In simple terms, The techniques and tactics of Traditional business and E-Business are changed day by day and The days are overlooked when the traditional environment required business activities such as the exchange of goods and services for money between two parties. The consumer enters the market, examines a variety of goods, selects the products he needs and buys them, and then pays the exact amount. However, modern techniques of selling goods and services have now emerged with the advent of technological innovations. E-commerce, for example, is where people buy and sell goods on the Internet.
In the sense of Traditional business and E-Business here, both modes have their very own differences and meanings.
Even before that, we will know what business is? What are its characteristics?
What is business?
Business is regarded as systematic business growth for the proper consideration of the exchanges of goods and services. It is nothing more than a way to make money, from trade. All the activities are aimed solely at effectively providing society with the desired goods and services. The forms of business are divided into Traditional Business and E-Business.
Characteristics of business:
Sale of goods and services:
The transaction shall consist of the sale of goods to customers for value, i.e. the transaction shall not amount to business activity when the goods are acquired for personal use.
Economic activity:
The business is an economic activity, as it is carried on because the main objective is to earning money, i.e. for economic purposes.
Profit motive:
The fundamental objective of the company is to profit from its activities. In the long term, it is the corner-of-the-ground of business.
Risk feature:
Risk for exposure to loss is the key element of every business. Efforts are being made to plan and plan future events accordingly. However, business factors are uncertain, as the business possibilities, which can result in a change in demand, flux, price decreases, strikes, lockouts, fluctuations in the money markets, etc.
Legal and lawful:
It should be legal in the eyes of the law or it should not be considered as business, regardless, of which type of business the company is engaging.
What is traditional business?
A traditional business is a retail supermarket or showroom that supplies its local customers with goods and services. This company deals with cash directly. This type of business has high costs because its places of business like a store and its arrangement and placement of products must be physically shaped.
Thereby, customers are required to visit the shop and buy the products.
What is E-Business?
E-Business refers to the business that comprises internet activity. Industry, commerce are commercial activities. E-business also includes online planning, organization, manufacture, marketing, etc. Electronically, most people and corporations do their business. These are the new business modes.
Characteristics of E-Business:
- Easy formation
- Geographic limits are not available
- Much less expensive than traditional businesses
- Flextime is available
- Cost less of marketing tactics and techniques
- E-Business receive government subsidies
- there are only some security and reliability issues
- No personal contact exists
- buyer and seller don’t meet
- It takes time to deliver products
- Anyone can always take anything from anywhere
- The financial risk is higher than traditional business
Difference between Traditional business and E-Business
In the below table you will learn the differences of Traditional business and E-Business, which are as follows:
| Traditional business | E-Business |
|---|---|
| 1. Formation | |
| Difficult to form | Easy to form |
| 2. Establishment need | |
| For products, the market is required | No such requirement |
| 3. Capital | |
| High capital required | Less capital as there are no physical needs |
| 4. Customer contact | |
| There is no direct customer contact as intermediaries are established | There is a chance of direct contact |
| 5. Hierarchy | |
| Here hierarchy is in three levels 1. Top-level 2. Middle level 3. Bottom level | There is no such hierarchy |
| 6. Personal customer touch | |
| More personal touch as they connect directly | Less personal touch |
| 7. Human resources | |
| More human resources are required | Less human resources |
| 8. Risk involvement | |
| Less risk as customer interaction is direct | More risk is involved as there is no direct interaction with the customer. |
| 9. Physical inspection of goods | |
| Goods can be physically inspected before purchase | Goods cannot be physically inspected before purchase. |
| 10. Scope | |
| Restricted to a definite area | Across the world |
Bottom line:
As a result of the preceding discussion, the difference between Traditional business and E-Business. Thus, traditional business is difficult to form and it is a local store that includes the transactions related to buying and selling of goods and services. Whereas, E-business is the emerging model of doing business and very easy to form. It is formed through the internet by making the website.
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