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Electronic Business

← PepsiCoFuture Ethical Issue for Business →

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      According to Sampson, Electronic business can be defined as the use of information and communication technology to support all business activities. Electronic business is also referred to as the Internet business. Electronic commerce makes it possible for products and services to be exchanged between groups, individuals, and businesses Sampson. This is possible because the information and communication technology provides a good contact between groups, individuals, and various businesses internationally or worldwide. Companies can be able to link their external and internal data processing systems flexibly and efficiently, to perform their functions more closely with partners and suppliers, and to satisfy the expectations and needs of their clients in the best way. Timmers defines a business model as the organization of service, product and information flows, as well as the sources of benefits and revenues for suppliers and clients. A business model of Wal-Mart online business will be considered in the discussion.   

      Wal-Mart has adopted advanced technology in marketing as well as supply chain technology. It is therefore realizing many benefits of performing business online. Wal-Mart uses Storefront model to sell its products and services to clients worldwide. A Storefront model is defined as a website where clients visit and buy products and services. It offers various functionalities such as shopping cart, products listing, as well as payment processing. The shopping cart technology which is part of Wal-Mart’s Storefront model enables clients to accumulate products they wish to purchase while they are in the process of shopping. A product listing supports the shopping cart because it enables clients to select the specific products they want to buy as well as the required quantities. Wal-Mart.com has successfully used the Storefront model especially the Shopping-cart technology to serve its clients internationally.   

      The Storefront model has significantly widened the market of Wal-Mart because many customers can easily access the company’s products and services from various countries in the world. This model has enabled Wal-Mart to access numerous customers and therefore sells a great deal of products in hourly basis. Clients find the Shopping-cart technology as the most convenient method of online transaction because it is easier and quicker.  

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