E-commerce (Essay Sample)

E-COMMERCE
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Introduction
Electronic commerce, mostly known as the e-commerce is a mounting business aspect currently. Hofacker defines e-commerce as the applications of digital transactions between businesses and between individuals. As captured by Silverstein, internet aids in carrying out business transactions. E-commerce has undergone numerous transitions and changes from the initial Electronic Data Interchange to its current position. Silverstone argues that owing to the changes; there have been a number of benefits and detriments witnessed in the society.[Charles F. Hofacker, Internet marketing 3rd Ed. (New York: Wiley, 2001), 54.] [Barry Silverstein, Business to business Internet marketing seven proven strategies for increasing profits through Internet direct marketing 4th ed. (Gulf Breeze, FL: Maxiumum Press, 2002), 75.]
Key Strategic Decisions to achieve Strategic Aspirations
Companies will have to make key decisions to enable it to produce continually and sustain changes in the e-commerce sector. The company has to make a sound and stable commercial scheme that would enable it to withstand any storm within the sector. Silverstein notes that, the company has clearly to define the target market so that it shapes the business plan appropriately. Further, Hofacker reiterates that the business plan must be part and parcel of the e-commerce plan. Hofacker goes on to take note of the staff, customers and suppliers standing the same chance to express them.[I bid 76] [I bid 79]
The company has to position itself appropriately throughout the venture to achieve success. The firm has to keep pace with the changing technology, the business, must be treated as a continual process. The marketing and sales teams must present the best rapport to enable them maintain customers as they are at the discretion of their clients. Golicic et al in their work capture that proper communication should be made to ensure that there is indulgent between company vendors and customers. They warn that lack of understanding or poor communication can result in huge losses in the company's investment.[Susan L. Golicic, Davis Donna F., McCarthy Teresa M., and Mentzer John T, "The Impact Of E-commerce On Supply Chain Relationships," International Journal of Physical Distribution & Logistics Management 32, no. 10 (2002): 851-871.]
Tapscott et al takes into consideration the scale of operations of the site should be essential to the company goals. The company should be ready for any upsurge in customer base, for instance an increase in customer number by a large percentage. Also, they argue that e-commerce sites should scale up rapidly to ensure that changes in the market can be managed easily. On the other hand, a company should ensure that there is a clear understanding between technology and finance. Members of staff responsible for IT needs should use the business language as e-commerce makes the tie between IT and business closer than ever. Proper security measures should be reinforced to ensure that any mishap is easily addressed. The issues raising questions on the integrity of the company such as data insecurity, customer information interference and weakness in technical system should be addressed.[Don Tapscott, Lowy Alex and Ticoll David, Digital capital harnessing the power of business Webs (Boston, Mass.: Harvard Business School Press, 2000), 53.] [Ibid 60]
Implementation Challenges
There are numerous hitches that the company is likely to face in the global market given the tremendous changes in technology and the turbulent nature of the market. Warkentin notes that privacy is the critical concern for many in electronic commerce. Site security or the security of the web is a major concern for e-commerce. This is a real problem for both consumers and the company. However, Warkentin cautions that for it to work the users of information should be well protected from hacking. For instance, malicious programs can get hold of material data from computer cache. Such data could include the users' credit card details. Therefore, businesses have to set up a strict security network that questions users' authenticity before use. The company has to encrypt their data. Use of cryptography should be...