Academic journal article Academy of Marketing Studies Journal

Electronic Commerce: The Emerging Technology for Tomorrow's Businesses

Academic journal article Academy of Marketing Studies Journal

Electronic Commerce: The Emerging Technology for Tomorrow's Businesses

Article excerpt

ABSTRACT

With the emergence of electronic commerce (e-commerce) in the past few years, business as we know it has currently been under major reconstruction. From the creation of new businesses that are a result of being online, to the convenience of doing business on the Internet, e-commerce is growing at such an alarming rate that even analysts have trouble explaining just how this new way of doing business could continue this explosive growth rate. This paper gives an overview of e-commerce: its history; its present role in the economy; and its expected role in the future. By analyzing the literature and what other researchers have to say, the purpose of the research is to determine e-commerce's true impact on the U.S. economy. Considering that e-commerce is currently in a state of drastic transformation, it is important to stay abreast of its status in order to keep from being left behind in this economic revolution. The conclusions show that e-commerce's impact on the U.S. economy can be directly linked to businesses changing with the new economy.

INTRODUCTION

Traveling to the grocery or convenient store in order to purchase a gallon of milk has become a common practice for the average American in today's society. The mere thought of having someone deliver a gallon of milk to your doorstep brings back memories to some and sounds just plain expensive to most. However, the reality of having a milkman deliver milk to your home at a reasonable price has never been more practical. Since the emergence of the electronic commerce (e-commerce) revolution, which went into the mainstream of the U.S. economy three years ago, there has been no stopping this fledgling economy.

With the tax effects under deliberation by the federal government, e-commerce is presently under great scrutiny, especially considering that the Federal Trade Commission (FTC) feels that e-commerce could be the most active trade vehicle in the next decade (Federal Trade Commission 1999). Moneyline (CNBC's television show), targets companies who have insight on "the new economy," has compared the current economic expansion and bull market of the present to the traditional boom and bust economy of old, and determined the impact technology companies (primarily e-commerce firms) are having on the market. Businesses today are being forced to make the decision of changing with this "new economy," or else watching it pass them by.

E-commerce has come a long way in a very short time period and is moving at such a rapid pace that it's hard for many businesses, not to mention the average consumer, to keep up with this growing form of commerce. Even though the first forms of e-commerce have been around for decades, economists have questioned the Internet's effect on the U.S. economy for about the last three years. Consumers can now benefit from being only a mouse-click away, instead of a car-ride, not to mention a wait-in-line away from acquiring their milk (Quelch & Klein, 1996).

The objective of this paper is to shed some light on the seemingly obvious, yet plausible, impact of e-commerce and it's reshaping of the U.S. economy and society as a whole. More specifically, the sub-objectives are:

* To give a foundation knowledge of e-commerce by summarizing the history and discussing its current status;

* To investigate infrastructure issues of e-commerce that have led to the current vehicle we see today;

* To investigate value chains in e-commerce and discuss what impact e-commerce is having on both Business-to-Business (B2B) and Business-to-Consumer (B2C) markets.

Further, this research examines the discrepancies that exist between academics and practitioners. Analysis of current trends, theories, and expert opinions will be discussed, along with predictions for the future of e-commerce. The findings will illustrate the current impact of e-commerce on the U.S. economy and give insight on the development of this relatively new medium into the future. …

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