E-Business



E- Business

Introduction

Electronic business is a process whereby a business is run on internet or uses internet to improve profitability or productivity of a business. E-business entails a process carried out externally (e-commerce), or internal process such as production, risk management, inventory management, human resources, and knowledge management. Impact of e-business in many organizations in developing countries has made local companies have opportunity to be exposed to global market. Nevertheless, several individuals in developing countries have demonstrated a slow response to transacting a business online. This is in contrast to countries in west, which have been highly involved in e-business such as e-bay (Arthur, 2008)

Discussion

There have been several reasons for slow response for e-business in developing countries. Major stumbling block has been inadequate technology infrastructure and absence of rules and regulations to protect both consumer and entrepreneur. Other resources that e-business require in order to be successful, but has proved to be a challenge in developing countries are investment funds in setting up , organization and skilled personnel, policy and strategy in applying resources. International institute for communication and development (IICD) aids developing countries to see that sustainable development by tapping into ICT.IICD has brought together organizations with aim of helping in formulation as well as execution of ICT policies. This aids in strengthening local capacities to manage and develop country-programmes (Eriksson, 2008).

Amazon's E business strategies

Amazon is a very progressive online retailer, which continues to develop and extend its product offering, as was exemplified by its entry into grocery retail in 2010.

Amazon continues to be one of the leading online retailers in the world. In a recent survey of the US's top 40 online retailers which reviewed customer satisfaction levels, Amazon came top of the list. It seems that online specialists continue to perform better than their multichannel rivals, and US companies outshine their British counterparts (Applegate, 2000).

In order to open up new markets, Amazon is in very close attention to the relationship with the publishers. Traditional publishers have to bear all risk of returns. Therefore, the whole book industry return rate as high as 30%. Amazon is different from the general retailers. That is why almost all publishers are willing to give Amazon a very preferential treatment order to improve the Amazon to fight "price war" in the ability to book in the highly competitive market in an invincible position. In addition, Amazon also relies tremendously on the customer information, order room textbook model to track preferences and analysis, and timely feedback to the publishers, making a major publisher predict market demand for reference information.

Amazon has managed to continue to grow in the US retail market due to its adaptability and changing online offering, which continues to attract more and more consumers. Amazon.com also achieves a great deal of its growth through the acquisition of smaller retailers. Amazon's decision to diversify its product offering so much led to some concerns that the retailer may not be able to maintain success in such a wide range of ...