Advantages and the disadvantages of using the internet in business

August 28, 2017 Business

50 old ages ago people started utilizing the Internet in the universe. With the development of cyberspace, there arisen many accoutrements by the cyberspace. The Taobao web site is one of the commonly used web sites in China, Which plays a prima function in Chinese e-commerce industry. People buy merchandises online through Taobao. The Taobao Company made important net incomes in recent old ages. In this study, it is traveling to expose the advantages of utilizing the Internet in Taobao ‘s concern. in the first portion. In this portion, the study reference about the Taobao GDP part, new direction manner construct up and occupation chances provided. In the 2nd portion, the study illustrates that the disadvantage of utilizing the Internet in Taobao ‘s concern, in this portion of position, the study points out the time-wasting, hazard in cyberspace shopping and negative impacts of concern efficiency. This essay aims to analyse the advantages and the disadvantages of utilizing the cyberspace in Taobao ‘s concern.

The advantages of utilizing the cyberspace in Taobao ‘s concern

The first advantage is the GDP part by Taobao cyberspace concern. Harmonizing to the on-line auction statistic from Chinese Network Information Center ( CNNIC ) in 2006, there were wholly 12.27 million cyberspace users in Beijing, Shanghai and Guangzhou which are the top three metropoliss in China. The information which included 3.3 million people who experienced the internet online minutess. It shows that there are immense internet-shopper populations in China, particularly for the economic-booming metropoliss. Taobao plays a prima function in e-commerce industry and derive plentifulness of trueness clients, most of willing to present Taobao to their friends who attempt to travel shopping in the cyberspace. Under the big user volume, Taobao gives the ground why it can make GDP increasing. Harmonizing to the informations from 2008 China Online Shopping Report, Taobao occupied 67 % of Chinese C2C market in 2005. Furthermore, in 2007, it owned 70.4 % of online clients. Taobao could hold more than 10 million RMB concerns merely in one month. Taobao could convey more than 1 billion RMB to Chinese GDP. As the income, outgo and end product influence the GDP addition, therefore, with Taobao development, more GDP addition could be conveying. Nowadays, Taobao became an indispensable portion of Chinese GDP addition.

Taobao started Chinese cyberspace shopping concern theoretical account. Hoskins ( 2002 ) points out that the cyberspace is perfectly cheaper than other traditional media. The cyberspace market can cover the whole universe client. The cyberspace concern may by and large replace the traditional concerns. Because Taobao belongs to e-commerce, the communicating of the organisation is non every bit same as those companies who operate in a specific infinite.

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In order to do communicating sufficiently under concern operation, Taobao is forced on the three chief countries of direction. First, Taobao create an on-line communicating tool which is called ‘Aliwangwang ‘ for Taobao ‘s purchasers and Sellerss. Harmonizing to Trites ( 2008 ) , Aliwangwang, which is ranked as the most satisfied service of Taobao, because the 3rd party is unneeded for the communications between Sellerss and purchasers? Second, Taobao designed a new feedback system. Li EL at. ( 2007 ) show that the Sellerss will give the feedbacks within a period of 14 yearss, the Sellerss repute will be influenced by purchasers ‘ feedbacks. If a marketer got 10 % disgruntled feedback, the system will close down the booth in two months.

( Beginning: Research on Chinese C2C E-Business Institutional Trust Mechanism: Case Study on Taobao and, 2007 )

In the figure 1 which shows above, it is clearly shows that the feedback mechanism in Taobao. All Sellerss in Taobao have to be evaluated by this feedback information, if any Sellerss more than 30 % negative entire negative feedback informations, it means they could lost the opportunity to make concern in Taobao. Third, the design of Taobao ‘s web site is attractive, the stylish website design manner ever catch immature people ‘s eyes, even a portion of senior clients are willing to endure Taobao because the website design manner. Taobao divided merchandises into different classs, such as work forces, adult females, babe, and electronic merchandises. After snaping the club nexus, the client can happen more inside informations for the merchandising goods. It is easy and expeditiously to happen the merchandises what they want.

Harmonizing to China Economic Analysis ( 2002 ) , China has 7 % unemployment rate about reached the national unemployment rate warming degree. Taobao provided occupation chances to the unemployment population. Harmonizing to Li EL at ( 2009 ) , Taobao provided more than 600 1000s occupation chances. Among 570 thousand people enjoyed the employment opportunities provided by Taobao. Many Sellerss in Taobao traded their concern as their callings and many of them had better lives depends on Taobao concern. Under the stiff competition, there are a big of unemployment people with concern vision but can non happen a occupation in top concern companies. They use Taobao to carry through their dream, some of them have their ain apparels fabricating mill after they started concern in Taobao. For illustration, in 2009, the unemployment in Jiangsu Province located in the South of China has serious unemployment rate which shows 3.09 % . The information from the local authorities shows that Taobao offered 5.7 million occupation chances straight and more than 10 million occupation chances indirectly. Such as the development of Delivery Company, the demands of bringing employee must be addition. ( Pan, 2001 )

The disadvantages of utilizing the cyberspace in Taobao ‘s concern

Young people spend excessively much money on Taobao cyberspace shopping. Because the merchandising monetary values in Taobao are cheaper than in the other topographic points. Harmonizing to Pan ( 2001 ) , pricing has a important influence for selling goods but with negative coefficient and absolute value. Because purchasers can non place the goods visually, the high monetary value goods are harder to sell. Beside, Majority of immature people can non afford the high monetary value merchandises which are sold in other stores. For this ground, they prefer to shop at Taobao. Furthermore ; many Sellerss on Taobao, who work as part-time, pass excessively much clip on their concern. When they concentrate on their Taobao concern, their assignments organize the company possibly holds.

It is hard to avoid the hazards for the marketer and purchaser on Taobao. Kiang EL at. ( 2009 ) discovers that the purchasers have to accept the high hazards for buying online. For this ground, this leads to a important obstruction in internet commercial concern. Credit card fraud jobs, is caused by people who make concern on the cyberspace, are continuously increasing. Merely after information flow, capital flow and logistics finished backflow, the concern trade could be regarded as a completed dealing ( Zhang, 2008 ) . For the Sellerss ‘ hazard, they have to responsible for some missing goods, even though the bringing companies compensate 50 % of goods monetary value. For clients ‘ hazard, it is difficult to post clients some electronic devices. Meanwhile, this sort of merchandises is easy to be broken down. If the clients discovered the harm of the merchandises, after they receive broken goods, they could non return the goods to the marketer.

The cyberspace shopping makes the efficiency of Taobao lessening. Harmonizing to Ray ( 2002 ) , the organisational effectivity has a important influence on recruiting talented people and company development. Harmonizing to Worthys ‘ ( 1962 ) organisational construction theory, there are two organisation structural public presentations which are the level organisation construction and the tall organisational construction. Whatever the organisation belongs to, the communicating is ever the of import portion of organisational development. Taobao ‘s employees are separated in the whole of the universe. The communicating between employee and higher-up is hard that the other companies. Even though when some jobs arise, the employees can utilize the cyberspace to pass on with Taobao central offices. Because of the long distant, plenty jobs can non be solved instantly. Taobao have no excessively much hierarchal direction degree, but personally, it belongs to tall organisation construction because the communicating hard to convey to the top director every bit fast as possible. For this ground, the organisational effectivity could be influenced. The gifted people could be affected by company ‘s public presentation. Taobao could loss the proficient support from those talent people.


This essay analyzes the advantages and the disadvantages of utilizing the cyberspace in concern. The essay uses Taobao e-commerce web site as an illustration. Based on the information from eight resources, the essay divides the whole article into two parts, the advantages of utilizing cyberspace in concern and disadvantage of utilizing cyberspace in concern. To analysis the ground why Taobao could quickly increase in resent twelvemonth and derive more market portion. For positive influences, the first the study shows that Taobao is devoted to increase the Chinese GDP under big cyberspace user figure, and so the study analyze the new direction manner running and direction in Taobao. The last, decrease the unemployment rate in China be point out in the essay and how Taobao plays a cardinal function in this societal jobs. In negative facet, many people spend excessively much clip and money on online shopping, because the immature people do non how to equilibrate their finance. Besides, cyberspace concern brings more hazards between Sellerss and purchasers, the study introduce the hazard could originate in which facet. Furthermore, cyberspace concern could act upon the effectivity of Taobao, the study analysis the grounds and explicate the relationship between the endowment people and organisation efficiency.


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