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Question
This week you explore a number of important areas for organisations operating in the global business environment that may present both threats and opportunities for them. Without question these are all critical elements of success, for to be unaware of or ignore the potential threat would be critical for the organisation.
In working out your response to the Key Concept Exercise, you should research the topic from the text, suggested readings and your own independent research on the topic as well. Also choose examples from your own experience or find appropriate cases on the web that you can discuss. Credit will be given for references you make to relevant examples from real companies.
Solution
Impact of Internet and E-Commerce Technology on Business
With the availability and increased use of the internet, e-commerce has significantly affected transactions by lowering costs and productivity while providing a competitive edge for businesses (Haucap & Heimeshoff, 2014). E-commerce enhances the capability of organisations in relation to the transactions of goods and services along with the exchange of important information over the internet (Meijers, 2014). The developments in e-commerce technology have proved beneficial for businesses of various industries including service, communications, retail trade and finance. In the context of these businesses, e-commerce facilitates business processes, helps in reaching new customers, by reducing costs and contributing to the development of new business strategies (Khan and Uwemi, 2018).
The use of e-commerce has proven to be beneficial for Amazon which enables customers to shop online. Amazon continually stays up-to-date with technology by using different platforms such as iOS for Apple users, tablets and mobile phones. Customers and businesses can conduct and offer an array of products and services. In addition, the use of online shopping not only generates financial stability, but also helps Amazon in attaining a higher profitability in terms of their business operations by providing discounts, new products, offering deliveries, and faster more efficient service and in turn attracts a wide range of customers (Rossman, 2016).
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