Question

Differentiate between traditional businesses and E-business 40 to 60 w0rds

Answer 1

Traditional Business and
E-Business

1. Cost of setting up:-

• High
• Low, as be requirements of physical facilities.

t. 2. Operating cost:-

• High, due to fixed charges associated with investment in procurement & storage, production, marketing and distribution facilities.
• Low, as a result of reliance on net work relationship rather than ownership of resources.

3. Nature of contract with the suppliers and the customers:-

• Indirect, through intermediaries.
• Direct

4. Nature of Intend communication:-

• Hierarchial from top level management to middle level management to lower level management to operatives.
• Non-Hierarchial allowing direct vertical, horizontal communication

5. Response time for meeting customers:-

• Long
• Instantaneous.

6. Shape of the organisational structure:-

• Vertical/Fall, due to hierarchy or chain of command.
• Horizontal/flat due to directness of command and communcation.

7. Business processes and length of cycle:-

• Sequential precedence succession relationship i.e. purchase-production/ operation marketing sales. The business process cycle is therefore logner.
• Simultaneous different processes, Business process cycle is therefore shorter.

8. Opportunity for inter personal touch:-

• Much more
• Less

9. Opportunity for physical pre-sampling of products:-

• Much more
• Less, however for digital products such an opportunity is tremendous.

10. Ease of going global:-

• Less
• Much, as cyber space is truly without boundaries.