CHALLENGES IN E-BUSINESS

PREPARED BY:
Ekta Sharma
R.No.3051
 MEANING OF E-BUSINESS

 E-business is not just only buying and selling of

goods and services but also includes:
 servicing customers,
 collaborating with customers & business partners,
 processing electronic transactions.
 E-business allows the integration of intra and inter
firm business processes.
 E-BUSINESS: CHALLENGES

 Different kinds of challenges that companies faced

relating to new technology, legal and regulatory
framework and behaviour of consumers.
 Nature and complexity of challenges also varies
with marketplace.

E-business challenges

Technical Non-
technical
 TECHNICAL CHALLENGES

These challenges arises due to drawbacks or

difficulties of using technology. These challenges
are:
(1). ONLINE SECURITY:
Business owners used unauthorized software due to
cost. Such software does not come with online
security and it is risky to disclose credit card
information.
Accounts hacking and illegal withdraws are major
issue.
2).AVAILABILITY & OPERABILITY OF PAYMENT
INSTRUMENTS

•Customers do not possess plastic

card, credit card, debit card and net
banking system , which is one of
the challenge to e-business.
•Lack of operability of payment
instruments also creates challenge.
For example: Sometime credit card
gets rejected while making Payment
on the internet.
(3).INFRASTRUCTURAL PROBLEMS:
These are:
(i)No Internet connection available.
(ii)Internet connectivity at slow speed.
(iii)Some people do not use personal computers &
smartphones.

(4). LACK OF SKILLS:

Various skilled personnel required for web designing,
programming, system analyzing and designing. But in
India ,there is lack of skilled personnel which become a
barrier for growth of e-business.
 NON-TECHNICAL CHALLENGES

(1).Logistics and Shipment

Services:
In India, logistics and courier
services required lots of improvement.
India is lagging behind in this sector
as most of the town and small villages
are still not covered under
serviceable area of many of the
courier and logistic companies.
therefore, it creates barriers for
business organization.
 2).FEAR FACTOR:
• Fear of making online payment
is a universal psychological factor
of Indian customers.
• Majority of customers are not
aware of online transactions and its
security.
• They often reluctant to disclose their credit card and
bank details and preferred to stay away from online
world of shopping.
3.LACK OF PERSONAL TOUCH:
•Indian customers are more comfortable in buying
products physically. They tend to choose the product
by touching the product directly.
• Indian buyers are more inclined to do ticketing and
booking online in Travel sectors, books and
electronics.
•Companies dealing with products like apparels,
handicrafts, jewellery have to face challenges to sell
their products as the buyers want to see and touch
before they buy these stuffs.
4.LACK OF AWARENESS:
When it comes to ratio of internet consumers, scenario
is not so admirable one. Majority of Indian rural
population are unaware of internet and it uses.
Surprisingly, most of urban population are also
suffering from poor knowledge on online business and
its functionalities. Very few are aware of the online
corruption and fraud. A reliable survey reveals that
50% of Indian online users are unaware of the
solution of online security.
 CONCLUSION

Surviving in e- business competition , which is no less than is

war. To face these challenges outstanding strategies are
required. Some of these are:
•Website should be designed after knowing type of
business and customers.
•Timely delivery and great customer service.
•Installation of antivirus software.
•Government should take initiative to enact new cyberlaw,
develop strong communication infrastructure.