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E-COMMERCE TO BUSINESS (Threats (Website design can be expensive, No face…
E-COMMERCE TO BUSINESS
Threats
Website design can be expensive
No face-ro-face contact
Transport costs per product sold are higher
Competitive
May have return cost
Need an efficient inventory control system
Not suitable for businesses that sell personal services (hairdressing)
Opportunities
Can be promoted worldwide with cheap price
Orders can be taken over the internet and sent to the company
Consumers might be encourage to purchase more products
Business can also make online purchases from other business (B2B)
Dynamic pricing will be easier to businesses
Using own websites for promotion.
Advantages
No extra cost
Control of advertising
Can change advert quickly and update pictures/prices
Interactive adverts can be more attractive than those in other forms of advertising media such as magazine/poster
Can provide more info in adverts and link to other pages with further information and pictures
Attracts funds/payment from companies
Disadvantages
Potential customers may not see the website as the page may come up in a long list of results
Relies on customers to find the website
Design cost of the website may be high
E-COMMERCIAL TO CONSUMERS
Opportunities
No need to leave the house
Can compare prices and products or services easily
Payment by credit card or debit card is very easy
Can easily access products and services from business located abroad
Can buy products that have lower prices
Can buy parts/ components from manufacturers without the addition of retailers' profit margin
Packaging and transport costs have fallen due to competition on the internet
Threats
Need access to the internet
Computer systems failures or weak internet connections can be frustrated to consumers
Products can't be seen, touched or tried
No face-to-face contact with sales staff so it is hard to find information about products
Concerned about identity theft or fraudulent use of credit cards
Using social media for promotion
Advantages
Targets customers will see the advert when they go on Facebook
Speed in response to market changes-information can be updated regularly
Targets specific demographic groups who will share product information through viral marketing
Cheap to use
reaches group that are difficult to reach any other way
Disadvantages
It can alienate customers if they find the adverts annoying
Potential customers may not use social media networks
Pay for advertising if using pop-ups
Lack of control of advertising
Messages may be altered or used in a bad way and forwarded on to other users, giving the business bad publicity