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Example research essay topic: E Commerce Competitive Advantages - 1,403 words

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Trends and Forces Paper When we examine e-commerce and its various aspects thoroughly, it is evident that companies will increase the rate at which they adopt new technologies such as faster processors, latest operating systems and application upgrades. With the rapid advancements in technologies that are developing in todays business world, companies are forced to keep up and be able to adapt to the ever-changing environment. In order to stay competitive, companies must be able to utilize the different tools that technology has to offer. Technological factors have been of growing importance in recent years. A major factor involved in these issues is the use of the Internet. The Internet has been rapidly growing ever since its introduction.

The Internet has quickly become one of the most valuable assets in modern business. The Internet has lead to the birth of electronic commerce or E-commerce. E-commerce has now become a major factor in many companies. E-commerce challenges the traditional business practices, and brings up a numerous amount of issues that the company must now address. In marketing, a company must be constantly aware of the new developments in E-commerce. A Company must understand the impact E-commerce has on a company marketing strategy.

As E-commerce develops and continues to grow, it is important that a company keep up in its marketing strategies. In order to successfully realize the impact that E-commerce has in terms of marketing, it is important to break the area of interest into some key areas. E-commerce provides companies with a more efficient way of selling their goods or services. With e-commerce companies dont have to spend unnecessary money marketing the product or service. They dont have to hire sales people to sell their product as well. The impact of E-commerce has drastically changed the way companies do business.

It has becomes clear that e-commerce has had and will have a strategic part in a companies marketing strategy. When a company gains the understanding of E-commerce and its relationship to marketing and operational strategies, they will be better ready for future marketing developments. In order to be and stay competitive in modern business it is imperative that a company incorporate e-commerce into the marketing strategies. One of the major shifts in recent years is the technological shift towards the Internet, E-commerce.

E-commerce has developed into an enormous part of the Internet and as such, companies have been required to address this in their strategic planning. Companies that are looking towards E-commerce as a strategic option are met with numerous issues that must be addressed. The assumption that once the internet companies adopt faster technologies to run their businesses the product / services price would go up is quite reasonable, however I believe that there is one factor that was not considered here, which leaves customers enough hope that prices would not rise. This factor is competition, a very powerful force when we talk about such a growing business as e-commerce. I believe that because of the competition process would not go up even when companies deploy better technologies.

E-commerce has been developing really fast in the last couple of years, with more and more companies entering the market. The deployment of better technologies to speed up all the processes associated with business transactions is a rational consequence of the competition between the firms that got engaged in e-commerce. The thing is, the products or services offered do not vary that much, therefore companies have to pursue some other competitive advantages in order to retain their profits. And speed and convenience of business transactions are among those competitive advantages.

Even if the existing companies decide to rise their prices because of the expenditures they have to face in order to deploy faster technologies, there would inevitably be new companies that would want to enter the market, and for them the best opportunity would be to offer the same faster technologies but at a lower price, which in turn would make the old companies retain the previous price levels. The more companies compete in the growing market of e-commerce, the more chances are that the prices for the services would not go up, because the companies would need to attract customers to use their services instead the services offered by their competitors. Still another factor that should be considered when elaborating on this issue is that the Internet technologies develop really fast these days. More and more firms invest heavily in their research and development programs in order to come up with better and faster alternatives to the existing technologies. Certainly, the money spent on the research should be returned, however if I were the companys CEO, I would plan on doing so by increasing the number of customers, not by rising then service prices.

Another point that should be made here is that companies that specialize on e-commerce save enough money on other aspects of their business, for instance personnel. Internet store does not need that many staff, unlike the analogous real store. Thus, the money saved on human resources, rent, etc. , could be used to deploy more efficient technologies in order to better satisfy the customers needs. More and more people are becoming interested in e-commerce, and the number of transactions accomplished via the Internet grows with every month. Therefore, companies operating in this market have nothing left to do but go ahead and improve their technological base; otherwise they would simply be left out of business. The better technologies are deployed, the more convenient the company would appear before the eyes of a potential customer, which means that more people would use its services, bringing in significant profits.

Although the large, industrial organization continues to dominate the economy today, the management of the organization will be decentralized and the large corporations will be disintegrated under the impact of e-commerce. Instead of that, a flexible, temporary, self-managed company with diverse individuals engaged in a common task, is a model for a new kind of business organization that could be the basis for a new kind of economy. The fundamental unit of such an economy is not the corporation but the individual. The market will become a free market, which obey the rules of the game, but not in centralized direction or control. Under the impact of the e-commerce, although the decentralization of management is the main trend now, not all the companies will be decentralized and disintegrated to many small companies by individuals. Some can transform their management and administration instead of disintegration and decentralization.

Siemens, a huge German electronics and electrical-engineering company, has been built into more cohesive, less unwieldy conglomerate by using Internet and new technologies. As a sprawling conglomerate with more than a dozen business units makes useful knowledge easily wasted. The only key to change this is e-business. So, Siemens is spending $ 860 million in a bid to turn itself into an e-company.

Why? They believe that e-commerce with modern information and communications technology can knit the different parts of its vast empire into a more coherent whole. And they are also changing some of its administration which they called value chain. The idea is to make sure that the chain going from customers, through Siemens, and then on to its suppliers is as smooth as possible under the e-commerce. In this way, the company can easily connect all those different systems and is becoming e-conglomerate. E - commerce has more advantages than its disadvantages.

E-commerce will promote the economic growth and technological development and make productivity more efficient by cutting opportunity cost, more tightly connecting with internal company and external market and facing more intensified competition that the Internet everywhere brings. GE now does more business on its own private online marketplace than do all the public B 2 B exchanges put together. Siemens cut its annual costs in the medium term by 3 - 5 %. Seven-Eleven has overcame a stuttering economy and spiraling deflation to raise sales and profits by 4 % and 15 % in the year to the end of February by deft use of e-commerce to reduce the cost and the complexity.

Bibliography 1. Campbell, George tta Merritt, Impact of E - Commerce, Troy, NY: Winston Publishing Co. , 1999. 2. Davis, Lenwood G, Internet Technologies in the United States, Westport, CT: Greenwood Press, 1997. 3. Mace, Jonathan, Economic Transactions - How They Are Different, New York: Random House, 1998.

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Research essay sample on E Commerce Competitive Advantages

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