Academic journal article Global Journal of Business Research

E-Business Models as a Tool to Increase México Small and Medium Size Enterprises' Sales

Academic journal article Global Journal of Business Research

E-Business Models as a Tool to Increase México Small and Medium Size Enterprises' Sales

Article excerpt

ABSTRACT

Due to the growing incursion of electronic media in the commercial environment, identifying factors that improve competitiveness is important. The need for timely information that allows for effective decisions, as well as allowing for effective use of time and resources is paramount. To achieve this objective business models based on information and communication technologies, known as e-business models, have been developed. This study examines 189 web pages of organizations as well as the review of bibliographical and research material. The aim is to recognize business models that organizations use and to describe them. A compilation of data related to the sales of e-commerce B2C enterprises established in Mexico was carried out. The goal is to identify business models used in México and quantify increase sales via Internet of experienced by Mexican organizations. This knowledge is important to further develop e-businees models. The results demonstrate that imports and exports are increasing, new markets are emerging and confidence of the Mexican market is consolidating.

JEL: 030, O54

KEYWORDS: Business models, e-commerce, e-business, electronic business)

INTRODUCTION

The advent of the Internet in the enterprise sector has transformed the course of commercial relations between Mexico and the world. Information and communication technologies represent a tool for the purchase and sale of goods and/or services that overcome geographical barriers and barriers related to time and human or financial resources. In addition these technologies bring about more direct relations with the suppliers, clients and investors, including competitors. Before the global economic crisis, Mexico faced various problems, among them a decrease in economic activity.

According to the Summary of Indicators of the Department of Estate and Public Credit (2009), for the first six months of 2009, the trade balance was an accumulated deficit of $1,207 million. The value of exported goods was $19,364 million in June this year, which is 26.6% lower than the year before.

With the arrival of the current economic crisis, the struggle to obtain a competitive advantage over others is increasingly difficult. Clients and consumers have the freedom to choose the most satisfying supplier. Customers select on the basis of quality products, speed of service and competitive pricing. The internet offers tools that ease barriers of time and distance disappears. It also offers a series of advantages like the expansion and diversification of global markets.

Organizations seek to develop new business models on the Internet, as the Internet is already considered as new line of sales, displacing other forms of trade; therefore PROFECO (2006) considers electronic sales as an alternative to reducing costs, a fundamental tool for increasing the sales of a country, to boost the economic activities toward economic growth and development resistant to global crisis.

The remainder of the study is organized in the following manner. In the literature review, the relevant literature, such as basic concepts of electronic commerce, its regulatory framework and basic concepts of e-business models, are presented. In the methodology section, the method used to achieve the goal of this study is introduced. In the results section, the information demonstrated by the investigation that was carried out is presented and analyzed to formulate the conclusions.

LITERARY REVIEW AND BACKGROUND

Jeffrey Reyport (2005) defined the term e-commerce as the "exchanges mediated by the technology between several parties (individuals, organizations or both), as well as the electronic activities inside and between organization that facilitate these exchanges".

From the company point of view the advantages of ecommerce include: access to the global market; the integration of different resources (multimedia), diversification of products offered, and reduction of costs of sales. …

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