Reference no: EM132682240

The Impact of E-Commerce on the Traditional Businesses

E-Commerce is something new to the traditional business. As a matter of fact, many traditional businesses in Glodok, Mangga Dua and Tanah Abang Trade Center have achieved great success with the help of E-commerce. And many traditional business companies want to have better development and sustainable competitive advantage by conduct both traditional business and e-commerce business (online store).

Firstly, a tremendous build up will begin through E-commerce, In the past, when traditional business produces a new product, they spent lots of time and money on a good advertisement to make the product well known to the customers, with E-commerce they can make the customers all over the world know the product through the website easily. Secondly, E-commerce can increase sales channels; E-commerce creates a new distribution channel for existing products and E-commerce allow online trading and online payment. And thirdly, it can save labor costs. E-commerce is different from the traditional business in employee, what e-commerce requires more is technology.

Based on the paragraph above, please answer the following questions:

Question 1

What are the disadvantages of the traditional business that has both physical store and online store? And how should traditional business evaluate their investment priorities and returns from digital business?

Question 2

Which elements of the supply chain management should be managed for e-commerce business? And how can technology be used to facilitate the supply chain management?