E-commerce

Definition

E-commerce refers to the buying and selling of goods or services using the internet and electronic systems. It encompasses a wide range of online transactions, from individual consumer purchases to large-scale business-to-business exchanges, and has become an integral part of the global economy, transforming the way organizations interact with customers, suppliers, and partners.

5 Must Know Facts For Your Next Test

1. E-commerce has transformed the organization's external environment by creating new opportunities for global market expansion, increased competition, and the need for agile and adaptable business models.
2. The rise of e-commerce has driven organizations to rethink their approaches to organizing for change in the 21st century, requiring investments in digital infrastructure, data analytics, and customer-centric strategies.
3. International management has become increasingly important in the e-commerce era, as businesses must navigate cross-border regulations, cultural differences, and logistics challenges to effectively reach global markets.
4. Small businesses have leveraged e-commerce platforms to compete with larger organizations, offering personalized products and services to niche markets and expanding their customer base beyond local boundaries.
5. The large impact of small businesses in the e-commerce landscape has contributed to trends in entrepreneurship and small-business ownership, as individuals recognize the potential for online ventures to disrupt traditional industries.

Review Questions

• Explain how e-commerce has impacted the organization's external environment.
  • E-commerce has transformed the organization's external environment by creating new opportunities for global market expansion, increased competition, and the need for agile and adaptable business models. The ability to reach customers worldwide through online platforms has opened up new avenues for growth, but has also intensified competition as businesses compete for a share of the global market. Organizations must continuously adapt their strategies and operations to stay relevant in the rapidly evolving e-commerce landscape.
• Describe the role of e-commerce in organizing for change in the 21st century.
  • The rise of e-commerce has driven organizations to rethink their approaches to organizing for change in the 21st century. Businesses must invest in digital infrastructure, data analytics, and customer-centric strategies to remain competitive and responsive to shifting market demands. E-commerce has also necessitated the development of new organizational structures, processes, and talent management practices to support the integration of digital technologies and the changing nature of work.
• Analyze the importance of international management in the context of e-commerce.
  • International management has become increasingly important in the e-commerce era, as businesses must navigate cross-border regulations, cultural differences, and logistics challenges to effectively reach global markets. E-commerce has enabled organizations to expand their customer base beyond local and regional boundaries, but this also requires a deep understanding of international markets, customs, and best practices for cross-border operations. Successful international management in the e-commerce landscape involves developing strategies for localization, supply chain optimization, and effective communication with diverse stakeholders across different countries and regions.

Related terms

Online Marketplace: A digital platform that facilitates the buying and selling of products and services between multiple sellers and buyers, often through a centralized system.

Digital Supply Chain: The integration of digital technologies and processes to optimize the flow of goods, services, and information within a supply chain, enabling greater efficiency, visibility, and responsiveness.

Digital Marketing: The use of digital channels and technologies, such as search engines, social media, and email, to promote and sell products or services to consumers.