Advantages of E-Business
Worldwide Presence: This is the biggest advantage of conducting business online. A firm engaging in e-business can have a nationwide or a worldwide presence. IBM was one of the first companies to use the term e-business to refer to servicing customers and collaborating with business partners from all over the world. Dell Inc. too had a flourishing business selling PCs throughout the US, only via telephone and the Internet till the year 2007. Amazon.com is another success story that helps people buy internationally from third parties. Hence, worldwide presence is ensured if companies rethink their business in terms of the Internet.

Cost Effective Marketing and Promotions: Using the web to market products guarantees worldwide reach at a nominal price. Advertising techniques like pay per click advertising ensure that the advertiser only pays for the advertisements that are actually viewed. Affiliate marketing, where customers are directed to a business portal because of the efforts of the affiliate who in turn receive a compensation for their efforts meeting with success, has emerged on account of e-business. Affiliate marketing has helped both the business and the affiliates. Firms engaging in e-business have managed to use cost effective online advertising strategies to their advantage.
Developing a Competitive Strategy: Firms need to have a competitive strategy in order to ensure a competitive advantage. Without an effective strategy, they will find it impossible to maintain the advantage and earn profits. The strategy, that the firms can pursue, can be a be a cost strategy or a differentiation strategy. For instance, till the year 2007, Dell Inc. was selling computers only via the Internet and the phone. It adopted a differentiation strategy by selling its computers online and customizing its laptops to suit the requirements of the clients. Thus, e-business resulted in Dell Inc. managing to capture a vast segment of the market using the differentiation strategy.
Better Customer Service: E-Business has resulted in improved customer service. Many a times, on visiting a website, the customer is greeted by a pop-up chat window. Readily available customer service may help in encouraging the customer to know more about the product or service. Moreover, payments can be made online, products can be shipped to the customer without the customer having to leave the house.
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