What is the process used by the enterprises to communicate with each others?
E-Commerce is used by the enterprises to communicate among themselves and also with
using internet. The primary purpose of this interaction will be to conduct commercial transactions i.e. purchase and sale of good and services.
What is your understanding of the term Market?
A market involves
The concept of market is very solid and dynamic and has gone through a lot of change from the olden days to till date. They have a very strong influence on the economy. Markets can make the economy very powerful and protect it from fluctuations.
How were the markets organized in the olden days?
In the olden days, traditional markets were in place. They existed when the economy was driven completely by farming and handicrafts. Due to lack of sophisticated distribution channels, the market was confined only to the surrounding areas.
AMA (American Market Association) defined the traditional market as “The place where a particular commodity is concentrated for sale”
As per this definition, a market comprises of
Place: The commodities are accumulated at a specific place. The buyers and sellers gather at this place to conduct the transactions.
Different markets for different commodities: A particular place was used for buying or selling a commodity and a different place was used for a different commodity. Thus livestock had a market place, clothes were available in a different market place and handicrafts were sold in a different market place.
As the time passed by, what are the various areas in which the industries started to focus on to improve their business operations?
As the industries started to grow up with time, they started to focus on improving various activities in terms of
Which activities are performed as part of a business?
The activities performed by a business can be majorly segregated into the following two categories.
How advanced are the modern markets as compared to the traditional markets.
The modern markets much sophisticated as compared to the traditional markets in the following ways.
Traditional Markets | Modern Markets |
Majorly driven by agriculture, horticulture, farming and handicrafts. | Majorly driven by agricultural and industrial sectors. |
Traditional markets are confined to a particular place. | Market is not confined to a place or region. It is considered as any means of communication which brings the buyers and sellers together. |
Gaps existed between demand and supply. | Buyers and sellers compete and ensure that an equilibrium state is established between demand and supply. It also ensures that the prices are competitive. |
It didn’t have good channels of distribution. | Distribution of products or services is not a constraint. Efficient distribution channels are available. |
It was necessary that the buyers and sellers meet in person. | Is is not essential for the buyers and sellers to meet in person. They can hold a meeting through any other means of communication to complete the transaction. |
How is e-business playing a critical role in to help the organizations to prosper?
e-business is playing a critical role in the following ways and thus helping the organizations to prosper. Due to this reason it became a key component in the business.
Is e-business and e-commerce one and the same?
No. e-business and e-commerce represent different areas of business. They can be distinguished as follows.
Point of view | e-business | e-commerce |
Definition | e-business refers to the running of the business operations using internet. They can be applied in industrial as well as commercial and trade related activities. | e-commerce refers to the electronic communication between different enterprises. Thus the communication can take place between an enterprise and associated enterprises business partners financial investors and institutions Government bodies suppliers customers |
Scope | e-business is very wide in scope and comprises the business functions or operations like Accounting Administration Design and development of a product e-commerce Finance Human resources Inventory management Management Production Quality Inspection | e-commerce is limited in scope and comprise of electronic transactions related to purpose and sales between the business and its customers and suppliers. |
Which factors govern the micro environment?
Micro environment refers to the elements or factors internal to the organization that can directly influence its ability to provide service to the customers.
The following are the elements or factors or forces that are part of the micro environment.
Tabulate the contrasting factors between micro and macro environments.
Micro Environment | Macro Environment | |
These are the primary factors | These are the secondary factors | |
Micro economic factors are internal to the organization. | Macro economic factors are external to the organization and part of the larger society. | |
These factors can be controlled to vary their impact on the performance of the organization. | These factors can not be directly controlled to vary their impact on the performance of the organization. The micro economic factors should be adjusted in accordance with the variation in the macro economic factors. | |
It comprises of the following factors Suppliers Producers Marketing intermediaries (or middlemen like agents or brokers or retailers or wholesalers) Competitors Customers | It comprises of the following factors Cultural Demographic Economic Natural Political Technological |
What did you understand by the term market research?
Marketing research is a function where in the marketer gathers the information systematically. This information is used to link the marketer with the consumer or customer or the end user.
The gathered information is used for
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1. What is the concept of market? |
2. What is entrepreneurship? |
3. What are the characteristics of a successful entrepreneur? |
4. How does entrepreneurship contribute to economic growth? |
5. What are the different types of markets? |
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