Discuss the limitations of electronic mode of doing business. Are these limitations severe enough to restrict its scope? Give reasons for your answer.
Electronic mode of doing business, or e-business, suffers from certain limitations. First, it lacks personal touch as it misses the warmth of interpersonal interactions. This makes it relatively less suitable for product categories requiring high personal touch such as garments, toiletries, etc.
Second, there are concerns regarding security of e-transactions and the privacy of those who transact business over the internet. Customers often worry about the safety of their financial information.
Third, the benefits of e-commerce have accrued unevenly across countries and regions within a country, creating what is known as the digital divide.
However, these limitations are not severe enough to restrict the scope of e-business. Most of these limitations are in the process of being overcome. Websites are becoming more interactive to address the problem of 'low touch'. Communication technology is continually evolving to increase the speed and quality of communication through the internet.
Efforts are being made to overcome the digital divide through strategies like setting up community telecentres in villages and rural areas with the involvement of government agencies, NGOs, and international institutions. India has undertaken about 150 such projects. In view of this, e-business is here to stay and is poised to reshape businesses, governance, and the economies.
Explanation
The answer covers all limitations mentioned in the textbook: (1) Low personal touch, (2) Security and privacy concerns, and (3) Uneven distribution of benefits (digital divide). The second part of the question is addressed by explaining that these limitations are being overcome through interactive websites, evolving communication technology, and efforts to bridge the digital divide through community telecentres. The conclusion affirms that e-business scope is not restricted as it is 'here to stay and poised to reshape businesses.'