Dec 13, 2017 in Business



E-commerce is one of the means of economy’s globalization. However, this is not  traditional marketing. The organization should understand that E-commerce goes about the automating business process. On the one hand, it helps to speed up the transactions and cooperation with customers, but on the other hand, it might cause problems with the security of data and currency of transactions. That is why this research paper will develop the report of E-commerce as such and show the points of focus that my organization will take into account while planning the work of the E-commerce project. The main points of the paper are the international business and E-commerce, factors affecting E-commerce, global marketing strategies for E-commerce, planning and E-business, E-commerce security. 

Keywords: E-commerce, E-business, global marketing, E-commerce security.


E-commerce is a specific type of commerce when the communication between a customer and a store is conducted over various electronic systems. These might be the Internet as the global network together with other possible computer networks. E-commerce, which is known as electronic commerce, is considered to be the aspect of sales process of a particular e-business. E-commerce uses various technologies in the process of its work. Such technologies as Internet marketing, electronic data interchange, mobile commerce, online transaction processing are commonly used. If I were to use E-commerce for my organization, I would implement it with as much comfort for customers as possible. As the purpose of e-commerce is to make the life of people even easier, one should not complicate it in the process of the usage of a special E-commerce system. I would prefer if my organization had some particular IT Source which encompassed the internet-catalogue (online shop in other words) with the possibility to pay by credit card, also there should be the system of acquiring, i.e. the acceptance of various payments by plastic cards. The IT Source should work with system conversion of currency and systems of electronic banking. Anyway, these E-commerce systems will function in the following way: one of the functions is to watch news entrances, then to process the orders from customers promptly, after that it will have to monitor the availability of the desired goods. The system will also prepare the accounting records and create invoices. It is very important to create reports to customers who are going to provide audit. The final strategy is to create the precise system of control for the delivery and customer services provided by the organization. However, the most important part for planning is definitely the system of electronic payment. It is crucial to support the system by cash transactions through transfer to the account, various credit cards, the system of WebMoney and Pay Pal together with EasyPay and LiqPya. However, before creating E-commerce system for an organization, it is important to take into account several points.

The first one goes about the International business and E-commerce. When an organization grows and becomes and international project, the founders of the organization should consider several various factors which are fundamental on the international stage. The first one goes about language and cultural differences. If the language or cultural peculiarities are not taken into account, then an organization cannot exist on the international stage, whether it is via the Internet or by traditional means. The other point is the payment and currency exchange. Here, the organization depends on the location that is why currency exchange payment protocols should be developed and created as a part of the strategic planning.  The next point, which should be considered on the international level, is the logistics and fulfillment. This goes about the location of the markets and distribution infrastructure as products will have to be shipped. The next step goes about manufacturing. This usually goes about the wage differentials. As a matter of fact, they make the overseer manufacturing quite interesting proposition. However, the organization should always remember about a subject to piracy and about various potential losses of your protection. The next point goes about security and privacy concerns. People all of over the world are engaged in the commerce over the Internet. The organization should all care about civil and criminal laws concerning ‘export’ to ensure that there are no violations, and people would not be involved into them both knowingly and not knowingly. One of the trickiest points is jurisdiction. The organization should be very careful while creating ‘clip-wrap’ contracts. Every detail should be considered several times to ensure that it would not be the case of violation of different foreign laws. It is obvious that all solutions cannot fit to every point; however, if the planning is applied within all points, the E-commerce project will become profitable, in any other case, it will cost far more than an organization ever imagined.

An organization should also consider all possible factors which might affect the international business and E-commerce project. As it is international E-commerce, the factor might be very different. The most important barriers go about the IT and Security factors, customer perception and attitudes, technological factors, general factors, the Internet factors, infrastructural and regulatory factors. The most crucial hurdle for growth of E-commerce is the security of the online data and security of payments of online transactions. One of the barriers goes about viruses, worms, spywares which only increase fear of customers. The Internet is the source which is used by not only normal customers but also various hackers. That is actually why the second barrier appears. Customer’s attitude is different usually it goes about the lack of trust together with fear that the quality will be worse than expected. Customers are not able to see and feel a product they want to buy. The last point goes about the factor of time. Some customers lack patience. Usually E-commerce requires time to wait for the bought product. One more problem goes about the fact that customers have to fill in the whole dossier of the personal information. It is obvious that they are concerned about the faith of this information. The next barrier encompasses technological barriers. An organization has to pay attention to all updates of the technologies around the world and apply them within their E-commerce project. However, new software  and licensing is of high cost and all of the technologies have a tendency of rapid changes, which means that one has to spend a lot of money for the optimization process. Other factors to be discussed are general factors. They go about the lack of understanding of the E-commerce together with the lack of trust. The barrier here also goes about local languages and cultural factors. The problem also stands about the costs concerning shipping and couriers. They are closely connected with the Internet factors, which concern the Internet connection that might depend on speed or the limited access to the Internet in various rural areas. The worst factor is the fact that there still exists the low Internet penetration together with the low number of people who use credit cards. Infrastructural factors concern low developed transportation infrastructures, which is the result of uncertain and sometimes slow delivery. The last factors to be considered are politics and regulation. As a matter of fact, it is much more serious than it seems to be. It goes about taxation as such together with the need of balanced taxation laws. It also concerns the protection of data provided and the protection of E-commerce as such from the misuse. That is why the regional legal framework is very important in this case. All of these factors should be taken into account to provide secure and successful services. Another point to be discussed goes about the global marketing strategies for E-commerce.

As a matter of fact, there were different strategic frameworks which were supposed to help different organizations to market themselves on the Internet.  The first strategy concerns product. As a matter of fact, a product is anything which might be offered for attention. In the E-commerce, the strategy shows that the real product is replaced by information. This is a very productive strategy as the innovations might be much easier provided and it is easier to collect the information that will help to develop various products for special customer’s need. Another strategy concerns place. The place might be a problem. Everything depends on the marketplace; however, the Internet can have the most effective influence on the customer. As a matter of fact, various products are actually located on a huge number of screens around the world. The third strategy concerns price. The price in E-commerce plays the same important role as it always played in traditional marketing. At the beginning of the E-commerce projecting, the process leads to the increasing of the prices together with competition. As the result, the process leads to the standardization of prices. This strategy is of particular importance for customers as they are able to compare the prices around the world and chooses the best for them. The price of Internet-based services has no marginal costs practically. Every organization has to pay particular attention for various pricing models while selling over the Internet. The forth strategy concerns promotions. The Internet allows making the communication between the organization and the customers easier. The process of persuading to buy a particular product is much easier on the Internet. Information can be very easily collected from various E-commerce sites, and information is full and secure in most case. Plus it is possible to view consumer’s reviews; some customers are willing to share the information with other which is also the process of promotion. The strategies might also be customer centered. As a matter of fact, E-commerce is created to make the life of customers easier. The traditional marketing is becoming more expensive, and at the same time, it is less effective. The products online are cheaper as an organization does not have to pay for the marketing place rent and wages to the number of sellers who work for a company. It is much easier for customers to search for information about a product, for reviews, sales and promotions.  However, it is obvious that all E-commerce strategies offer unique contribution to the strategic planning as such. The internet helps to organize work better in the sphere.

The next point to be considered is the actual planning of the e-business. While planning the e-business, one needs to take into account all possible plan components. They encompass the management team, the full product description, the research and development in the sphere, the pricing, the business opportunities and the marketing plan. The management team is what makes the 50 percent of attractiveness of the organization. The rest makes the very product. The management team should consist of the chairman or the founder, the chief financial officer, the general counsel, the chief scientist, the vice president of the strategic plan and the chief technical officer. Sometimes it is also important to have legal counsel, who will help to work with legal questions. The plan should contain product description which has to show at least two main sections such as features and benefits. The next step is the description of business opportunities. They should show the markets of organization, estimate the expected sales, make the list of potential competitors and perform the competitive analysis. Then one may proceed to the competition step. As a matter of fact, it is important to read between the lines in all reports done by the competitors’ organizations. Only after, one might describe all possible competitive advantages. They will show how one can minimize the threads of competition. The next step goes about the pricing. The organization may charge for various services. First of all it sells items, then services, then advertising. This is the actual section where the organization has to show how it is going to make money. It should also show the pricing systems one is going to work with. They might concern credit cards or cyber money or billing as such. One of last points is marketing plan. It should consist of advertising, partnerships; various marketing efforts which might include direct mail, trade shows or even telemarketing, the last component might be public relationships. Writing of business plan might possess a challenge, it might be difficult, but it helps to make the work of organization more productive as it examines all objectives and problems that can arise in the process.

The next point concerns the E-commerce critique. There are several problems which might cause critique to E-commerce. The electronic transactions law is not full incorporated into E-commerce, which causes problems. The e-signatures and e-documents are stored, and they are not deleted which means they might be stolen by hackers and used is various situations. The protection of a customer is not complete. It is also very important to establish Information Technology Courts, which will help to solve the E-commerce disputes. Another thing, which is severally criticized, is the absence of proper automated contracts which can secure the customers. However, this is the sphere which has to change constantly that is why most of the problems are solved right away because of severe competition.

The next point about E-commerce is the analysis of international opportunities for the E-commerce. One of the most important opportunities which is provided by the international E-commerce goes about the excellent growth outside the particular country. Another opportunity concerns profits. The possibility to earn money is much higher as the system concerns a lot of countries which makes the number of customers much higher. E-commerce also helps to create the international tax planning, some countries had different attitudes concerning this problem usually the attitudes were conflicting, however, E-commerce takes the opportunity of the international tax planning, which can help to solve the jurisdiction problems and differences.

The last point to be discussed is the E-commerce security. As a matter of fact, E-commerce security had become part of the general information security work which is done in the whole world. It goes about various components which might affect the E-commerce. The facts are the Data security and the Computer security. As E-commerce is growing, it is becoming more and more vulnerable to risks which might lead to various financial losses or even the loss of private information. That is why there are a number of governments who did everything to secure the information used in the E-commerce projects. There is a Data Security Standard which actually secures credit card users and provides controls for the regulation of credit card data. It helps a lot; however, the lack of state control still processed a serious problem. There are also several governments which secure customers. The International Customer Protection and Enforcement Network secure customers from more than forty countries, but it also encourages the global international E-commerce and helps it by the introduction of various cooperating within the law enforcement agencies. Another international government group is the APEC Electronic Commerce Steering Group, which helps to set legal law concerning the regulation and the policy of the E-commerce. As the E-commerce grows, the secure of the customers become even more paramount. There are a lot of governments and organization which will help to conduct this.

E-commerce is a win-win situation for an organization as it can create and regulate the business without any concerns about time and distance. The errors are eliminated faster which make an organization even more convenient for customers. An organization sends a products right to a customer, so the costs for the retails that are used in the traditional marketing are cut. An organization reaches more customers, and they are not limited to a particular place. There are a number of risks and problems, but good planning and teams will help to solve them as quick as possible with the smallest losses.

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