The Web is one of the most revolutionary technologies that changes the business environment and has a dramatic impact on the future of electronic commerce (EC). The future of EC will accelerate the shift of the
power toward the consumer, which will lead to fundamental changes in the way companies relate to their customers and compete with one another (Slywotzky, 2000). The immense popularity of the Internet in recent years has been fueled largely by the prospect of performing business on-line.
More and more companies set up their own corporate LANs by Intranet, apply Extranet and Internet to work collaboratively with their customers, suppliers, and partners. The Internet can bring down physical
barriers to commerce, almost immediately giving even the smallest business access to untapped markets around the world. At the same time, consumers can conduct business and make purchases from companies previously unavailable to them.
Furthermore, companies are able to place marketing material on Internet servers ranging from simple advertising to comprehensive virtual brochures. In today’s global marketplace, fast reliable information
is a necessity for most companies to attain some kind of competitive advantage. For instance, companies can create a virtual marketplace in which to sell their products. This virtual market is untapped and could
reach millions of users on the Internet 24 hours a day.
Electronic commerce is defined as buying and selling of product, services or information via computer networks, mainly the Internet. As the fastest growing facet of the Internet and other information technologies, EC offers functionality and new ways of doing business that no company can afford to ignore. The basis for moving to an electronic commerce is a belief that electronic markets have the potential to be more efficient in developing new information-based goods and services, finding global customers and trading partners to conduct business. Electronic commerce via the Internet or the next generation Internet Protocol, IPv6, will change business institutions, operations and products/services as we know today, just as the telephone, TV, fax, and e-mail changed the way businesses and consumers communicate. Electronic commerce has become very popular because of the benefits and the convenience it brings along. As shown in Table I, the benefits include product promotion, cost saving, timely information, shortened remittance time, information consistency, better customer service, better customer relationship, customization of products, competitive advantages, and convenience of doing business.
Electronic commerce is no longer an alternative, it is an imperative. The only choice open is whether to start quickly or slowly. Many companies are still struggling with the most basic problem: what is the best EC model? Unfortunately, there is no simple answer for this question. Even companies in the same industry, of the same size, or with similar cultures are finding that one EC model does not fit all. Companies are required to review their EC models and rethink strategy in order to capitalize on the changing dynamics of the marketplace. The purpose of this article is to examine the currently available EC models and help readers to figure out the best way to make money in the EC era.\
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