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Emerging Modes of Business


It refers to the computerised system of carrying out business, including industry, commerce and trade.

Traditional Business
It refers to the system of trading goods and services, wherein both the buyer and the seller are present at the same place and at the same time when the transaction is made.
e-Business vs Traditional Business
Basis of Difference Traditional Business e-Business
Ease of formation Formation is relatively difficult, as it requires a proper physical set up. Formation is relatively easier.
Internal communication Follows a hierarchical communication structure (from top to bottom) Follows a non-hierarchical communication structure (no defined structure)
Start-up cost Heavy Relatively low (as physical facilities are not required)
Market access Restricted to the physical domain Comparatively wide with no defined domain
Operating cost High Low
Contact Indirect Direct
Response time to customer requirement Long Negligible
Personal touch with customers High Less
Global access Less Comparatively more
Workforce Professionally qualified Skilled or semi-skilled
Transaction risks Low High
Government support Declining Increasing
Organisational structure Vertical

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