Risk and Limitations of E-Commerce

E-commerce is the big thing in the business digital world. Busineses may it be small to large in size had invested and made the most of its benefits. Currently, online shoppers had grown in numbers and had changing preferences and demands. Here’s a simplified definition of e-commerce – its concept and history.


Click here

Companies such as LonelyPlanet.com who utilized e-commerce face various problems too. For example when the firm failed to have a concrete picture of what their client requires such as why and how the clients purchase a product. Another example of a problem is when the firm failed to incorporate a sound product value proposition. Or a problem can also occur when the dealers or distributors do not have a firm grasp on customer habits, expectations, and motivations in buying the product. However, e-commerce has this ability to allay these possible problems. It may result in the creation of a proactive and focused market research as a solution. However, still, there are still some risks with regards to the competitive situation that the company is in. a company may be able to create a feasible e-tailing business but may be weak in competing with big companies such as Amazon.com.



In addition, the company may have problems with predicting market trends. They might just be blindly grasping for what their competitors next step would be in branding, marketing and distributing strategies. The newbie might also fail to adjust to governmental regulations that they have to comply. Suffice it to say, e-commerce can be of a great help yet a company can not fully and solely depend on it. They have to do researching on the existing market climate if it is feasible or not, how do they contract it and go about the business. Additionally, they have to handle the risk that is connected to the commitment of top executives. This then would alleviate any chances of failing to gain fitting business funding that would achieve this pertinent endeavor. Then there is the risk of losing employee commitment. If corporate planners failed to clearly communicate strategic plans especially when there would be serious changes in the way they will work then expect that there would be negative consequences. To solve this, continual meetings or information dissemination would greatly help. Also, training and incentives may all the more motivate workers.

Furthermore, project management that succinctly follows timeframe is a crucial accomplishment.  This is a fact in an e-commerce venture for it would take extensive time as well as funding. On the other hand, failure to consider the schedule and accomplishment of tasks would result in hefty cost overruns.


Presently, there were tourism sectors that had extensively seized the advantage of the use of information technology. They had effectively used IT to speed up the pace of their business growth. This was done through the handling of business data from the processing, storing, retrieval, and distribution. It actually acted as a cost-effective means to boost transfer of information and communication. It had also been a means to recover and boost client participation in the business dealings. Furthermore, the primarily imperative function of IT is the advancement of workable benefits through equally cutting cost and improving distinguishable features. Historically the tourism industry had been greatly influenced by IT. IT had aided the industry in their dissemination of services as well as the overall management of tourism. It also created effective advertising schemes. It also interconnected various tourist agencies with the travelers.

At first, IT had basically changed the way in which business data was passed on. Thereby IT had changed the means wherein tourist agencies market their services. Now that consumer can easily contact the company and vice versa, there had been a shift in the direction of customer handling. There had been new products that were created to satisfy client needs. There had also been the formation of new tactics to attract potential travelers. In view of the fact that information is the band that fastens collectively the various producers in the travel industry it is extremely significant for all the tourism segment to become accustomed to the latest organization system. From the airline company to the travel agencies to the hotel and car rentals, to the cruise lines and other related suppliers, IT had successfully interconnected these various tourist services in one network. Thirdly, installation of IS systems had resulted in the development of multifaceted demands and needs of clients. This is in addition to the demand of better IS technologies for the tourism industry. Fourthly, information systems can connect consumers and suppliers in the fast-paced business environment. It speeds up and spawns clearer and better communication eliminating potential errors. Any redundant business operations are streamlined and thereby expedite meeting of client requirements.


Generally speaking, a comprehensive structure of information technologies is being promptly distributed all through the tourism industry and no competitor will get away from its effects.  Several tourism establishments are capable of positioning themselves in an additionally assertive situation by applying effectual technology that reproduces their fundamental business and through drawing on technology in an inventive technique.

Additionally, there are various factors that would accordingly influence the induction of IT in the tourism industry: (1) government enforces tax burden for IT software consumers that results to taxes for I.T. software are approved that just a minority of larger establishments can pay for it hence clients support ratification of a new bill commanding reduced tax cutback on I.T. software in order that everyone can possibly finance it, (2) there are change coordination for IT implementation in the tourism sectors that results to likely construction of labor unions requesting for a raise thus human resource staffs should formulate development programs for the employees, (3) escalating demand for technologically -fit experts that resulted to the establishment pay higher fees thereby the company should have prospect to employ knowledgeable personnel with solid experiences than with professional fees, (4) the massive proliferation of computer viruses that resulted to the occurrence of tourist establishments may not be able to pay for costly anti-virus software accordingly they should locate legitimate freeware anti-virus in the internet, (5) the inclination for individuals and the industry to be too dependent on technology that in the occasion of energy stoppage this can bear out to be catastrophic as a consequence the company must to purchase generators or consider using solar power, (6) the firm is made aware that any financial dealings with small operators would not produce expensive and unnecessary expenses this would be done through use of credit cards where bookings can be generated through the system, (7) regarding the speedy technical progress in the IT area of the company there is a speedy obsolescence of existing I.T. devices and so the company should set a yearly budget for IT improvement, (8) there is also a common need for effective destination marketing that may result to a lack of a general direction and coordination of activities, insufficient financing, and lack of human resources thus financial support for administrative and operational activities and strengthening human resources, (9) also the existing I.T. system is not compatible with latest IT devices so   there is a need to inveterate mind and ask for repairs services thereby the I.T. vendor that produced the software system have to supply for its repairs and revamps, and lastly, (10) there is  need to promote the establishment as a tourism destination expert and hence there should be a massive electronic marketing in the tourism industry for it is necessary to prepare a tourism positioning in addition to the marketing ploys that covered and identifies what is the suitable form, variety as well as position of the products. This also included the tour circuits that can be based on the areas that are prioritized to be developed or modernized.


Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s