2 Lec

Advantages
Offers global access to global markets
Allows to improve business contacts
Availability of information about goods and services in online stores in real time
Allows to reduce costs
Allows to receive high-quality services
Reduces the time for the product to enter the market and the process of adapting the company to market changes
No customs taxes
The emergence of new business models
Increases the level of consumer favor for the brand

Disadvantages of e-business
Disadvantages of e-business development:
Internet can destroy the institution of trade intermediaries;
competition moves from the local level to the global one;
problems of copyright protection;
legal uncertainty.

Disadvantages of e-business
No legal framework has been developed for the Internet :
Reducing the favor of consumers
Pricing problems
The issue of information security
The issue of transparency
Viability

The main models of e-business focused on a business partner (B2B)
electronic procurement management (The technology of trading by catalogs or data aggregators );
electronic auctions (Auction technology );
electronic exchanges (Exchange technology );
portals.

ELECTRONIC PROCUREMENT MANAGEMENT
Problem: One of the most effective ways to reduce internal costs is to improve the procurement system by using the capabilities of cyberspace
Before:
Electronic Document Interchange (EDI) technologies :
Pluses: flexible and secure solutions
Minuses: too complex and expensive
Now:
E-procurement

Example of companies that uses e-procurement
Ford Motor and Ericsson
PricewaterhouseCoopers