Comparison of Traditional and e-Business Models Explained

1 Traditional vs. e-Business Courtney Hanley American Public University BUSN320: Principles of E Business Alex Lazo, PhD March 26, 2023

2 Traditional vs. e-Business The idea of shopping online is still new compared to how long we have been shopping in traditional brick and mortar store fronts. E-Business is generally more complex than traditional business due to business goals, organization of business, and use of information technology. Consumers typically would think an e-Business would be less complex and less work than a traditional business, but really it is the opposite. Much work must go into an e-Business, even more so than the traditional business model. Business Goals Business goals within an e-Business and traditional business can look a lot alike but will also vary in many ways. Traditional businesses are going to focus more on local customers and attracting the locals to come into their brick-and-mortar business to build relationships, show their customer the physical products, and earn their trust to keep them coming back time and time again. E-Business is much more complex and must work much harder to earn the customer and their trust. An e-Business is also working to reach customers all over the globe. This goal differs greatly from a traditional business only looking for the local customers. An e-Business must work twice as hard to gain the trust of their potential customers to believe they are a legitimate business, have real products whether they are physical products or digital, and moreover they need to operate in multiple jurisdictions and states to meet the goal of having customers around the world. Organization of Business Then organization of business between traditional business and e-Business differ in many ways. Traditional business is concerned with the supply side. They need to make sure that their brick-and-mortar business has enough supply in stock for the customer to be able to come into a

3 well-stocked store and have enough product to view and choose what to buy. If a customer walks into a traditional business that doesn’t have much supply, they will likely walk out and choose another shop that has enough products to meet their needs. In contrast, the focus of e-Business is the demand side. They rely on virtual marketing to spread work about what they have to offer, which allows more and more virtual customers to gain access to their online store and view what products that have to offer. As a result, this is how most e-Businesses have grown and reached customers globally. In traditional business, the business relationship is vertical or linear, while in the case of e-business there is directness in command leading to a horizontal business relationship. Use of Information Technology The use of information technology covers the technological required for things such as hardware, software, languages, and other applicable components. While traditional businesses need many things that have to do with technology like a point of sales system with their registers, maybe some marketing technologies, and inventory technologies, e-Businesses have much more technological needs. An e-Business is solely based on technology and the software you choose to use for your e-Business is the livelihood that can make or break your business. To meet the goals of our business, you must have software that can organize inventory, track online sales, store customer information, have shipping capabilities, and so much more. Conclusion E-Business is generally more complex than traditional business due to business goals, organization of business, and use of information technology. Research and history show that e- Business is overall a more complex structure in many ways compared to a traditional or brick-

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4 and-mortar business. From starting an e-business all the way to making your first sale, the BOAT aspect of business plays many parts throughout every business no matter how it is structured.

5 References 1. What Is the Bricks-and-Clicks Business Model? (2011). Bizfluent. https://bizfluent.com/info-7774613-bricksandclicks-business-model.html 2. E-commerce Business or Traditional Business: Which one to opt for? (2020). Shopaccino.com. https://www.shopaccino.com/blog/ecommerce-business-or-traditional- business-a-comparison 3. Surbhi S. (2018, January 8). Difference Between Traditional Commerce and e-Commerce (with Comparison Chart) - Key Differences . Key Differences. https://keydifferences.com/difference-between-traditional-commerce-and-e- commerce.html 4. Matthan, R. (2017, September 13). Intermediating supply and demand . Mint. https://www.livemint.com/Opinion/AQdcVFEuUmLmgu6KlmGG3K/Intermediating- supply-and-demand.html

Traditional vs. e-Business

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