Why it is said that EC is a catalyst of fundamental changes?

Essay by shaheka143University, Master'sD+, July 2004

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1. Introduction

E-commerce means using online electronic data communications to perform or enable transactions, usually financial, to buy or sell, subscribe to or join something. The term e-commerce is usually used for transactions performed on the Internet, and within that, usually on the Web.

This assignment attempts to find out the types of fundamental changes brought about by EC, as well as the reasons why EC is a catalyst of each change.

2. Types of fundamental changes in organization affected by EC.

Fundamental changes means global accessibility and sales reach, closer relationships, free samples, reduced costs, media breaks, time to market and customer loyalty.

Global accessibility and sales reach - organizations can expand their customer base, and even expand their product line.

Closer relationships - organizations can grow closer relationships with business's partners.

Free samples - Products can be sampled via the Web fast, easily and free of charge.

Reduced costs - organizations can reduce their costly production by dynamically adjusting prices.

Media breaks - The Internet reduces the number of media breaks that are necessary to transport information.

Time to market - Shorter time to market and faster response time to changing market demands.

Customer loyalty - Improved customer loyalty and service through easier access to the latest information and a never-closing site.

3. Reasons why EC is the catalyst of fundamental change in organizations.

EC makes fundamental changes in organizations because of the strengths of the Internet. Internet is a new electronic digital data exchange or transfer platform for business and communication activities, basically such a new technology increase the global accessibility of the corporate organizations. It is simple for using. Similarly, wireless communication such as hand-phone system makes another easier path to access Internet at any location as you wish.

Apart from...