Question

With the recent pandemic and lockdown, many businesses have moved online.
What are two (2) advantages and two (2) disadvantages to this phenomenon?

Write an essay of about 600-800 words.

Answer 1

Answer- The recent pandemic and lockdown, many businesses have moved online the two advantage and this disadvantages to this phenomenon are-

Advantages-

The online business reduced the costs-The main advantages of online business is that it reduced the cost of renting an office, due to online platforms for the sale of goods and services, there is no need to have a physical appearance. Online business also reduced the costs of having offline stores in the different cities in the country, now all the business can be handled on online mode from one warehouse or godown in any part of the country. It also reduced the cost of different housekeeping staff and extraordinary maintenance costs etc.

Global Presence -It is one of the main advantages of having a business online, due to online business an entrepreneur can offer his goods and services through all over the world with the help of different online shopping platforms. Nowadays with the help of online shopping platforms offering assistance in the sale of goods and services of a company through all over the world has drastically changed the revenue of different companies as now they are able to sell their business in every part of the world. Global presence also helps the companies in their goodwill value, it also recognized world reputation if they are offering good quality of goods and services in the market.

Disadvantages-

1.Costomer Service Challenges-It is one of the major issues which is faced by online businesses or startups who are offering their goods and services on online shopping platforms. As there is no face-to-face interaction between customer and seller, then there is lots of confusion and doubts in the mind of customers, Due to the online business model, it is not very easy to convenience a customer for goods and services which is offered by the company. Sometimes there is an issue of services centre for the electronic items or items which require service in for the smooth flow or functioning.Customers are also sometimes suffering a lot due to the limited customer service challenge, they are not able to use the goods and services in a proper manner, etc.

2.Competition-There is lots of competition in the online business model which in this model of business you are competing with the lots of same goods and services providers in the market as well as businesses need to compete with foreign market competition too. As in the offline business, there can be the completion of two-three shops together but in the online model, there is no limit in the competitors as an entrepreneur can feel competition from any part of the world. Hence there is more competition in the online business model as compared to the offline business forms