Question

1. How can electronic commerce be a business pressure and an organizational response to other business pressure?

Answer 1

1.

Electronic commerce (eCommerce) can be a business pressure in a way that it is a cost effective and profitable method to reach out to those customers who want convenience shopping and are willing to buy online. In this regard, eCommerce becomes a business pressure upon those who manage or run brick and mortar shops or stores that incur huge cost of maintenance. In contrast to it, eCommerce has lesser cost of maintenance, creating bigger scope of cost savings. So, it becomes a business pressure.

In different context, when there are other business pressure like higher overhead costs, increased cost of managing workforce and less people visiting stores, then organizational response is to go for the eCommerce. It makes firms to reach out to customers in different areas using one and or integrated eCommerce web & mobile platforms. For example, many top retail chains such as Walmart opted for the eCommerce along with physical stores when they faced still competition and business pressure with growing market share of Amazon. So, eCommerce becomes organizational response to the business pressures faced by the firms.