Category: Commerce

Introduction

The topic of the discussion presented in this paper is the relationship between e-commerce and brick and mortar stores. Since the development of the Internet made a massive leap at the beginning of the 2000s, many areas and fields have experienced benefits due to this phenomenon. The Internet has become a powerful and extremely useful resource for all types of operations and businesses. One of the branches that enjoyed the most advantages was retail that, due to the technological leap, was transformed into e-commerce.

Due to the ubiquitous coverage of the Internet in many of the developed and developing countries in the world, the goods sold online are available to an enormous number of consumers. As a result, the retailers offering their products via the e-shopping platforms have a much larger base of customers than the brick and mortar stores. Consequently, the question arises whether or not e-commerce is putting brick and mortar stores out of business.

Importance of the Topic

The subject of the relationship between the brick and mortar retail and e-commerce has been the focus of attention of many economists and financial analysts. Even though brick and mortar stores have been the dominant way of retail for centuries, the technological progress of the 21st century has made radical changes; and due to that impact, the habitual retail is facing is powerful competition for the preferences of the consumers.

Both types of retail have their own advantages and disadvantages. For instance, e-commerce provides consumers with an opportunity to shop without leaving homes and access goods that cannot be found in the brick and mortar stores of their region. At the same time, brick and mortar stores provide a hands-on experience allowing the customers to touch the products, try on clothes, turn the pages of the books, feel the texture, and the material  none of these experiences can be fulfilled by the online stores fully.

Interaction of Two Types of Retail

The competition of the brick and mortar stores and e-commerce creates and maintains the value of the dual-channel. In their article called Bricks-and-mortar vs. clicks-and-mortar: An equilibrium analysis, Bernstein, Song, and Zheng (2008) point out that assuming that the latter is more efficient means encouraging the former to switch to the online retail and decrease the dual-channel value. As the majority of the consumers are willing to touch and try on the goods before buying them, the online e-shops are viewed as the extensions of the brick and mortar franchises (Bernstein et al., 2008).

That way, switching to online retail would not be likely to bring advantages to the businesses but benefit the consumers alone (Bernstein et al., 2008). Overall, the study by Bernstein et al. (2008) views the interaction between the two types of retail as a competition that should not necessarily be perceived as rivalry where there can be just one winner. Instead, the authors discuss the subject viewing the relationship of brick and mortar and clicks-and-mortar as an equilibrium maintained by two forces with different natures and directions (Bernstein et al., 2008).

This study was chosen as the source of information for the paper because it explores the subject of interaction between e-commerce and the traditional retail in-depth. In particular, the authors focus on the investigation of the nature of this relationship in terms of competition, advantages, and disadvantages of the two types of retail, and the benefits each of the practices may offer to the buyers and the businesses.

Discussing the positive and negative aspects of the two types of retail, it is important to specify that switching to e-commerce seems beneficial for the retailers as they would obtain an opportunity to optimize the operations, reduce the transaction costs and, in turn, increase their productivity. This tendency looks like an advantage for the retailers, who would be able to sell more and gain larger profits. However, in practice, the increase in productivity leads to the decrease in prices and, accordingly, does not generate a higher income.

That way, the beneficial party is not the retailer, but the buyer. Another issue is the process of switching to e-commerce that is not always available as some retailers fail to maintain well-functioning Internet channels of their own and need to collaborate with the Internet counterparts in order to launch their second channel successfully. Finally, one more influential trend that needs to be mentioned in this discussion is the Millennials becoming the major consumer sector of the present days.

This tendency signifies that the new set of shopping habits is about to start dominating the retail industry  namely, the Millennials love for extremely easy and fast service, low maintenance operations, quick delivery, and, of course, online shopping. In other words, many of the brick and mortar stores may be forced to switch to e-commerce or start their e-shops in order to attract the Millennials and satisfy their consumer needs.

The Competition

Currently, the competition between the e-commerce platforms and the brick and mortar stores is growing as the latter are gaining more popularity due to the entrance of the Millennials and their maturation as the full-scale consumers. Brick and mortar stores used to be safe from threats as long as the older generations dominated in the consumer sector as for them it was more habitual to buy from the offline retailers.

Today, the tendency is that the consumers are going to prefer shopping through the Internet, and therefore, force the retailers to move online and undergo all the challenges and inconveniences related to it (the creation and maintenance of the Internet channels, the search for the Internet retailers to work with, the restructuring of the supply chain, reorganization of the operations, and loss of profits).

The questions worth asking within this discussion involve the ways of avoiding the loss of profits due to the shift to the e-commerce channels. Is there such way? How could a retailer move their business online without losing revenue? What is more beneficial  moving online and expanding the customer base or adjusting the brick and mortar store to attract more Millennials? Finally, one more question concerns the dynamics of businesses that operate two channels simultaneously  how do the channels have one another? Does the brick and mortar shop help to promote the website, or it is the other way around?

Conclusion

To sum up, the discussion presented above demonstrates that even though the relationship between the traditional retail and e-commerce is often perceived as tension and rivalry. However, the study by Bernstein et al. (2008) emphasizes that currently, an equilibrium exists due to competition between the two channels indicating that neither of these differing modes of retail is gaining complete ascendency over the other one.

At the same time, the shifting perspectives and preferences of the consumers the majority of whom soon will belong to the Millennial generation demand that more brick and mortar retailers move their businesses online (either partly or fully). Although the new consumer behavior is likely to result in the transformation of the equilibrium between online and offline modes of retail, this pattern may be addressed through careful planning and adjustments of the brick and mortar businesses to match the needs of the customers.

Reflective Letter

Working on my paper, I completed my first draft attempting to follow the instructions precisely, and as a result, I ended up with the work that resembled a research paper and was divided into sections answering the requirements exactly. The peer review indicated that this approach produced a negative effect on the structure of the paper making it too rough and fragmented. The advice of the peer was that I remove the division.

I preferred to leave the headings within the paper, but changed them by moving them around and rewriting, so the paper was sectioned in a more comprehensive way. Also, the peer review provided extensive feedback as to the sections I could add or issues to address. I found the review extremely helpful and valuable. It also helped me detect some mechanical errors and clarify a couple sentences. The adjustments I made to the paper involved the addition of a detailed presentation of the scholarly source I used and a discussion of its ideas, arguments, and goals. Moreover, I provided a clearer conclusion explaining my point of view as to the question in the title to make my argument more comprehensive for the reader.

I highly appreciated the fact that the reviewer pointed out the strong sides of my paper and offered a constructive and exhaustive critique of my initial draft section by section taking into consideration the citations and grammar. I checked the rules of the APA style, and I am confident about my approach to the in-text citations. Also, I carefully proofread my final paper and made sure that all the mechanical errors were corrected.

Overall, working on the paper was a highly useful experience during which I was to conduct an online search for a suitable source, read the study and some additional information about it to familiarize myself with the current trends and tendencies. Also, after turning in my first draft I was provided with the critique of a reader which was vital for me to see the weak sides of my work and approach and adjust the paper accordingly. In my opinion, this assignment had many objectives all of which were achieved successfully. I appreciate the experience a lot.

Reference

Bernstein, F., Song, J., & Zheng, X. (2008). Bricks-and-mortar vs. clicks-and-mortar: An equilibrium analysis. European Journal of Operational Research, 187(3), 671690. Web.

Introduction

The medical field has made significant advances over the years which have resulted in the development of cures for hundreds of diseases leading to lower mortality rate and higher chances of recovery from ailments for people. This has undoubtedly improved the quality and/or prolonged the lives of many people. In the past few decades, inventions and breakthrough scientific discoveries in the biological field have resulted in the prevalence of access to sophisticated equipment and advanced diagnostic procedures that were once only in the reins of research institutes and few specialist hospitals. Arguably one of the most novel innovations has been organ transplantation which helps replace or remove ailing body organs. This technology has literally given a new lease of life to patients whose dysfunctional organs would have been an irrevocable death sentence to the patient in earlier years.

The fundamental reason for organ transplantation is to restore health or extend the life of the ailing patient. However, a scarcity in the number of organs available has resulted in many people not having access to the organs despite their dire conditions. Animal to human transplant and the legitimization of trade in organs present a means by which these scarcity can be dealt with. However, debate mostly on moral and ethical grounds has resulted in this two means not being employed. This paper argues that animal transplantation and commercialization of human transplantation organs should be legitimized since it provides the best means through which the shortage in organs can be alleviated. Several of the arguments raised both in favor of the sale of organs and their counterarguments shall be looked at so as to justifiably the calls for commercialization of transplant organs and use of animal organs.

Organ transplantation; The Dilemma

The Center for Bioethics defines an organ transplant as a surgical operation where a failing or damaged organ in the human body is removed and replaced with a new one (1). This kind of procedure can be undertaken on any body organ that has a specialized function. The various types of transplants may be broadly categorized as human to human and animal to human transplantations. The most prevalent form of transplantation at the present is human to human organ transplant which involves acquiring the required organ from a human being. Organs from human donors can be obtained from recently deceased people or from a living donor who are in most cases close relatives of the patient. Using of animal organs, a process known as xenotransplantation, involves the grafting of cells, tissues or organs from non-human animal species into humans. Daar notes that xenotransplantation is seen by some mainly as an opportunity that could help overcome the shortage of organs from human donors (54).

The acute shortage of available organs has led to a situation whereby majority of the people who need organ transplants failing or having to wait for long periods of times to get the organs. The United Network for Organ Sharing (UNOS) which maintains a real-time database of the status of people awaiting organs reveals that over 106,612 people are currently on the waiting list for organs in the USA. Bearing in mind that an average of20 people die each day while waiting for an organ, it is evident that the current sources for getting organs are inadequate (Center for Bioethics, 14)

While the success of organ transplantation is acclaimed not only through medical circles but also by the general citizenry, the extent to which these medical procedures can be undertaken have been greatly limited as a result of the relatively low number of available organs as compared to the increasing number of people in need for transplantations. While animal transplantations offer a means by which the shortage can be alleviated, ethical and human safety issues surround it. On the other hand, reliance on human donations has proven to be unreliable but calls for commercialization so as to increase the demand have been refuted on mostly ethical and moral grounds.

A Case for Commercialization

The lack of a legitimate market for organs has resulted in the increased suffering of patients and escalation of hospital bills. Mclaughlin, Prusher and Downie note that due to the shortage in organs caused by a lack of a market oriented means for acquiring the organs, many patients have to bear with painful medical procedures such as dialysis as they await organs for an indefinite number of years. Some patients end up dying as they wait and the medical expenses reach an excess of $50,000 per year. This is far more expensive than an organ would cost if there was a legitimate market. As such, a legally regulated market for organs would not only decrease the unnecessary suffering in patients thus improving the quality of their lives; but it would also result in less money being expended to cover the medical costs that people have to incur while they await transplanting.

Due to the desperation that springs as a result of organ shortages, many wealthy people opt for buying the organs from the black market where priority is given to the highest bidder. Meyer reports that some of these organs found in the black market are obtained through horrible means such as drugging unwilling victims and performing involuntary nephrectromy on them to obtain the desired organs (208). Reports of the illegal organ traders not paying the donors as promised are also rife thus highlighting the injustices that exist in a illegitimate and unregulated market. Creating a legitimate framework for commerce in organs would lead to a condition whereby the donors would be paid their dues and the regulated environment would ensure that cases of involuntary nephrectomy would be greatly reduced. The cost per organ would also be greatly reduced since its inflated cost is mostly as a result of the monopoly that illegal traders hold in the market.

Some of the grounds on which the ban on organ sales has been made has been on the arguments against profiteering from such business. Radcliffe-Richards, one of the adherent proponents for legitimizing organ sales explains that this is an irrelevant argument all the other parties involved in the transplantation process (physicians, hospitals and recipients) profit in some manner from the transplantation (1951). As such, it is only the altruistic donor who does not reap any tangible benefit from the transplant. It would therefore be justifiable for the organ donor to be monetarily compensated for their organs since some of the other parties involved, most notably the surgeons and hospital also make financial gains from this endeavor. It is therefore hypocritical to dictate that the donor makes no gain from his organ while not imposing the same on the other parties in the process.

In most of the democratic world, one of the most fundamental concepts is autonomy as far as personal matters are concerned. It would therefore stand to reason that one has a right to sell his/her organs since they are in essence the property of oneself. Making illegal the right to sale human organs therefore goes against autonomy since it denies a person the right to have dominion over their own body parts. The law should therefore allow for a person who is willing to sell their organs for monetary gains to do so since their body is their property and can be used for income generation.

Arguments against Commercialization

Despite the various arguments presented in favor of commercialization, there exist some real threats to legalizing human organ sales. A particular fear is that this trade would invariably lead to the poor especially of the third world countries being preyed upon by the rick from developed countries. This is a well founded fear considering the fact that majority of the buyers in black markets are rich people from developed nations. Mclaughlin, Prusher and Downie document how poverty combined with the allure of easy money make a poor man from Brazil sell one of his kidneys to a rich Israeli (1). This is a classic case of how the desperation of the poor can be exploited should this trade be legalized. Despite arguments that the selling of body parts leads to the donors faring better as a result of the money earned, research demonstrates that the sale of organs does not alleviate poverty as proponents for the same insinuate. A study by Goyal et at (as cited by Rothman) shows that in India 87% of those for sold a kidney reported deterioration in their health status& and of those who sold a kidney to pay off debts., 74% still had debts 6 years later. In such scenarios, paternalism (which in this case involves the government coming in to protect the poor people from themselves) may not only be necessary but actually preferred.

A case for Animal-human Transplantation

Some of the basis by which animal organs have been objected against has been the problem with organ rejection and infections which make transplantation a risky procedure. However, Nairne asserts that new generations of immunosuppressive drugs as well as improved medical procedures have made it possible for transplants to be accepted by the body with increased safety for the patient (1). This means that the traditional restriction of organ donations to be primarily from close relatives for compatibility issues has been removed by these new drugs. With the waiting list growing by the day and the current reliance on human donations not meeting the needs, turning to animal organs presents a viable solution which would lead to increased availability hence shortened waiting time for patients.

In addition to this, more research is underway which aims at producing animals (clones) whose blood groups and organs are genetically engineered to survive or be accepted by the human body. Upon the success of such an innovative venture, the issue of compatibility will be resolved as well as that of the organ supply shortage that is evident globally from the long waiting lists in different areas. On the same note, cloned or genetically engineered animals have been known to breed faster (2 to 3 years) and will therefore produce harvestable organs at a much faster rate than humans thereby catering for the organ deficit. Noticeably, being mammals, the difference between the human and most animal organs is slight and if the aim of such transplantations is to preserve and save lives then it is a cause worth taking.

Arguments against Animal-Human transplantation

One of the major concerns raised with regard to animal-human transplant is the risk of transmission of infectious agents into the recipient and the subsequent transmission of the infections to the wider population. These were the grounds on which a Europe-wide ban on xenotransplantation was imposed in Europe in 1999 as well as in Australia in 2004. While the World Health Organization does propose that the use of some reliable strategies for prevention, detection and containment may alleviate this risk therefore making the technology possible, health experts concede that the risk of viral infections remains high (WHO 2). The threat of the diseases spreading to the general population with catastrophic results has resulted in top scientists being wary of animal-human transplantations.

Animal rights groups assert that animal cruelty is prevalent in xenotransplantation. In order to perfect these procedures, the animals undergo a series of excruciating experiments in terms of surgery and drugs which at times lead to the death or at least physical impairment of these animals. According to an article in Uncaged (2004), evidence discovered from an international drug corporation Novartis indicates that the cruel and inhumane dissection of millions of primates over the years had yielded no results towards finding a solution for the violent rejection of these organs by humans. As such, they argue that more focus should be directed at the stem cell research and other upcoming alternatives to solving the human organ crisis.

Discussion

While there exist valid reasons for blocking the introduction of trade in organs, we must not fail to consider that without a legitimate market for organs, the black market continues to flourish mostly at the expense of the donors who do not receive nearly adequate compensation for their organs. The current shortages have led to human rights crises in countries like China where organs from executed criminals are harvested and sold off. This is despite widespread condemnation for the practice by human rights groups.

Furthermore, as has been demonstrated in this paper, the reliance on altruism has resulted in untold suffering and death of patients as they wait for organs to become available. This goes against the very principle on which medicine is founded, that is to alleviate human suffering by improving the health of the body and prolonging lives. It is therefore the moral obligation of medical professions and the society at large to seek out any feasible ways though which the unnecessary suffering and death of the patients can be alleviated. Animal organs and legitimization of organ commerce present the best means by which these can be achieved.

Conclusion

This paper set out to argue that animal  human transplantations and legalizing of commerce in organs are the two ways through which the shortage in organs can be tackled. However the advantages and disadvantages of these methods have been discussed and possible recommendations made. The animal to human transplantation has pulled in a lot of ethical controversies over the decades and as discovered, the risks prevail over the potential benefits that can be accrued from this method. On the other hand, the advantages to be gained by commercializing organs for transportation far outweigh the perceivable risks and as such, moves should be made to legalize this activity so as to lead to more lives being saved. However, care should be taken to ensure that this trade is not exploited by unscrupulous person for their own benefits at the cost of the organ donors and recipients who should be the beneficiaries of these new measures.

Works Cited

Center for Bioethics. Ethics of Organ Transplantation. 2004. Web.

Daar A, S. Animal-to-human organ transplantsa solution or a new problem? Bulletin of the World Health Organization. 77(1):54-61, 1999.

Mclaughlin Abraham, Prusher Ilene and Downie Andrew. What is a Kidney Worth? 2004. Web.

Nairne Patrick et al. Animal-to-Human Transplants the ethics of xenotransplantation. Nuffield Council on Bioethics, 1996.

Uncaged: protecting animals. Korean pig organ transplant plans spark international alarm. 2004. Web.

Introduction

E-commerce is becoming an important focus to many businesses across the globe because of the accompanying benefits and also because of the need to advance towards modern systems. Internet in this way holds a greater potential of business opportunity. In addition, individuals are increasingly appreciating and using the internet as a means of communication and a portal to carrying out operations like booking for international travels and holidays that were formerly done manually. On a general scale, records would indicate increasing usage of internet across the globe with more people visiting the internet than before. In order to take up the opportunities and the challenge, business companies are realizing the importance of not only automating their businesses but also expanding the operations to become multinational through usage of technological innovations that have emerged to link businesses, people, and communities.

As adoption of technology takes place in stages, companies are meeting the challenges involved in the implementation of the information systems that are necessary to boost their business operations, experience lesser costs and barrier reduction in their operations such as lessen time for selling (Wyckoff & Colecchia, 1999). The advantages and factors that have made usage of internet expand have on the other side contributed to the growth of internet. In order to ease operations, businesses are moving towards internet payment options that are done on the click of a button. Usage of internet with systems which are compatible with relatively traditional means of doing businesses like paying through credit cards and those systems which provide other payment options like online peer-to-peer payments (P2P), electronic bill presentment and payment (EBPP) and account aggregation which may be inter-linked with services innovations, and offerings of companies like the PayPal have gained increasing use to ease and quicken business transactions. Coming with these systems is the need to exchange information which may be personal. Because the exchange is through networks, data and electronic information is exposed to hacking and general data breach, which may result in the stealing of such information leading to actual theft for the money or improper usage of the information like illegal advertising among others. Protection of information that is being exchanged between the customer and the business service provider is becoming of importance. In addition, awareness may have increased with the data breaches and violation happening even to larger organizations. Thus securing the data becomes a challenge, because there appears to be people looking for the areas of weaknesses to strike through hacking and initiating data breaches. In addition, internet and electronic crime is in these days not only happening tragically but also through a well thought out and organized system.

Background

Although there exists techniques and means of solving internet hacking and data breaches, usually the information required for implementation require an expert because of the complexity and specialties in the requirements and investment on the whole hardware and software system which may be termed as additional cost to the already existing system. In addition, these systems may also require updates to take care of the emerging and upcoming needs. Diverse technological solutions have also been devised which means that the company may also require to consider which would be the best-usually through a specialist-but all the same this may take more time than would be expected. A survey conducted by Riemenschneider and McKinney (2001-2002 qtd. in Bharadwaj et al., 2007) involving 184 small business owners indicated that security and costs were the greatest handles facing small businesses in the adoption of e-commerce. Companies which have also found the need to connect with preferred suppliers in order to improve their businesses have linked them with internet to exchange vital information in time and considerable speed. Companies are also meeting the challenge to cope with already established rules and regulations concerning implementation of measures to avoid data breaches within certain countries and regions. Certain levels of security for the data being handles to and from these regions would be necessary to meet so as to keep on or launch their businesses in these places. For example, there are rules and regulations established by the Electronic Communication establishes guidelines for traffic data on matters of retention, for purposes of processing (for value added services, and marketing purposes), disputes, consent to processes involved and general provisions relating to traffic data processing (Electronic Communications Guidance Part 2, 2003).

Objective of the Paper

Internet security is an important factor to consider when implementing e-commerce and business information systems. Observance of high level of security is not just a tool for the current environment of advanced technology, but a necessity to ensure privacy in business operations to avoid loss of important companys and customers private information. Loss of data as a result of failure to observe security measures can be as dangerous as the data breach or hacking, both of which may cause the company to incur losses. It is therefore necessary to ensure that data in a business or non-business organization is observed. The paper reviews the general security issues relating to company and customer information in the e-commerce internet environment. Further, the paper examines the loopholes of data breaches, data loses and hacking in a company in an e-commerce environment, which includes external and internal data losses and breaches and proposes ways in which these can be avoided and counteracted. This paper will discus both technological and regulation approach to providing solutions to data breaches, hacking of systems and data losses.

Literature Review

Security of data and information provided over the network is of significance. Existing and potential customers are today aware of the underlying needs of security observance and the dangers for failing to ensure security of their information. According to Johnson (2001), 63% of those interviewed in an IBM multinational privacy study which entailed 3000 customer participants of firms in Great Britain, Germany, and USA.

Emerging needs in the business arena is making business organizations to focus in implementing technological and informational systems that will enhance their businesses through improved efficiency, improved speed and cost. Adoption of business innovations is not an issue left to large corporations only, but even to small business ventures. Companies are aligning themselves to harness the changing consumer trends towards sophistication and the usage of website in purchasing. On the one hand, usage of internet has grown as a result of growth in technology which has created a good environment for invention and adoption of quicker systems while on the other hand companies have realized the benefits to enhance their operations via usage of evolving systems. Both have been coupled with the increasing acceptance or demand to use the internet by the existing and potential customer. Growth of internet usage has resulted into further inventions which have not only reduced the time spent for transactions and reduction in cost but also eliminated the actual contact between the customer and the buyer. Thus currently, companies are using technological innovations that support payments over the internet. These facilitate the transfer of ownership of commodities through exchange of banking information and therefore payments are made by charging the customers credit card or deposit accounts such as Paypal. Other systems like the Paypal do not only allow payment but that the customer can also deposit money into their account. These businesses have become a target by internet thieves who want to steal the information, and use it for other benefits.

Data loss has become easier with the increasing usage of data soft copy mechanisms that allow data to be stored and manipulated in soft copies. Data loss in a company to expose information to insecure contacts can either be through internal or external means. External exchange of information may present an opportunity for the malicious user intending to get illegally the information being exchanged. He/she may capture TCP/IP transmission which carries passwords and card information for example, by locating his/her equipment in between the two parties. The companies therefore need to use a system of encrypting all communication. Brute-force technique may be used to attack the system that stores customers information (Herzog, 2001; Viega & McGraw, 2002; qtd. in Sawma & Probert, n.d.) and obtain a copy of the credential information even if encryption for the information has been observed. The attacker may then succeed by applying numerous possible combinations of information to gain entry into the system. These possible combinations are also encrypted by using the algorithm that was used to originally encrypt the true credential information. A strong cryptography algorithm, for example RSA cryptosystem with a strong key as a standard system for secure cryptography can be helpful in such an operation.

Internal data losses present a security threat to personal information in business organizations. This is where the employees and the staff of the company may carry away customer or other information, leak it away, hack the system, irresponsible handling of data and deletion. A company may also be exposed to security threats and data breaches for information if they are unaware of the security protocols (Jankowski, n.d.). According to a Global Security Survey carried out by Delloitte in 2006, in 2005, 49% of those companies surveyed experienced internal data breaches and of these, 28% involved internal fraud. Although companies have relatively secured themselves from the attack from viruses through Instant Messaging, HTTP and FTTP Communications, content filtering and Webmail, usage of traditional methods of internal data losses is on course in many companies. What may be seen as an awakening to the potential danger of personal and other data loss is the implementation of the regulations in some countries covering data losses. Internal data breaches and hacking can be reduced by restricting the number of time the entry of passwords to systems is ensured so as to limit automated tries of combinations with huge databases to access information illegally after accessing a username (dictionary attacks). This can be enhanced by an email link to help the customer unblock the account (Sawma & Probert, n.d.). For example, regulations around about 35 states in the United States require that the company inform the customer when their personal identifiable information is breached. In addition, companies need to move faster to adopt measures to avoid data losses within the internal organization structure. Data losses contribute not only to loss of business revenue but also the government losses revenue. According to Hunter (2007), the United States Trade Representatives (USTR) reported that trade secret theft could be up for blame for loses of $250 billion for the US businesses. Any company dealing with customer transactions must put in place measures meant to ensure that the employees do not extract personal information from the data using certain preferences and avenues available when checking mechanisms, processes, carrying out investigations or retrieving information during normal operations. One way to ensure this is to determine who has access to what information and for what purposes and establishing penalties as well as strict measures to be taken against the violators. Other ways is the establishment of DLP (Data Loss Protection) solutions and compliance to regulations such as Payment Card Industry (PCI) and Health Insurance Portability and Accountability Act (HIPAA). A company that exchanges data online for payment and selling purposes among other operations can for example implement the system called ironport that delivers unparallel data in motion through anti-spam, anti-spyware and antivirus tools.

An internet communication may also be prone through replaying where the malicious user resends the customer information to the server of a certain company so as to be authenticated as the real user (Sawma & Probert, n.d).

In order to avoid breaches of data, companies need to invest in monitoring of the data at rest, data in motion, and at the endpoints. This can help the company avoid damage of data through internet usage of suspicious programs and viruses by a suspect (Hunter, 2007). This can help them identify areas of breaches and act accordingly.

Finding and Analysis

Usage of information across the internet is increasing in the business field. Use of internet has been favored by the rising technological innovations that seek to reduce costs of operations, quicken and ease operations, and the usage by the businesses to realize these and other benefits. In addition to these, people are accepting and increasingly using the internet for payment and booking among other operations. Internet transactions hold an opportunity that will see companies achieve faster and cheaper means through usage of improved technology, if innovations continue at a higher pace in the e-commerce sector. In addition to gaining usage in operations such as payment and selling business transactions and bookings for travels and holidays among, other avenues that can be exploited by organizations through e-commerce systems include advertisement, promotion, and researching among others.

Customers are currently more aware of the needs to ensure information security in data exchange systems and therefore companies should be willing to invest in ensuring security in their systems. In order to ensure that they continue to have customer confidence and continued usage of internet financial systems freely without fear, companies should be wiling to restore confidence where it has been lost. Companies also need to respond fast to existing and emerging customer needs and preferences and tastes to usage of web-based transactions that are easier, more comfortable, answering the customer needs and more appealing. Another strategy would to adopt and implement systems that are built to link relatively traditional methods of transacting and not those that immediately de-link them. This is because customers would take time to adjust to emerging technology as it approaches the final stages unlike in the first stages of technological innovations in e-commerce. However, companies would be required to carefully access which stages of adoption of technological innovations they wish to invest in. investing at earlier stages of entry of innovations may give them advantages of monopoly, competitive advantages over those willing to invest at mature stages (Lazear, 1990) for example through lead times at initial stages (Levin et al, 1984) and a chance to further protect the innovations through patent rights (and earn via them like IBM (Jones, 2000)) although at the initial stages the risk is higher than mature stages, where competition will have set in.

Companies also need to carry out security checks and updates regularly to be able to counter organized internet crime that may advance with time and that do not only interfere with e-commerce but other spheres of life. Further options may also provide better and cheaper information systems.

Conclusion

Internet communications between the customers and the selling companies present an opportunity for the hackers to access information illegally. These opportunities include hacking through sniffing attacks where tools can be used to pick and store passwords and other information which can be avoided by encrypting data. Other areas of risks include use of brute-force to attack the storage system for customer information through use of combination sets of possible encrypted information. The company can eliminate or reduce the likelihood by usage of a strong encryption system with a stronger key and ensure that there is set maximum number of trials after which the account will lock to be blocked via the assistance of a link URL sent through an outside email account issued during registration.

Internal breaches which entail carrying away, hacking and leakage of information within the company, can be avoided by ensuring that strict measures are put in place including after one is caught having engaged in such deals.

References

Bharadwaj, Nagendra Prashanth, Soni & Ramesh G. The Scope and Effectiveness of E-commerce. Journal of Small Business Management. 2001. Web.

Carman Cindy. Data Loss Causes and Prevention. 2006. Web.

Guidance to the Privacy and Electronic Communications (E.C Directive) Regulations 2003. Information Commissioner. 2003

Herzog, P. 2001. The Open Source Security Testing Methodology Manual, version 1.5.

Hunter Bradley. Data Loss Prevention: Best Practices. 2007. Web.

Jankowski, Carrie. Investing in payment innovations: Risks and rewards. Chicago Fed Letter. FindArticles.com. 2009. Web.

Johnson Andrew. Data Protection and E-commerce; the case for new law, in the information age. 2001. Web.

Jones, Del. Businesses Battle Over Intellectual Property. USA Today. Final Edition. 2000, B1

Walsh James.The Most Common Causes of Data Loss. 2008. Web.

Wyckoff Andrew & Alessandra Colecchia. The Economic and Social Impact of Electronic Commerce: Preliminary Findings and Research Agenda. 1999. Paris; OECD Publications.

Sawma Victor and Probert Robert. E-commerce Authentication: An Effective Countermeasures Design Model. 2003. Web.

The customer relationship management demos which are discussed can be of a great benefit and immense importance to different companies and firms. As far as this paper is concerned, such tools can be of great help to the following company such as Amazon. Amazon is a company that operates in a very competitive environment that always changes as a result of the different technological advancements, that is why the firm is to adjust to all the changes in order to meet the necessary requirements and expectations of the clients and customers.

Only in such a case, the company can be sure to continue promoting, developing and succeeding in the market. This implies that the demo can help the company to manage its customers well for a long term sustainability which is important in the current competitive business world. In this case, a proper analysis of the SAP CRM system demonstration can help the company to deal with and solve different customers problems that are common in the real-world environment.

Due to the use of CRM tools, the company will be able to understand different customers entitlements that are always of a great importance. In fact, the business will ultimately deliver good services that are desirable, thereby transforming their services to a cost center.

Because online businesses are very competitive, Amazon will benefit by enhancing customer loyalty which will keep the company profitable and sustainable. This means that customer relationship management tools can help in empowering customers, so that they can be able to interact with the management well (Nissanoff, 2006, p. 84). Amazon as an online company depends on orders that are made to generate sales. In this case, it should be, therefore, known that CRM will help in order management by effectively responding to changing customer needs.

These tools can enhance and increase transparency of the companys revenue pipeline which is an important aspect. In fact, it will be very easy to monitor changes in sales and evaluate the impact of new investments and opportunities on general revenues. Amazon can be able to deliver sales services through CRM tools efficiently because it might not be able to make physical contact with customers. All in all, the most important asset of the company is its IT infrastructure which can be improved due to CRM tools.

There are issues that might arise during the implementation of the SAP CRM application because of different and diverse factors. Integration of specifications is an issue that is likely to arise because of distinct customers (Nissanoff, 2006, p. 67). This is because every customer has his own preferences as far as interacting with the online business is concerned. Another issue that might arise revolves around application services that will ultimately be instrumental in determining the content that will be generally used to solve pressing and urgent business problems.

Changes are bound to occur every now and then as far as technological advancements are concerned and this is an issue that might arise during implementation because they need to be factored in. Middleware performance issues can occur during the initial stages of implementation but this should be well resolved by the team. An issue like inadequate guidelines when dealing with cross cultural aspects needs to be taken into consideration because the company deals with a wide range of customers.

As far as proper implementation of the SAP CRM application is concerned, I expect good outcomes for the company.

Reference List

Nissanoff, D. (2006). FutureShop: How the New Auction Culture Will Revolutionize the Way We Buy, Sell and Get the Things We Really Want. New York: The Penguin Press.

Outline

This essay describes the reverse logistics in e-commerce. The study deals with how reverse logistic and e-commerce relate and the importance of reverse logistic in the e-commerce sector. It also studies what type of industries will suffer more because of the reverse logistic. Because every industry is producing different kinds of products, reverse logistic strategy will change in accordance with the product produced.

E-commerce and logistics are inter related. The statement tells that: E-commerce is a commercial activity through the internet. Logistics is an integral part of commerce. Likewise when e-commerce takes place logistic happens like all other business activity.

E-commerce is the new version of logistic: Logistic or supply chain management is the link between customer and the business centre. A customer will get his desired item through the logistic activity. When e-commerce came into the business arena, a customer can purchase any item from any distant place. That means logistic happens when button is pressing. When the online shoppers increasing, the majority of the logistic operation will takes place to cater the demand of this online people. Thus we can say that e-commerce will be the new version or it will be the future of logistic or there will be a combined effort.

Reverse logistic strategy can be implemented on the basis of type of the product: or service in which a firm provides. That is reverse logistic will yield benefit only in some cases only. But if a firm is recognizing that there is a possibility of reverse logistic, it will be a value addition to the company. And thus there is risk involved in implementing such strategy, as you pointed out. There is required a lot of background arrangement such as market research about the customer, -whether the complaint of customer is genuine, type of the product, reusability of the product. Etc. should be inquired. And you have to make further arrangement to recover the product such as employment of new personnel, documentation process etc. are additional steps. I.e., one firm cannot enter into reverse logistic service unless and otherwise they had fulfilled all the pre-requisite condition. And if the conditions are fulfilled the customer should informed about new move. Otherwise it will be a risk. Financial risk and customer handling will be such type of risk. Even if they are following either the in house production or outsourcing option, the risk will be the same.

A firm which decided to follow a good reverse logistic strategy, should incorporate it in to the after sale service. Reverse logistic is also an after sales service. If we are neglecting the customer after the purchase takes place, he will also neglect us after his purchase. Thus reverse logistic is not only logistic operation; it is a customer care strategy. A firm which is following a good after sales service, it can easily incorporate the reverse logistic strategy in a well manner. The reverse logistic strategy should not be a stand alone strategy; rather it will be an additional service from the part of the company.

Reverse logistic got attention because of its environment friendly dimension. The world is now focusing on green technology and green business. The rules and regulation will be tougher and tougher when the countries are trying to fulfill the environment norms. Thus in order to be a sustainable corporation, they have to meet the green challenge.

Introduction

E-commerce is booming in recent years with the rapid development of information technology. Even though E-commerce helps to purchase goods and services from a distant place, the purchaser cannot feel the presence of the article. So when the purchaser gets the ordered item, he may be dissatisfied because the item may not be in the level desired by him. It will lead to rejection of the item. Reverse logistic comes in the scene in such a scenario. When a customer rejects the order, the firm will pack up the item from the customer.

Reverse Logistic

According to the Reverse Logistics Executive Council (www.rlec.org), reverse logistics is the process of moving goods from their typical final destination to another point, for the purpose of capturing value otherwise unavailable, or for the proper disposal of the products.: (Barry 2003).

E-commerce and logistics are related to each other. When e-commerce occurs, logistic will take place while e-commerce is the new version of logistic. Both are growing with the help of e-commerce.

Need for reverse logistic in e-commerce

Laws and Regulations in cyber world: Many countries made it compulsory to have reverse logistic policy in all websites in order to protect the online customers and standardizing the websites. Another aim is the environment protection through recycling of used product.

Customer Retention

With the development of e-commerce, return rate is also at a high rate of 36%. As per some survey, a good reverse logistic strategy will boost the customer retention.

85% of customers say they will stop buying from a retailer if the return process is a hassle (Harris Interactive). 95% of customers say that they will like to shop with a catalogue or internet retailer again if the return process is convenient (Harris Interactive). 40% of shoppers dont buy online due to return difficulty (Jupiter Research). Customers who have their complaint resolved quickly have a re-purchase intention rate of 82% (McKinsey) (Reverse Logistics within eCommerce 2009). These studies show the importance of return policies in e-commerce. A firm which has a strong return policy can retain its customers for long. Reverse Logistic helps the firm to reduce the cost. Building customer loyalty will be another competitive advantage for them.

Problems in Reverse Logistic

Misunderstanding about Reverse Logistic: Even though reverse logistic plays a vital role in retaining the customers, many firms do not understand its benefit fully. They consider the reverse logistic is unnecessary since it adds to the cost. And thus they consider it as a burden.

High complexity: Since timing of return, quantity etc. are uncertain, the system will need more comprehensive ability. And the system cannot predict the return level, or the condition of recovered item. There may be additional cost for relocating the product in the range of products. They have to formulate new production and operation policies also. The uncertainty will also prevent from using the existing models of the supply chain management.

Lack of experience: Reverse logistic is a newly developed concept. Even though many firms are applying reverse logistic, the ever changing customer behaviour also makes it difficult for the reverse logistic practioners.

Problems Related to product Return: When a product is returned it makes lots of problems for the producer. They are high cost of recycling, surplus item in the warehouse, space management in the warehouse, separate logistic management for returned product, crediting the customer account, cost incurred due to repackaging, rework etc. As per the industry standard, companies have to recover the product within 48 hours and return back their money within 7 days. (Barry2003).

Effect of reverse logistic on industries: The return rate will differ from industry to industry. It will range from 3% to a higher rate of 50%. From several studies it is found that product which has a less consumption age doesnt have much effect of reverse logistic. Product which is aimed for one time consumption is an example for this. Heavy and complex industries, on the contrary, have more effect of the reverse logistic. Most companies suffer from poor after-sales service. Apart from information technology the other companies are consumer electronics, food and beverage, medical/pharmaceutical, publishing etc. Reverse Logistics is very important in food industry, because returning back food to a supplier, the food becomes waste. By streamlining reverse logistics procedures, however, companies can increase both customer loyalty and bottom line profitability. Managing inventory more effectively, largely through new applications of technology, is easing the strain that handling returns can have on both warehouse personnel and the environment. (Return to Sender 2008).

Conclusion

Since customer retention is the best strategy in order to remain in a competitive market, companies now understand the importance of reverse logistics. Reverse logistic is not only recovery of an unused product but it has now become a consumer retention strategy. Beyond that the reverse logistic is now associated with the recycling and reusing concept which is related to the environment protection. The rapid growth of e-commerce and supply chain management helped a lot for the development of this management science. In e-commerce where customers can select the item through a computer screen, it may sometimes create problems in future. Thus it is essential to have a good consumer tracking strategy. Thus the reverse logistic integrates several other departments of the organization.

Bibliography

Barry, Curt 2003, How to Develop a Reverse Logistics Strategy, Catalog Success Magazine, Web.

Reverse Logistics within eCommerce 2009, Buzzle.com, Web.

Return to Sender 2008, ESCM, Web.

This post demonstrates how e-commerce growth depends on various external factors. The pandemic situation proved that the Internet plays a significant role in the life of modern society; it is an essential channel through which many companies run their business. For example, in developing countries, the virus outbreak led to an increase in e-commerce development (Mallya & DSilva, 2020). At the same time, in certain countries, it was one of the most widespread ways of purchasing even before the pandemic. It is possible to conclude that the increase in e-commerce use is a result of continuous technological development. Another essential aspect worth emphasizing is that m-commerce has become especially common nowadays. Argos investments in launching mobile applications resulted in a significant rise in sales because smartphones provide easier and faster access to information than personal computers (Duhan & Singh, 2019). Personalized content and convenience also make mobile commerce more efficient than wired e-commerce. Therefore, the ability of the company to adapt to the needs and preferences of the target audience may define its success in the market.

This post provides a bright example of how a company may use current trends to maximize its profit. Nowadays, smartphones can be compared to computers in their significance and functions; moreover, due to their convenient size, they have become a part of peoples life. Using GPS technology contributes to making content and services more personalized (Duhan & Singh, 2019). From the point of view of customers, location-based advertisement content may seem more appealing since it reflects the interests and preferences of the audience. It is possible to add that this technology can be implemented in different companies, including shops, banks, and restaurants (Duhan & Singh, 2019). Therefore, I would agree that reaching customers through their mobile devices and using GPS technology may bring a competitive advantage to a company.

Reference

Duhan, P., & Singh, A. (2019). M-Commerce: Experiencing the phygital retail. CRC Press.

Mallya, P.D., & DSilva, R. (Eds.). (2020). Impact of Covid  19 crisis on the global economy and other sectors worldwide. Idea Publishing.

Kitchen Koncepts sells gourmet cookware, kitchen tableware and other cooking appliances to the home cook. Kitchen Koncepts serves numerous clients from various geographical regions all over the world. Kitchen Koncepts not only deals with kitchen appliances, but also customizes the kitchen setting, designing and transforming kitchens, in the process making them more stylish and attractive. The recently developed website allows customers to review the companys products, thereby enabling potential customers to make more informed purchasing decisions.

A company such as Kitchen Koncepts could benefit greatly from utilizing e-commerce as it would increase sales and profits for the company. Sales would greatly increase since the company will eliminate the existing time and distance barriers. Customers can access the companys website at any given time of the day, including weekends, and purchase products without having to consult with an employee as all transactions are automated. As a result of automation, transactions are carried out with ease since customers can purchase their desired products with a few clicks in a matter of minutes.

E-commerce helps companies decrease the various marketing, communication and processing costs associated with their businesses. Since there is no human interaction, customers can purchase products while using the internet hence Kitchen Koncepts could save on personnel costs. This reduces the direct cost of sales for the company, which improves the gross and net profit margins. If well integrated, the website will reduce processing costs as e-commerce greatly reduces the probability of processing errors. The speed of the transaction moves in accordance with the speed of the user, which will be highly beneficial and convenient for both first time and experienced e-commerce service users.

Electronic commerce enables businesses to provide more details about their products, for instance price quotes and discount rates for customers. Since e-commerce reduces operational costs, businesses can transfer the cost savings to the customers by making products cheaper, which will improve on the companys competitiveness. A major advantage for e-commerce is that it may also allow the company to expand its market beyond regional, national and international boundaries. Kitchen Koncepts may therefore not have to invest in foreign direct investments in its expansion strategies since transactions can be carried out in regional or headquarter offices. Furthermore, transactions are carried out online; hence Kitchen Koncepts could partner with a shipping company and eliminate the need to open further regional offices.

E-commerce has its share of challenges, especially security issues and technical, and non-technical, limitations that make a number of people avoid the evolutionary system. The internet is also not widely accepted as a favorable and trusted financial transaction point. Safety and privacy concerns drive out many would be potential customers, meaning that businesses are restricted from achieving the full potential of e-commerce. E-commerce provides a form of impersonal transaction whereby the seller and buyer rarely communicate with each other, which may lead potential customers to question the authenticity and legitimacy of financial transactions.

Another reason as to why electronic commerce may not achieve its full potential is due to the issue of privacy. Potential customers and e-commerce users may have reservations about providing their personal and private information, especially to the relatively new players in the industry. Identity fraud risk also leads many people to be more hesitant in providing their credit card and bank information to online businesses in fear of falling victim to the growing crime.

E-commerce is also not suitable with certain types of businesses, such as those that offer perishable products such as food items. Most consumers would rather adopt the traditional shopping method when it comes to such products, which serves as another limitation for electronic commerce. On evaluation, the benefits of e-commerce heavily outweigh its limitations, so companies cannot afford to ignore the positive impact that electronic commerce may have on their businesses.

Companies have to use a merchant account, which is a specialized bank account that enables businesses to receive payments through debit or credit cards, as well as electronic payments (Sweeney 2006, 12). Businesses therefore have the option of maintaining their own independent online merchant accounts, or entering into contract with a payment service provider (PSP) such as PayPal, Google Checkout and World Pay. A PSP offers merchants with internet banking services for receiving electronic and online payments. In e-commerce, PSPs process credit, debit cards and online checks to facilitate web based transactions Laine & Hellsten 2006, 39).

PayPal

PayPal is an e-commerce provider, also a third-party vendor, which offers businesses with online payment processing services, thereby enabling merchants to be less dependent on traditional financial institutions for their transactions. As most payment service providers, PayPal charges fees in two different ways; that is monthly charges and a fee, usually a percentage, charged per transaction (Millard & Haldane 2007, 218).

PayPal charges a monthly fee of US$30, while fees per transaction vary depending on the amount transacted per month (Strauss 2008, 217). Monthly sales ranging from $0 to $3,000 are charged at 2.9% plus a fixed charge of $0.30, monthly sales of +$3,000 to $10,000 are charged a fee of 2.5% of the sales and a surcharge of $0.30; while monthly sales in excess of $10,000 incur a fee of 2.2% and an additional $0.30. For instance, if Kitchen Koncepts makes a monthly sale of $5,000, having already been a PayPal member for more than 30 days, the company will incur a transaction fee of $110.30 (=$5,000 * 2.2% + $0.30).

PayPal has several financial advantages, such as the lack of set up, early termination of contract and downgrade fees, and has no cancellation charges. This makes the payment service provider adequate for start up companies. PayPal makes it relatively easy for businesses to integrate e-commerce into their websites; allowing businesses to add features such as buy now buttons, a shopping cart, or even set up subscriptions in the companys website FrontPage (Reynolds 2004, 31). The shopping cart feature makes it easier for customers to purchase multiple items from a companys catalogue within a single transaction.

PayPal is relatively easy and quick to implement and use for companies with no prior experience in e-commerce, and does not require common gateway interface (CGI) scripting on the part of the merchant, hence a merchant need not apply for an online merchant license. PayPal offers valid security, making certain that merchants are protected from certain types of buyers, such as those who havent provided their addresses, or those who have exceeded their credit limits (Crowder 2010, 28).

Despite PayPals advantages and extensive market share, the payment service provider has its share of disadvantages. PayPal offers limited customization features for payment and shopping cart tools on the front page. As such, there is limited flexibility for product variables which makes it tedious for customers to search for specific products. PayPal also tends to concentrate more on its trademark brand, rather than on the vendors trademark, whereby the PayPal trade name is manifested in the sign out process while the sellers brand, on the other hand, is restricted to a logo.

The transactional rates applied by PayPal also make the PSP a relatively expensive option in terms of transaction fees. PayPal may also make it significantly expensive for customers with no PayPal accounts to purchase a companys products, which may in turn affect the companys businesses.

Google checkout

Google checkout is a relatively new PSP in the industry, which specializes in making online payments easy for both merchants and customers. The PSP has a similar transaction fee schedule as PayPal, but has an added level for companies whose monthly turnover exceeds $100,000, whereby the fee charged is 1.9% per transaction plus $0.30. Like PayPal, no set up fees are included in the package, but Google checkout could be considered as a cheaper alternative to PayPal since the former does not include fixed monthly charges, as opposed to PayPal which charges a monthly fee of $30. Therefore, a Google checkout merchant only has to pay monthly transactional fees, thereby making it ideal for low volume companies.

Through Google checkout, a company such as Kitchen Koncepts could discover several advantages, especially the ease of setup for companies new to e-commerce. Google also makes it easy to integrate their Google checkout service with their websites since the merchant does not have to manage the internet payment gateways. With Google checkout, merchants need not set up trade online accounts or internet gateways as Google checkout provides these services.

Google checkout provides adequate customer security, hence the merchant does not have to worry about customer security details. Buyers on sites that accept Google checkout do not have to input their credit card numbers, thereby making the customers feel more secure. Customers can leave their personal payment information with Google checkout, rather than entering their persona information on all merchant accounts that they visit. All customers need to do in this case to carry out transactions is to input their names and Google checkout password on websites that accept Google Checkout.

Google checkout is cheaper than PayPal for companies with monthly turnovers in excess of $100,000. For instance, a company with a monthly turnover of $100,000 will be charged $2,200.30 (=100,000 * 2.2% + 0.30) in terms of PayPal transaction fees, while the same company could incur $1,900.30 (=100,000 * 1.9% + 0.30) if it had opted for Google checkout, thereby saving $300 in terms of transaction fees, and $30 in form of monthly charges.

Goggle checkout is highly beneficial due to its integration with AdSense since it is easy to connect and carry out transactions between the Google checkout account and the AdSense account. As such, a client could use revenue from the AdSense account to pay for charges emanating from the Google checkout account, or money from the Google checkout account could also be used to fund advertisements on Google. In both cases, the Google checkout account helps minimize payment processing costs, whereby when AdSense revenue matches Google checkout transactional fees, merchants will not be required to part with their revenue, and may end up receiving free payment processing (Rich 2008, 99).

Google checkout has several disadvantages, despite its gaining popularity. Google checkout is still relatively unknown, meaning that it is not as widely recognizable and acceptable as PayPal. Google checkout limits payments to only credit and debit cards, which implies that customers cannot use other means such as eCheck and PayPal to settle payments. Google checkout is not a true payment gateway; hence merchants may experience difficulties in transferring money from their Google checkout account to their bank account (Laudon & Guerico 2008, 104).

WorldPay

Fast PC networks 2010) notes  WorldPay, a payment gateway, makes it possible for businesses to receive payments over the internet, and thereby facilitating online transactions. Unlike Google checkout and PayPal, WorldPay allows merchants to receive payments from a wide range of online methods. Therefore people can use major credit cards, eChecks and PayPal. As the name suggests, WorldPay has been designed to facilitate international transactions, meaning that customers can take advantage of local payment methods such as Electron and Maestro. Since WorldPay is versatile in a wide range of countries, merchants and customers can use various languages and currencies when dealing with WorldPay. WorldPay is based in the UK, hence prices are listed in sterling pounds but users outside the UK can convert their currencies to translate the price.

WorldPay is more expensive than the other payment service providers. Fast PC networks (2010) notes a merchant will have to pay £200 in payment gateway setup fees, and incur a regular monthly fee of £30 with the first months pay paid up front. An additional setup fee of £100 is paid for merchants who want to accept mobile payment services. WorldPay charges transactional fees of £0.50 per transaction for UK issued debit cards, while other cards and payments methods are charged 4.5% of the transacted value. Businesses have the option of receiving fraud detection services at £0.06 for every transaction (Fast PC networks 2010).

Fraud protection services, which are more proactive than detection services, cost £20 per month, and an additional transaction fee ranging between 1% and 2% of the transaction value. WorldPay charges a chargeback fee of £10 every time a payment is returned. No charges are incurred when transactions are carried out in sterling pounds, but businesses that opt for other currencies are charged £50 for each different currency. All these costs make WorldPay significantly expensive for small and medium sized companies, thus its features are more suitable for international companies due to the PSPs global support, security and reliability features (Crowder 2010, 294).

A merchant account is a specialized account issued by banks, Independent Sales Organizations (ISO) and merchant account providers to facilitate e-commerce transactions, thereby enabling businesses to receive and make payments over the internet. With a merchant account, a business can accept real time payments through credit and debit cards, and eChecks (Hicks 2009, 29). Setting up a merchant account involves several costs, including application fees ranging from $99 to $600, regular monthly gateway fee of $30, termination fees and annual fees, all of which are fixed fees.

Fast PC Networks (2010) notes variable costs include discount rates, which serve as a form of commission for the provider ad usually ranging between 2% to 4%, fixed transaction fees, $0.2 to $0.3 charged per transaction, and batch transaction fees that are charged once a day. Edwards, Edwards & Economy (2009, 130) add that Other miscellaneous fees may be included in other expenses, such as account activation fees, statement fees and customer refund processing costs.

A merchant account entails having an internet payment gateway. An internet payment gateway enables a business to integrate online credit card processing with its website, in the process making it easier for a business to receive payments over the internet. Since transactions are carried out in real time when an internet payment gateway is used, customers can know immediately whether or not their credit cards were approved for carrying out the purchase. A shopping cart will have to be used to allow customers to interact more freely with the website. A shopping cart is a tool that allows customers on the website to carry out certain functions, for example customers can place various products into the shopping cart, just like they would in a supermarket, and pay for the items in a single transaction.

The shopping cart also enables customers to specify on the product they want based on certain characteristics such as size and color. After a customer has finished selecting items for purchase, the shopping cart adds up all the relevant costs of the transaction, including the price of the items, tax and shipping costs, and bills the customer with the total cost, and consequently breaks down the relevant costs to the customer. Once satisfied with the information, the customer may choose to input his credit card information to settle the account. The internet gateway collects information, encrypts its, to protect the information when its sent to a credit card processor through a secure connection. The credit card processor subsequently returns an approval or a decline notice in relation with the customers credit. Edwards, Edwards & Economy (2009, 130).

The internet payment gateway provides three vital services whenever a customer attempts to make an online purchase, that is; authorization, settling and reporting. Crowder (2010, 294) notes authorization is the process whereby a credit card issuer, such as a bank or other financial institution, permits its clients credit or debit card to be used for an online purchase through an internet payment gateway. In this case, the internet payment gateway ascertains as to the acceptability of a buyers credit card for making an online purchase in a fast and secure manner in a matter of seconds. The internet gateway, through authorization, links the seller, buyer and credit card processor, or issuer, to enable the transaction to proceed.

During the end of a given timeline, the internet payment gateway assembles all the online payments made by the customers and drives all the information to the companys data bank in a distinct group, a process known as settling. This process allows the bank to act accordingly and transfer the funds to the businesss bank account. In this way, the business can be credited with the payments in as little as two working days when the funds settle.

The internet payment gateways also provide reporting facilities since it records all the transactions, thereby allowing the business to view, print or even download all transactions relating to a given day for further processing (Crowder 2010, 294). Some internet payment gateways are compatible with accounting packages, thereby making accounting of transactions easier for the company.

Internet receipt gateways allow an infinite number of users to carry out transactions simultaneously within the access without disrupting operations. Crowder (2010, 241 notes Multiple customers and operators can access can access the internet payment gateway from various locations all at the same time, and carry out similar or different transactions.Customers can purchase a companys products at any time of the day, which would improve sales since purchases can be made after the normal working hours. The internet payment gateway therefore provides a company with an unlimited user license fee.

PayPal is advantageous since it provides a business with an internet payment gateway system; hence a business would not incur the expensive gateway fees. Applying for a PayPal account and setting it up takes less than a day, meaning that a business can quickly set off in electronic commerce. Traditional merchant accounts are relatively expensive to set up and maintain due to the inclusive setup fees, monthly fees, gateway fees and the discount rate.

The setup process is often strenuous, which requires the company to fill out an application form, and accept to certain privacy and shipping rules. The merchant will also be regulated on how they store customer credit card information, while PayPal does not provide customer credit cards information. PayPal is also advantageous in that it is a widely popular and trusted payment service provider, thus customers will be more inclined in using PayPal as the preferred payment than a traditional merchant account.

PayPal may seem adequate, but from a business perspective, a traditional merchant account has significant advantages over PayPal. A business that relies solely on PayPal may seem small and unprofessional hence it may lose business from large potential clients. Another PayPal disadvantage is that transaction fees are high for high volume transactions; hence a business could save money by opting for a merchant account.

Merchant accounts are more convenient than PayPal in terms of feedback. With a merchant account, a business could contact its merchant bank during business hours to get an issue clarified whereas one cannot even e-mail PayPal for feedback, but would be forced into PayPals ticket based system which could take days before an issue is resolved. Since PayPal does not provide access to customer credit numbers, a merchant would have to ask customers to pay bills manually in case of a monthly subscription.

With a merchant account, Kitchen Koncepts would incur lower rates and transaction fees than through PayPal, and would have added advantage in customizing their accounts as opposed to the limited flexibility offered by PayPal (Holden 2004, 284). PayPals rigidity makes shipping problematic, especially when it comes to estimating the costs. PayPal manages the security details of the account, which are usually adequate, while a business would have to manage their security details with a merchant account. The greatest drawbacks for merchant accounts are the high initial costs and the timely set up process (Edwards, Edwards, & Economy 2009, 59).

PayPal is therefore good for small businesses that have just started in e-commerce, though merchant accounts are more ideal for businesses that project future growth due to the flexibility benefit. Alternatively, Kitchen Koncepts may start with PayPal while initiating and integrating a merchant account, and blend the two in the future to reap the benefits of each.

References

Crowder, A., 2010. Building a Web Site for Dummies. 4th ed. New Jersey: SAGE.

Edwards, P. Edwards, S. and Economy, P., 2009. Home-Based Business for Dummies. 3rd ed. NY: Pearson.

Fast PC networks, 2010. Merchant account  A guide to understanding the basics. Fast PC networks. Web.

Hicks, G., 2009. Merchant Account Kit. 18th ed. New York: International Wealth Success, Incorporated.

Holden, G., 2004. The Collectors Guide to EBay. New York: McGraw-Hill Professional.

Laine, C. and Hellsten, J., 2006. Beginning Ruby on Rails E-Commerce: From Novice to Professional (Rails). London: APRESS.

Laudon, C. & Guerico, C., 2008. E-Commerce: Business, Technology, Society. 4th ed. New York: Pearson Education.

Milard, S. and Haldane, G., 2007. The Future of Payment Systems. New York: Routledge.

Reynolds, J., 2004. The complete e-commerce book: design, build & maintain a successful Web-based business. 2nd ed. Oxford: Focus Press.

Rich, R., 2008. Design and Launch an Online E-Commerce Business in a Week. Irvin, CA: Entrepreneur Press.

Strauss, D., 2008. The small business bible: everything you need to know to succeed in your small business. 2nd ed. New Jersey: John Wiley and Sons.

Sweeney, S., 2006. 101 Internet Businesses You Can Start from Home: How to Choose and Build Your Own Successful E-Business. 2nd ed. New York: Maximum Press.

Introduction

The computer and the internet are two of the most vital innovations of the 20th century. These technological developments changed the manner in which communication took place and presented numerous opportunities for businesses. One novel technology that exploits the internet ability of mobile devices is mobile commerce (m-commerce). The tourism and hospitality industry has shown great interest in this technology. Key players in the sector have appreciated that this technology adds value and provides competitive advantages to individual businesses. Jung and Mills (2010) observe that in addition to extending the reach of wired networks, mobile technology acts as an alternative channel of information providing new opportunities to travellers. This paper will set out to discuss mobile commerce in the tourism and hospitality sector. It will highlight the ways in which m-commerce has been exploited in this industry and demonstrate how the technology has improved the tourism and hospitality sector.

Defining M-Commerce and its Importance

Traditionally, the internet could only be accessed through wired technology. However, advances made in telecommunication technology over the past two decades have made it possible for mobile communication to access the internet. This made it possible for mobile devices to be used for mobile commerce functions. M-commerce is essentially the application of electronic commerce though mobile devices. Alqatan, Singh and Ahmad (2011) define it as a wide array of business activities including advertisement, sales, and marketing, carried out by use of wireless devices such as personal digital assistants, tablets and smart phones. The convenience offered by this technology has led to a marked shift from e-commerce, which relies on wired networks. M-commerce is useful due to a number of important features it possesses. To begin with, it has great mobility making it possible for the user to carry out business transactions while on the move. The user can engage in business activities including looking for the best products from anywhere and at any time.

The second feature is the broad reach of mobile devices in the modern world. The past decade has witnessed a phenomenal growth in mobile technology and wireless communication. The cost of mobile devices has reduced significantly while the technological advances have increased. Mobile devices are able to offer high speed data connection using the 4G network. According to Patten and Harris (2013), there are billions of mobile devices owned by the general population. This means that the number of mobile communication devices far surpasses that of personal computers. These devices have therefore become the most common means of accessing the internet for a large segment of the population. Alqatan et al. (2011) acknowledge that consumers are increasingly depending on their mobile phones for more than just communication purposes. These devices are being used to access content and services from the internet on a frequent basis.

Another advantage is that m-commerce applications are built with usability in mind. Many consumers avoid technology that is complicated to use or requires a lot of learning before proficiency can be achieved. Dae-Young, Jungkun and Alastair (2008) reveal that the learning curve for m-commerce applications is steeper than that of other IT applications since this technology emphasises on user friendliness. Many businesses have moved in to exploit the advantages offered by m-commerce.

M-Commerce in Tourism and Hospitality

The tourism and hospitality sector plays a significant role in the global economy. The World Trade Organisation declares that the tourism and hospitality sector is the worlds largest employer making it the single most important economic activity globally. The economic growth of many nations is therefore dependent on this sector. For this reason, significant efforts are dedicated to its success. M-commerce has emerged as an important component of the tourism and hospitality business with the technology contributing to the success of various entities in the industry.

Airlines

Airlines play an integral role in the tourism business. Most tourists make use of airplanes to reach their favourite destinations. Access to airlines is therefore an important consideration for many tourists when they are making decisions to travel for leisure. Research indicates that most holiday makers are likely to use their mobile devices to research on the air travel options available to them (PhoCusWright Innovation, 2012). Through m-commerce, they are able to engage in personal research on the different airlines and the services they offer.

Once a traveller has chosen an airline, m-commerce technology can be used for booking purposes. A number of important advantages are attributed to online booking services. The consumer experiences a sense of control since he can conduct the transaction at his convenience. Christou (2006) confirms that people feel empowered when they are able to do their travel planning transactions using the mobile technology. Consumers experience increased satisfaction with the services offered leading to the development of a positive attitude towards airlines. In addition to this, the use of m-commerce leads to a sense of freedom by the consumer. When airlines or booking agents make use of m-commerce, the consumer is given the ability to make travel planning transactions at anytime and from anyplace. Without mobile commerce facilities, consumers would have to physically find travel agents at their offices in order to buy travel products and services (Christou, 2006). To make matters worse, the consumer would only engage in these activities during office hours. The online booking technology availed made possible by m-commerce reduces these restrictions. The customer can perform travel planning transactions at his convenience and without having to physically visit an agents office. Another advantage is that the customer is able to carry out real-time monitoring of the status of a reservation request.

Airlines have exploited m-commerce for marketing purposes. Mobile applications have created an opportunity for airlines to promote direct distributions of their products to the consumers. This technology makes it possible for airlines to offer end-to-end services to their clients. Travellers are able to interact exclusively with the airlines as opposed to using travel agencies as a go-between. M-commerce has made it possible for airlines to build stronger customer relationships by encouraging travellers to book directly with them (PhoCusWright Innovation, 2012). This has increased the productivity of airlines as they are able to attract and retain customers. Travellers benefit from the reduced cost of travel as they deal with the airlines directly instead of relying on agents who charge a commission.

Hotels

Accommodation is a crucial part of the tourism and hospitality sector. Traditionally, tourists had to rely on travel agents or make phone calls to reserve rooms at their hotels of choice. The hotel sector has made intensive use of m-commerce to increase efficiency and productivity. Peters (2012) reveals that hotels were the first businesses in the tourism and hospitality sector to invest heavily in m-commerce. The initial mobile efforts by hoteliers were in building booking capabilities. These efforts paid off since over the past decade, mobile hotel booking has experienced a strong growth. According to PhoCusWright Innovation (2012), hotel bookings represented the largest share of mobile bookings in the year 2011.

M-commerce has increased the ease with which tourists can access accommodation services. This technology has made it possible for customers to make reservations by simply clicking on their mobile devices. M-commerce reservations provide some significant advantages to the customer. He/she is able to choose from a large assortment of hotels available through the mobile device (Evangelos, 2010). The customer can compare and contrast the prices and special features provided by each hotel before making a decision. Customers also benefit from a reduction in the cost of obtaining information. Most of the information needs to make an informed decision on accommodation is available for free.

Hotels have benefited from a reduction in operating costs due to m-commerce. Specifically, the cost of advertisement has gone down considerably when this technology is used. Due to their broadcasting capabilities, mobile devices are able to efficiently disseminate information to a large population (Jung & Mills, 2010). By relying on this method, hotels do not have to use a lot of money for advertising using conventional methods such as newspapers and televisions.

A unique advantage of m-commerce is that it provides additional business to hotels by making the establishment visible to the unmanaged business travellers. This class of travellers do not make plans for their accommodation in advance. Instead, they make their accommodation decisions while on the move. M-commerce is suitable for last-minute hotel bookings since it shows the traveller the available hotels within his current location. PhoCusWright Innovation (2012) confirms that m-commerce is ideal for the average mobile traveller seeking a last minute hotel nearby.

Tourist Destinations

Tourist destinations are the most important part of the tourism and hospitality industry. These are the sites that provide the attractions which compel people to travel from their home destination for leisure purposes. Suppliers of tourist services aim to attract visitors and therefore increase their productivity. Beritelli and Schuppisser (2005) declare that the tourism industry is characterised by fierce competition among tourist destinations. M-commerce plays an important role in the war for customers among the many destinations. Borzyszkowski (2014) reveals that with increasing frequency, tourists are choosing their destination using informational technology solutions. Destination Management Organisations (DMOs), which are the entities responsible for managing and marketing specific destination, make use of m-commerce to increase their efficiency and productivity. M-commerce is used to plan and promote the activities offered at a particular destination. This technology is also used to market tourist destinations at the regional and national levels.

While at a particular destination, m-commerce assists the tourist to identify the specific attractions available in the area. Beritelli and Schuppisser (2005) assert that easy and effective identification of places to visit contributes to the positive experience of the tourist during his/her trip. Through m-commerce, tourists receive recommendations on the best attraction sites to visit. Mobile commerce applications highlight museums, leisure parks, exhibition centres, conferences, and restaurants available near the tourists current location.

M-commerce makes it possible for appropriate leisure activity recommendations to be made to a traveller. The mobile applications have access to data on the travellers history and his interests. By analysing this information, the application can accurately provide personalised recommendations (Beritelli & Schuppisser, 2005). The visitor receives filtered and suitable suggestions based on his current location and contextual needs. The individual can use these recommendations to make the best choice regarding his leisure activities.

Tour Operators

Tour operators are business entities that come up with packaged tourism products for holiday makers. These entities are responsible for designing and marketing various travel destinations to the consumer. M-commerce is used in a number of ways by the tour operators. Mobile applications play a major role in the marketing of the packages developed. According to Alqatan et al. (2011), M-commerce has transformed the way in which travellers buy and search for tourism services from the various distribution channels including tour operators. This technology makes it possible for the individual to make last-minute bookings. This ability offers great flexibility to the traveller and the travel companies benefit from additional revenue.

M-commerce assists in personalised advertising by the tour operators. Through data mining, travel companies are able to use past behaviour of a tourist to determine his preferences. They can then predict the products that might be of interest to the individual and market them to him/her. This targeted advertisement is not only cheaper but also more efficient than mass advertisement since it considers the unique preferences of the individual. Christou (2006) notes that electronic travel services on the internet enable travel agents to anticipate changes in consumers behaviour and examine their socio-demographic profiles. The travel agents are therefore able to offer packages that are suit the needs of each customer.

Tour operators use mobile technology to differentiate themselves from their competitors. There are many companies offering similar services in the tourism and hospitality sector. Alqatan et al. (2011) confirm that the tourism sector is saturated with tour operators all fighting for the same customers. To establish its uniqueness, a company can make use of m-commerce. Through mobile applications, a tour operator can highlight the unique nature of its products. By so doing, it will be able to differentiate itself from competitors and attract more customers.

Car Rental

Tourists need a convenient way to move about when at the travel destination. Car rental companies satisfy this need by offering travellers with vehicles that can be used to visit attraction sites. These companies have made use of m-commerce to improve their services. Car rental companies offer mobile booking as well as advertise their products through mobile applications. According to Peters (2012), the use of m-commerce increases efficiencies and decreases the operating cost of companies by reducing the number of live representatives needed.

Car rental companies also exploit the location awareness of mobile applications. Through GPS, a company can advertise its presence to a traveller. M-commerce technology can direct the customer to the nearest car rental service based on his current address. Jung and Mills (2010) assert that location-based services are an innovative product offered to tourists.

How M-Commerce Has Improved Tourism

M-commerce has played a positive role in the growth and development of the tourism and hospitality sector. The technology has had a tremendous success in meeting the informational needs of tourists. Alqatan, et al. (2011) observes that tourists face significant difficulties in their attempts to access relevant information from conventional sources such as websites. In addition to this, the websites often fail to meet the expectations of the tourism leading to low customer satisfaction. Since the development of third generation wireless services, consumers have been able to access the internet from their mobiles while on the move. M-commerce applications are user friendly making them usable to a large segment of the population (Alqatan, et al., 2011). Travellers are therefore able to exploit this technology for their informational needs both before and during their trips.

Tourists are exposed to a wider variety of products due to m-commerce. A defining attribute of m-commerce is that it increases the scope of information available to the customer. Travellers are able to search through products offered by a wide array of providers. Through mobile applications, quick comparisons of the products and pricings of different providers can be made in a timely fashion. Travellers are therefore able to choose the best and most competitively priced product from a wide variety due to m-commerce. In addition to this, the technology enables tourists to get advice from other travellers. Instead of relying solely on conventional advertisements, travellers use mobile devices to obtain recommendations from their fellow tourists. Evangelos (2010) reveals that consumers are able to communicate with other consumers when they utilise m-commerce through discussion groups and forums.

M-commerce has improved the tourism and hospitality sector by making it possible to offer highly personalised products to the customer. Different customers have differing tastes and preferences. The business that is able to provide the goods or services that best suit the unique preferences of a consumer is more likely to achieve high profitability. Personalisation in technologies such as e-commerce can be hampered by the fact that a single computer might be used by multiple users (Evangelos, 2010). In contrast to this, most mobile devices are owned and used exclusively by a single user. It is therefore possible for tourism and hospitality businesses to collect the user information and provide personalised products or services to the customer on his mobile device. The products fit the consumers preferences therefore increasing the probability that he/she will purchase them. This targeted advertisement leads to an increase in the productivity of the business.

Another improvement brought about by m-commerce is the ability to offer location based services. The customers in the tourism and hospitality industry are highly mobile. Being able to provide these individuals with information that is relevant to their current geographical location is of great importance. PhoCusWright Innovation (2012) declares that the power of the mobile platform is its potential for time- and location-sensitive services that are unique to each user (p.18). M-commerce makes it possible for companies to provide products or services to potential customers depending on their current geographical location (Alqatan, et al., 2011). Using locating technologies such as GPS, the company can acquire information on the current location of a customer. Based on this, reliable location-relevant information can be forwarded to the user directly to his mobile device.

Conclusion

The business world has engaged in a rapid adoption of mobile technologies to increase its productivity. This paper set out to discuss the use of m-commerce by the tourism and hospitality sector. It began by defining m-commerce as electronic commerce that makes use of mobile devices. It then proceeded to highlight the usefulness of this technology. The paper has articulated the numerous opportunities that m-commerce offers to the tourism and hospitality sectors. It has reviewed the ways in which the technology has been used by airlines, hotels, destination management organisations, tour operators, and car rental services. The paper has acknowledged that m-commerce has had a significant impact on this individual player in the tourism and hospitality sector. It has shown that the technology has contributed to the increase in revenue by players in the tourism and hospitality industry. At the same time, the technology has led to higher customer-satisfaction due to the greater efficiency in service delivery. Considering the significant benefits that m-commerce has brought to all stakeholders in the tourism and hospitality sector, it can be anticipated that this technology will only become more prevalent in the years to come.

References

Alqatan, S., Singh, D., & Ahmad, K. (2011). A Theoretic Discussion of Tourism M-commerce. Journal of Convergence Information Technology, 6(12), 100-106.

Beritelli, P., & Schuppisser, M. (2005). Challenges in Mobile Business Solutions for Tourist Destinations The Trial Case of St. Moritz. Journal of Quality Assurance in Hospitality & Tourism, 15(2), 147-162.

Borzyszkowski, J. (2014). Information technologies in the activities of destination management organizations. Tourism and Hospitality Management, 20(1), 61-70.

Christou, E. (2006). A qualitative analysis of consumer attitudes on adoption of online travel services. Tourism, 54(4), 323-331.

Dae-Young, K., Jungkun, P., & Alastair, M. (2008). A Model of Traveller Acceptance of Mobile Technology. International Journal of Tourism Research, 10(1), 393-407.

Evangelos, C. (2010). Investigating attitudes towards mobile commerce for travel products. Original Scientific Paper, 58(1), 7-18.

Jung, K.L., & Mills, J.E. (2010). Exploring Tourist Satisfaction with Mobile Experience Technology. International Management Review, 6(1), 91-101.

Patten, K., & Harris, M.A. (2013). The Need to Address Mobile Device Security in the Higher Education IT Curriculum. Journal of Information Systems Education, 24(1), 41-52.

Peters, M. (2012). Innovation in Hospitality and Tourism Framing 21st Century Social Issues. NY: Routledge.

PhoCusWright Innovation (2012). Market Sizing and the Travel Industry Outlook. NY: PhoCusWright Inc.

This proposal will be aimed at establishing an online retail clothing store that will specifically deal with sportswear. Digital sportswear collections will be a new apparel store that will cater to those people who are interested in sporting activities such as football, riding hiking and skating. As the name suggests, the focus will be to target the customers using digital technology. This implies that it will be able to provide apparel to the esteemed customers and position the business at the top of online retail store industry.

Since this is a pioneer of such business in the region, the initial orientation of the venture will be to obtain 80% of the market share and become the main hub for online shopping activity for the local people who like engaging in sporting activities. Digital sportswear will deal with well-recognized sports apparel, specially customized jerseys. Basically, digital sportswear will involve the use of social media such as Facebook and Twitter to engage with its customers. A good website in terms of design will also be necessary so as to attract the attention of the customer. This is where photos will be displayed for the online shoppers to have a look at the products before making their purchases.

Email marketing will also play a critical role in keeping the customers informed on the activities of the business. This will entail information regarding, new products, discounts, camping trips as well as outdoor activities that might be organized by the business. Being a sportswear retail business most of the target market will be the youth and young adults because they are more energetic and therefore likely to engage in sporting activities. Another factor worth noting is that this age bracket is more active in the use of the internet such as Facebook and Twitter. This, therefore, implies that they will likely get the information. This medium of communication has proved to be more reliable among users.

Thus, by launching Digital Sportswear Online, it will serve a critical role in attracting as well as retaining customers and through that, a long-term relationship with the customer is established. Through these interactions, more customer satisfaction will be guaranteed because of the various benefits that will be accrued to online shopping.

Hard Rock Café was established in 1971 by two Mexicans namely Peter Morton and Isaac Tigrett. Since then the café has seen numerous establishments of other branches in other parts of the world. In fact the café has several branches in every continent.

The café is very popular because it has a wide range of music instruments collected from legends of music as well as celebrities. The clients of this café are given an opportunity to take photographs of these artifacts immediately they walk into the café.

The cafés official web address is hardrock.com. Actually the café has embraced information communication and technology with the aim of gaining competitive advantage. Clients can check the cafés menu and services that are available on their web page. The café lists its menu and special events together with other items that are sold in its shop. The shop is available virtually and sells a wide variety of clothing and house hold items such as glasses and plates.

The café can utilize ICT and e-commerce models by hiring customer care executives who can work from their homes and submit their completed work loads to the cafés head quarters. The organizations website has a site map that can be referred by clients who are visiting Orlando for the first time. Since there so many scams on the internet the availability of a site map and physical address builds on the credibility of this café.

The organizations website is designed in a way that is simple to use. The website links all the branches of the café world wide. The items that are available online are paid for using credit cards and visa cards. Once a client has paid for his purchase the item is shipped to the clients address within the next 24 hours using UPS. The reliability of this virtual shop is enhanced by the fact that clients can report their complaints to the support team through their telephone numbers.

The café can integrate business systems which could improve its service delivery. This can be achieved by introducing a supply chain control program. This means that all financial transactions and statements can be delivered to the headquarters within a very short time. According to Roger (2002) the purpose of integrating e-commerce into the operations of the café is to reduce the costs incurred during operations. This technology will improve productivity of the café because all the resources of this particular institution are centrally stored hence transactions will be processed much faster than usual because there is very little paper work involved.

Paperless transactions are better compared to manual transactions because if there happens to be any mistakes concerning the details of a given transaction, corrections are done at ease as opposed to manual transactions that leave the transactions document untidy. Electronic business is not limited to improving the performance of an organization but it also eases the administration of an organization. For instance payroll systems make it easier for employers to inject salaries into the bank accounts of their employees at the click of a button.

Electronic banking transactions main branch managers of this café have little to worry about when it comes to handling money. Pat (2001) insists that clients too can pay for their bills using credit cards and also check the available reservations online. They can also make reservations online which is very cost effective to the client.

Relating to IBM chairman Louis Gerstners comment that stresses on customer focus and productivity, this organization would benefit the café because clients always go for the most convenient and reliable options. The café can utilize the internet to increase its market share. This can be done by advertising the café on the World Wide Web because the internet is accessed by very many people at a go.

Many people rely on their pals to give them important leads to service providers because they feel they are too busy to search for such people. It is therefore important for this café to develop good relationships with its clients because the same clients will come back with their friends or simply refer them. Some organizations conduct quick surveys on their websites concerning the efficiency of their service delivery.

The suggestions collected from clients are analyzed to identify what can be done to deliver satisfactory services to the clients of this café. The rate of response to client requirements can bring positive or negative impacts into the business. If the restaurant staff are lazy bones client will be disappointed by their services hence its advisable to hire employees who have passion for their work. However, an enhanced e-commerce system can be able to oversee the processes involved in business and provide report for analysis. Managers can use reports generated from the website to implement sustainable strategies with regards to customers response.

When the café sells its merchandise online it is not only targeting local clients but also international buyers. Timmers (2000) argues there is a considerable number of people who prefer to shop online but they hesitate because they cant comprise with the security of their credit and debit cards because there are people who may hack account information. Thus security is quite vital. Through online procurement system, Hard Rock Café benefits from volume purchases and gets the most ideal deals available. E-commerce also enables the company to offer after sales services through interactive websites which collect customer feedbacks and provide assistance.

Security of web shoppers is guaranteed by the presence of verification certificates. Closed circuit television can be used to monitor the progress of work at the café. The owner can inform the employees about the hidden security cameras. The employees will not just idle around because they know someone somewhere is keeping an eye on them though they cant see him/her. Thus employees who do not perform their duties as expected risk loosing their jobs. Electronic tax registers are also very reliable in keeping track on the taxes the organization is supposed to pay to the authorities. It is advisable for the café to equip all its cashiers with electronic tax register.

The above mentioned technologies have been enhanced by globalization. This is the merging of business processes due to the direct linkage presented by information communication and technology. This is because nowadays people can exchange business details very fast unlike in the past.

References

Pat, S. (2001). Customers.com. USA: Crown Business Books (Random House).

Roger, M. (2002). The Legal and E- commerce Environment Today (Hardcover Ed) New York: Thomson Learning.

Timmers, P. (2000). Electronic Commerce-Strategies and Models for Business-to-Business Trading: New Jersey: John Wiley & Sons.