E-Commerce And Restructuring Of Organizations

Electronic commerce or E-commerce is an exciting area to be involved with, since many new opportunities and challenges arise yearly, monthly and even daily (Chaffey 2009). Electronic commerce (E-commerce) refers to all electronic transactions carried out between an organization and their external stakeholders, these consist of purchases, returns, complaints and transfer of information paid or unpaid (Chaffey 2009). This transfer of information is facilitated through the use of technological devices including mobile and digital technology; and internet and wireless communications, through websites and emails.

E-commerce demand is at an all-time high, with the improvements in technology and the volume of usage of mobile devices with connections to the internet. Consumers are seeking access to products and services, that are quick and easy, and with an existing data base of reviews. This makes the experience more satisfactory and in a shorter time frame. The use of e-commerce allows shoppers to access goods and services that may not be readily available locally. Larger organizations are choosing to restructure their operations to include e-commerce, as it not only reduces costs, but it also exposes the business to global consumers, without the need to set up their operations in those countries. Large organizations have recently been experiencing vast reductions in customer foot fall as consumers are purchasing goods and services from the comfort of their homes through online shops. This is decreasing the need for existing stores with high numbers of outlets to remain in operation, as the constant decline of in store sales, will only push the organization to incur further losses.

Types of E-commerce

While restructuring operations into e-commerce, from store front retailing is costly to initiate, some organizations are left with no alternative but to adapt. These changes are necessary as consumer buying trends continue to favour technology advancements. Organizations are more concerned with sell side e-commerce, this comprises “all electronic transactions between an organization and its customers” (Chaffey 2009) p. 49 concerning its products or services. Not all products and services were intended to be sold online, hence, different organizations will tailor design their websites to emphasize varying sale functions, such as transactions, services, relationship-building, brand building and providing news and entertainment. (Chaffey 2009) p. 15. We look at the main types of e-commerce here as outlined by (Virey, 2017), retailers once held the power and control in the distribution of products, but with everything becoming accessible via the internet, the playing field between products and sellers is beginning to even out. Brands are now making their products available to consumers with Business –to –consumer (B2C): e-commerce.

This direct approach to retailing is giving consumers more flexibility when shopping, they can now decide which retailer they want to do business with and consumer confidence will be high when choosing to go directly to the manufacturers. Manufacturers can control their brand image from having direct-to-consumer sales, as they can govern what information gets out about the products. Another type of e-commerce is the, business-to-business (B2B): this refers to the electronic transactions between, wholesaler and retailers. This type of e-commerce helps in the process of completing orders for managers as the quantities are usually high and can become daunting at times. Business-to-business e-commerce, updates in real time, inventory quantities. It also, offers products at reduced prices which can be accessed from a number of devices any time. Consumer-to-Business (C2B): is a different approach to selling, where by the tasks are divided to numerous individuals so that a project or task gets completed in a shorter time frame and more efficiently. Business-to-Administration (B2A) and Consumer-to-Administration (C2A) is to increase flexibility, efficiency, and transparency in public administration (Virey, 2017).

The impact of E-commerce and Restructuring

Organizations can benefit from e-commerce as it is accessible globally, this not only increases sales, but it also builds brand awareness without the huge costs traditionally associated with brand building. Restructuring with e-commerce reduces the distance and boundaries for consumers, offering a vast selection of products. This also exposes the organization to different cultures presenting opportunities for growth and development in these countries. Because consumers are interacting directly with the providers, the audience is clearly defined and catering to their needs are less complex. Consumers no longer have to wait for businesses to open for them to have access to products, e-commerce allows for 24 hour access to businesses.

Summary the impact of E-commerce and Restructuring(Schmitt, 2009)

Concluded that, while corporate restructuring has provided a deeper understanding of multiple strategies, the type of restructuring implemented and the operation associated will determine the results. The study further puts focus on the factors of the macro environment and how it affects the organizations existence. It should also be noted that for any form of restructuring to be effective the firm needs to examine the environment in which it operates to accurately identify the issues it faces and to decide on what measures are needed to address them. These measures will then need to be incorporated into the overall strategy of the organization and it should be at the pinnacle of the organizations’ agenda. This study focuses on the processes associated with corporate restructuring as it determines how organizations should counter restructuring and the phase of activities.

The rapid changes in technology and the advance use of devices has pushed companies to implement the use of technology into their customer experience, this not only increases appeal to consumers, but it also exposes the organisation and its products to the global market. E-commerce restructuring aids the organization in that it keeps the operations relevant and up to date with the environment. It appeals to the now growing consumer market, and it eases accessibility for consumers who may not have the means of physically visiting stores. (Hoffman 1989), contends that identifying the components of the success or failure of this restructuring focuses more on the activity associated with the execution of the strategy as opposed to the strategy itself. The restructuring wit e-commerce as a whole reduces overheads, which can now be invested into creating a unique shopping experience for consumers. This not only serves to satisfy the needs of existing consumers, but it also operates as an attraction to new ones. Almost all studies on corporate restructuring exposed that to undergo successful restructuring, an organization goes through two phases: ‘emergency and recovery’ (Bibeault, 1982 and Robbins & Pearce II, 1992). Emergency looks at the physical aspect of restructuring, while recovery emphasizes the strategies employed to achieve it.