Evolution and Applications of the Internet in E-Business

The Internet has revolutionized business operations, transforming them from local brick-and-mortar establishments to global digital enterprises. This chapter explores the history and evolution of e-business on the Internet, highlighting its uses, benefits, and challenges. It also evaluates successful case studies of businesses that have expanded through Internet marketing. Understanding the current state of e-business requires knowledge of its historical origins and the significant events that have shaped it. The Internet has had a profound impact on businesses, from the days of dial-up modems to the advent of broadband and wireless connectivity. To delve into e-commerce, we must explore online purchasing, digital marketing, social media, and cloud computing. These applications enable businesses to implement innovative strategies, reduce costs, and expand their customer base. However, they also introduce security and privacy concerns that businesses must address to mitigate risks and overcome obstacles. Moreover, we examine notable case studies of companies like Amazon, Alibaba, and Airbnb that have thrived through Internet-based strategies. This chapter concludes with a high-level overview of e-business, analyzing its history, current state, potential applications, and potential hazards. E-business plays a vital role in a company’s ability to innovate, expand internationally, and maintain a competitive edge in the twenty-first-century global economy.

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References

1. Turban, E., et al., Electronic commerce 2018: a managerial and social networks perspective. 2018: Springer. BookGoogle Scholar
2. Kiang, M.Y., T. Raghu, and K.H.-M. Shang, Marketing on the Internet—who can benefit from an online marketing approach? Decision Support Systems, 2000. 27(4): p. 383–393. Google Scholar
3. Chaffey, D. and F. Ellis-Chadwick, Digital marketing. 2019: Pearson uk. Google Scholar

Author information

Authors and Affiliations

1. Department of Arts, Communications and Social Sciences, University Canada West, Vancouver, BC, Canada Hamed Taherdoost
2. Hamta Business Corporation, Vancouver, BC, Canada Hamed Taherdoost

1. Hamed Taherdoost

Appendices

Summary

Introduction

• Definition of e-business: E-business refers to the conduct of business activities, such as buying, selling, and exchanging goods and services, using electronic means, primarily the Internet.
• Importance of the Internet in e-business: The Internet plays a vital role in facilitating e-business by providing a global network infrastructure that enables communication, transactions, and information exchange between businesses and customers.

Evolution of the Internet in E-Business

• Early stages: In the early stages, the Internet was primarily used for essential communication, such as sending emails, and electronic data interchange (EDI), which involved the electronic exchange of business documents between companies.
• Development of the World Wide Web: The creation of the World Wide Web introduced websites and hyperlinks, enabling businesses to establish an online presence and connect information across different web pages, revolutionizing e-business.
• Emergence of e-commerce: E-commerce refers to buying and selling products and services online. With the Internet, businesses could establish online stores and marketplaces, allowing them to reach a wider audience and conduct transactions directly with customers.
• Advancements in technology: Technological advancements, such as faster Internet speeds, mobile devices, and cloud computing, have significantly enhanced the capabilities of e-business, enabling seamless online experiences, efficient data processing, and flexible access to resources.
• Web 2.0 and social media: Web 2.0 represents a shift toward user-generated content and social networking platforms. This evolution has empowered businesses to engage with customers in interactive ways, fostering online communities and leveraging social media platforms for marketing and customer relationship management.

Applications of the Internet in E-Business

• E-commerce platforms: E-commerce platforms are websites or software that enable businesses to showcase and sell their products or services directly to customers. These platforms provide features such as shopping carts, secure payment gateways, and inventory management systems.
• Online marketplaces: Online marketplaces are platforms where multiple sellers can list their products or services, allowing customers to compare options and purchase from various vendors in a single location.
• Online advertising: The Internet offers various advertising channels, such as display ads, search engine marketing, and social media advertising, which businesses utilize to promote their products or services to a targeted audience.
• Online banking and payment systems: Internet-based banking and payment systems enable secure online transactions, allowing businesses and customers to transfer funds, make payments, and manage financial activities electronically.
• Cloud computing and remote collaboration: Cloud computing enables businesses to access and store data, applications, and resources remotely, facilitating collaboration and improving efficiency in e-business operations.
• Big data analytics: The Internet generates vast amounts of data, and businesses can leverage big data analytics to gain insights into customer behavior and market trends and make data-driven decisions to enhance their e-business strategies.

Benefits and Challenges of Internet-Based E-Business

• Benefits: Internet-based e-business offers advantages such as global reach, 24/7 availability, cost-effectiveness, scalability, personalized marketing, enhanced customer engagement, streamlined operations, and improved data analysis capabilities.
• Challenges: Internet-based e-business also presents challenges, including cyber threats, data privacy concerns, technological complexity, intense competition, the digital divide, and the need for continuous adaptation to evolving technology and consumer expectations.

Case Study

Company X is a brick-and-mortar establishment that has been in business for decades. Nevertheless, due to the shifting consumer environment and the expansion of e-commerce, the company needs help. It is considering entering Internet-based e-business in order to remain competitive. They have hired a team of consultants to assess the viability and potential benefits of implementing an e-business model. The consultants are tasked with analyzing the organization’s circumstances and providing recommendations based on their findings.

1. 1. What significant changes have influenced the Internet and e-business over time, and how have they impacted the retail sector in particular, based on an overview of the Internet and e-business’s development?
2. 2. Given the advantages of e-business over traditional brick-and-mortar businesses, what specific benefits can Company X anticipate from employing an Internet-based e-business model?
3. 3. Discuss the potential risks and issues associated with e-business, including security and privacy concerns. How will Company X manage these challenges and mitigate the associated risks?
4. 4. Provide examples of successful Internet-based retail e-commerce ventures. Analyze the primary factors that contributed to their success and suggest how Company X could employ similar strategies to achieve growth and success in the online marketplace.
5. 5. In e-business, how can Company X effectively use digital marketing and advertising, online purchasing, social media, and user-generated content to engage consumers and increase sales? Provide precise recommendations based on the target market and products of Company X.

Discussion

1. 1. What were the earliest examples of e-business on the Internet?
2. 2. How did the Internet evolve to become a key tool for e-business over time?
3. 3. What were the key developments that have shaped the Internet and e-business?
4. 4. How has the rise of mobile technology and the proliferation of mobile devices impacted e-business?
5. 5. What are the different types of e-business applications that exist on the Internet today?
6. 6. How has online shopping and e-commerce changed the way consumers shop and purchase goods?
7. 7. What are the key features of digital marketing and advertising that make it an effective tool for e-business?
8. 8. How has social media and user-generated content impacted e-business?
9. 9. What are the advantages of cloud computing and software as a service (SaaS) for e-business?
10. 10. What are the advantages of e-business over traditional brick-and-mortar businesses?
11. 11. What are the major risks and challenges associated with e-business, such as security and privacy concerns?
12. 12. What strategies can businesses use to mitigate these risks and address challenges?
13. 13. How can businesses ensure that they are compliant with relevant laws and regulations in the e-business space?
14. 14. What are some examples of companies that have successfully leveraged the Internet to grow and succeed in e-business?
15. 15. What were the key factors that contributed to the success of these companies?
16. 16. What lessons can be learned from these success stories for other businesses looking to succeed in e-business?

Multiple-Choice Questions

1. 1. What year is commonly considered the beginning of e-business on the Internet?
   1. (a) 1969
   2. (b) 1989
   3. (c) 1995
   4. (d) 2005
   1. (a) Introduction of the World Wide Web
   2. (b) Development of search engines like Google
   3. (c) Emergence of social media platforms
   4. (d) Invention of email
   1. (a) Bluetooth
   2. (b) RFID
   3. (c) VPN
   4. (d) Virtualization
   1. (a) Online shopping and e-commerce
   2. (b) Digital marketing and advertising
   3. (c) Supply chain management
   4. (d) Social media and user-generated content
   1. (a) E-commerce
   2. (b) Social media marketing
   3. (c) Cloud computing
   4. (d) Digital advertising
   1. (a) Lower operating costs
   2. (b) Personalized customer experience
   3. (c) Immediate product delivery
   4. (d) Physical store presence
   1. (a) Limited market reach
   2. (b) Lack of customer feedback
   3. (c) High advertising costs
   4. (d) Security and privacy concerns
   1. (a) Implementing strong encryption protocols
   2. (b) Reducing online advertising efforts
   3. (c) Avoiding social media platforms
   4. (d) Offering limited product selection
   1. (a) Apple Inc.
   2. (b) Walmart
   3. (c) Amazon
   4. (d) Coca-Cola
   1. (a) Wide range of product offerings
   2. (b) Extensive physical store network
   3. (c) Minimal online advertising
   4. (d) Lack of competition in the market
   1. (a) Decreased reliance on mobile devices
   2. (b) Decline in social media usage
   3. (c) Increased adoption of virtual reality technology
   4. (d) Decreased focus on data privacy
   1. (a) Machine learning
   2. (b) Blockchain
   3. (c) Internet of Things (IoT)
   4. (d) Augmented reality
   1. (a) Email
   2. (b) Search engines
   3. (c) Social media
   4. (d) Cloud storage
   1. (a) Limited product variety
   2. (b) Lack of product reviews
   3. (c) Inability to compare prices
   4. (d) High shipping costs
   1. (a) Alibaba
   2. (b) Ford Motor Company
   3. (c) McDonald’s
   4. (d) General Electric