How the Field of Business Has Been Impacted by E-Commerce Research Paper

How the Field of Business Has Been Impacted by E-Commerce - Research Paper Example Specifically, technological power of the present age reflects in computer and internet. Internet has brought myriad of wonders with its evolution, one of which happens to be E-commerce. â€Å"E-commerce is a commercial activity dealing directly with the trading of goods and services and with other related business activities, in which the electronic communication medium plays a central role.† (Heng, 2003, p. 104). Such activities include but are not limited to the payment management, spread of information, transport management and negotiation of financial tools. E-commerce has increased the national output by 2.7 per cent (Heng, 2003, p. 109). In October 1999, Sheikh Mohammed bin Rashid Al Maktoum, the Crown Prince of Dubai declared emirate’s intention of developing a â€Å"Dubai Internet City† (Martin, 2000). The Internet commerce was expected to increase from 26 per cent to 46 per cent of the worldwide expenditure from 1998 to 2003 (O’Briant, 2000). ... Because of its ability to connect people spread all over the world to one another simultaneously, internet happens to be a blessing for the e-commerce because businesses can advertise and sell their services and products online. Also, e-commerce benefits the consumers as they are able to gain firm understanding of the quality of a particular service or product prior to purchase through online discussions at social media websites. This enables the consumers to spend wisely and purchase only high quality services and products. E-commerce was very much there even before the introduction of internet, but in slightly different form. When internet wasn’t there, companies used such private networks as the Electronic Data Interchange (EDI) in order to do business with other companies. Back then, e-commerce was in an immature state. Companies had to incur a lot of expenses in the installation and maintenance of their private networks. Internet eradicated all those additional expenses a nd e-commerce flourished and spread far and wide in a matter of days. In this way, internet provided business entrepreneurs with a means to maximize the profitability of their businesses and minimize the expenses. In addition to that, internet served as an excellent means of spread of knowledge. Even if companies do not pay a dime for the advertisement of their products, they can create awareness among the public about them through social media websites. Numerous examples can be cited to prove the impact of e-commerce on business in the contemporary age. Blockbuster did business in retailing and renting of video games and VHS tapes DVD. Their products and services were fundamentally meant to provide the