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State any three limitations of e-business. |
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Answer» Limitations of e-business are (a) Low personal touch: It is relatively less suitable mode of business in respect of product categories requiring high personal touch such as garments, toiletries, etc. (b) Incongruence between order taking/giving and order fulfillment speed: The order can be completed quickly, however, its delivery takes time. This incongruence causes inconvenience to customers. Moreover, due to technical reasons, web sites take unusually long time to open. This may further frustrate the user. (c) Need for technology capability and competence of parties to e-business: e-Business requires a fairly high degree of familiarity of the parties with the world of computers. Moreover, the parties should have access to internet facility and knowledge to operate them. (d) Increased risk due to anonymity and nontraceability of parties: It is difficult to establish the identity of the parties involved and the location from where they may be operating. This makes the transaction risky. There are other problems such as- impersonation and leakage of confidential data, virus and hacking. (e) People resistance: the employee may be oppose a business’s entry into e-business as new technology may cause stress and create a sense of insecurity among people. (f) Ethical fallouts: Many businesses are using electronic eye to keep a track of the email account, websites visited and computer files of the employees. Hence, e-business lacks ethics by violating privacy. |
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