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E-Commerce involves the application of Web-based information technologies toward automating business processes, transactions, and work flows, and buying and selling information, products, and services using computer networks�? (MacGregor and Vrazalic, 2005, p1). The biggest advantage (and sometimes disadvantage) is that electronic commerce provides an immediate global marketplace. Business transactions can occur seamlessly and very quickly from opposite sides of the world. As a global marketplace, movement is increasing. Electronic commerce within one specific area however is interesting to watch.
Jing Gao (2005, p20) describes e-commerce within Australia as growing. Specifically within the Australian manufacturing industry, the use of the Internet as a business tool is increasing, yet there are still some significant problems that need to be overcome. One of the main problems according to Gao is the lack of media attention given to e-commerce businesses.
MacGregor and Vrazalic (2005) suggest that e-commerce is disruptive in Australian small businesses. This is because they now have more similar businesses to compete with, not only on a local scale, but globally.
However Dunt and Harper (2002) argue that given Australia’s physical distance with the major commerce centres in Europe, America and Asia, e-commerce helps close those gaps. In times before e-commerce, the physical distance has been considered a disadvantage, dubbed the “tyranny of distance�?.
Within Australia, there are two main sources of B2B e-commerce: migration of existing buyer and supplier transactions to e-commerce; and new B2B products made possible by the advent of e-commerce (Dunt and Harper, 2002, p330).
Some of the factors that are improving and increasing e-commerce in Australia are outline by Dunt and Harper (2002). They include ease and greater access to the internet, low internet costs, increase in demand, placement in the global e-commerce network and some long-term advantages including increase of knowledge. However they warn that e-commerce could do more harm than good, and it’s success depends on Australia’s alibility to generate and sustain increases in productivity (2002, p18).
The major types of e-commerce businesses within Australia are predominantly service and manufacturing industries (Gao, 2004). Madden and Coble-Neal (2002, p343) write, “Australian Internet involvement began in the early 1970s with small and isolated networks of agency connections to ARPANET via an international dial-up service offered by the Australian Overseas Telecommunications Commission�?. Since then, many existing and new businesses have taken advantage of the opportunities made available by e-commerce. Companies include the failed then ‘born again’ online store dstore.com.au and many food, clothing and other service industries. One of Australia’s biggest export markets is Asia, with AusTrade making noticeable developments and trades with Asian Industries.
Dunt, E. and Harper, I., (2002) “E-commerce and the Australian economy�?, Economic Record, Vol.78, Iss. 242; pg. 327-343.
Gao, J. (2005) “E-Commerce Issues in Australian Manufacturing: A Newspaper Medium Perspective�? Journal of Electronic in Organizations, Vol.3, Iss. 4; pg. 20-44
MacGregor, R and Vrazalic, L., (2005) “The Effects of Strategic Alliance Membership on the Disadvantages of Electronic-Commerce Adoption: A Comparative Study of Swedish and Australian Regional Small Businesses�?, Journal of Global Information Management, Vol.13, Iss. 3; pg. 1-20.
Madden, G and Coble-Neal, G (2002) “Internet economics and policy: An Australian perspective�?, Economic Record, Vol.78, Iss. 242; pg. 343-358.
SophieUhlhorn 11:58, 25 Oct 2005 (EST)
