Study any business unit/company which is using e-commerce, e-business as a way of doing business. Interview some people working there and find out the advantages in practical business in terms of its costs also.
For this project, I studied Amazon India, a leading e-business company. I interviewed employees working in operations and marketing departments to understand the practical advantages.
Amazon India uses various e-business applications such as e-Procurement for internet-based sales transactions between business firms, e-Bidding/e-Auction where customers can quote their price for goods and services, and e-Communication/e-Promotion through online catalogues, banners, and video conferencing for meetings.
In terms of cost advantages, the employees highlighted that e-business leads to a gradual decline in the cost of operations. The company has expanded its marketplace to national and international markets without the need for physical infrastructure in every location. This reduces establishment costs significantly. Additionally, proper time management and support to business processes helps in reducing operational delays and costs.
Other practical advantages include competitive advantage over competitors and the ability for small firms to co-exist with big firms in a win-win situation. The 'pull' supply chain management is facilitated, making inventory management more efficient. Employees also mentioned that websites are becoming more interactive to overcome the problem of 'low touch', and communication technology is continually evolving to increase speed and quality.
Thus, e-business provides significant cost benefits while reshaping how business is conducted.
Explanation
This is a project-based question where students need to study a real e-business company. The answer should include: (1) identification of the company studied, (2) e-business applications used (from Box A in the textbook), (3) cost-related advantages (from Benefits of e-Commerce section), and (4) other practical benefits observed. The textbook context provides specific points like 'gradual decline in the cost of operations', 'expands the marketplace to national and international markets', and 'proper time management' which students should incorporate in their findings.
Solution Steps
Step 1: Identify an e-business company (e.g., Amazon, Flipkart)
Step 2: List e-business applications used (e-Procurement, e-Bidding, e-Communication)
Step 3: Explain cost advantages from textbook context
Step 4: Mention other practical benefits observed
Step 5: Conclude with overall impact on business