EC can be used to create strategic advantage for a firm Essay

EC can be used to create strategic advantage for a firm - Essay ExampleThus, it is important that an e-commerce strategic gibbosity has to be incorporated in a companys strategic business plans. (King, et al, 2004)For the purpose of this paper we shall examine the details of a specific Electronic Commerce manoeuvre in this case the electronic data exchange and analyze the effects it has on three companies which are Amazon inc., MySpace Company and First American bank.For firms, e-commerce implies victimisation the web and the internet as a channel of distribution in marketing and selling of goods and also service to the firms customers. This is a narrow definition, of e-commerce as it precisely describes internet commerce. E-commerce is much wider in what it entails. According to King, et al (2004) e-commerce is the exchange of information, services, goods and payments electronically and it involves formation and continuation of Web-based relationships. Thus, e-commerce encompass es the internet, extranets, intranets, electronic data exchange (EDE) and other electronic aspects. Examples of activities performed using e-commerce includesInternet has globalized this world and in the same e-commerce is global. Difference in cities or countries even does not affect e-commerce if you have any kind of crises you can record on from any where in the world and can solve your problem in a faction of a minute. Transaction is very fast and efficient many online business sites now offer sophisticated tools to help consumers manage all their assets more effectively and conveniently. (King, et al, 2004) A simple example of this can be taken from the simple accounting software e.g. in the banking sector. Some online banks provide to simplify record keeping. Another importance of e-commerce is that less paper work has to be done and once u have entered information, it doesnt need to be re-entered for similar consequent checks, and future payments can be programmed to occur automatically.Importance of e-commerce on companiesE-commerce serves as a vital strategic tool for companies. When e-commerce is well used in companies it brings considerable opportunities to the company. The importance of e-commerce to companies can be classified in two master(prenominal) classes the tangible advantages and the intangible advantages that are brought about by information technology. E-commerce is vital for many companies, today e-commerce has assisted many companies and organizations to revolutionize the manner in which they charter and manage their operations. Though, for a company to realize maximum benefits of e-commerce it must invest in the technology and manpower. (Chan, Lee, & Dillon, 2001) Tangible benefitsThe tangible benefits of e-commerce touches on the monetary aspect of the company, it touches on the financial benefits that occur due to the company investing in e-commerce that can only be measured using tangible metrics. For example, cost saving, mar ket share, productivity and profitability of the company. These benefits enables the company to make a lot of saving and the money goes along way in improving other aspect of the company. (Chan, Lee, & Dillon, 2001) Intangible benefitsT