The role of e-commerce within the global economy

Résumé du document

Nowadays, the business world is driven by two economic trends: globalization and the adoption of information technologies. Those changes are entirely linked. "Technology is both driven by and a driver of globalization, as both forces continually reinforce one another" (Bradley et al., 1993). Globalization gives opportunities to firms to extend their operations but challenges them to be more efficient. Confronted with competitive forces, global companies use new technologies to extend their business internationally. The implementation of such technologies within the companies' strategies such as the use of the Internet reduces time and space, making it cheaper and easier for them to market products and services internationally. To introduce the notion of ecommerce; it "consists of the buying, selling, marketing, and servicing of products or services over computer networks. The information technology industry might see it as an electronic business application aimed at commercial transactions".

Extraits

[...] It also exist a big difference in the use of Ecommerce between Arab and non Arab countries. This is due to the culture and also the political systems of Arab countries. People usually do not have access to the Internet. It is a problem for foreign companies who want to do business there because it is more difficult to reach partners and customers. There is a potential here for Ecommerce, once adopted, to transform totally and extend the business exchanges between the Arab and Non Arab world. [...]

[...] This is due to several factors. The first one is that global companies are facing more competition and so need new technologies to remain competitive. Secondly, this is the case that Ecommerce helps companies to reduce transaction costs and global firms are even more concerned by this factor. Lastly, companies operating in international markets need to be coordinated with other members of the value chain and this is possible thanks to the use of Ecommerce. Moreover, it seems that global companies use the Internet more for business-to-business purposes less for business- to-consumer purposes. [...]

[...] Those islands are made by large firms engaging in globalization located in big towns as Mexico, Monterrey or Guadalajara or in maquiladoras” at the US border.[5] To come back to China, consumers in this country see Ecommerce differently as in other ones and do not use it the same way. For example of American consumers who shop online use credit cards.[6] This is not the same in China. People are not used to pay with credit cards and do not like it. Consequently, foreign companies selling products via the Internet have to adapt their strategies for this country. [...]

[...] That is to say that the use of Ecommerce via the Internet was not of primary importance for French companies but they had to adopt it in order to remain important entities in the global economy. They had no choice. Regarding Germany, even if its companies take a long time to adopt the Internet, the country became an innovator in that area. This is due to the fact that German companies are well established internationally. Crossing the world map, we arrive in China. [...]

[...] The role of Ecommerce within the global economy Nowadays, the business world is driven by two economic trends: globalization and the adoption of information technologies. Those changes are entirely linked. “Technology is both driven by and a driver of globalization, as both forces continually reinforce one another” (Bradley et al., 1993).[1] Globalization gives opportunities for firms to extend their operations but challenges them to be more efficient. Confronted with competitive forces, global companies use new technologies to extend their business internationally. [...]