Farhan Hassan* (Riyadh Daily)

“ e-Commerce is a powerful means to connect the unconnected to global trade. “

Arancha Gonzalez, Executive Director of the International Trade Centre,

Electronic commerce is a revolution in business practices prompted a major change in the mode of production and services of the whole world. The strategic perspective of the organizations now a days should be as much to link between corporate strategy and electronic commerce strategy which obviously important for business development and promoting economic restructuring and upgrading, as with the rapid development of Internet and communication technology, e-commerce has become a key means of modern enterprise competition. 

On the other hand, organizations should be aware of the risks and potential benefits of implementing e-commerce and dealing with the barriers such as cost, training, technology and security factors avoiding the failure of the business plan. As of fast changing business environment today's that requires changes in assumptions, values, and the manner of achieving the business and that will be highlighted in this article.

Many organizations that adopt e-commerce hope to achieve competitive advantage as with new technology that can grasp the opportunity of organizations can be in the process of new markets for business model innovation.

Business nature 

It is important to say that the e-Commerce does not change the business nature, but it is a complementary tool that supplements the overall strategy and enhances the business performance.


In retail, e-commerce sales worldwide that in 2017, is  2.3 trillion US dollars and e-retail revenues are projected to grow to 4.88 trillion US dollars in 2021 as recent researches, shows.


e-Commerce has many gains reflected in our lives, as it makes convenient in the daily life of the people also, appropriate for consumers, without having to leave their homes or spend the day fighting queues at the shopping malls or markets to pick up the best deals.

As the increasing demands on organizations, it is required to change the methods of dealing with customers, suppliers, and partners by utilizing the e- commerce approach.

e-Commerce is supporting organizations to lower costs dramatically through their supply and demand chains, take their customer service into a different approach, enter new marketplaces, create additional revenue streams and redefine the business relation.

Information systems as cost leadership, differentiation, focusing, innovation, growth and business alliances is the best way to create a competitive advantage for the company.

E-commerce is an innovative area to be involved with, since many new opportunities and challenges arise yearly, monthly and even daily.


e-Commerce also has some negative influences on both consumers and companies that must be kept in mind before launching an online Market. Here to say that Privacy  as it is easy to gather a lot of personal info. From a consumer using an e-commerce website, since all online transactions are recorded and use that to send targeted advertisements. However, many will agree that this is an intrusion on a consumer's right to privacy, and it is something that is seriously regulated in many countries. This means organizations aiming to establish e-commerce essential to be aware of the legislation that applies, as of that, any mistakes can  be costly in terms of both fines and customer trust. Coming up as well the Security  that when the customer inputs the payment info., they risk a third party intercepting it if the website does not comply with the adequate security measures, giving rise to credit card fraud and identity theft. Organizations need to be aware of the risks electronic transactions carry, and work towards securing the systems base it on the highest standards. 

Many online customers after receiving they have changed their mind and make use of favorable return policies. While big organizations would have no problem accommodating this, it may be highly troublesome for a small business (Returns and Complaints). Important matter coming up with this approach of this business is the Price Wars, which may seriously affect the organizations negatively, as they cannot sell as much as they expected to actually make a profit when online stores cut corners in order to become more competitive or products are purchased from illegal retailers because they had the best price.

e-Commerce Companies 

There are many famous, or we can say that it is on the top e-Commerce companies in the world recently like Amazon, Alibaba, Walmart, Apple store, Booking Holdings, Shopify, Otto, and eBay.


Barrier start first with the Management such as lack of awareness, long term business strategy, and innovation culture Resistance of top management. The second point is the Cost that is Lack of financial resources and long process of return on investments.

Skills /training is critical matter as the lack of experience and knowledge affected the plan and running the business.

Supply chain as the main service that to say unsuitability about the type of business Lack of consumer demand. Technology as it is a high level of complexity. Consume a lot of attention and money that is clearly is the Security as business risk Security factors

e-Commerce and e-business

e-Commerce and e-business are dissimilar concepts to be clear that e-Business includes e-Commerce in addition also, it covers internal processes such as, inventory, production risk management, administration, product development, finance, and human resources.

e-Business strategy is composite, focused on internal processes, and directed at cost savings and developments in efficiency, productivity and cost savings.


Finally, e-commerce is beneficial to both businesses and consumers as saving time and space barriers. The most notable strategic effects at the business-unit level value is added, differentiation, cost leadership, focus, and business growth strategies. The world business market influenced by e- commerce, regardless of whether they are proactive about adoption or not. An organization’s capability to manage technology-enabled change is the core of successful management. The step of change and the opportunities for new communications approaches make e-business and e-commerce an exciting area of business being some time mandatory to enroll in.

Farhan Hassan


Related News