E-commerce gives a Boost to the Local or Global Business of Aluminium Industry
March 17, 2021
Economists confirm that the third industrial revolution began with the invention of the computer that opened channels of the Internet and opens satellite. This has brought about marvelous developments in all areas of life, especially economic and commercial ones. The markets have been crowded with companies and multiple products, and when the competition was fierce E-commerce emerged as a tool for modern commerce. E-commerce has contributed significantly to changing the future of global business. With a growing internet penetration into the daily lives of people, e-commerce is one such sector that has benefitted immensely and has bought about a colossal boost in the economy of every country.
Advantages of an e-commerce business
- Provides time and effort
- Facilitates access to foreign markets
- Helps economic growth
- Improves exports and production
- Links manufacturers and traders to the consumers and buyers from all over the world
- Provides online secured payment service
- Offers huge growth opportunities for retail trade
The impact of e-commerce on the following sectors of Aluminum industry:
– Market structure
E-commerce affects the structure of markets, whether goods or services, or the markets of production elements noting that the economic growth depends not only on the supply of production elements or on the increase in the supply of goods and services, but on how to take advantage of all these factors to achieve the highest possible revenue whether it was economic Or socially, depending on the optimal utilization of the available resources in the society and the nature of the market in which it is operating , which plays a crucial role in achieving the optimizing allocation of the resources , as the closer the market to full competition, the more it can be achieved and the e-commerce affects the structure of markets that it brings us closer to access to the market of full competition.
– Company growth
E-commerce affects the economic variables and growth rates of a company. It leads to re-structuring markets and expanding marketing, increasing sales and exports and thus increasing production and growth rates. The use of modern technological means of trade state-wise increases the strength of economic condition and its growth because of the use of modern technological means in the dealings. Under the electronic commerce , it is possible to develop production in accordance with its electronic nature , which increases sales, and increases corporate profits.
E-commerce provides the right atmosphere for the increase of production and efficiency by supporting the computer and software industries, the technological industry and other associated industries, such as electronic storage media, networks and communications, which are the infrastructure for e-commerce.The spread of e-commerce requires more of these products, which increases its production. In particular, the use of electronic means in trade increases the level of management and organization within the institution and the development of its productivity activities, such as searching in the Internet for new sources of funding abroad and producing new types of Goods fit for the nature of e-commerce, which works to support the economies of countries.
E-commerce helps to increase foreign trade, especially exports, by facilitating access to global markets, making business deals easily and quickly without any administrative or commercial restrictions, responding to changes in consumer demand and marketing local products in these markets, increasing the exports of these countries. E-commerce is increasing trade in services between countries. This sector accounts for 60% of the world’s total production. With the emergence of modern ICT, making the e-commerce to facilitate the process of convergence between consumers and producers and eliminates geographical distances.
– Capital Market
E-commerce affects the capital market as capital flows are exchanged between surplus units, “savings” and “deficit” units “the investors”, through the issuance of long-term stocks and bonds, which plays a major role in stimulating investment and economic growth noting that the e-commerce increases the effectiveness of stock exchanges, where the contracts of purchase and sale of the securities traded in the stock exchange are concluded , and the possibility of obtaining information on these traded securities quickly, and the issuance of orders for the sale and purchase for brokers, all are done electronically, electronic commerce gives great flexibility through the availability of contracts or orders for sale or purchase, through e-mail or modern electronic means used in circulation, and provide quick information on the market for investors, noting that the brokers cannot provide these information about securities traded in the market quickly in some times.
The use of e-commerce would lead to the removal of traditional jobs and the replacement of new jobs with a new skill, which required the training of workers to use technology so that they could enter the competition and win jobs. This means that e-commerce negatively affects manual jobs and unqualified labor, but it has a positive impact on technically trained labor where it can easily find jobs and help to create job titles and disciplines that were not previously required or known.