Discuss the limitations of electronic mode of doing business. Are these limitations severe enough to restrict its scope? Give reasons for your answer.

Electronic mode of business has gained a lot of popularity over the year as it is easy to do business and requires less expenditure, however, it has certain limitations over traditional mode of business


• In e-business, customer have firm is located at different places and so it lacks the personal touch between buyer and product, in some of the product customers may want to see or touch or try the product


• E-business is suitable only when a customer knows the use of internet and electronic devices, so the digital divide has created a restriction for some customers.


• In E-business, there is always concern about data security where is it is stored and during a transaction, as e-business requires a financial transaction and if the security can be compromised by hacking or virus attack, it can cause damage to both firm and its customers.


• People resistance – As it is a new technology, people need to be comfortable with it which causes stress and insecurity among people


• Ethical – companies can use an electronic eye to trace the activities of the customer, which is not ethical


• Electronic transaction only involves selection of product, placing an order and making the payment, goods need to be physically delivered by business to the customer, which also cause limitation in certain product categories and remote geographic where it is difficult to deliver the product


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