E-commerce and e-business
Ecommerce refers to digitally enabled transactions through individuals and organizations. This involves any transactions done over networks that are meditated through computer where there is transfer of ownership or the rights to use services and goods. It includes those transactions carried out on internet and extranet, email and fax. Ecommerce differs from e-business in that e-business is quite broad and includes e-commerce businesses based transactions and even the ones ran traditionally but deal also with online activities. E-business can involve running part of internal processes online such as finance, inventory and risk management and human resource management. The intersection between e-commerce and e-business happens where both utilize digital or electronic networks where activities are conducted (Meier & Stormer, 2009).
A market place refers to a virtual exchange environment or market place in which physical boundaries constraints have been eliminated. This electronic market is removed from a geographical or temporal environment by extending beyond traditional boundaries. It involves transactions that are carried out through online media or internet with no physical products but information about these products (Toellner, 2014).
Disintermediation refers to the process whereby end consumers or users are able to directly access services, products or information where a middle man or mediator would otherwise have been required. Through the internet, firms are able to eliminate middlemen by dealing directly with consumers, a factor that reduces cost of products or services considerably. Due to disinter-mediation, wholesalers and distributors who demand payment by increasing costs and not adding any value disappear. Disintermediation allows manufacturers to build a direct relationship with its products’ consumers and hence facilitating friction-free commerce where middlemen are not able to interfere with the chain (Meier & Stormer, 2009).
References
Toellner, J. (2014).Mobile services in retail and their influence on customer satisfaction diplom.de. 8-10
Meier, A., & Stormer, H. (2009). EBusiness & eCommerce: Managing the digital value chain. Berlin: Springer.21-23
