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Introduction to Electronic Commerce

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RQ1. Describe three factors that would cause a company to continue doing business in traditional ways and avoid electronic commerce.

Three factors that would cause a company to continue doing business the traditional way could be the type of products a company is selling, cultural and legal hindrances, and also if a company places an emphasis on low value transactions.

The products a company sells can be a determining factor in their avoidance of the use of electronic commerce. For example, if a company was selling perishable foods or unbranded clothing, their customer base would want to examine the products before they buy to determine the quality of the item they are purchasing. Also if a company sells used or unbranded products it would be difficult for them to really sell significantly over the internet.

Cultural and legal difficulties can cause a problem as well because many consumers are not at ease or comfortable with spending their information over the Internet to different businesses. Plus, the legal aspect is unclear when it comes to electronic commerce. If a company’s sales are primarily low value transactions then it would make no sense for them to switch into an electronic commerce business model because the cost of shipping would be prohibitive to its customers. RQ3. Choose one major difference between the first wave and the second wave of electronic commerce. Write a paragraph that describes this difference to a person who is not familiar with either business or Internet technologies.

One major difference between the first wave and the second wave of electronic commerce would have to be the international character of electronic commerce. The first wave was primarily business to business transactions among large US companies. The second wave of e-commerce has made it possible for any company (big or small) to have a global

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