9.4b The Impact of Commerce on Functional Areas

Question 1

What are the impacts of E-commerce on marketing?

Answer 1

• A marketing strategy of differentiation is increasingly effective
• Retailers using omni-channel approach
• Localisation - adapting marketing mix to suit tastes and preferences of a market

Question 2

What are the impacts of E-commerce on HRM?

Answer 2

• Need for employees to have a broader range of digital skills
• Workforce planning to support highly seasonal demand
• Concerns over working conditions of staff

Question 3

What are the impacts of E-commerce on operations?

Answer 3

• Logistics behind large-scale E-commerce platforms are complex
• Economies of scale becoming increasingly important
• Relatively easy for smaller firms to sell online

Question 4

What are the impacts of E-commerce on finance?

Answer 4

• Significant investment

- Greater use of multi-currency transactions

Question 5

What does E-commerce allow for businesses in terms of products offered?

Answer 5

They can offer a much wider range as not restricted by shelf-space e.g. Apple Music could not put all albums in physical store

Question 6

When does the Long Tail effect occur?

Answer 6

When a business finds profit in selling low-volumes of niche products into niche markets

Question 7

Dynamic pricing definition

Answer 7

A pricing strategy in which businesses set flexible prices for products or services based on current market demands.