Electronic Business in Australia: Challenges and Opportunities

LITERATURE REVIEW LITERATURE REVIEW 1 Literature Review Name of the Student Name of the University Author note Introduction 2 Project objective 3 Scope of the project 3 Background of Electronic Business 3 Regulatory Landscape of Australia 6 Challenges in Electronic Business Sector 7 Opportunities in Electronic Business Sector 9 Conclusion 11 Reference list 13 Introduction Within the contemporary business world the technology is evolving at a rapid Pace and along with that the experience of consumers of purchasing goods and services changing at the same time. Electronic business All the E-Commerce

Running head: LITERATURE REVIEW
Literature Review
Name of the Student
Name of the University
Author note

1
LITERATURE REVIEW
Table of Contents
Introduction................................................................................................................................2
Project objective.........................................................................................................................3
Scope of the project....................................................................................................................3
Background of Electronic Business...........................................................................................3
Regulatory Landscape of Australia............................................................................................6
Challenges in Electronic Business Sector..................................................................................7
Opportunities in Electronic Business Sector..............................................................................9
Conclusion................................................................................................................................11
Reference list............................................................................................................................13

2
LITERATURE REVIEW
Introduction
Within the contemporary business world the technology is evolving at a rapid Pace
and along with that the experience of consumers of purchasing goods and services changing
at the same time. New products Markets and services emerging in such a quick speed
sometimes it is difficult for the regulator and Consumers to keep pace with it. As indicated by
Burns (2016) within this new market consumers frequently tend to have difficulties in
figuring out the effective technologies to be used for them. Electronic business All the E-
Commerce refers to the commercial transaction of purchasing and selling services and
products over different electronic systems including varied numbers of stakeholders,
marketers, manufacturers, service providers, Government and consumers. This facilitates the
online purchasing of services and products. At this time the consumers can purchase almost
everything online such as electronic goods, laptops, groceries, apparels, jewelleries and
various other services as well (Ngai et al., 2017). The consumer can also avail the electronic
system for different other purposes as well such as buying air or train tickets, insurance
payment, consulting lawyers, manufacturers, retailers or other service providers who are also
using the channel in order to offer services for their potential clients. However the regulators
need to recognise specific segments that can be addressed within this emerging market and
can later be a potential benefit for their business. Within the past few years the E-Commerce
in Australia has involved to a great extent resulting into a more complicated supply chain and
more challenging situation for online businesses such as eBay along with bringing plenty of
opportunities in expanding their business at the same time (Wamba et al., 2015). Therefore it
is significant for the electronic business regulators to ensure that the address all the potential
challenges in the electronic business along with utilising the potential opportunities in in

3
LITERATURE REVIEW
favour of their Business expansion. Therefore this people will address this specific challenges
and opportunities of the electronic business within the backdrop of the business of eBay in
Australia.
Project objective
The objective of this project is to determine the challenges and opportunities of the Electronic
business.
Scope of the project
As the electronic business is a growing industry, thus there is significant scope of researching
regarding the challenges and opportunities for this industry.
Background of Electronic Business
Generally the electronic business means conducting business activities with the help
of internet referring to online trade digital businesses and internet commerce. As stated by
Chaffey, (2015), the electronic business is the utilisation of the internet and computer
network for improving the organisational performance. In addition to that it can also be
defined as the procedure of purchasing, exchanging or selling services products and various
information so the internet. Fast researches have indicated that the Electronic Commerce tend
to help the business in increasing their market share profitability improved customer service
and help the businesses to deliver the product and services in a much faster way then it was
before. However there are a wide range of businesses which is adopting the electronic
business systems for improving their current business performance. As shown by Otoo et al.
(2017) there are four fundamental kinds of electronic business relationships namely: business
to business including the primary supply chain activities wheat electronic information
interchanging data sharing and electronic payment systems; business to consumer

4
LITERATURE REVIEW
relationship including the direct online marketing and purchasing activities that occurs
between the consumer and organisation including Internet banking online retailing and post
sales services; administration to business relationship including the provision of data between
the government and the business even though both the parties and walking to provide more
such online activities and administration to Citizen relationship including supporting the
interest of both the citizen groups and government that lead to an improved and sophisticated
service through the internet (Chaffey, 2015). Several researchers have indicated that within
the electronic marketplace the development of business to business systems is five times
more than the business to consumer systems.
However amongst all these business relationships the business to business e-
commerce is the most effective one. During 1970 is the electronic business has started getting
implemented within the Australian territory which involved a rigorous sharing of various
database between the customers and the suppliers. Many such companies have adopted these
business functions as its applications and technological advancements cover a wide range of
varieties including production marketing and sales (Otoo et al., 2017). Even do some
organisations required their stuff and management to be more advanced for dealing with
these new technologies, many businesses have adopted its implementation within their
business functions. With the course of time The E-Commerce and Technology is evolving
and now it allows the consumer to do various transactions. Invitation NFC technology the
kinds of services and goods that is available for the consumers within the E-commerce
market are being diversified. This technology utilizes the Radio Communication for sending
information between two different devices and process the transaction (Akter & Wamba,
2016). This technology has already been used in various countries like Japan. The systems
like Mikey has started being used in Australia which indicates its rapid usage within the
country. Data from a past research shows that around 88% of internet users within the

5
LITERATURE REVIEW
Australian household tend to be actively involved with electronic system activities for
different purposes such as buying product or services online banking transaction government
services participating in online auctions, selling products or sharing trading (Chaffey, 2015).
Figure 1: Adoption of e-commerce by Australian household internet users in six months
Source: Otoo et al. (2017)
The below figure also indicates various kinds of e-commerce activities which has
been performed by Australians. Around 26% of users have performed one to three activities
and almost half of them had indicated that you have functions more than 4 electronic
activities and 18% have conducted 729 activities within the span of 6 months (Aguiar &
Schneider, 2016).

6
LITERATURE REVIEW
Figure 2: Various kinds of Electronic activities performed within six months
Source: Aguiar & Schneider (2016)
Regulatory Landscape of Australia
The electronic system market place is developing in a rapid speed in Australia. The
authorities and governments play a big role in regulating the entire landscape. The Australian
Government had released a model in order to develop the best practice model of the
Australian e-commerce in the year 2000 and updated it further (Antonius, Xu & Gao, 2015).
The last amendment occurred in the year 2009. The policy makers of the Australian
government have considered some contemporary issues for dealing with the e-commerce
transactions, such as:
 Issues with disclosure of information associated with the technological constraints.

7
LITERATURE REVIEW
 Child protecting concerns associated with advertising, over-consumption and privacy
 Security and privacy concerns
 Dispute resolutions
Challenges in Electronic Business Sector
The electronic business in Australia is developing in a Rapid speed as the data
indicates that Australian 10 to spend around 1.95 million dollars within a month for their
online shopping. The size of online market in Australia is around 7.3% comparing to other
businesses and in fact according to the current data the growth rate of the online market is 6%
annually. This data explains why chevron international players are getting the Australian in
electronic business industry. There is plenty of room for the for the development share
therefore the electronic system market is ready to expand really soon. Therefore it is almost
unknown facts that the Australian electronic business market is flourishing and experiencing
significance success and development. However, the population in Australia is comparatively
small than the UK and USA populations. Therefore there can be several issues of potential
expansion within this market unless the organisation skills it's business internationally and
more quickly. As stated by Grewal et al. (2015) the organizations are more interested in
establishing a business across nation and it has been a trend in the recent times. In addition to
that the small size of the online e-commerce market has also been a major challenge for the
companies like EBay. Not only there are regional players in the market, but there are also big
international players who are eager to capture the continuously evolving Australian market
(Antonius, Xu & Gao, 2015). The data from a latest survey has indicated that the young
generations of Australia are spending more on the global online retailers than the regional
ones. This also becomes a major challenge for the regional players as they are most of the
times left out in the market. It has also seen that amongst the top five e-commerce websites in

8
LITERATURE REVIEW
the Australia, four of them are international marketers (Mendling et al., 2018). In fact, after
its entrance in the Australian market, Amazon has soon made it to the top five lists after it
overtook few of the Australian owned and made retail websites.
The companies in the Australian market are also struggling with their implementation
of reliable and fast delivery timings, consumer friendly interface, free shipping and having
competitive prices in the market. These features can provide them the competitive advantage
in both the regional and global market but the companies are not still capable of
implementing all these features. In terms of EBay’s business in Australia, the consumers have
faced several issues in dealing with the payment options. Along with that, the organizations
within the Australian market also face issues with having a well-managed warehouse and
inventory system for taking control of their stock of goods (Valos et al., 2015). This is a
major tool that can help the company to grow and gain the competitive advantage in the
market also helps to enhance the efficiency of their business, however it is mostly neglected
by the companies in the Australian market. The products that are coming from overseas
retailers take a long time to reach the consumers; however on the other hand, if it is ordered
from an online local store, it can reach the customers way much earlier (Kasemsap, 2016).
This tends to pose a bigger challenge for the international businesses such as EBay operating
in the Australian market (Antonius, Xu & Gao, 2015). Therefore, lack of management and
inventory stalls the product delivery can also hinder the electronic business in the Australian
market.
In addition to that, one major challenge that creates a hindrance for the electronic
business is the lack of innovation in their online sales strategy. All the companies have an
active website management system that has dynamic content for bringing more traffic to their
websites; however they also have to be more innovative with their actions (Ma et al., 2015).

9
LITERATURE REVIEW
By understanding their market thoroughly, the online businesses will have to connect to their
target consumers through multiple channels.
Another challenge for the electronic business is the geographical position of the
country. Australia is poorly positioned geographically compared to its any other competitors,
therefore it leaves it to reflect a much higher cost of running their businesses with more
complicated compliances, higher wages and a complex tax structure (Weber, 2015).
Therefore the organizations have to continuously strive for making a firm decision for some
functionality for keeping their cost down. If the balance is not kept between the imperative of
making profit and delivering modestly priced products, the business can be in great trouble.
In addition to that, the privacy concerns for the consumers have also been a great issue for the
organizations and customers as well (Antonius, Xu & Gao, 2015). This may bring legal
problems for the organizations operating with the online data of their consumers.
Opportunities in Electronic Business Sector
Online business is a major opportunity for delivering and expertly executed profound
personal experiences to the consumers in a way which cannot be gained being install
consistently. The brands which delivering a high standard and memorable experiences
through each single place across multiple channels they can set themselves up for unwavering
loyalty from the customers and a much easier success. In order to achieve that the
organisation within the electronic business market in Australia should take advantage of the
upcoming opportunities to make their business expand (Sakr, 2014). The successful
electronic businesses in Australia are utilising intelligent Technologies that are integrated
with very structured business intelligence software for making this procedure most
sophisticated. As an outcome to that the organisations are capable of personalising their
promotional activities on the basis of the past order history of an individual customer that

10
LITERATURE REVIEW
gender choices, therefore offering them a service or a product which is relevant to their past
research online all their engagement with their social media platforms (Madden & Ahmad,
2015). Despite some claims the customers tend to share their personal information with the
online businesses if they are demonstrating something that make the life much easier and give
them better value. Furthermore the organisation can use this data and make the digital
strategies more personalized which can help them to gain more business within the market.
The organisations operating in the electronic businesses have to take a multi channel
approach in order to connect to the potential or existing consumers such as mobile
applications, emails, online stores social media channels such as Snapchat, Instagram,
Facebook, bricks and mortar stores (Hajkowicz et al., 2016). These oil channels help the
organisation to understand online behaviour of each of their car consumers which can be
helpful for personalizing the promotional activities for specific customers. This can be a
major opportunity for the e-business was in increasing their existing customer base.
Other than this some new Paradigms such as transaction based payments collaborative
services sharing information and space through along with memory or processor have made a
major influence on the business functions (Golder & Macy, 2014). Plenty of modern
technologies and new business Paradigms have developed the strategic management
implementation of electronic businesses which enables the organisation to overcome the
difficulties in a much easier way.
With the on demand stories and services along with new technologies, infrastructure
and information helps these businesses to set with a limited infrastructure. Kolhapur it is an
integrated approach of the business allows them to do so. The power of proceed Singh can be
shared the storage and memory can be shared along with the bandwidth. Therefore the
service providers can use the infrastructure only on demand and for a specific time period as

11
LITERATURE REVIEW
well (Goggin et al., 2017). However it can also raise privacy concern regarding business data
and information. However it can also be resolved by allowing the technology to only use a
controlled and private yet collaborative and shared framework.
The conventional gadgets have been replaced by the new and more innovative gadgets
which have high level of communication abilities and more intelligence. The e-paper and
other electronic Technologies have been designed for providing a sense of real newspaper
and giving the experience almost similar to real people reading (Golder & Macy, 2014).
Therefore the gadgets have changed the traditional experience of consumers and it has
advanced the communication channels among various stakeholders. Therefore it has
developed the experience of business communication to the next level.
The consumers of Australia have a great preference for shopping online. A recent
survey indicates that on an average four individuals out of ten tend to buy goods from the
online store minimum of once in a month. Therefore the market of Australia has been quite
used to buying things online and a large section of consumers prefer online shopping that the
traditional shopping experience (Sakr, 2014). Also with a strong economy and a high GDP,
the Australian population is having a disposable income and higher purchasing power.
Conclusion
This paper has exhibited the development of electronic business in Australia and how
it has still been growing. However such development also brings both the challenges and
opportunities for the businesses operating in the industry. The potential challenges and
opportunities have been discussed. It can be observed that the electronic business is evolving
in a rapid speed; therefore the businesses should make their strategies more innovative in
order to gain a competitive edge in the market.

12
LITERATURE REVIEW

13
LITERATURE REVIEW
Reference list
Aguiar, L. L., & Schneider, C. J. (Eds.). (2016). Researching amongst elites: Challenges and
opportunities in studying up. Routledge.
Akter, S., & Wamba, S. F. (2016). Big data analytics in E-commerce: a systematic review
and agenda for future research. Electronic Markets, 26(2), 173-194.
Antonius, N., Xu, J., & Gao, X. (2015). Factors influencing the adoption of enterprise social
software in Australia. Knowledge-Based Systems, 73, 32-43.
Burns, P. (2016). Entrepreneurship and small business. Palgrave Macmillan Limited.
Chaffey, D. (2015). Digital business and E-commerce management. Pearson Education
Limited.
Goggin, G., Vromen, A., Weatherall, K., Martin, F., Webb, A., Sunman, L., & Bailo, F.
(2017). Digital Rights in Australia.
Golder, S. A., & Macy, M. W. (2014). Digital footprints: Opportunities and challenges for
online social research. Annual Review of Sociology, 40.
Grewal, R., Lilien, G. L., Bharadwaj, S., Jindal, P., Kayande, U., Lusch, R. F., ... & Spekman,
R. (2015). Business-to-business buying: Challenges and opportunities. Customer
needs and Solutions, 2(3), 193-208.
Hajkowicz, S. A., Reeson, A., Rudd, L., Bratanova, A., Hodgers, L., Mason, C., & Boughen,
N. (2016). Tomorrow’s digitally enabled workforce: Megatrends and scenarios for
jobs and employment in Australia over the coming twenty years. Australian Policy
Online.

14
LITERATURE REVIEW
Kasemsap, K. (2016). Advocating electronic business and electronic commerce in the global
marketplace. E-retailing challenges and opportunities in the global marketplace, 1-
24.
Ma, Y., Wu, H., Wang, L., Huang, B., Ranjan, R., Zomaya, A., & Jie, W. (2015). Remote
sensing big data computing: Challenges and opportunities. Future Generation
Computer Systems, 51, 47-60.
Madden, G., & Ahmad, H. (2015). 14. The Australian digital market: opportunities and
challenges. The Smart Revolution Towards the Sustainable Digital Society: Beyond
the Era of Convergence, 285.
Marcus, J. S., Petropoulos, G., & Jitsuzumi, T. (2017). Strengthening e‐commerce in the
Asia‐Pacific region: Opportunities and challenges.
Mendling, J., Weber, I., Aalst, W. V. D., Brocke, J. V., Cabanillas, C., Daniel, F., ... & Gal,
A. (2018). Blockchains for business process management-challenges and
opportunities. ACM Transactions on Management Information Systems (TMIS), 9(1),
4.
Ngai, E. W., Gunasekaran, A., Wamba, S. F., Akter, S., & Dubey, R. (2017). Big data
analytics in electronic markets. Electronic Markets, 27(3), 243-245.
Otoo, A. A. A., Li, Z., Acheampong, P., & Otoo, C. O. A. (2017). Electronic Commerce in
International Trade in Emerging Economies: A Qualitative Review of Challenges and
Opportunities. AUSTRALIAN JOURNAL OF ECONOMICS AND MANAGEMENT
SCIENCES, 7(5).
Sakr, S. (2014). Cloud-hosted databases: technologies, challenges and opportunities. Cluster
Computing, 17(2), 487-502.

15
LITERATURE REVIEW
Valos, M., Polonsky, M. J., Mavondo, F., & Lipscomb, J. (2015). Senior marketers’ insights
into the challenges of social media implementation in large organisations: assessing
generic and electronic orientation models as potential solutions. Journal of Marketing
Management, 31(7-8), 713-746.
Wamba, S. F., Akter, S., Edwards, A., Chopin, G., & Gnanzou, D. (2015). How ‘big data’can
make big impact: Findings from a systematic review and a longitudinal case
study. International Journal of Production Economics, 165, 234-246.
Weber, R. H. (2015). Digital trade and E-commerce: challenges and opportunities of the
Asia-Pacific regionalism. Asian J. WTO & Int'l Health L & Pol'y, 10, 321.