Question 5: Discuss the limitations of electronic mode of doing business. Are these limitations severe enough to restrict its scope? Give reasons for your answer.
Answer:
Limitations of Electronic Mode of Doing Business (e-commerce) are given below :
(a) Low Personal Touch : It lacks the warmth of E-personal relations. To this extent, it is very least suitable for products needs high postal touch like garments etc.
(b) Incongruence between order taking/ giving and order fulfilment speed : The physical delivery of goods take home. This incongruence may play on the patience level of the customers. At the time, website may take long time to open. This may frustrate the user.
(c) Need for technology capability and competence of parties: Apart from the tradition 3R’s which means Reading, Writing Arithmetic, e-commerce, requires a familiarity of parties with the world of computers which will led to digital divide.
(d) Increased risk due to Anonymity and Non-traceability of Parties : Internet transactions occur between the cyber personalities. As such, it becomes more difficult to establish the identity of the parties. Moreover, one does not know even the location from where the parties are operating. And also there are problems of Hacking and Virus.
(e) People Resistance : The process of adjustment to the new technology causes the stress and insecurity. As a conclusion, people may resist an organisation’s plan of entry into e-Business.
(f) Ethical fallouts : Now a days companies use an electronic eye to keep the track of computer files that you use, your e-mail account, the websites you visit. Despite is limitations, e-commerce is the way. Most of the limitations are in the process of being overcome. Websites are becoming more and more interactive or attractive to overcome the problem of low touch. Communication technology is continually evolving to increase speed and quality of the information. Efforts are being made to overcome digital divide.
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