Research On E-business Applications

In general, the electronic commerce can be classified into four types: (1) B2B, that is, business to business; (2) B2C, that is, business to consumer; (3) B2A, that is, business to administration; (4) C2A, that is, consumer to administration. According to the extent to which the EC complied by firms, we can classify it into three levels, namely, primary level, middle-level, and advanced level.The influence on firms runs as following: (1) Bringing revenue to firms by cutting the transaction costs, abating the stocks, curtailing the production cycle, breeding the commerce opportunities, and reducing firms' reliability on the physical infrastructures. (2) Rendering the inner organization structures flattened, the managerial mode international ized and existing in name only, with the changing of the ways of information transmitting. (3) Making great changes to the competitive environments of firms, contrasted with the traditional situations. The reason that EC can improve the competitive ability of firms lies in the fact that, the cost of firms can relatively contracted, and the firms have the competitive advantages of enlarging without boundary. The relatively contracting of firms cost means, the effect of diminishing of managerial costs can simultaneously occurred in the fields of production costs, marginal costs, and transaction costs, with the results that the barriers of competition wasfounded because of the higher transaction costs of provision regarding to the businessmen of productions and services, which are caused by the reduction of production costs rendered by higher productivity, and of managerial costs rendered by the effect of substitution of soft manufactory technology. The relative enlarging of the optimal bound of firms means, that the firms can share managerial costs through the effect of scale of management by the employment of EC, that the scale of firms is enlarged while the managerial costs are cut as a result of the distributing of managerial costs to every liners and proceeds of the firms, which means that the same managerial costs can be used by larger-scaled firms. So, the optimal boundary of the firms is enlarged with the application of EC.Is the application of EC necessary because EC can improve the competitive ability? By the evolutionary game theory and strategy management theory, we reach the conclusion that, the firms, which is driven by two fold forces, including the interior force of improving competitive ability and the exterior force of "being eliminated if EC is not employed ". This part is, we believe, the seminal part of the paper.In the last part, the situation of the application of EC is outlined, and the facts that impeded the development of EC are presented: the imbalance of supply and demand with regard to the infrastructure of network, the lackey of confidence of consumer and firms on EC because of the lackey of credit in economy life, and the difficulties of how to adapt to and protect the new product style of EC by state legal system. We pointed out that, several aspects, such as fiscal tax revenue, law and enactments,the safety of information, admission of market, the perspectives of information, and technolocrats, will persistently impeded the development of EC. In China, the application of EC should be dominated by firms and conducted by government, which should as soon as possible enact the relative law regarding to taxation, electronic paying, digital signature, certification authority, intellectual property on web, etc. The national physical distribution system, the financial monitory system, the system of credit of firms as well as consumers should be completed. The government should accelerate the information related construction, create the environment, consummate the safeguarding system of society, and educate more talented person.