The Internet was initially a form of entertaining, gaining information and communicating in the past, but it has also been another method of the e-business transactions, which has essentially changed the general trading environment. With the aim of maintaining the competiveness in the changing market, business executives are obligated to explore and shape the business strategies sufficiently based on the causes that would enhance or threaten the ecommerce market. The economist Robin Wood (2000) had pointed out that a business environment could be composed of PEST forces - political, economic, social and technological forces, which are both positively and negatively affect the e-business market (Wood, 2000). In other words, the …show more content…
This essay will discuss both positive and negative impacts on ecommerce based upon the various factors have mentioned above, which are clues would be able to influence firms’ decision-makings.
How Do Different Factors Affect Ecommerce?
Economic Factors:
In terms of the development of the ecommerce, it is no doubt that the first condition could be the economic environment. Thanks to the economic globalisation which have built up both of international and domestic trading markets. The revolutions of the economic environment - eliminating the restrictions of global and domestic markets have accelerated the existence of ecommerce, which have supported the small business and big firms to access ecommerce in local, regional and international markets (Cole-Ingait, 2007). Consequently, one of the economic conditions – the economic forces is likely to promote the growth of ecommerce (Molla and Licker, 2005). Besides, it could encourage firms to offer products and services with higher qualities and lower prices with the intention of achieving competiveness in the market (Gibbs et al, 2003). Levels of inflation, …show more content…
The liberalisation of the telecommunication inspires less limited Information Technology (IT) services, which provide broader choices for consumers. Additionally, Gibb et al (2003) also thought that the cooperation between government and industries has been an efficient promoter for building up and developing the e-business. For instance, the government could issue ecommerce permits and licenses to firms which are qualified. Taking France’s new government as an example, in 1997, the new French government concentrated on the IT industry which had promoted the e-business indirectly simultaneously (Gibbs et al, 2003). Generally, the partnership as well as the interact relationship between the government and ecommerce industries has a significant impact on the boosting income of ecommerce revenues. As for the ecommerce legislations, Wolverton (2002) pointed out that some countries have issued laws aiming on various regarding to ecommerce. For example, Germany and French had focused on protecting consumers’ privacy rights. Alternatively, China and Singapore has been tended to regulate the restrictions of contents online (Wolverton, 2002). Even though laws regarding to ecommerce differ from countries to countries, they all have had positively affect the