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Question:

Discuss the benefits and limitations of e-business in detail.

Answer:

Benefits:

  • Convenience: E-business operates 24/7, allowing customers to shop anytime.
  • Cost Efficiency: It reduces operational costs by eliminating physical stores and intermediaries.
  • Global Reach: Businesses can access international markets without physical expansion.
  • Customization: Online platforms offer tailored recommendations and personalized services.

Limitations:

  • Technological Barriers: Not all businesses, especially small ones, can afford the required infrastructure.
  • Security Concerns: Data theft and fraud are prevalent in e-business.
  • Digital Divide: Customers in rural or underdeveloped areas may lack internet access.
  • High Competition: The ease of entry in e-business leads to intense competition.

In summary, while e-business offers numerous advantages in terms of accessibility and cost-efficiency, addressing its limitations requires investments in technology and strategic planning.


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