question_answer

Differentiate between traditional business and e-business.

Answer:

Ans. Differences between traditional business and e-business is summarized below:

Basis	Traditional Business	e- business
1. Formation	Difficult	Simple
2. Physical presence	Required	Not required
3. Location requirement	Market	None
4. Cost of setting up	High	Low/no requirement of physical facility
5. Shape of Organizational or chain of command	Vertical due to hierarchy or chain of command	Horizontal due to directness of command and communication
6. Opportunity for inter person- al touch	More	Less
7. Ease of expansion	More	Less
8. Nature of contact with the suppliers and customers	Indirect through intermediaries	Direct