Implications of Ebusiness Essay

1582 WordsJan 11, 20157 Pages
Evaluation of four major social phenomena resulting from e-business growth The internet is a bustling economy growing ever bigger which in effect is causing serious social implications. If left unresolved these implications will continue to grow, having damaging affects on the UK’s economy. These social implications need to be recognised, prioritised and given the correct level of government management before it becomes too late. Structural unemployment One significant problem is the level of structural employment which modern technology is causing. As e-businesses are subjected to increased competition prices are continually dropping in order to survive online. Online shopping is convenient and generally easier than offline shopping and is also cheaper which is why many people prefer to shop online, however the success of e-businesses consequently affects the success of offline businesses. Offline shops are losing their custom to online shops therefore losing profit, they are being forced to either reduce prices to bring back their consumers or also implement an online strategy. The path which many offline business choose to survive was to reduce prices, hence spend less on the employment side so reduced pries doesn’t conflict loses in overall profit. It is unlikely UK employees will allow their wages to be reduced and still work as hard as they ever did, therefore companies have began to relocate their central offices abroad, because of new technology allowing world wide interaction companies no longer have to be where their target market is. Although, obviously an offline shop requires to be in their targeted market location but this only goes as far as the shop front, their manufacturers, help lines or general phone centres for example do not, therefore businesses are using this to their advantage and relocating because they are aware that

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