To What Extent Is an E-Commerce Strategy the Best Way for...

To what extent is an e-commerce strategy the best way for businesses to increase their profits? (40 marks) E-commerce is the online transaction of goods and services, which has completely revolutionized business and the way in which businesses can operate. It’s now easier for customers to compare prices/products with a little time spent browsing the Internet opposed to dragging themselves to the stores. This means that e-commerce is having an impact on what and how much businesses sell, therefore influencing the profits the business gets. In this essay I will consider whether an e-commerce strategy is the best way for a business to increase their profits, or whether e-commerce is not the best strategy to do this. I will be arguing that†¦show more content†¦The new website was highly successful and ‘saw HMV return to profit’ (The Telegraph). This shows how an e-commerce strategy is the best way for a business to increase their profits as it illustrates how e-commerce can bring a business from administration to planning to expand into 10 new markets due to incre ased profits. Despite this, e-commerce doesn’t guarantee a business profit increases, as instead it can pose severe threats. One such threat is the risk of cyber attacks. A cyber attack is an attempt by hackers to damage or destroy a computer network or system. If a business falls vulnerable to one of these attacks it can severely damage their reputation. This reputation damage can lead to a loss of trust in the company by customers, as they will potentially have personal details such as bank cards/addresses accessed. This loss of trust will decrease brand loyalty and so the business will lose customers to competitors meaning lower sales and so decreased profits. Talk Talk shows a very recent case of a cyber attack. In October 2015 Talk Talk found themselves exposed to a cyber attack. Around 4% of the companies 4 million users were affected by the events. With More than 15,600 bank account numbers and sort codes were stolen, the company said. The scandal resulted in a  £35 million pound l oss for the company. This points shows how e-commerce can provide huge threats to companies despite the number of opportunities it provides too. These big risks that come alongsideShow MoreRelatedpaul hoang answers72561 Words   |  291 Pagesthe encouraging words that many of you have passed on from around the world. In the final installment, I have put together answers/solutions to all 217 case studies. I hope you will find these solutions as a useful starting point. As with all BM mark schemes, the solutions in this Answer Book should be used with caution and flexibility. Students who take an alternative approach to the suggested solutions should still be credited where appropriate; teachers should use their professional judgmentRead MoreMarketing and Internet Service Industry Essay example10345 Words   |  42 Pagesand encouragement. Also, special thanks go out to Mario Ding and Janie LIU, who has been there at important times to bounce around ideas to give me a large number of suggestions and to assist me along this dissertation. She suggested many clear ways to design the structure of this dissertation. Finally, a feeling of appreciation goes out to the many friends and classmates who provided support when things got tough. 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Read the case carefully and answer the following questions: 1.Till 2005, eBay EachNet was the leader in the Chinese e-commerce market, controlling more than half of it. But eBay EachNet soon lost its market leadership position to Taobao.com (Taobao). In this context, analyze theRead MoreA Case Study on the Use of Cost-Plus Pricing13312 Words   |  54 PagesA CASE STUDY ON THE USE OF COST-PLUS PRICING ABSTRACT In the business world of economic manufacturing and production, there are actually several ways and approaches for one business entity to recover their production expenses and realize profit. In this aspect, the production output is primarily the key factor in the profit generation of the business as their output serves as their revenue. 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