Benefits and Issues of E-Business Video Lecture | E-Commerce - B Com

Welcome to MasteringX eBusiness lecture series
From this lecture we are pointing out what are the benefits and what are the issues when conducting an eBusiness
When you move into eBusinesses you should possess a better understanding of; the good, bad and the ugly of eBusinesses
Now let's start with the good.
the benefits
The basic principle underneath the economic benefits of eBusiness is
it's impact on reducing the transaction cost.
The transaction cost in the sense
all the cost that all the participants have to bear.
Now this chart, it present several transaction modes.
a transaction through Internet, ATM, telephone and branch.
Branch in the sense, of physical transaction.
Its shows one transaction for each mode.
And in there you can see, the branch transaction
got the highest cost when compared to the other modes.
That is because in a branch, in a physical office
you have to maintain workers.
And you have to provide accommodation and other facilities for these workers.
Therefore the cost is high when you are maintaining a physical office.
And that is for the businesses.
You have to consider the cost for the customers.
So when you having a physical office,
For the customer, they have to travel to this physical office
And there is a cost in that.
Now the next mode the telephone mode
There you need to maintain telephone operators.
That mean workers.