The Internet and E-Business

THE INTERNET AND E-BUSINESS

Table of Contents
Introduction 3
LO1 Understanding the scope of E-Business 3
1.1 Describing the environment of conducting E-Business 3
1.2 Explaining the benefits and barriers of E-business 5
1.3 Assessing the security and legislative issues faced by online business organisations 6
1.4 Stating the modes of communication used in E-Business 6
LO2 Understanding the way the internet works 8
2.1 Explaining internet technologies and their importance in E-Business 8
2.2 Explaining the main features of HTML 8
2.3Analysing the functions of client service and Browsers and roles of search engines 9
2.4 Evaluating the use of Internet connection it's within business communication 9
LO3 Using different E-Business models 11
3.1 Illustrating the different e-business models that can be used for generating revenue 11
3.2 Analysing models in terms of capacity to generate revenue 12
3.3 Reporting on future developments in E-Business models 12
LO4 Ability to use good website 14
4.1 Using the key elements of good web designing structure 14
4.2 Evaluating the impact of well-designed business website on revenue of E-Business 14
4.3 Reporting on issues concerned with website usability 14
Conclusion 15
References 16

Introduction
Globalisation has brought about Rapid growth in Information Communication and
Technology. In simple words, Internet has developed from being an army prototype to a public
platform. The shift in the usage of Internet has resulted in the impact on the business activities
that are performed today. E-business or e-commerce is the new trend present in the market where
the exchange your products and services between individuals and businesses are conducted to
have a commercial gain. The current assignment deals with analysing the concepts of e-business
which are applicable to the retail sector of the industry. The correct case study is focused on
boohoo.com to understand the scope of e-business, the functionality of Internet, e-Business
models e-Business models and website designing.
LO1 Understanding the scope of E-Business
1.1 Describing the environment of conducting E-Business
To understand the various environmental factors that affect boohoo.com, the political, economic,
social, technological, legislative and environmental factors need to be identified and analysed.
Political The current government is involved in the
generation of policies that govern the normal
businesses as well as online businesses. The
government actively participate in legislations
pertaining to electronic governance, gaps in
the budget, expenditures and taxes ().
Economic The economic condition in the United
Kingdom in such that the retailer sector has
been able to progress in the last few years.
The government of the United Kingdom have
been identified as a large revenue-generating
sectors of the UK economy ().
Social The society is directly impacted by The E-
Commerce business organisations as this has
changed the consumer buying process. E-

commerce reduces time and money and also
allows the consumers to compare the products
for prices and quality. With advancement in
online security, the payments options are
more secured (Yee-Loong Chong et al. 2014,
p.121).
Technological Technology is the key factor that has brought
about the concept of e-commerce and
business. With the ongoing development in
terms of web designing and technology, the
organisations can effectively use database
servers and another business service in order
to manage the transactions and demands of
the consumers. Development in technology
has allowed The E-Commerce business to be
more reliable and resilient and it has also sped
up the communication process with suppliers
and other parties such as banks (Lu et al.
2014, p.9).
Legislative The E-Commerce business is not bound by
legal constraints and hence it may be quite
impervious to rules and regulations that are
bound to the traditional business process.
Hence, it is necessary to develop a legislative
monitoring and review system in order to
protect the consumers and their privacy
(Whitmore et al. 2015, p.272).
Environmental In order to develop a more sustainable
Business development and management plan,

The E-Commerce businesses need to focus on
the environmentally friendly operation
processes (Malhotra, 2014, p.15).
Table 1: Pestel analysis of e-commerce
(Source: Yang et al. 2014, p.1)
Business to business (B2B) In this type of business transaction, the
business organisation sells the product to
intermediate purchase who intern cancel the
products to customers. This kind of
transaction is mainly employed by
wholesalers who stock the products by buying
in bulk and then selling the same to
customers.
Business to consumer (B2C) In this type of business transaction, the sellers
are directly involved in selling the product to
the customers.
Consumer to consumer (C2C) The customer is entitled to undergo buying
and selling activities Directly with another
customer without having a third party
involved.
Consumer to business (C2B) In this type of transaction, the customers are
paid by the business organisation for the
services and products that are supplied to
them.
Business to government (B2G) The business organisations are entitled to
information by exchanging services with the
government.

Government business (G2B) The government uses the business
organisations in order to share information
pertaining to tenders, taxes and auctions.
The business transaction employed by boohoo.com is B2B which will be later discussed in the
assignment. This mode of transaction is employed by the organisation as they are primarily a
cloth retail business and intend directly interact with the customers and help them in their
purchasing and decision-making process.
1.2 Explaining the benefits and barriers of E-business
The E-Commerce business has directly influenced and impacted the retail sector and the
substance of these retailers are based upon their online presence. Hence it is necessary to
understand the benefits and barriers that are involved with an online business module such as the
boohoo.com. The first benefit that needs to be understood is the tangible benefits of e-commerce.
20 online retailers are not any beaten by the physical space and geographical barriers and hence
they are available to the clients and customers 24/7 in order to conduct business.
In words of Prieger and Heil (2014, p.20), as they are not any inhibited by the
international barriers, they can reach a larger customer base in the Global market and this will
enhance their market share. Conducting online business also brings about the opportunity of
advertisements for the websites which allows the business entities to increase their revenue and
as the processes are automated, they tend to be more quick and efficient. As the entire service is
automated the intangible benefits of online commerce is mainly customer satisfaction for quality
services (Lucia-Palacios et al. 2014, p.223). Operating and online business entity like a b c
allows the customer to give the feedback which needs to be taken into consideration by the
organisation in order to improve the customer service and enhance the customer loyalty.
The satisfied customers, in turn, will be able to promote the business by word of mouth
marketing and appropriate sales forecasting, purchase of materials, scheduling production
process helps in decreasing the operational cost. As mentioned by Quandung et al. (2014, p.201),
the largest pitfall of conducting an e-commerce business is data security and privacy. With the
advent of hackers and risk of identity theft, many of the consumers focus primarily on the