ABSTRACT

Business transactions on the Internet are growing at unprecedented rates and changing the fundamental ways in which goods and services are produced, distributed, and sold. The Internet brings a major change to business environment, one that organizations must harness and adapt to in order to survive. Business like every other element in the world must adapt to new realities in the environment. Before the advent of the Internet connectivity the business contract was heavily slanted toward the provider, provider created product and consumer compliantly accepted. With the boom of Internet connectivity it is now the° consumer who imposes substantial demands on the producer, the balance of power has. Shifted. The Internet gives consumers unprecedented powers to greater choice and more information of products and services. Traditional companies are moving to electronic markets and redesigning their business processes. New business models are emerging and new strategies are being invented to attain a competitive edge on the electronic market place. Although still in its early stages, the current growth of electronic business transactions provides enough evidence that companies and customers perceive its advantages and benefits. The majority of business transactions on the Internet is business-to-business but it is expected that business-to-consumers and sales of tangible and intangible goods and services will develop more rapidly as technology and regulation overcome some of the technological and legal concerns that customers have.