E business is the kind of business that takes place over the computer

1. Running Head: BUSINESS 107 FUNDAMENTALS OF E-BUSINESS
Subject: Business
Name:
Course:
Tutor’s Name:
(28th
October 2014)

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Business law
E- Business
E business is the kind of business that takes place over the computer. Internet has
continuously given rise to new and improved small business opportunities. It is important that
one perform the necessary research before venturing into ecommerce
Strengths
The business owner comprise complete power over the business guaranteeing 100%
profit as few costs would be incurred: One can work whenever and wherever they are in any part
of the world: Presence of a wide customer base than one would have in personal contact
business: Presence of online ordering systems that are able to process information in real time in
a faster, accurate, cheaper and efficient manner than would be done by human being: Only a
low startup capital is required in starting small online businesses giving both large and small;
old and new business an equal opportunity to compete as the online customers are more
concerned with getting their product rather than the appearance of the website.
Weakness
One is not guaranteed of a pay check that they can rely on; the business would require
time to learn new tactic, security measures such as encryption and digital signatures; the need for
the business person to gain trust from the customers
Opportunities
E business is increasingly becoming famous due to the reduction in the cost for starting
up e business compared to the traditional brick and mortar businesses; many barriers to the

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opening of the e- business have been removed enabling many people to operate in the e-business
; Technology is becoming easier and cheaper to use making it easy to start up e business as long
as one can access a computer and internet; and Both local and international businesses have an
equal opportunity of being accessed by the potential customers within the local, international as
well as national market
Threats
Uncontrolled Web associated problems such as hacking, viruses causing the web break
down and loss of important information/data and customers or even closure of the website and
subsequently the loss of money; There inadequate information on the financial and
communication infrastructure to support e commerce; Institutional, legal and cultural differences
between countries ; There is protectionism in regard to the developed countries concern on the
developed countries outsourcing services from developing countries creating competition to the
already established companies; and the business tends to take so much of personal time such that
one may end up neglecting other important areas in their lives.
Issues facing companies on e-commerce business
Although the internet marketing makes it possible for companies to sell their products to the
international market, a number of challenges exist.
1. Infrastructure :
Some of the companies are not prepared to go global and thus experience challenges due
to lack of sufficient infrastructure and the differences in the internet capabilities in different
country. Infrastructural challenges can be solved through a thorough preparation of the company

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before launching into e commerce for the international shipments. For example, smaller
products would be shipped by are whereas large shipments may require freight forwarder. There
is need to understand the existing express delivery and freight forwarding companies that would
assist in the deliverly of the luggage. This would involve knowing the companies that serve
specific countries and the costs of shipment. This would be possible through the access of the
specialized logistic softwares that provide proper documentation and forms to meet regulations
for the specific c countries.
The internet companies also need to examine both the import and export laws for
different countries. Countries also differ in currency and the payment methods in use
2. Culture(appealing of audiences of each country)
The online business presents itself with the cultural challenges as the product target the
global community. This may affect how fast the business grows. In order to overcome such
barriers, it is important that a website that appeals to people of different culture is developed.
This may require putting of the specific contacts of the specific agents from different countries;
changing or removing words, colors, and images that may not be appealing to a specific group of
people. The activity would require thorough research to understand the criteria to use in such
moves.
3. Language
The online business reaches to a global community each conversant with the specific
languages. In order to overcome the language barrier the company may: translate the English
site into the local language: have a person who understand the culture and the language of the
target group to ensure that the needs of the different clients are met. The company may also

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collude with the local firms to help in the translation in order to ensure that everything is done in
the right way.
4. Government
The transactions of online businesses would differ from country to country depending
on the nature of the government. Government determines the laws, the import and export tax, etc
regarding specific good s and services. The challenge would be solved by the business manager
taking their time to understand the regulations of different countries before they decide to extend
into them.
5. Trust
Trust forms an important part in the success of any business as the customer is worried
about security and quality. The barrier to trust can be overcome by being true to the customers.
This is by providing all the needed information as accurate as possible, ensuring that orders are
delivered in time. This may also entail the use of contractual agreements as a way of showing
business commitment (Abdulla, 2009)
Overcoming the issues that complicate the ability of the ecommerce to comply with the law
Territorial borders in the physical world have a well defined culture and applicable law
and majority of the people are made aware of the transitions that they ought to take. The
internet space is hard to define and it’s one to crisis cross the world in a second expanding their
market niche. This call for the government that wish to establish laws on business conduct over
the internet to establish a jurisdiction over the internet conduct. In order to avoid the
complicating factors that comes with the ecommerce and complies with the law that regulates or

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directs online businesses in the specific countries. For example, use of contract is recognized in
most of the countries. Contract is a promise between two or more legal entities to exchange
certain value (services and goods) between them. This way, people are able to file their
jurisdictions in a court of law based on their claims. Contracts are an indication of an existing
business deal between two parties even in an era where the speed and efficiency of business is
increased.
Another way of overcoming the complicating issues is being careful on the use of copy or
patent right on the product. It is possible for the online businesses violate the intellectual
property right through the use of the web contents that is unauthorized either in their websites or
their domains. Therefore, to avoid such complicating issues it is important that such businesses
ensure that they use copyrighted materials in which they have authority (Sax, 2001).
E-commerce crimes and how to prevent them
Phishing: This is the form of the online identity theft that uses spoofed emails that have been
designed to lure recipients to websites that are fraud. Spishing work to attempt to trick the users
into diverging personal and financial data such as passwords, credit cards, user names and social
security numbers.
Un-authorized access
This involves electronic intrusion or access to resources of others through computers without the
permission of the owner. For example, hacking where one makes un-authorized access to the
work of others and makes use of it and even make changes
Phishing may be avoided through: Being suspicious of any email with urgent request for
personal information on finances: avoiding using links in email to get to any web page

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especially suspecting of a non authentic message but logging into the company’s website by
typing the web address onto the browser: avoiding filling of forms in emails that concerns ones
financial information, always ensuring that secure website is used when submitting ones credit
card or other sensitive information through the web browser; installing a web browser tool bar
into ones computer to avoid one falling prey of phishing fraud websites (Sembok, 2003).
Regular logging into ones online accounts and checking of the credit, bank, and debit cards
statements to confirm all legitimate transactions; ensuing that the e browser is up to date and the
security patches are applied: reporting spoofed and spished emails to the relevant groups for
action. In addition to these, unauthorized access can be prevented by using unique passwords that
cannot be easily copied and ensuring that the user has logged off important sites after use(Kunz
and Wilson, 2004).

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References
1. Abdulla(2009), The Challenges Facing International E-Commerce
http://www.articlesbase.com/internet-articles/the-challenges-facing-international-
ecommerce-93849
2. Griffin, D.,(2014), Advantages & Disadvantages of E-Business Retrieved from
http://smallbusiness.chron.com/advantages-disadvantages-e-business-4042.html on
28/10/2014
3. Kunz, M., and Wilson, P.,(2004), Report, Computer Crime and Computer Fraud
University of Maryland
4. Sax, M., (2001), INTERNATIONAL LAW ISSUES RELATING TO ELECTRONIC
COMMERCE. Retrieved from
http://www.saxlaw.com/publications/ELECTRONIC_COMMERCE.html on 28/10/2014
5. Sembok, T., (2003), Ethics of information communication technology (ICT)

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