Managing Across Borders Question and Answer 2022

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Managing Across Borders
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Managing Across Borders 1
“What is your opinion of e-business and e-commerce and their roles in today’s world of
business? Analyse a case study to support your ideas.”
Electronic business or e-business is platform that helps the organizations and the consumers to
make use of online platform to grow and initiate sales. This is a different platform from than the
physical marketplace that provides opportunities to the companies to grow and succeed in the
business environment. This type of online platform provides the opportunities to the companies
to effectively target a larger market base using innovative tools and technology. This type of
industry and e-commerce business makes use of innovative technology present in the external
environment to attract the customers and initiate sales for the company. The role of e-business
and e-commerce in the business environment is that its use of technology to reduce the
geographical boundaries present in the environment (Adaji, and Vassileva 2017).
The e-business model gives a fair opportunity to the companies competes against large firms in
the market and attract the customers in the target market. The e-business and e-commerce model
helps the organizations in increasing their level of profitability and productivity in the
environment. Talking about e-business, it should be noted that e-business refers to the process of
implementing the business functions in the market using technology and online platform as well.
E-commerce is a part of e-business where commercial actions are taken place to attain profits in
the environment. Amazon, Alibaba etc. are some of the companies present in the e-commerce
and e-business platform in the environment (Huang, et. al., 2017). These companies make use
technology present in the market to target customers and attain their interest in the products and
services offered by the business (Trad, and Kalpić 2016).
The e-business business model became famous with such a greater pace because this model
eliminates the investment of excessive funds in the business environment. The companies
conducting their business functions on online platform do not require attaining a land or furniture
to attract customers, resulting in which expenditure of firms also reduces. Further, it should also
be noted that this business model provides opportunity to an organization present Australia to
sell products to a person present in Europe without even meeting them. Thus, it should be noted
that with the introduction of e-business platform in the environment, the companies have become
more profitable in the environment (Fatimah, Putra, and Hasibuan 2016).

Managing Across Borders 2
Secondly, it should also be noted that e-business process also makes use of technology due to
which competitive advantage is received to companies present in the environment. It should be
noted that this platform helps the organizations to upgrade their system and make use of
innovative and new approaches to attract customers in the environment. The e-business platform
also helps in increasing the satisfaction of customers in the business (Pogorelova, et. al., 2016).
With the help of this platform, the customers get to choose between several options while sitting
at their comfortable place, they do not need to visit the store to purchase the product as it can be
delivered to them. Resulting in which, their level of satisfaction also increases. Further, it should
also be noted that the e-business industry plays an important role for other industries present in
the environment like information technology and supply chain and logistics industry etc. With
the introduction of e-business, the number of entrepreneurs that increased in the environment and
the level of employment have also increased because trade activities are occurring more. The
cash cycle has also improved with the introduction of e-business activities in the external
environment as now all the payments are made using the online portal of the company resulting
in which the chance of fraud subsequently reduces (Yu 2019).
However, it should be noted that on one hand, e-business and e-commerce increase the level of
commercial activities in the business environment; on the other hand, it also increases the level
of competition for the company. As with the introduction of e-commerce in e-business
environment made more and more people organize their business on that platform due to which
competency of existing companies reduced. However, it should also be noted that every activity
has several pros and cons in the environment that reflect upon the parties present in it (Baporikar
2017).
Considering a case analysis of e-bay, it should be noted that it is world’s biggest commercial
centre. The company make use e-commerce business model to initiate sales in the external
environment. The company make use of business to business segment to initiate sales in the
business. The company e-Bay has extensively grown in the external market using the e-
commerce platform in the external environment. With the help of this platform, the company was
able to cover the worldwide market on the basis of geographies and increase the sales as well. It
was realized by many customers purchasing product through eBay is extremely easy and less
time taking as well due to which they started using it without going to physical stores in the

Managing Across Borders 3
market. Resulting in which, traffic at the company’s website increased that welcomed many
sellers in the environment as well (Khaskheli, Jun, and Sanjrani 2016). Resulting in which, the
profitability of the company was subsequently increased.
Further, it should be noted that the importance of e-business in the external environment is that
this model only focuses on increasing the satisfaction level of customers in the business
environment. This model make all the actions consumer centric in the business as the companies
can grow only when they increase the level of satisfaction in the environment. There is no
physical contact on e-commerce platform due to which customers can only perceive about the
image of the company by looking at the products and services offered by the organization. Thus,
it can be said that better the services offered by the company better the sales in the environment.
So, in can be said that introduction to e-business model in the environment has given rise to
customer centric business activities (Chong, et. al., 2016).
Companies like e-Bay, JD.com etc. are increasing in the environment because there is high level
of profitability in the environment. Thus, it should be noted that the e-commerce and e-business
plays a lead role in change the world of commerce. These segments make use of innovation
technology in the external environment to increase the satisfaction level of the customers. The e-
commerce and e-business activities also develops an effective relationship with the customers of
the company and provide efficient after sale services to them as well (Singh 2016). Thus, it can
be said that with the introduction of this type of process in the business, the level of satisfaction
of customers increased as they can easily approach to the company in case of issue and ask for
after sales services as well. Flexibility is also initiated to the people in the business environment
with the introduction of this type of process. Thus, in the limelight of above-mentioned it should
be noted that the paper detailed about the role of e-business and e-commerce in the external
environment. These segments plays a lead role in uplifting the interest of commercial
environment and making it more diverse as well.

Managing Across Borders 4
References
Adaji, I. and Vassileva, J., 2017, April. Perceived effectiveness, credibility and continuance
intention in e-commerce: a study of Amazon. In International Conference on Persuasive
Technology (pp. 293-306). Springer, Cham.
Baporikar, N., 2017. Significance of critical success factors for Indian eBusiness.
In Transcontinental Strategies for Industrial Development and Economic Growth (pp. 184-206).
IGI Global.
Chong, A.Y.L., Lacka, E., Boying, L. and Chan, H.K., 2018. The role of social media in
enhancing guanxi and perceived effectiveness of E-commerce institutional mechanisms in online
marketplace. Information & management, 55(5), pp.621-632.
Fatimah, Y.A., Putra, P.O.H. and Hasibuan, Z.A., 2016, October. E-business adoption and
application portfolio management in remanufacturing small and medium enterprises. In 2016
International Conference on Informatics and Computing (ICIC) (pp. 349-354). IEEE.
Huang, Q., Chen, X., Ou, C.X., Davison, R.M. and Hua, Z., 2017. Understanding buyers' loyalty
to a C2C platform: the roles of social capital, satisfaction and perceived effectiveness of e‐
commerce institutional mechanisms. Information Systems Journal, 27(1), pp.91-119.
Khaskheli, A., Jun, Y. and Sanjrani, H., 2016. Role of E-Commerce in Export Development for
SMEs in Developing Countries. European Journal of Business and Management, 8(21).
Pogorelova, E., Yakhneeva, I., Agafonova, A. and Prokubovskaya, A., 2016. Marketing Mix for
E-commerce. International journal of environmental & science education, 11(14), pp.6744-
6759.
Singh, N., 2016. The Evolution of Intermediaries in E-Commerce. In Encyclopedia of E-
Commerce Development, Implementation, and Management (pp. 37-47). IGI Global.
Trad, A. and Kalpić, D., 2016. The E-Business Transformation Framework for E-Commerce
Architecture-Modeling Projects. In Encyclopedia of E-Commerce Development, Implementation,
and Management (pp. 733-753). IGI Global.

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Yu, L., 2019. E-Commerce Models, Players, and Its Future. In Advanced Methodologies and
Technologies in Digital Marketing and Entrepreneurship (pp. 193-204). IGI Global.