Professional Documents
Culture Documents
0 Introduction
Malaysia is a country in Southeast Asia which comprises many ethnic groups, with Malays being
the majority followed by Chinese, Indians and others. A typical Malaysian is usually literate in 2
to 3 languages or more. English is arguably the common language used on the Internet here as
many western sites or services are popular and frequently accessed. Some of us are also
accustomed to sites from China, Taiwan, Indonesia or even India. Malaysia is one of the key
"Asian Tigers" as a consequence of its energetic efforts to transform itself into an information
age nation. Unlike its larger neighbors, Malaysia's workforce is well under way on the road to
becoming an information dominant economy. The information sector is estimated as constituting
28% of the workforce at the end of 1998; it is expected to grow to 38% of the workforce by the
end of 2003. Malaysia's Gross Domestic Product (GDP) has had annual growth rates in the 7% to
9% range throughout the early to mid-1990s. The Gross Domestic Product (GDP) in Malaysia
expanded 2.40 percent in the third quarter of 2010 over the previous quarter. From 2000 until
2010, Malaysia's average quarterly GDP Growth was 1.20 percent reaching an historical high of
5.70 percent in September of 2009 and a record low of -7.80 percent in March of 2009. Malaysia
is a rapidly developing economy in Asia. Malaysia, a middle-income country, has transformed
itself since the 1970s from a producer of raw materials into an emerging multi-sector economy.
The Government of Malaysia is continuing efforts to boost domestic demand to wean the
economy off of its dependence on exports.1 Nevertheless, exports particularly of electronics and
information remain a significant driver of the economy.
E-commerce has evolved over the years from electronic funds transfers (EFT), comprising of
online shopping and Internet banking, to electronic data interchange (EDI), and comprising
companies' transfer of documents such as purchase orders or invoices. Recent studies foresee a
massive growth of e-commerce in the Asian region especially in Malaysia, Singapore, Hong
Kong, Korea and Australia. Malaysia’s population stands at over 28 million. We have around
30% broadband and 106% mobile penetration as of the end of 2009.2 According to Internet
World Stats, we are number 9 in Asia’s top 10 Internet countries, by having 16.9 million Internet
users. Half of Malaysia’s Internet users are buying or transacting online, which equaled more
1
Source of Internet : http://www.tradingeconomics.com/Economics/GDP-Growth
2
Source of Internet : http://www.ibls.com/internet_law_news_portal_view
1
than 8 million in 2009.3 Most of the numbers are contributed by airline tickets. Other popular
goods sold online include books, general consumer goods, movie tickets, technology gadgets and
so on. The most preferred online payment method in this part of the world is credit cards
followed by Internet banking. Only now is it becoming apparent how large the potential for E-
Commerce will be in the next few years. With E-Commerce prospects continuing to improve,
most large corporations have already developed preliminary E-Commerce strategies. Although
many SMEs are not following this trend of large corporations, others have found that a modest
investment in a simple Web site can develop into a commitment to E-Commerce as a major
component of the business plan. At this stage of development, E-Commerce is not an essential
operation for every type of SME, but in the near future it may become standard for many.
E-commerce which is short for electronic commerce is a way of doing business. Electronic
commerce or e-commerce refers to a wide range of online business activities for products and
services. It also pertains to “any form of business transaction in which the parties interact
electronically rather than by physical exchanges or direct physical contact”.4 E-commerce is
usually associated with buying and selling over the Internet, or conducting any transaction
involving the transfer of ownership or rights to use goods or services through a computer-
mediated network. Though popular, this definition is not comprehensive enough to capture
recent developments in this new and revolutionary business phenomenon. A more complete
definition is E-commerce is the use of electronic communications and digital information
processing technology in business transactions to create, transform, and redefine relationships for
value creation between or among organizations, and between organizations and individuals. An
online source of technical information, defines e-commerce as “conducting business online”, a
definition that encompasses any electronic or paperless exchange of business information over
any information over any communication medium.5
3
Source of Internet : http://www.ibls.com/internet_law_news_portal_view
4
Source of Internet : http://www.eicc.co.yu/newspro/viewnews.cgi
5
Kenneth C.Laudon & Carol Guercio Traver. E-commerce : business, technology,society. (2004).
2
Almost all business enterprise exchange goods, services, and information electronically, only a
tiny fraction of these interactions directly involve retail customers and not all of them use the
internet or the World Wide Web.6 The World Trade Organization (WTO) categorizes e-
commerce applications by reviewing the usage of the Internet. It stated that the Internet can be
used for a multitude of exchanges and transactions, including e-mail, leisure reading and
searching for information (browsing or surfing), advertising and promoting personal or business
causes, linking people in private or professional circles, and publishing, selling, purchasing or
providing services mainly as a means for advertising, communications and public relations,
customer information, online sales and customer support.
E-Commerce basically began in 1994 when Jeff Bezos started Amazon.com out of his own
garage. Well known E-Commerce stores include sites like eBay, Dell, Walmart and many more.
Since 1994, businesses of all shapes and sizes have began launching or expanding their Online
presence. At any given time, there are approximately 8 million consumers worldwide that
actively shop and buy through Web based stores or retailers (nearly one tenth of our world
population). Online studies have claimed that online retail revenues will surpass the quarter-
trillion-dollar mark by 2011.7 According to the Pew Internet & American Life Project, 66 percent
of the adults online have purchased something over the Internet, whether it's books, shoes or a
Caribbean cruise.
But if you extend e-commerce's definition to include researching products and services online
without buying anything, or bidding on an online auction but not winning, then the number of
adults who participate in e-commerce jumps to 93 percent [source: Pew Internet & American
Life Project]. That's just about all of us. Even with a slumping global economy, online retail
sales continue to rise. According to recent forecasts by Forrester Research, online retail sales will
increase 17 percent in 2008 to reach an annual total of $204 billion, with the biggest sellers being
clothing, computers and cars8 . E-commerce's history is short but fascinating. Over the course of
a few decades, networking and computing technology have improved at exponential rates.
Powerful personal computers linked to global information networks have powered a whole new
world of intellectual, social and financial interactions. And this is only the beginning.
6
Kenneth C.Laudon & Carol Guercio Traver. E-commerce : business, technology,society. (2004).
7
Source of Internet : http://www.ecommerceoptimization.com/ecommerce-introduction
8
Source of Internet : http://www.informationweek.com/TechSearch/Search.jhtml
3
3.0 The Difference between E-Commerce and E-Business
E-Commerce is often confused with E-business, with many people believing the two terms are
interchangeable, when in fact this is incorrect. While the words Commerce and Business don't
have much difference in English and in fact are largely interchangeable as nouns describing
organized profit-seeking activity, there is a difference between e-commerce and e-business. The
difference is quite artificial, but different terms do carry different meanings. The first wave of
thinking about electronic business was a reaction to the success of Amazon and Dell in selling
products over the Internet. If we ask any number of information technology professionals what e-
business is and chances are you will get as many definitions. There is a debate among
consultants and academics about the meaning and limitations of both e-commerce and e-
business. Some argue that e-commerce encompasses the entire world of electronically based
organizational activities that support a firm’s market exchanges including a firm’s entire
information system’s infrastructure. Others argue, on the other hand, that e-business
encompasses the entire world of internal and external electronically based activities including e-
commerce.9 In both cases, the e stands for "electronic networks" and describes the application of
electronic network technology - including Internet and electronic data interchange (EDI) - to
improve and change business processes. In e-commerce, information and communications
technology (ICT) is used in inter-business or inter-organizational transactions (transactions
between and among firms/organizations) and in business-to-consumer transactions (transactions
between firms/organizations and individuals). In e-business, on the other hand, ICT is used to
enhance one’s business. It includes any process that a business organization (either a for-profit,
governmental or non-profit entity) conducts over a computer-mediated network.
E-commerce covers outward-facing processes that touch customers, suppliers and external
partners, including sales, marketing, order taking, delivery, customer service, purchasing of raw
materials and supplies for production and procurement of indirect operating-expense items, such
as office supplies. It involves new business models and the potential to gain new revenue or lose
some existing revenue to new competitors. It's ambitious but relatively easy to implement
because it involves only three types of integration: vertical integration of front-end Web site
applications to existing transaction systems; cross-business integration of a company with Web
9
Kalakota, Ravi and Andrew B. Whinston. . Electronic Commerce: A Manager’s Guide. Addison Wesley
Longman, Inc.(1997)
4
sites of customers, suppliers or intermediaries such as Web based marketplaces; and integration
of technology with modestly redesigned processes for order handling, purchasing or customer
service.10
E-business is the conduct of business on the internet, in supply chain planning, tracking,
fulfillment, invoicing, and payment. It includes buying and selling as well as servicing customers
and collaborating with business partners. Electronic information is used to boost performance
and create value by forming new relationships between and among business and customers. E-
business goes beyond a website on the internet to affect all aspect of business, from strategy and
process to trading partners and the ultimate consumer. It combines the resources of traditional
information systems with the global reach of the Web.11 E-business includes e-commerce but
also covers internal processes such as production, inventory management, product development,
risk management, finance, knowledge management and human resources. E-business strategy is
more complex, more focused on internal processes, and aimed at cost savings and improvements
in efficiency, productivity and cost savings. An e-business strategy is also more difficult to
execute, with four directions of integration: vertically, between Web front- and back-end
systems; laterally, between a company and its customers, business partners, suppliers or
intermediaries; horizontally, among e-commerce, enterprise resource planning (ERP), customer
relationship management (CRM), knowledge management and supply-chain management
systems; and downward through the enterprise, for integration of new technologies with radically
redesigned business processes. But e-business has a higher payoff in the form of more efficient
processes, lower costs and potentially greater profits.
E-commerce and e-business both address these processes, as well as a technology infrastructure
of databases, application servers, security tools, systems management and legacy systems. And
both involve the creation of new value chains between a company and its customers and
suppliers, as well as within the company itself. E-commerce and e-business system blur together
at the business firm boundary, at the point where the internal business systems link up with
10
Source of Internet :
http://www.computerworld.com/s/article/53015/The_difference_between_e_business_and_e_commerce?
11
Elias M.Awad. Electronic Commerce : from vision to fulfillment (2007)
5
supplier or customers, for instance. E-business applications turn into e-commerce precisely when
an exchange of value occurs.12
In simple words, e-commerce is doing the work of commerce electronically. Now, it is not that
we have e-commerce between certain groups only; rather we have e-commerce that can be
between many groups. Therefore, we do not have only one type of the e-commerce, but we have
many types of the e-commerce. Our e-commerce can be between business and business, or
between business and consumers, or can be between business and employees, and can be many
more. For the most part, we distinguish different types of e-commerce by the nature of the
market relationship, who is selling to whom. The expectations are P2P and m-commerce, which
are technology-based distinctions.
The one area where it's important for online stores to differentiate is their look and feel,
and naturally retailers feel very strongly about their business branding. So the ability to
12
Kenneth C.Laurdon & Carol Guercio Traver. E-commerce : business, technology,society (2004)
13
Kenneth C.Laurdon & Carol Guercio Traver. E-commerce : business, technology,society (2004
6
create a unique ‘skin’ for each site is an important part of a template-based e-store
offering. Using the latest internet application technology, individual sites can be created
within minutes of the retailer selecting a template and supplying graphics such as logos.
Typically, retailers will pay only a modest monthly rental charge – and retailers require
no specialist hardware or software, other than internet access. These days, a web site
should be a standard part of the promotional and advertising mix for every business,
along with other tools such as Yellow Pages, newspaper advertising and signage.14
Having a Web storefront is not a big deal anymore. Everyone has one. The real power of
e-commerce lies not in the direct sale of products to consumers, but in the integration of
relationships among merchants and suppliers for prompt, quality customer service.15
About 80% of e-commerce is of this type, and most experts predict that B2B ecommerce
will continue to grow faster than the B2C segment. The B2B market has two primary
components, e-frastructure and e-markets. E-frastructure is the architecture of B2B,
primarily consisting of the following; logistics consisting transportation, warehousing and
distribution, application service providers consisting deployment, hosting and
management of packaged software from a central facility, outsourcing of functions in the
process of e-commerce, such as Web-hosting, security and customer care solutions,
auction solutions software for the operation and maintenance of real-time auctions in the
Internet, content management software for the facilitation of Web site content
management and delivery and web-based commerce enablers.16 B2B has reportedly done
better than B2C, where steadier growth, higher profits. Even within the B2B market,
there are marked differences between types of software and their successes. Records of
some are distinctly spotty, and sales of the more advanced systems have been badly hit
by the dotcom bust and US recession. Improved management is not simply a matter of
14
Source of Internet : http://www.creativewebstore.com/portfolio/b2c_business_to_consumer
15
Elias M.Awad. Electronic Commerce : from vision to fulfillment (2007)
16
Zorayda Ruth Andam. E-commerce and e-business : E-asean task force. (2003)
7
installing new software; extensive company reorganization and retraining are required to
obtain even a modest payoff.17
Peer-to-peer technology enables internet users to share files and computer resources
directly without having to go through a central Web server. In peer-to-peer’s purest form,
17
Source of Internet : http://www.creativewebstore.com/portfolio/b2b_business_to_business
8
no intermediary is required, although in fact, most P2P networks make use of
intermediary “super serves” to speed operations. In peer-to-peer applications, many or all
of the functions performed in connecting a traditional, server-based, network are off-
loaded to the client machines connected to the network. File sharing is a use of peer-to-
peer technology. It takes advantage of the end users' storage and retrieval capabilities
across individual networks that include other users of a file sharing system (for example,
early Napster and the gnutella network). Think of a WWW model being a 24-hr shopping
mall. The stores are web sites. They are always there. You can always go to the same
place to find the same items. Peer-to-peer is more of a bazaar where the vendors come
and go as they please. You never know what you'll find until you get there. The products
aren't in the same place every time. All these wondering gypsies could pack up and leave
town tomorrow and you'd be out there in the mall again, trying to track down where they
went so you could go, too.18
4.5 M-Commerce
M-commerce (mobile commerce) is the buying and selling of goods and services through
wireless technology, like a handheld devices such as cellular telephones and personal
digital assistants (PDAs). Known as next-generation e-commerce, m-commerce enables
users to access the Internet without needing to find a place to plug in. The emerging
technology behind m-commerce, which is based on the Wireless Application Protocol
(WAP), has made far greater strides in Europe, where mobile devices equipped with
Web-ready micro-browsers are much more common than in the United States.19 Japan is
seen as a global leader in m-commerce. As content delivery over wireless devices
becomes faster, more secure, and scalable, some believe that m-commerce will surpass
wire line e-commerce as the method of choice for digital commerce transactions. This
may well be true for the Asia-Pacific where there are more mobile phone users than there
are Internet users. Industries affected by m-commerce include financial services,
telecommunications, service or retail and information services. If we look, financial
18
Source of Internet : http://www.bx.com/dictionary/ecommerce/Peer-to-Peer
19
Source of Internet : http://searchmobilecomputing.techtarget.com/definition/m-commerce
9
services, m-commerce used in mobile banking when customers use their handled devices
to access their accounts and pay their bills, as well as brokerage services in which stock
quotes can be displayed and trading conducted from the same handheld device. Then,
in telecommunications, in which service changes, bill payment and account reviews can
all be conducted from the same handheld device. Not only that, service or retail, as
consumers are given the ability to place and pay for orders on-the- fly.
Any way you look at e-commerce, it has become a mature industry and is still growing. As soon
as you click onto the Net, there will be some attractive banner advertisement invites us to its
Web site and tries to sell their products or services. The concept of e-commerce is fast becoming
advantageous for both the vendor and consumer in today's fast moving and electronically-
connected world. For many businesses, e-commerce is becoming the only option, as companies
become more and more interested in expanding their operations online. E-commerce has many
benefits and advantages not found in the typical brick and mortar location, and therefore,
explains why so many businesses are flocking to the web. E-commerce offers advantages that
include the ability to expand into global markets with a minimum of expense, thus allowing
firms to reach narrow market segments that are geographically scattered. Companies are
interested in E-Commerce simply because it can help increase sales and profits and decrease
costs. Even a small firm that advertises well on the Web can get their message out to potential
customers in every country in the world. E-Commerce has proven to have many benefits and
advantages, therefore, explaining why so many businesses have turned to E-Commerce in the
past few years.
According to Turban et al. (2002, p.17) e-commerce plays a major role in global reach. It
expands the marketplace to national and international markets. E-commerce allows firms to now
reach narrow market segments that are geographically scattered. People in third world countries
are now able to enjoy products and services that were unavailable in the past. "These include
opportunities to learn skilled professions or earn a college degree" (Turban et al. 2002, p.19). E-
Commerce has also made it possible for people living in remote and rural areas to learn skills
10
and earn degrees through distance education. It is important to realize that not only does E-
Commerce benefit the seller or the company, but also benefits the buyer or customer. The
advantages of E-commerce will be divided into the benefits it provides to organizations,
consumers, and society.
Due to the global reach of the Internet, businesses organizations are able to send
messages worldwide, exploring new markets and opportunities. This breaks down
geographic limitations, and reaches narrow markets that traditional businesses have
difficulties accessing. Through the Internet, business now offers a wide range of choices
and higher levels of customer information and details for individuals to search and
compare. Some build-to-order companies such as Dell Computer Corp can even provide
a competitive advantage by inexpensive customization of products and services.20 For
business concerns, e-commerce significantly cuts down the cost associated with
marketing, customer care, processing, and information storage and inventory
management. It reduces the time period involved with business process re- engineering,
customization of products to meet the demand of particular customers, increasing
productivity and customer care services. For example the communication and advertising
costs could be lower by sending e-mails and using online advertising channels, than by
using television commercials or the print media. In terms of online ordering and online
auction organizations, the costs could be lower than running an actual shop with the
associated manpower. Extended trading hours is another benefit, the 24 hours a day 7
days a week in 365 days allows business always free to open on the Internet without
overtime and extra cost. Electronic commerce also reduces the burden of infrastructure to
conduct businesses and thereby raises the amount of funds available for profitable
investment.
E-commerce also enables efficient customer care services. Web-based customer service
makes customers happy. Instead of calling a company on the phone, holding for 10
20
Source of Internet : http://wiki.media-culture.org.au/index.php/E-commerce_-_Overview_-_Advantages
11
minutes, than connecting to a clerk to tap into your account, customer has direct access
their accounts over the Web. It saves time, even though it might not be cheap.
Competitive distinction alone could easily outweigh the cost of maintaining the Web
infrastructure. In the long run, it is a win-win proposition. For companies that do
business with other firms, adding customer service to the Web is a competitive
advantage.21 On the other hand, It collects and manages information related to customer
behavior, which in turn helps develop and adopt an efficient marketing and promotional
strategy. Other advantages includes the up-to-date company material, current
inventories, improved customers service, better customers communication, increased
operating and trading flexibility.
For customers, the advantages occur in the buying process, product research, evaluation
and execution. Electronic commerce gives the customers the opportunity to look for
cheaper and quality products. With the help of e-commerce, consumers can easily
research on a specific product and sometimes even find out the original manufacturer to
purchase a product at a much cheaper price than that charged by the wholesaler.
Shopping online is usually more convenient and time saving than conventional shopping.
Besides these, people also come across reviews posted by other customers, about the
products purchased from a particular e-commerce site, which can help make purchasing
decisions. E-commerce provides customers with a platform to search product
information through global markets with a wider range of choices, which makes
comparison and evaluation easier and more. With the ubiquity in accessing the
Internet, consumers are able to search for shops or perform other transactions anytime in
almost location. Examples are e-books, music and audio clips, software, games, and
distance education delivered via the Internet.
21
Elias M.Awad. Electronic Commerce : from vision to fulfillment (2007)
12
E-commerce enables more flexible working practices, which enhances the quality of life
for a whole host of people in society, enabling them to work from home. Not only this,
more convenient and provides happier and less stressful working environments, it also
potentially reduces environmental pollution as fewer people have to travel to work
regularly. For people in Third World countries, many service and products are now
available which were unavailable in the past, the opportunities and higher education
services are more achievable for students. Connects people where it enables people in
developing countries and rural areas to enjoy and access products, services, information
and other people which otherwise would not be so easily available to them. Then, through
e-commerce there will be facilitates on delivery of public services. For example, health
services available over the Internet (on-line consultation with doctors or nurses), filing
taxes over the Internet through the Inland Revenue website. Non-profit organizations,
including government services, also benefit from e-commerce by the online payment
system which supports the payment of tax refunds and pensions quickly and securely.
Public services such as health care, education, and public social service also benefit from
e-commerce. For example, rural doctors and nurses can access professional information
and the latest health care technologies. Overall, e-commerce makes products and services
more easily available without geographic limitations.
Like any system with unique benefits, the Internet and the World Wide Web also have unique
limitations or disadvantages. There was much hype surrounding the Internet and e-commerce
over the last few years of the twentieth century. Isaac Newton’s 3rd Law of Motion, ‘For every
action there is an equal and opposite reaction’ suggests that for all the benefits there are
limitations to e-commerce. These again will be dealt with according to the three major
stakeholders which is organizations, consumers and society.
13
First of all, lack of sufficient system security, reliability, standards and communication
protocols. There is tangible privacy and security issues that keep people on guard, as
they face a dilemma each time they need to divulge highly personal information online,
as and when they transact online. There are numerous reports of websites and databases
being hacked into, and security holes in software. For example, Microsoft has over the
years issued many security notices and ‘patches’ for their software. Several banking and
other business websites, including Barclays Bank, Powergen and even the Consumers’
Association in the UK, have experienced breaches in security where ‘a technical
oversight’ or ‘a fault in its systems’ led to confidential client information becoming
available to all. In terms of privacy, according to a September 2003 study of major
Web sites by the Federal Trade Commission (FTC), only 20 percent met FTC standards
for protecting consumer privacy, but the study also found a 90 percent compliance rate by
Internet companies for posting their privacy policies.22
Rapidly evolving and changing technology, so there is always a feeling of trying to ‘catch
up’ and not be left behind. The organization will pressuring the workers to innovate and
develop business models to exploit the new opportunities which sometimes leads to
strategies detrimental to the organization. The ease with which business models can be
copied and emulated over the Internet increases that pressure and curtails longer-term
competitive advantage. Facing increased competition from both national and international
competitors often leads to price wars and subsequent unsustainable losses for the
organization. Therefore, got some problem with compatibility of older and new
technology between the businesses. There are problems where older business systems
cannot communicate with web based and Internet infrastructures, leading to some
organizations running almost two independent systems where data cannot be shared. This
often leads to having to invest in new systems or an infrastructure, which bridges the
different systems. In both cases this is both financially costly as well as disruptive to the
efficient running of organizations.
22
Elias M.Awad. Electronic Commerce : from vision to fulfillment (2007)
14
Another disadvantage of e-commerce is that it is not suitable for perishable commodities
like food items. People prefer to shop in the conventional way than to use e-commerce
for purchasing food products. So e-commerce is not suitable for such business sectors.
The time period required for delivering physical products can also be quite significant in
case of e-commerce. A lot of phone calls and e-mails may be required till you get your
desired products. However, returning the product and getting a refund can be even more
troublesome and time consuming than purchasing, in case if you are not satisfied with a
particular product.
Many people don’t understand the awesomeness of shopping online. They are too afraid
to buy something on the web because they doubt if the store is reliable, curious if the
product is as good as it looks like on the site, afraid that you would steal their money.
Online store doesn’t provide the opportunity to actually touch, wear or sit on the product.
Therefore selling such products as apparel and furniture online might be tricky. Cost of
computing equipment. Not just the initial cost of buying equipment but making sure that
the technology is updated regularly to be compatible with the changing requirement of
the Internet, websites and applications.
Lack of security and privacy of personal data. There is no real control of data that is
collected over the Web or Internet. Data protection laws are not universal and so websites
hosted in different countries may or may not have laws which protect privacy of personal
data. Physical contact and relationships are replaced by electronic processes. Customers
are unable to touch and feel goods being sold on-line or gauge voices and reactions of
human beings. A lack of trust because they are interacting with faceless computers.
15
As people become more used to interacting electronically there could be an erosion of
personal and social skills which might eventually be detrimental to the world we live in
where people are more comfortable interacting with a screen than face to face. So there
will be breakdown in human interaction. Next, there is a potential danger that there will
be an increase in the social divide between technical haves and have-nots – so people
who do not have technical skills become unable to secure better-paid jobs and could form
an underclass with potentially dangerous implications for social stability. Reliance on
telecommunications infrastructure, power and IT skills, which in developing countries
nullifies the benefits when power, advanced telecommunications infrastructures and IT
skills are unavailable or scarce or underdeveloped. As new technology dates quickly how
you do dispose of all the old computers, keyboards, monitors, speakers and other
hardware or software? So, there will be will wasted resources. Facilitates Just-In-Time
manufacturing where this could potentially cripple an economy in times of crisis as
stocks are kept to a minimum and delivery patterns are based on pre-set levels of stock
which last for days rather than week. Difficulty in policing the Internet, which means that
numerous crimes can be perpetrated and often go undetected. There is also an unpleasant
rise in the availability and access of obscene material and ease with which pedophiles
and others can entrap children by masquerading in chat rooms.23
7.0 Conclusion
There is no one commonly agreed definition of e-commerce. Thus, there is a need to clarify
terms being used and explain the context in which they are being applied. E-commerce has an
impact on three major stakeholders, namely society, organizations and customers (or consumers).
There are a number of advantages, which include cost savings, increased efficiency,
customization and global marketplaces. There are also limitations arising from e-commerce
which apply to each of the stakeholders. These include information overload, reliability and
security issues, and cost of access, social divisions and difficulties in policing the Internet.
Successful e-commerce involves understanding the limitations and minimizing the negative
23
Source of Internet : http://www.sagepub.com/upm-data/9598_019964Ch1.pdf
16
impact while at the same time maximizing the benefits. Thus, on evaluating the various pros and
cons of electronic commerce, we can say that the advantages of e-commerce have the potential to
outweigh the disadvantages. A proper strategy to address the technical issues and to build up
customers trust in the system, can change the present scenario and help e-commerce adapt to the
changing needs of the world.
BIBLIOGRAPHY
• Elias M.Awad. Electronic Commerce : from vision to fulfillment. Pearson Prentice Hall.
(2007)
• Kenneth C.Laudon & Carol Guercio Traver. E-commerce : business, technology, society.
17
• Zorayda Ruth Andam. E-commerce and e-business : E-asean task force. (2003)
http://searchmobilecomputing.techtarget.com/definition/m-commerce
http://wiki.media-culture.org.au/index.php/E-commerce_-_Overview_-_Advantages
http://www.bx.com/dictionary/ecommerce/Peer-to-Peer
http://www.computerworld.com/s/article/53015/The_difference_between_e_business_and_e_co
mmerce?
http://www.creativewebstore.com/portfolio/b2c_business_to_consumer
http://www.ecommerceoptimization.com/ecommerce-introduction
http://www.eicc.co.yu/newspro/viewnews.cgi
http://www.ibls.com/internet_law_news_portal_view
http://www.ibls.com/internet_law_news_portal_view
http://www.informationweek.com/TechSearch/Search.jhtml
http://www.sagepub.com/upm-data/9598_019964Ch1.pdf
http://www.tradingeconomics.com/Economics/GDP-Growth
18