Global Challenges Associated With E Commerce Essay

1597 words - 7 pages

GLOBALCHALLENGEECOMMERCE

Global Challenges Associated with E-Commerce
Pamela Moss
IT500-02
Critical Concepts and Competencies for the IT Professional
Instructor: Sheila Fournier-Bonilla
Kaplan University
03.20.2013

Global Challenges Associated with E-Commerce
For many businesses today, implementing e-commerce capabilities into a traditional business can seem like an easy task on the surface, but there are many challenges associated with successfully implementing an e-commerce web site into a business that will appeal to global consumers and increase the success and profitability of the business. One model commonly used in e-commerce is the multi-stage model; this model breaks ...view middle of the document...

Like the cultural challenges previously discussed, time and distance challenges are brought to the forefront due to the geographical locations and time zones of the global market. These two are challenges that businesses must address to ensure successful implementation of an e-commerce website. In a global market, the “intra-time-zone communication” (Net Industries, 2013) is applicable to all types of e-commerce business transactions regardless of the type of transaction between the two entities. The primary issue that develops from the differences in geographical locations and time zones is the real-time communication between the two entities. Businesses are able to communicate using e-mail, voice mail, and electronic messaging, to overcome the extreme distance variances, but this does not address the real-time communication challenge.
Businesses can promote real-time communication using such devices as the phone, live chat, and/or web-based video conferencing in addition to asynchronous communication, to meet the needs of the business regardless of where the company’s’ home-base is located (Net Industries, 2013). By addressing the time and distance challenges, the business can provide timely customer service, communicate with other parts of the business in real and/or asynchronous time, and increase the overall proficiency of the business, which leads to e-commerce success.
Infrastructure is a key challenge to e-commerce implementation; every business must acquire an infrastructure that is able to support its current and potential customer base. According to Penn State University, key infrastructure components include a combination of hardware, software, and network support that will, “Establish a single, central, secure, scalable, and available e-commerce capability…” (Dumm & Meder, 2003). This leads to the assumption that in order for a successful infrastructure to be implemented, the business must understand the importance of flexibility within these areas to meet the expectations of its users. Elements of these areas range from marketability to adequate security for payments and customer privacy; the business must be able to implement flexibility within the e-commerce web site whether it is supplied through internal business support or outside vendors contracted by the business, to meet the demands of its consumers and ensure the best possible purchasing experience for their customers. (Reynolds & Stair, 2012).
Another challenge that is detrimental to the success of an e-commerce business is how currency is handled for global customers. Regardless of the type of currency, the business must be able to communicate pricing to their customers in their local currency. When customers are not sure how much something costs, they are less likely to trust the web site and make the purchase – especially if it is in a currency they are not familiar with and there no way to translate it into what their actual cost would be.
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