Traditional business and E-business.

Traditional business and E-business.


Traditional business

E-Business

1.Formation

A traditional business takes a lengthy and complicated procedure to form

E-Business is easy to form

2. Setting up cost

It takes huge capital in order to setup.

It takes a very nominal cost

3. Risk involved

Less Risk involved as parties have personal interaction.

High risk involved as there is no direct contact between the parties

4. Scope of business

Traditional business is limited to a particular area so the scope is limited.

E-business covers the entire world and so the scope is vast

5. Customer interaction

Face to face interaction is possible

In E-business, there is an absence of face to face interaction.

6. Physical inception

Goods can be inspected physically before purchase

Goods cannot be inspected physically before purchase

7.Resources focus

Traditional business resources focus on supply-side

E-business resources focus on demand-side

8.Delivery of goods

In traditional business delivery of goods is instant.

In E-business delivery of goods takes time

9.Usage

It is ancient and still in usage where the digital network is not reachable.

It is used to save valuable time and money

10.Accessibility

It is available during the limited time

It is available round the clock

11. Scope

It is difficult to perform more business in this model.

More business can be done easily without any hassles


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