers; this advantage has attracted more and more Internet users to its website for a commodity retrieval, thus, bring website browsing. Modern electronic commerce environment in China, Alibaba has taken a different marketing strategy, changed the traditional way of communication between human beings, between the people and enterprises, between enterprises that have resulted in tremendous success (Jurevicius, 2015). Based on this, the researcher will understand from original of these two founders what the environment of birth is and how this affects it. Another one is a business model; we all know that this company accounts for 80% of all Chinese online retail sales. As of 2015 the company has 350 million active users, larger than the entire population of the United States. Alibaba recorded $9.3 billion worth of orders in just one day in November 2014 (Allameh, Zare, & Davoodi, 2011). The development of Alibaba can be split into four steps below.

2.1 First step

Provide enterprises with information free and occupy the market

China's e-commerce still stays in the stage of information flow. "Alibaba" by investigating the enterprise market demand, integrating enterprise registration information for classification, based on the different characteristics and provide effective information service for the enterprise. "Alibaba" has always insisted that such a model, that provide information services comes from the domestic, foreign companies and businesspeople, quickly occupied the B2B online trading market.

2.2 Second step

Using success of the first stage, make the enterprise's credit certification, provided a basis for profit

Credit for China is the biggest obstacle, especially the electronic commerce. Jack Ma seized the key, first launched on the Chinese Internet integrity authentication in 2002--- CTP and grasps the most important issues on the Chinese e-commerce market; this also is "Alibabas" initial channels for earning revenue.

2.3 Third step

De...

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