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Differences in e-commerce strategies between large enterprises and small and medium-sized enterprises Urgent paper

Foreword

In traditional international trade, business activities such as product ordering, sales, distribution, payment, and various negotiations are often conducted in different places by the transaction parties. Under network conditions, the business venues and operating methods of international trade have undergone fundamental changes. The entire trade activities, including conversations, discussions, information requests, negotiations, orders, commodity exchanges, settlements, commodity returns, etc., are all conducted on the computer network, which greatly improves the efficiency of trade. At the same time, e-commerce breaks through the traditional cash flow and other resources to gather on one platform, and completes the sharing of resources and the reorganization of business through this platform, thereby helping transaction entities reduce operating costs, accelerate capital turnover, and improve service management levels. Enhance market adaptability. In addition, e-commerce can enable people to make more extensive and full use of information, understand business conditions, and enjoy resources. The transparency and openness of information will make competition among market entities more intense, which will definitely help enterprises expand the operating pattern of service trade that is dominated by one-way logistics, and rely on network technology to integrate logistics, business flow, and business activities in business activities. information flow, information channels and drive improvement of service quality.

In short, as a new trading operation method with electronic data exchange as the main content, e-commerce breaks the limitations of time and space, accelerates the business cycle, efficiently utilizes limited resources, and reduces costs. , Increase profits and help enhance the international competitiveness of enterprises. Therefore, e-commerce is setting off a new revolution in the field of international trade. Its application has expanded the space and places of international trade, shortened the distance and time of international trade, simplified the procedures and processes of international trade, made international trade activities globalized, intelligent, paperless and simplified, and achieved epoch-making profound changes. All of these are the reasons why e-commerce has developed rapidly in just about ten years, and are also the fundamental reasons why it may replace traditional trade methods. With the rapid development of network technology, e-commerce is increasingly showing its vitality and will surely become the mainstream of international trade development.

So, this article focuses on my country's small and medium-sized enterprises, analyzes the problems encountered by China's small and medium-sized enterprises in the development of e-commerce from all aspects, and proposes based on the problems that are beneficial to the e-commerce development of my country's small and medium-sized enterprises. Favorable measures to achieve rapid development.

1 Overview of e-commerce

1.1 What is e-commerce

E-commerce originates from the English ELECTRONIC COMMERCE, abbreviated as EC. As the name suggests, its content includes two aspects, one is electronic means, and the other is business activities. E-commerce refers to the use of simple, fast, and low-cost electronic communication methods for buyers and sellers to conduct various commercial activities without meeting.

E-commerce can be accomplished through a variety of electronic communication methods. Simple, for example, if you conduct business activities with customers by making phone calls or sending faxes, it seems that it can also be called e-commerce; however, the e-commerce that people are discussing now is mainly completed by EDI (Electronic Data Interchange) and INTERNET. of. Especially as INTERNET technology becomes increasingly mature, the real development of e-commerce will be based on INTERNET technology. Therefore, some people refer to e-commerce as IC (INTERNET COMMERCE).

From the perspective of trade activities, e-commerce can be realized in multiple links. Therefore, e-commerce can also be divided into two levels. Lower-level e-commerce such as e-commerce, e-commerce, and e-commerce Contracts, etc.; the most complete and advanced e-commerce should be able to use the INTENET network to carry out all trade activities, that is, to completely realize information flow, business flow, capital flow and part of logistics online. In other words, you can Starting from finding customers, all the way to negotiation, ordering, online payment (receipt), issuance of electronic invoices, electronic customs declaration, electronic tax payment, etc. are all completed in one go through the INTERNET.

To achieve complete e-commerce, many aspects will be involved. In addition to buyers and sellers, banks or financial institutions, government agencies, certification agencies, distribution centers and other institutions must also join. Since all parties involved in e-commerce do not physically meet each other, the entire e-commerce process is not a replica of business activities in the physical world. Conditions such as online banking and online electronic payment and technologies such as data encryption and electronic signatures are important in e-commerce. plays an important and indispensable role.

1.2 Characteristics of e-commerce

Universality: As a new transaction method, e-commerce brings production enterprises, circulation enterprises, consumers and governments into a network economy, A new world of digital survival.

Convenience: In the e-commerce environment, people are no longer restricted by geography. Customers can complete business activities that were more complicated in the past in a very simple way, such as access to money all day long through online banking. Fund accounts, query information, etc., at the same time, the quality of services provided by enterprises to customers can be greatly improved.

Integrity: E-commerce can standardize the workflow of transaction processing and integrate manual operations and electronic information processing into an inseparable whole. This can not only improve the utilization of manpower and material resources, but also improve system operation. the rigor of.

Security: In e-commerce, security is a crucial core issue. It requires the network to provide an end-to-end security solution, such as encryption mechanism, signature mechanism, security management, Access control, firewalls, anti-virus protection, etc. This is very different from traditional business activities.

Coordination: Business activities themselves are a coordination process. It requires coordination between customers and the company, manufacturers, wholesalers, and retailers. In an e-commerce environment, it requires more coordination between banks and distribution companies. With the full cooperation of multiple departments such as the center, communications department, and technical services, the entire process of e-commerce is often completed in one go.

2 Current status of e-commerce development

2.1 Application trends of e-commerce in international trade

Modern information network technology is developing by leaps and bounds, bringing international trade into In an information age, e-commerce will be one of the most important factors affecting the future direction and development of international trade. E-commerce has expanded the space and venues for international trade, shortened the distance and time of international trade, simplified the procedures and processes of international trade, and created good conditions for multi-faceted cooperation. World electronic trade based on e-commerce has become the main economic growth point in the 21st century. Recently, the bankruptcy of Lehman Brothers has triggered the outbreak of the long-standing financial crisis in the United States. However, as the United States is a core country in the global economy, the impact of the financial crisis is gradually spreading to the world. Everyone is waiting to see whether e-commerce, as a "new" trade form, can promote the development of international trade and save the dormant economy.

2.2 The development of e-commerce in my country

In 1996, after nearly five years, our country completed the construction of the backbone network of the "Golden Pass Project" and built the China International E-commerce Network. In 1998, an e-commerce network environment consisting of a communication platform, a data exchange platform, and an information platform was established. 2002 was a pragmatic year for e-commerce. After experiencing the cold year of 2001, China's e-commerce service providers made more in-depth efforts to strengthen their own construction, improve the quality of service to users, and began to focus on "integrity". "Construction. From B2B to B2C, from online payment to offline logistics, from national policy support to corporate capital investment, all aspects of construction have been greatly developed, laying a solid foundation for the take-off of e-commerce in 2003. In 2008, China's e-commerce transaction volume reached 2.17 trillion yuan. It is estimated that 70% of the trade volume will be completed through e-commerce in the next ten years, and e-commerce will become the mainstream economic form.

2.3 The impact of e-commerce on international trade

2.3.1 E-commerce has changed the operating environment of international trade

E-commerce changes the operating environment of international trade through the use of online "virtual" information. Exchange has opened up a new market space, an open, multi-dimensional and three-dimensional market space, breaking through the traditional market that must exist in a certain region as a prerequisite, and the world is connected by the information network to form a unified big "market" ”, promoting the formation of world economic market globalization. The formation of the virtual market has transcended the constraints of previous geographical boundaries, enabling goods and services and other related information to flow fully and accurately around the world, showing open, complete and real-time characteristics, and reducing the asymmetry of information between importers and exporters. , thereby avoiding or reducing distortions caused by incomplete market information, and the competition between goods of the same quality or goods of similar quality becomes more intense, ensuring that the law of value fully functions. However, when e-commerce is used in international trade, the expression of traders, transaction methods, transaction intentions and transaction objects are all virtualized. Traders' sensory cues are partially deprived, and the uncertainty of the transaction process and results increases. Coupled with the intrusion of cyber hackers, the credit risk, quality risk and technical risk of the provision of goods and services and payment methods have greatly increased.

2.3.2 E-commerce has changed the entities and modes of international trade operations

On the one hand, the widespread application of e-commerce in the field of international trade has produced a large number of products that are supplied to the world market. or services “virtual” enterprises. Individual companies or enterprises have excellent technologies in their respective professional fields. Using e-commerce technology to organize them into a network can provide goods and services to the market more effectively. On the other hand, e-commerce impacts the organizational structure of international trade intermediaries, leading to corresponding changes in the way international trade is operated. The new e-commerce intermediary breaks through the traditional one-way logistics operation pattern of traditional trade and realizes a new strategy based on logistics, with information flow as the core and business flow as the main body. It provides import and export agents on the computer network, including import and export agents. Customs declaration, commodity inspection, warehousing and transportation are the main logistics services. We have established an agent sales network around the world to create business opportunities for manufacturers and traders, find buyers, match and close deals, and provide post-deal import and export services.

2.3.3 E-commerce changes the cost structure of international trade

In traditional international trade transactions, the cost mainly refers to the information search and contract conclusion required in the buying and selling process. and costs in aspects such as execution and after-sales service. The application of e-commerce can explore the potential of additional information in orders, simplify data processing procedures, shorten the document processing cycle of international trade, reduce corporate inventory levels, and eliminate manual labor in the information transfer process. intervention to reduce costs.

The application of e-commerce will definitely increase technical investment including software and hardware costs, learning costs and maintenance costs. The virtual characteristics of the network cause e-commerce to create new risks and security costs

2.3.4 E-commerce changes the competition method of international trade

In the e-commerce environment, the relationship between enterprises The competition among enterprises will no longer be a competition between simple products or services, but a competition between business models and supply chains. Which manufacturer can apply the most advanced technology to products and services at the fastest speed? Go and deliver the most competitive price to customers at the same time, then this manufacturer can win the initiative in market competition. To win in market competition. More and more import and export companies have realized the importance of supply chain management.

2.3.5 E-commerce promotes small and medium-sized enterprises to better enter the international market

For large-scale small and medium-sized enterprises, entering the international market is often due to limitations of human, financial and material resources. However, the development of e-commerce has opened up a vast world for small and medium-sized enterprises to carry out international trade. There are two ways for small and medium-sized enterprises to carry out international trade: one is to register on a special e-commerce platform to carry out e-commerce, which requires less investment and is less difficult; the other is for small and medium-sized enterprises to build their own e-commerce websites and directly carry out e-commerce. This method is relatively difficult, but the results are more significant.

3 The development of e-commerce for small and medium-sized enterprises in my country

3.1 The current situation of e-commerce development for small and medium-sized enterprises

Although in recent years, my country has made great progress in the scale and technical level of communication network. It has achieved world-renowned achievements, and the Internet infrastructure has also developed very rapidly. However, due to the rapid growth of Internet users, the limited service capabilities and reliability of the network itself, network operating costs and tariff systems, the Internet speed has been slow. , high fees, and limited Chinese information online. As the protagonist of e-commerce, the informatization status of enterprises cannot be ignored. The informatization construction of our country's enterprises has a history of more than 20 years and has achieved certain results. However, in general, compared with developed countries, there are still many problems. There is a big gap, and the current situation is as follows:

(1) The development of e-commerce in my country is still in its infancy. After more than ten years of ups and downs, although my country's e-commerce has begun to take shape, most enterprises or consumers have a wait-and-see attitude, which restricts the in-depth development of e-commerce. In general, the development of e-commerce in my country is still in its initial stage.

(2) The supporting environment for e-commerce needs to be improved. The supporting environment for e-commerce mainly includes the construction of network infrastructure, legal environment and market operation environment. Internet-based e-commerce relies heavily on network infrastructure construction. For example, network bandwidth seriously affects the real-time transaction speed of the network; network security issues involve financial security, information security, business secrets, and cargo security. Online transactions use digital signatures instead of traditional handwritten signatures, and tax payments also enable online tax filing. E-commerce has completely changed the traditional business model, which has also brought about some economic problems and disputes, which requires the simultaneous development of relevant laws and regulations. . At present, my country's market economic environment is not perfect, and the laws and regulations related to market management and the social credit system have not yet been fully established. Therefore, the operating environment of network facilities, the legal environment and the market environment that are the basis of e-commerce must accelerate the pace of synchronous development in order to better ensure the smooth development of e-commerce.

(3) Single function. Although my country's e-commerce is in the initial stage of development, e-commerce websites exist in all walks of life involving economic and trade. Although the trade industry is complete, its functions are slightly single. Most of them are advertising, electronic catalogs, electronic inquiries, product information announcements, etc.; a small number of people conduct electronic transactions and use the Internet for business negotiations, signing contracts, and exchanging texts, so most of them have not really played their role. e-commerce functionality. Due to the weak informatization foundation of the national economy and the low level of commercial automation, traditional commerce and e-commerce will coexist for a long time.

(4) At the same time, enterprises’ awareness of informatization has also generally improved. Many large and medium-sized enterprises have regarded informatization construction as a key task to be carried out in the next few years. The development of the Internet has also created favorable conditions for the rapid rise of small businesses using information, and their enthusiasm for information construction is very high.

At present, 4.5% of my country's export enterprises have extensively carried out e-commerce, 31.2% of them have started to carry out it, 28.7% of them have started to carry it out, 12% of them are considering it, and only 23.6% of them have not yet done so. consider. The application of foreign trade e-commerce is far ahead of other fields, and many large sums of money have been invested in foreign trade websites, such as China International E-commerce Network, Asia Resources, China Export Commodity Network, US Business Network Registration, Alibaba, China Trade Network, China Enterprise Network and so on.

3.2 E-commerce plays an extremely important role in the development of small and medium-sized enterprises

3.2.1 The role of e-commerce in small and medium-sized enterprises

In the modern information society, E-commerce can enable enterprises and individuals who master information technology and business rules to systematically use various electronic tools and networks to engage in various electronic commercial and trade activities with high efficiency and low cost. From the perspective of applications and functions, e-commerce for small and medium-sized enterprises is divided into three levels or 3S, namely SHOW, SALE, and SERVE.

SHOW (display) is to provide electronic business information. Small and medium-sized enterprises publish products and other information online through web pages, and advertise online. Through SHOW, small and medium-sized enterprises can establish their own corporate image, expand their visibility, and promote their products. services, find new trading partners, and provide a large number of new market opportunities for small and medium-sized enterprises. SALE (transaction) means that the entire process of traditional trading activities is realized electronically on the Internet, such as online shopping. Through SALE, small and medium-sized enterprises can complete the entire transaction process, expand the scope of transactions, improve work efficiency, and reduce transaction costs, thereby obtaining economic and social benefits. SERVE (service) refers to various pre-sales and after-sales services related to business activities carried out by enterprises through the Internet. Through this online SERVE, small and medium-sized enterprises can improve their e-commerce systems, consolidate existing customers, and attract new ones. customers, thereby expanding the company's business and obtaining greater economic and social benefits. Through e-commerce networks, small and medium-sized enterprises can strengthen their connections with suppliers and customers, collect commodity supply and demand information, improve their response capabilities, and use information advantages to accelerate the circulation of goods and funds within the enterprise. Especially with the widespread popularization of information technology, increasingly perfect industry management, and accelerated transfer of technological achievements, small and medium-sized enterprises can put new products on the market faster than large enterprises.

E-commerce enables small and medium-sized enterprises to better adapt to market changes. The application of modern computer networks in enterprise production is combined with manufacturing activities to make it closer to market demand, help improve the agility and adaptability of enterprise production, and enable high-quality, low-cost products with timely supply and thoughtfulness Combining quality and service, time and service are listed as requirements for enterprise production along with quality and cost. E-commerce has also changed the competitive situation of enterprises, allowing small and medium-sized enterprises with weak capabilities to exert their flexible competitive advantages on a large scale. Although a small business may be small and weak, its influence and marketing power will be greatly enhanced through e-commerce, making it easier to adapt to market changes, which will help small and medium-sized enterprises explore the international market.

3.2.2 Business opportunities brought by e-commerce to my country’s foreign trade enterprises

⑴ E-commerce provides an effective trading platform for foreign trade enterprises

E-commerce The emergence of e-commerce has promoted economic integration, and foreign trade companies in various countries have accelerated the use of e-commerce, and our country's foreign trade companies are no exception. E-commerce is a product of the gradual popularization of information technology, especially the Internet. The realization of globalized information technology has made the Internet a multi-directional interaction, a combination of multiple media, and a modern communication channel that is not limited by time and space. It has provided various human transaction activities. Provides a convenient, fast, cost-effective way. E-commerce provides a favorable international environment and space for the development of my country's foreign trade enterprises, and an effective trade platform for my country's foreign trade. On this global economic platform, its business contacts and trade transactions are frequent. It can be said that E-commerce is the development direction of my country’s foreign trade.

⑵ E-commerce reduces the costs of small and medium-sized trading companies

First of all, it helps reduce the dependence of small and medium-sized enterprises on physical infrastructure. Traditional enterprises must have corresponding infrastructure to carry out international trade business, and e-commerce can virtualize enterprise operations. There is no need to build shopping malls, there are no store rental costs, and there is no pressure on commodity inventory, but they can rely on the established supply The chain system completes the global market that is closely connected with upstream and downstream enterprises from product design, production to distribution, storage creation and after-sales service, allowing enterprises to reduce their dependence on physical infrastructure. Enterprises can conduct business activities 24 hours a day, employees can control their working time more independently, and can respond to customers quickly without being affected by time differences between different places.

Secondly, e-commerce can reduce procurement costs. In the e-commerce environment, small and medium-sized trading companies can choose suppliers on a larger scale through the Internet and deliver commercial documents through the Internet. Online auctions provide an excellent procurement channel for small and medium-sized enterprises.

Thirdly, e-commerce reduces marketing costs. Small and medium-sized trading companies can establish websites to publish product introductions, technical information, after-sales services and other information to carry out product image and publicity. More importantly, e-commerce has significantly reduced customer retention costs for small and medium-sized trading companies. Email and online chat have replaced the original expensive long-distance phone charges.

Finally, e-commerce reduces inventory costs. Small and medium-sized enterprises can reduce their inventory levels and reasonably avoid business risks by establishing good relationships with suppliers. More importantly, through e-commerce, suppliers' goods can be directly provided to customers without even needing to be stored in warehouses, achieving zero inventory and speeding up the response of small and medium-sized trading companies to market customers.

⑶ Improve business opportunities and operational efficiency of small and medium-sized trading companies

The biggest problem of small and medium-sized trading companies is their small business volume, and the natural borderless characteristics of e-commerce will bring them Larger market space. Greatly expand their market opportunities, e-commerce simplifies traditional trade processes and enables information to be received, processed and transmitted as quickly as possible, allowing small and medium-sized trading companies to obtain information as quickly as possible and successfully complete transactions. Not only can it reduce costs, but it can also significantly improve the company's operating efficiency, which will help small and medium-sized trading companies seize business opportunities and gain advantages in competition, thus improving the company's competitiveness.

In traditional international trade, all procedures including signing, negotiation, customs declaration, chartering and warehousing, insurance, payment and settlement, etc. must be completed manually. The transaction efficiency is low, the error rate is high, and the impact is high. Time is limited. According to statistics, delays caused by traditional order making methods include restricted shipments accounting for 6%, slow collection of accounts accounting for 35%, excess inventory accounting for 18%, and business losses accounting for 17%. When using e-commerce to carry out international trade, buyers and sellers can use standardized, electronic format contracts, bills of lading, insurance certificates, invoices, money orders, letters of credit, etc., so that various relevant documents can be delivered instantly online, regardless of time. restrictions, greatly saving document transmission time. In addition, it can effectively reduce various errors caused by manual repeated entry of data in paper documents, significantly improve transaction efficiency and business processing flexibility, and bring more convenience to customers.

⑷ Enterprises use e-commerce to improve sales capabilities

Currently, Chinese enterprises have a prominent problem: excess production capacity and product backlog. In addition to low product quality, the company's limited sales channels are also an important reason, causing a considerable number of companies to fall into trouble. With the help of modern means such as e-commerce, these companies can help expand their sales channels at a lower cost, improve their sales capabilities, and promote their products to the international market. This is hugely attractive to companies. So far, there are 17 listed companies involved in e-commerce. With the development of related technologies and international economic integration and globalization, e-commerce will be gradually improved. More and more companies and families will join the e-commerce camp and become a new force in the active e-commerce market. This has brought a group of new forces to the foreign trade industry, injected fresh blood into the industry, and provided a broad development space for the development of my country's foreign trade industry.

⑸ E-commerce is conducive to improving the international competitiveness of foreign trade companies

Foreign trade companies can proactively publish relevant supply and demand information by establishing their own websites or related foreign trade sites without having to go overseas. Establish sales network and set up office locations. Through the Internet, we can easily understand overseas market conditions, allowing enterprises to transcend the barriers caused by geography and space, carry out production and business activities anywhere in the world, establish connections with consumers around the world, and promote the company's products or services to the world. In every corner; you can use the Internet to promote your corporate image, expand your company's visibility, and gradually use e-commerce as an advanced tool to enhance your company's international market competitiveness.