Electronic commerce, also callede-commerce, has become very popular in the last few years.
There has been anon-stop increase of e-commerce used around the globe and it will continue togrow for many years to come. As technology continues to develop, the industrycontinues to expand. E-commerce enables consumers to exchange goods andservices over the internet with no restrictions regarding distance or time.
Inthis World Economic Forum, Rick Samans, Terriz Fernandez-Ruiz, Mercedes Araoz,Jack Ma and Roberto Acevedo discuss whether enabling e-commerce will be avehicle for development or if it will benefit large companies or businesses. Themain reason for this belief is because of the young people around the world. Theyoung people today are the ones who will control the future of global business.They have researched and discovered how popular technology and internet saleshave become over the year and this is mainly due to the youth of the nations. Notonly do they all believe e-commerce will be a vehicle for development, theyalso believe it can improve foreign relations. Doing business with othercountries involves heavy communication.
When business agreements go smoothly,it causes everyone to be content which can increase relations. Enabling e-commerceallows all companies and business access to global sales. Many different companies havedecided to take part in expanding their business to the online market. Walmartis known for their low prices and their broad selection of products. Amazon hasrecently bought out Whole Foods and has started to take part in selling groceriesonline.
They have also linked the online purchases to the local stores, so theconsumers are able to pick up their groceries instead of having them delivered.With this recent advancement, Walmart has decided to add this feature to theirwebsite. “Walmart projects their global e-commerce sales to hit $17.5 billionthis year” (Nassauer 2017). Due to the popularity of Amazon, Walmart isplanning on dropping their online prices to increase sales and they believethat this will help increase the competition with the fierce competitor.
MarcLore, the new president of Walmart, plans to redesign Walmart in order to enticethe millennials. Since he accepted the job, he has joined with companies likeJet.com, Bonobos, and ModCloth in order to make Walmart’s website moreattractive to the youth. Since these additions, Walmart’s U.S.
e-commerce saleshave increased by 50% (Wolfe 2018). Lore wants to transform the store into amore modern feel. This should increase sales and should help them compete withAmazon.DiscussionThe main trend in these articlesand discussions are that the millennials are the future. The millennials areheavily involved with online shopping and it will only increase in the future.These major businesses have decided online shopping is the best way to attractthat group. This is the way that young people live and do business.
E-commerceallows smaller businesses to compete with larger companies. In the future, itwill not be about how much space or product a company sells, it will strictlybe about the importance of the product to the consumers. With the ability tosell globally online, the opportunities are endless. E-commerce has also caused theshipping networks in the United States to increase. New York and Los Angelesare the United State’s most common locations of entry. “In October, theyimported a combined 1,031,127 20-foot units” (Phillips 2017). Although therewas a 2.
5% increase from the previous year, these numbers will not last. Thelarger increase comes from the truckload carriers. Since the previous year, thefreight shipments have increased by 5.5% (Phillips 2017).
In the World EconomicForum meeting, Ma discussed how the world will start to see the number ofcontainer cargo decrease while the number of packages increases drastically. Mais under the impression that as the e-commerce industry erupts, the demand forproducts in bulk will decrease because there will be more consumers purchasingpersonal products than ever before. ConclusionWalmart and many other largecompanies have done a great job of adapting to the changes. With the additionsthat have been made, Walmart should continue to be at the top of the list whenit comes to general merchandising stores.
Lore has mastered his knowledge ofthe online industry and continues to find ways to improve his company. Theamount of shipping domestically and internationally should continue to increasein the future. However, the future of shipping will be strictly throughpackages. Enabling e-commerce is a must in order for global businesses tosucceed. Enabling online businesses will create many opportunities for smallbusinesses to compete with larger companies, and it will provide jobs to manyindividuals. It will be exciting to see how important of a role e-commerce willplay in the business world in the future.
The world needs to trade. Whentrade stops, wars can begin. Trade is what brings everyone together. Currently,there are many sanctions out on countries. When a country is sanctioned, thiscauses the small businesses to suffer. The government should not be worryingabout different regulations, they should try to help grow this industry. E-commerceshould be used as a tool, not a weapon.
This tool should help small businessesgrow, should increase foreign relations, and should reshape the business world.In 2020, the e-commerce industry is projected to be worth one-trillion-dollars invalue. In the world we live in, it is much easier to build mobile systems thanit is to build new roads. Not only is the online business cheaper, it is alsoeasier. The millennials love cheap and easy. This group is what controls thefuture of business.