E-mail Benefits and Limitations

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Table of Contents

Introduction
History
Link between e-mall and management information technology
Advantages and disadvantages
Conclusion
References

Introduction

E-mall is a component of e-commerce where a server is equipped with external electronic stores via a network. In its simple procedure, electronic mall includes an assortment of e-shops, typically enhanced and managed under one roof or management. This enables customers access information about products, request and purchase products. It functions to enable clients to use external electronic stores over the e-mall server.

An electronic mall system simply works as a shopping mall in a computer, and precisely provides a wide variety of electronic stores where each of them has information concerning the range of goods and services. The server on e-mall obtains a request from clients via a network and quickly provides them with the required data regarding several expected products and services. After the client places request for acquisition of goods from the operator, the electronic mall performs a transaction related to the buying of the product (Colin, 2012). Shipping is then performed the traditional way.

History

As a form of e-commerce, e-mall was first established in April 1984 by CompuServe as a component of the first comprehensive electronic commerce service in USA and Canada. It enabled CompuServe subscribers to purchase from traders such as American Express, Record world, Sears among others online without having to leave their location. Later in May 1984, it was incorporated in the directory of online shopping; therefore, the idea became very acceptable as a component of online marketing. This made e-mall, as a business model in the era of information technology, grow very fast.

In August 1984 the e-mall directory continued to add columns and provide ideas of the range of online products. Since then, the process has not stopped to the present day. With the establishment of electronic mall, new ways of purchasing products and services have been created. Lots of benefits have been attributed to e-mall since its emergence, some of them include saving time, offering a wider variety of selection, enabling for autonomous research about markets and cost effectiveness.

Link between e-mall and management information technology

Management information technology involves controlling information technology resources in accordance with the requirements and objectives of the organization. Consequently, information technology management may also include basic components of management such as controlling, organizing, technical support, designing software and networking (McNurlin, Sprague, & Bui, 2009). The connection between e-mall and information technology lies in the fact that IT management defines the success of e-mall business. IT management plays a significant role in establishing and managing the relevant infrastructure needed in e-mall business. IT management systems and procedures steer the business strategies and enhance value creation.

Advantages and disadvantages

The internet has consistently continued to enhance the eruption of new and development of small business and e-business opportunities. With the advanced levels of technology, businesses work on the World Wide Web. This means that e-mall is accompanied by the numerous benefits and limitations associated with online trading.

Advantages

Costs and setup

E-mall business is becoming popular due to the reduced cost of establishment relative to the traditional mode of mall business. A lot of hurdles, which included construction, acquisition of land, materials and funds associated with starting up an individual mall business, are now completely reduced or eliminated. This is basically due to the fact that many entrepreneurs are currently capable of operating an e-mall business while still able to carry out other regular day errands.

Since technological advancement is becoming more rapid, continuously available, and cheaper, it is now cheaper and easier to establish a businesses. Information and communication technology has enhanced access to a much bigger consumer base, compared to individual links to clients. Consequently, there is a reduced long-term cost associated with e-mall, since entrepreneurs do not need to necessarily pay the expensive shop buildings, management costs and employees. Only a few employees are required to establish and manage the website which is relatively cheaper (Colin, 2012).

Speed and efficiency

The e-business model is associated with speed and efficiency of trading. This is of great advantage to businesses, especially to small ones. Online mall shopping system is capable of ordering and processing payments much more rapidly, precisely and inexpensively compared to employees. Clients can easily access any catalogs and information online concerning services and products. Therefore, this saves time and funds required to carry out the usual transaction procedures, such as printing, mails or time spent on handing them out. Consequently, various goods and services (including books, music, and applications, among others) are normally hosted and downloaded straight from a particular site (Dann & Dann, 2001). This is of great advantage because there won’t be any physical inventory or cost incurred in shipping and any form of delays.

Convenience

Electronic shopping stores are normally available every moment of the day. This is relevant for clients since many of them have Internet access at home, work, cafes, schools, etc. This is comparably unlike conventional retail stores that need one to travel for long distances and also restricted to business hours rendering it inconvenient in both timing and distance. Consequently, in case a client is not satisfied with the product or if there is any other issue, customers experience difficulty in returning products either for exchange or refund.

Disadvantages

Security

Despite the fact that information technology security is of a great concern, the advancements in e-business security are fighting off the risks. Nevertheless, Internet security attracts quite a lot of attention from both consumers and entrepreneurs. Insecurities, such as viruses and hackers, may cause loss of vital data and clients. It might also cause the site to crash down. Studying efficient online security measures, including digital signature and encryption, may be of great disadvantage, since it is time consuming and expensive. Online shopping has a great capacity to interfere with client’s confidentiality and integrity of the payment procedures just before committing to make payments (Menasce & Almeida, 2000).

Other disadvantages of e-mall associated with security include information protection. Posting data online can cause a breach of privacy of personal information, which is a very vital issue for clients. Due to increased internet security risks, many online buyers tend to avoid online transactions so as to reduce the insecurities through spam and telemarketing activities.

Limitations of e-mall also occur due to the fact that websites keep track of a client’s shopping methods so as to suggest products and services and other quick links that the consumer can visit. Consequently, e-mall traders also gather clients’ data, even to an extent of requesting for buyers address and phone number at checkout. In a number of cases, online merchants obtain information from client’s credit cards without consent from their customer. In the long run, this information is usually retained and may be a big threat to the client’s privacy.

Competitiveness

Trading through the e-mall business is a disadvantage due to the fact that it increases competition. However, it’s more of a limitation to the small scale business. This happens because e-businesses entrepreneurs compete right alongside large multinational companies. Due to low startup costs for small scale business, e-commerce exposes them even to a much more fierce competition. Multinational companies in most occasions use low cost business strategy, hence they are capable of attaining a great competitive advantage over small scale entrepreneurs. The online customer is more focused on getting a good quality and fairly priced product or service quickly and accurately.

Conclusion

With the emergence of e-mall as a component of e-commerce, both the consumer and the entrepreneurs have been extensively empowered. This is basically due to the fact that there is increased ability of customers to collect information regarding products, services and their prices. On the other hand, entrepreneurs are capable of promoting their products and services globally, since existence of e-mall has influenced globalization.

However, despite the fact that there are limitations of e-mall, the benefits outweigh limitations to a greater extent. Generally, e-commerce has a great positive impact not only on business people and consumers but also on economic development of many states. E-malls are likely to remain relevant in retail trading given the massive adoption of IT in local and global trade. Further research may be helpful in understanding business dynamics under this model. Therefore, entrepreneur should embrace the e-mall concept while taking care of the possible limitations that are associated with the business model.

References

Colin, C. (2012). Introduction to E-Business. London: Routledge. Web.

Dann, S., & Dann, S. (2001). Strategic Internet Marketing. Milton, Queensland: John Wiley & Sons. Web.

McNurlin, C.B., Sprague R.H., & Bui, T. (2009). Information Systems Management in Practice (8th Ed.). New Jersey: Prentice Hall. Web.

Menasce, D.A., & Almeida, V. (2000). Scaling For E-Business. New Jersey: Prentice-Hall. Web.

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