Task 2. I
There are a number of significant advantages to be gained from the successful implementation of e-business strategy. These include global reach, lower costs, traceable results, personalisation, openness and improved conversion rates (business link). Although the possible gains from e-business are both rewarding and prosperous, there are a number of risks which need to be considered prior to engagement. Upton (2001) identifies seven possible sources of risk which can be split into two categories, external and internal.
External: criminals, commercial environment and legal systems
Kenny’s needs to be aware that its potential customers will be providing personal and financial ...view middle of the document...
Even with the risks highlighted, Kenny’s needs to be confident that it can trust its employees to act responsibly when advertising on the web and not jeopardise the business.
As there will not be in any real time contact with customers, it is vital that Kenny’s maintains a virtual relationship and keeps to any post sale agreements regardless of their formality e.g. expected delivery dates, order updates etc.
Due to the technical nature of e-business, Kenny’s needs to be pre-emptive of any erroneous information on the webpage. This could be long the lines or incorrectly priced goods upon input, or unresponsive/broken links which mean the customer is unable to navigate the site correctly.
Kenny’ need to methodical and shrewd when approaching a heavily technological route, an “e-business initiative, like productivity and quality improvement initiatives, must be undertaken within a strategic framework” (Brache and Webb, 2000:14) and therefore potential flaws/risks (such as the ones mentioned) need to be considered.
One final risk, not highlighted by Upton, is from the prospective customer’s point of view. Although they may be content enough to place an order,...