Paper Example on E-Commerce: Revolutionizing Small Businesses Efficiency

Introduction

In the modern world, as a result of the advancement of technology, businesses now are adopting e-commerce in enhancing efficiency to meet the set goals. E-commerce can be identified as electronic commerce or internet commerce, which refers to selling and buying of goods through the internet (Laudon and Traver 2016). Besides, e-commerce also entails the transfer of information and money using web platforms. Small business enterprises are now adopting e-commerce as a result of the convenience that results from it. Besides, the adoption is to help minimize the costs associated with other models that do not use the internet. As a result, the SMEs have been able to reach their customers and answer their queries online, transact with other business partners as well as receive quotations and feedback from their customers at a little cost. As such the objective of this document under this section is to discuss the reasons why SMEs may wish or are adopting e-commerce in their business

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Reasons for Adopting E-Commerce in SMEs

The following ideas may facilitate the company that intends to take e-commerce or the use of the internet in their transactions

Global Reach

SMEs may decide for the purpose of the internet to serve a broader audience. With the advancement of technology, almost everyone in every household owns a phone. As a result, a business posting about their products on social media platforms such as Facebook, Twitter, and Instagram may be able to target a more significant number of the potential audience (Toppr 2019). The internet, therefore, helps in the elimination of the geographical barrier. As a result, buying and selling of good and services in the virtual world are enhanced. As such, this is a significant reason that might make an SME adopt E-commerce

Cut down costs

SMEs, similarly to the large enterprises, faces competition from other SMEs. Therefore, there is always a need for them to be decisive in coming up with ways to beat their competitors. However, the competition game can be expensive and thus to cut costs associated with advertising on TVs and radio, SMEs can use social media platforms for advertising about their products. Further, transacting online helps in lowering other expenses such as the transaction costs as it eliminates the fixed costs of maintaining brick and mortar shops.

Direct Customer Relations

E-commerce can help a business build upon their relationships with their customers directly without the use of the middlemen. For instance, the internet allows direct communications and transactions (Toppr 2019). Customer interactions and feedback is thereby greatly enhanced and as a result improving the business transactions by enhancing a valuable personal touch.

Convenience

One of the main reasons that might attract an SME to adopt E-commerce is the conveniences resulting from it. A customer can transact or shop with business at any time of the day or the night. Essentially, e-commerce does not have fixed working hours and thus making it admirable by SMEs

Limitations of E-commerce

Despite having a significant impact on the business and increasing conveniences, e-commerce has its limitations. The following are some of the limitations of the e-commerce

The cost of adopting e-commerce is often high as it requires training of employees and the setup of hardware and software

E-commerce is often associated with security concerns as a result of increased cases of hacking and identity theft

E-commerce is often associated with fulfilment problems due to shipping and delivery problems which leave customers dissatisfied

Conclusion

E-commerce is essential to businesses, and one of the significant reasons that SMEs can adopt them is the convenience that it brings into the market. The use of the internet further enhances the global reach since most households own phone where they can make transactions. It helps in cutting down costs and increases customer relationships with the business. The main limitations of e-commerce are the issues regarding security breaches which leaves a company vulnerable to hacks attacks. It is also expensive to set up the hardware, and the software required, thus making it hard. Lastly, where there are fulfilment problems as a result of shipment problems, the customers are often left dissatisfied with the business and may opt for other companies.

Question 2: Digital Business Strategy

A digital strategy refers to the application of modern technology to business activities to develop new and differentiating business competencies. The digital approach focuses on the use of technology in enhancing the performances of the businesses, for instance, in products manufacturing or reimagining the current processes. In essence, it helps in identifying the direction a company should follow in achieving the competitive advantages as well as the tactics that should be employed in producing these changes (Annacone 2019). The changes include changes in the business model since the technology allows companies in providing services that were not available before. Therefore, under this section, I will discuss the main critical components of a digital business strategy

Elements of A Digital Business Strategy

Digital Marketing

Digital market entails the promotion of business products and activities through online resources and tools, for instance, mobile applications, social media platforms and websites are some of the platforms that can facilitate digital marketing. They may include Facebooks ads, guest blogs, email marketing, mobile banner and search engine marketing

Selling Online

The business aims at selling their products online to help their customers buy their goods from any location at any time they want. The digital strategy maintains that even when the shop door is closed, customers can access the products they want through mobile applications and buy a good of their choice (Liferay, 2018). Besides, selling online helps in the reduction of the time required to process transactions, therefore, allowing staffs to concentrate on other activities

Online security

Online security is essential to all business as they often regarded as the virtual assets since servers and computers contain the most valuable information stored in them. Online security usually entails the safety of the software and the payment systems, cloud computing and policies for storing and accessing information. As such, this is one of the most valuable elements of the digital strategy

Efficiency through technology

This element aims to use the technology for the right purpose. Efficiency can also be enhanced when a business can process data faster and retrieve information easily and quickly. Lastly, productivity can be achieved through the automation of various task to address urgency.

Customer Interaction

This element aims at giving the customer access to the business through any mean that they might prefer, for instance, desktop computer, social media and traditional phone calls. The aim of it is to minimize customers effort in reaching a business, the services and information. As such, it a critical element of the modern business strategy

Limitations of Digital Business Strategies

The following are some of the limitations of the digital business strategy:

• High level of competition globally since more and more business are adopting the strategy to increase efficiency
• Security and privacy since information regarding company transactions are stored in computers, and thus they might be accessed by an individual with malicious intents.
• Complaint and feedback- businesses adopting the digital strategies in the selling of their products may suffer from the negative reviews and comments that ultimately stain the image of the business
• Expensive - Digital strategies need a company to be up to date with modern technology which in most cases is costly to install.

Conclusion

As discussed herein, digital business strategies can be described as the application of modern technology in business activities to achieve efficiency. This involves the use of digital platforms such as social media and mobile platforms and tools such as linked ads, guest blogs and Facebook to target the audience. The main elements of the digital marketing strategy include online security, efficiency trough technology, digital marketing and digital marketing. The major limitation of the approach as discusses are the high cost of installing the technology required in the digital strategy; negative feedback may stain the overall business image, high level of competition and the issue of security and privacy of company information.

References

Annacone, A., 2019. The four types of digital transformation. LinkedIn. https://www.linkedin.com/pulse/4-types-digital-transformation-andrew-annacone?src=aff-lilpar&veh=aff_src.aff-lilpar_c.partners_pkw.123201_plc.adgoal%20GmbH_pcrid.449670_learning&trk=aff_src.aff-lilpar_c.partners_pkw.123201_plc.adgoal%20GmbH_pcrid.449670_learning&clickid=yUGQhPym5xyOU-wwUx0Mo3ERUki2gwUpvUbCXU0&irgwc=1

Laudon, K.C. and Traver, C.G., 2016. E-commerce: business, technology, society.

Liferay., 2018. Digital strategy - The evolving business strategy | Liferay. Digital Experience Software Tailored to Your Needs | Liferay. https://www.liferay.com/resources/l/digital-strategy

Toppr., 2019. E-Commerce: Meaning, Types, advantages, disadvantages. Toppr-guides. https://www.toppr.com/guides/business-environment/emerging-trends-in-business/electronic-commerce/