Further useful tips on how to tackle the fourth bullet point in the AQA Research brief on: The extent to which e-commerce creates opportunities and poses threats for businesses.
Before undertaking any research students should have a clear understanding of key business terms, so…
What are Opportunities?
An opportunity is defined as a favourable or advantageous circumstance (or set of circumstances). In a business context, opportunities are circumstances that help a business to achieve its objectives, which arise from the external business environment (eg from changes in economic, political, legal, social, ethical, technological and competitive factors). In this particular case we are concerned with favourable or advantageous circumstances arising from technological developments – in the form of EDI and Internet-based e-commerce technologies.
What are Threats?
A threat is any external development (eg change in economic, political, legal, social, ethical, technological and competitive factors) that may hinder the business in achieving its objectives. In this particular case we are concerned with threats arising from technological developments – in the form of EDI and Internet-based e-commerce technologies.
So what opportunities does e-commerce create for businesses?…
- Opportunities to automate manual, paper based processes.
- Opportunities to source low cost supplies
- Opportunities for new online business start-ups (due to reduced barriers to entry).
- Opportunities for existing business to increase customer reach (market penetration).
- Opportunities for geographical expansion (market development).
- Opportunities for producers to cut out the middleman and sell direct.
- Opportunities to customise / personalise products and services.
- Growth opportunities arising from the rise in m-commerce.
- Opportunities for businesses providing products / services that support the growth in e-commerce.
So what threats does e-commerce pose for businesses?…
- The threat of new online entrants (to traditional bricks and mortar businesses).
- The threat of new digital products (to businesses selling physical products).
- Threats arising from disintermediation.
- Increased customer knowledge and power.
- The threat of intellectual property theft and cyber-attacks.
We will be including information and research on all of the above within our Complete Companion for use with the theme, which is due to be published later this term and can be pre-ordered now. In the meantime, look out for further emails from us with advice and tips on how to approach the theme.
Our Companion has everything you and your students need to help them to get the best grades possible.