Write an essay on E-Businness and Compare the four categories of ebusiness models. Solution The fast and dramatic changes in information technology specially in last one decade has given new concept of marketing in which buyer and seller do not see each other face to face nor see the goods physically; the whole transaction is carried out with the help of ‘on line’ communication. The entire deal is carried out with the help of computer – telecommunication and net working with associated hardware. In the e – commerce internet provides information about goods and services “It is” a way of conducting imaging and executing business transactions and services through elec tronic media and net working in computers and communication net work, websites, e-mail are resorted. Customers know about goods and services sitting at home. The manufacturers, distributors, suppliers and services providers let the consumers know about their products quality, price, size, color etc. through multi-colored catalogues on website. The consumers can ‘surface various web sites and compare their relative prices, quality characteristic, features etc. These details can be obtained from suppliers around the globe. The websites are available beside for goods for direct selling, context selling, financial and other services such as hospitals, education, training, advertise ments, property, entertainment, product demonstrations, bill payment, exchange and all other ser vices which one can think of. Advantage to Consumers: The consumer has number of advantages and convenience and therefore the system is becoming popular. 1. Consumer has wider choice not from his town or country but also round the globe unless there are import restrictions. 2. Customized or personalized product and service. For instance if some lady wants a bra of exact size, her size can be measured through internet and stored and she will be supplied bra of her requirement. 3. In case of purchase, one is not required to go from store to store to see the products to collect their details, prices etc. Sitting at home he gets all the required information and that too very fast without spending much time. 4. There is absolute flexibility of time, place and distance is no hurdle; one can open the site any time day or night to get details, there is no problem of shops/stores opening/closing hours. Website can be opened any time. In physical sales place and distance is also a problem which is no problem in e-commerce because one can see sites all over the world without moving out of the house. 5. Goods are available at cheaper price because there are lot of economies of space, rent, interest to the seller Further, he manages with much lesser number of outlets and cost of marketing is reduced. Part of these savings is passed on to consumer and therefore, he gets the products cheaper than from conventional shops/departmental stores, grocers etc. 6. It helps to globalize retail trading. One can buy things without geograp.

1. Write an essay on E-Businness and Compare the four categories of ebusiness models.
Solution
The fast and dramatic changes in information technology specially in last one decade has given
new concept of marketing in which buyer and seller do not see each other face to face nor see the
goods physically; the whole transaction is carried out with the help of ‘on line’ communication.
The entire deal is carried out with the help of computer – telecommunication and net working
with associated hardware.
In the e – commerce internet provides information about goods and services “It is” a way of
conducting imaging and executing business transactions and services through elec-tronic media
and net working in computers and communication net work, websites, e-mail are resorted.
Customers know about goods and services sitting at home. The manufacturers, distributors,
suppliers and services providers let the consumers know about their products quality, price, size,
color etc. through multi-colored catalogues on website. The consumers can ‘surface various web
sites and compare their relative prices, quality characteristic, features etc.
These details can be obtained from suppliers around the globe. The websites are available beside
for goods for direct selling, context selling, financial and other services such as hospitals,
education, training, advertise-ments, property, entertainment, product demonstrations, bill
payment, exchange and all other ser-vices which one can think of.
Advantage to Consumers:
The consumer has number of advantages and convenience and therefore the system is becoming
popular.
1. Consumer has wider choice not from his town or country but also round the globe unless there
are import restrictions.
2. Customized or personalized product and service. For instance if some lady wants a bra of
exact size, her size can be measured through internet and stored and she will be supplied bra of
her requirement.
3. In case of purchase, one is not required to go from store to store to see the products to collect
their details, prices etc. Sitting at home he gets all the required information and that too very fast
without spending much time.
4. There is absolute flexibility of time, place and distance is no hurdle; one can open the site any
time day or night to get details, there is no problem of shops/stores opening/closing hours.
Website can be opened any time. In physical sales place and distance is also a problem which is
no problem in e-commerce because one can see sites all over the world without moving out of

2. the house.
5. Goods are available at cheaper price because there are lot of economies of space, rent, interest
to the seller Further, he manages with much lesser number of outlets and cost of marketing is
reduced. Part of these savings is passed on to consumer and therefore, he gets the products
cheaper than from conventional shops/departmental stores, grocers etc.
6. It helps to globalize retail trading. One can buy things without geographical boundaries.
7. It eliminates with the system of distributors, authorized dealers and retailers, the manufac-turer
can deal with large territory with one store.
8. The inventory is reduced, and so the cost of carrying goods and distribution cost.
9. Exports to final consumers is possible through e-commerce, not only-just sales but
procure-ment, accounts, logistics product development and other related services are also possible
through e-commerce
10. The net enables suppliers to introduce and promote new markets and new products to meet
the needs of individual buyers.
11. Long distance, travelling and delays, pollution all are avoided because one has not to travel
to the shop.
12. Consumer is better informed about products, price etc and therefore can make better choice.
13. Suppliers, competitors and customers come under one roof through internet websites and
massive exhibition of various items is possible.
Disadvantages:
1. The biggest disadvantage of e-commerce is that one is not able to see and feel the product.
2. Since consumers are not able to feel and touch the products and therefore business is on trust
and as yet business is largely limited to travel, automobiles, PC’s, services, books and CD’s
entertain-ment. As yet sales of apparel, food products is largely small percentage of total e-
business. For instance in 1999 the maximum ownership of internet was 50 percent in USA, in
other countries it varied between 1.8 percent to 45 percent But gradually this disadvantage is
being reduced but still there is large percentage of population which does not own internet
Categories Of E-Businness
1.Business to Business (B2B):
This implies selling by one business manufactures to other business manufactures, trade,
wholesaler or retailer. In India as yet most of the e-commerce is B2B. The number of companies
like TELCO, IBM, C1TI BANK, BHEL, ESSAR, TVS, MARUTI, BAJAJ, and many others are
doing B2B. In 1998 out of total e-commerce of us$ 210 billion us$ 100 billion was accounted for
B2B.
2.Business to Consumer (C2B):
When business sells to customers/consumers it is called B2C and is most important from our

3. point of view. The products include items sold in departmental stores, chemist shops, grocery
stores, books, stationery, clothes, vegetables, fruits and what not. As yet in India such sales are
only of US$ 100 billion but are expected to go up to US$ 900 billion by 2005 i.e. the growth of
9000 percent. Many service sectors are adopting this mode.
3.Consumer to Consumer (C2C):
Under this system when some consumer want to dispose off his old items, he can take the help of
selling through internet. But this type of e-commerce is not very common at least in India and the
business is negligible.
4.Business to Government (B2G):
Business house or on individual business has to file income tax and sales tax returns and various
types of other returns. As yet this requires filing of return in respective office and apply for
approval in concerned office. But now many countries allow this type of activity through e-
mail/e-commerce. However, as yet this is not being done in India.
5. Government to Consumer (G2C):
In order to provide facilities to public and speed up information and records government in many
cases provide record of information, through this system; sale of documents, passport forms,
copies of returns etc are supplied through e-mail. The main features of e-commerce is that one
does not physically feel an item nor sees it and places order on the basis of information supplied
through website or in response to consumers inquiry, as yet e-commerce has last preference for
daily consumption items.