Impact of e commerce on business

Therefore the aim of this paper is to examine the trading patterns and market models enabled e-business, analyze how e-commerce has changed business, shopping trends of customers, the process, structure and any dynamics of competition within firms, and finally analyze the influence of social commerce on the purchasing behavior of various customers where (TAM), which stands for the Technology Acceptance Model framework, will be used. Analysis of changes in trading patterns and market models E-commerce has improved the way businesses are being conducted; many businesses are able to reach out to a large customer base since many customers can access provided websites where adverts for new products, any additional features, and promotion services are placed. Small-time business owners are able to realize improved profits coming their way.

Consumer shopping trends have significantly changed with the emergence of e-commerce. People can do shopping at their own convenient time without competing with anyone. Different dynamics of competition among firms have emerged. Every firm is striving to emerge the best in terms of high-quality products delivery, fair pricing of their products, addressing consumer complaints on time and meeting costs at low cost to improve profit margins. They invest in advertising and benchmarking programs from top performing firms to improve efficiency and effectiveness in their operations. As a result, some have gained a competitive advantage in different areas. However, other firms have been forced out of the market especially new firms entering the market due to their low capital base and stiff competition.

There is likely of profits to decline to a competitive rate if the incumbents do not have durable and strong barriers to entry. Examples of viable barriers to entry include economies of scale, government policies restricting new entry, patents and large capital required to venture into the market. The threat of new substitute products: this occurs where close substitutes exist in the market such that customers can shift from one product to another related product depending on a number of factors such as lower price, more features, and persuaded advertising and good experience from use of the alternative product. The end result of this is a reduced power of the suppliers since the customer can select what to purchase and from whom to purchase.