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E-Business Fundamentals and Systems

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E-Business Fundamentals and Systems

 E-Business Fundamentals and Systems

 

Introduction

The twentieth century laid the foundations for a dynamic work environment incorporating the various markets into one global market. The increased interactions between the various markets demanded a major overhaul of the existing technologies. With the turn of the century, businesses started realizing the need to adapt its infrastructure to the radical changing environment of the global market. Consumers were starting to understand the various perks that foreign goods provided and hence economies had to implement various measures to capitalize on this new demand. One of the ways for the companies to deal with this growing demand was the internet, which revolutionized the way people interacted with companies. Products and services now can be supplied directly to the consumers without the need for distributors and people can order and receive such products and services from the comfort of their living room. This radical change paved way for a new type of business to emerge known as e-business. This new form of businesses capitalized on the technology available to them and attempted to reinvent the way traditional markets worked.

This assignment shall strive to shed light on the various pros and cons of an e-business website and the infrastructure related to the same. It shall also highlight the major differences between the infrastructures of two companies’ business models with a case study conducted on two B2B websites providing financial and accounting services to small businesses in Australia. The assignment shall conclude by highlighting the key features of the two businesses and analyzing the available data to draw effective conclusions.

Discussion

The e-commerce business has various business models that are differentiated on the basis of the consumers and the market they cater to (Hodge and Cagle, 2004). This helps in proper categorization of the business so that consumers can choose to buy from businesses that cater to their individual need. E-commerce businesses like Amazon cater to individuals and are known as business to consumer business model or simply the B2C business model (Andreini and Bettinelli, 2017). According to Kumar and Raheja (2012), business to consumer e-commerce provides organizations with a system that allows them to deliver buyers to the merchants and gain from the commission rewards provided by the merchants. This symbiotic relationship enables small businesses to cater to a wide consumer base while maintaining the database of the service provider (Sheikh and Basti, 2015). Certain businesses choose to cater to other small businesses like in the case of e-Bay where the company is boosting its services it caters to other small businesses. These models of businesses that choose to cater to other small businesses are known as a business to business model or simply the B2B model (Engström and Salehi-Sangari, 2007). There is another business model that is gaining popularity with the advent of new media. The internet has helped in connecting a lot of individuals with similar interests together and has given birth to the P2P (Peer to Peer) business model where trained individuals provide specialized services to other individuals in need for that service (Laudon et al, 2009). There is no company involved and people usually pick up projects from their home with the use of an active internet connection (Numberger and Rennhak, 2005).

The B2B business model caters to small businesses across a given market. Companies orient their product or service according to the needs and demands of a particular sector of the market. An e-business model refers to a structure that increases the value propositions to customers as compared to traditional business models and to provide guidance for organizations to conduct their business activities in the e-business environment on a sustainable basis (Ng, 2005). This in layman’s terms means any business that provides services to consumers while maintaining quality. The companies referenced in this assignment follow the B2B business model in the Australian e-commerce market

Azure Groups are a financial services provider to small businesses founded in 2002 by lead managing partner, Michael Derin (Azuregroup.com.au, 2018). It helps businesses to grow and develop by providing them with financial help and education. It also provides management and audit services to independent firms. Since, Azure Groups Pty. Ltd. provides services to other businesses rather than individual consumers; it has a B2B business model in the Australian e-commerce market.



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