Influences on business

• 1. commerce

  Buying and selling of products and services using devices connected to an electronic network, such as the internet
• Requirements for e-commerce

  • A seller who has products and services that are displayed electronically
  • A buyer who has the equipment required to view the seller's products and services, and a means of paying for them
  • A network that enables information and payment to be exchanged by the buyer and seller
• Advantages of e-commerce

  • Attract customers across the globe
  • Sell at any time of the day or night
  • Receive payments immediately
  • Reduced overhead costs compared to running a physical shop
• Disadvantages of e-commerce

  • More competitors from across the globe, making it harder for the business to get noticed
  • Employees may need new skills, eg website maintenance
  • Procedures required for how products and services will be delivered and processing returns
  • A need to maintain and update technologies, including security software, which may be expensive
• Social media

  Interactive computer based technology that allows the user to create and to share information and ideas through virtual communities and networks
• Social media has grown to become an important part of business, particularly in relation to marketing activities
• Any form of electronic communication that enables users to share ideas, content, information and messages can be described as social media
• Well known social media platforms

  • Facebook
  • Instagram
  • Twitter
• Most business activity on social media

  • Sales
  • Marketing
  • Interacting with customers
  • Communicating with stakeholders
• Marketing on social media

  Advertising, promoting and selling products and services online
• The use of cash to make payments has fallen significantly in the UK in recent years
• Interacting with customers on social media

  Businesses can see what customers are saying about their products and services, and customers can ask questions or express views
• Digital communication

  Sending and receiving information electronically
• In 2008, 60% of all payments made in the UK were in cash. By 2018, this had fallen to 28%, and by 2028 it is estimated that only 9% of all payments in the UK will be made in cash
• Communicating with stakeholders on social media

  Businesses can use platforms like LinkedIn to make contact with other businesses and network with relevant people and organisations, and for recruitment
• Debit cards became the most frequently used method of making payment in the UK in 2017, overtaking cash for the first time
• Internal communication on social media

  Closed (private) social media tools are sometimes used by businesses for informal or internal communication with staff
• Chip and pin

  A method of paying for products and services using a debit or credit card that contains an electronic chip. The cardholder enters a personal identification number (PIN) to complete a payment
• Social media is a relatively cheap way for businesses to advertise and promote their products and services online
• Chip and pin

  • Previous methods were a lot less secure as full card details were shared
• Businesses can use social media to attract a target audience that is interested in their products and services
• Contactless payments

  A secure way for customers to purchase products or services using a debit, credit or smart card. Introduced in the UK in 2007, contactless has become a very popular way to make payments of £30 or less
• Businesses can encourage people to follow their social media content feed to gain loyalty
• Digital communication tools

  • Email
  • Mobile phones
  • Mobile applications
  • Websites
  • Social media
  • Web conferencing
  • Cloud services
  • Instant messaging
• Contactless payments

  • The technology also gives people with smartphones the option to store their card details on their phone and make instant payments using services such as Apple Pay or Google Pay
• Inaccurate or inappropriate responses on social media can be shared quickly and easily, creating bad publicity for a business
• Email

  Electronic mail enables written messages to be sent instantly to others, and files can be shared as attachments
• Mobile phones

  Enable verbal conversations to be conducted anywhere, and allow short written messages to be sent (see instant messaging)
• Mobile applications

  Applications (apps) designed to run on smart phones and tablets, can be used to create documents, capture images and enable banking transactions
• Websites

  A page or group of pages containing written and visual information using various media
• Social media

  A variety of web platforms that enable users to share ideas, content, information and messages
• 1. commerce

  The buying and selling of goods and services online
• Web conferencing

  A meeting that uses communications software to stream images and/or voices over the internet between participants in different locations
• Cloud services

  Software, such as online document editing and data storage, that is run from a remote location but that can be accessed from anywhere as long as a connection to the internet is maintained
• Instant messaging

  Software that enables users to send instant messages, usually in the form of text, to each other
• The speed at which technology advances is getting faster
• Businesses need to be aware of the technology that is available to them, and how it might influence their sales, costs and marketing
• Social media

  Interactive computer based technology that allows the user to create and to share information and ideas through virtual communities and networks
• The easier it is to contact a business

  The more likely a customer is to trust that business and make a purchase
• Positive impacts of e-commerce on sales

  • Businesses can attract customers across the world
  • Businesses can sell 24/7
  • A well-designed e-commerce site can help a business look professional, which may attract customers
  • Prices can be updated easily, making it possible to react to competitors
  • Customers can see which items are in stock