Friday, January 20, 2012

The Driving Forces for E-Commerce

Market and Economic Pressures

1. Strong competition: Now competitions the part of any business and companies are implementing new techniques every day to bear their competitors. E-Commerce is one of the tools of recent days, which is adopted by the companies.

2. Global Economy: In Present Scenario world becomes a global village and there are standard patters in market for business, so every country must follow these norms. There is huge gap between the growth rate of developed and developing nation, so more and more developed nations are investing in every part of world. E-Commerce is the need of such a scenario.

3. Extremely Low Labour Cost in Some Countries: Now this the common feature of business that companies are having manufacturing units in one are of the world and the same products is marketed in other part of the world. Definitely some medium is required to maintain it and e commerce is providing such medium.

4. Frequent Changes in Market demands: As we discussed above that the age of techolnology so any change which takes place in part of the world, rapidly reflects every where so e-commerce it the tool which is necessary to sustain in present fast changing world.

5. Increase Expectation of Consumers: The expectation of consumers about quality and services are very high, so it works like driving force for e-commerce.

6. Awareness Among Consumers: Awareness Among Consumers: Now consumers are well aware. Internet, print media and electronic media keep update the consumers about new products and their rates.

Societal And Environmental Pressures

1. Government Regulations: Every country have its own rules and regulations but now a days almost every country have well defined cyber laws which provides a right environment for the e commerce.

2. Reductions in Government subsidies: Now world is very open, some countries provides lot of rebate in tax and in other forms to do business. But some other countries reducing the soaps for business. E-commerce provides the opportunity to take these challenges.

3. Rapid Political Changes: Whenever government changes n any country there are some changes in guidelines and polices towards the business. It is also work as driving force for the e-commerce.

Technological Pressures

Rapid Technological Changes: Technology is the factor, which provides e-commerce an opportunity to become and perfect solution for business.

New Technologies: New and secure technology available in the market, which provides an easy, cheap and secure platform for the e-commerce.

Information Overload: By using e-commerce we can easily efficiently manage information about the product and other business related things. This is a cheap and secure medium for managing important information.

Digital Convergence: The digital revolution has made it possible for digital devices to communicate with one another. The Internet's massive growth during the past decades- a creation of market forces- will continue. Steady increase in computer power and decreasing cost made navigation on the internet.

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