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The Advantages & Disadvantages of eBusiness
The Disadvantages of E-Business
The Advantages of E-Business Technologies
History of E-business
Advantages & Disadvantages of Internet Businesses

E-Business Advantages & Disadvantages

By Osmond Vitez, eHow Contributor

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E-business has transformed the way companies function in today's economic marketplace. The technological advances of the past few decades have given businesses the ability to grow and expand beyond their local market. The Internet allows small businesses to reach national or global consumers with their products and services, increasing their sales and profits. Along with these advantages come some disadvantages, creating higher levels of economic challenges not previously seen.

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Low Business Costs

One big advantage of e-business is the low startup costs needed to begin business operations. Many small companies today simply start via the Internet, expanding into traditional brick and mortar stores once they have increased their working capital. Depending on their business success, companies may choose to simply expand their Internet footprint rather than creating a physical storefront. Internet storefronts are relatively cheap, with businesses needing a computer, website hosting service and Internet connection as their main operating equipment.

Multiple Market Segments

E-business allows companies to expand into new markets, both nationally and internationally. Entry barriers to these new markets are relatively low, depending on the type of goods or services sold via the e-business website. Government regulation may also be easier when conducting e-business as local and national governments have not imposed heavy regulations on many or all sectors of e-business. Goods may also be purchased by consumers for uses other than originally intended, creating a new secondary market...