State any three differences between e-business and traditional business.


By Harshvardhan, the Subject Matter Expert at Edumarz

Solution: Difference between Traditional Business and e-Business

Basis of distinction 

Traditional business


Ease of formation



Physical presence 


Not required

Locational requirements

Proximity to the source of raw materials or the market for the products



e-business may be defined as the conduct of industry, trade and commerce using the computer networks. The network you are most familiar with as a student or consumer

is the internet. Whereas the internet is a public thorough way, firms use more private, and, hence more secure networks for more effective and efficient management of their internal functions.

The way business is done has undergone fundamental changes during the last decade or so. The manner of conducting business is referred to as the ‘mode of business,’ and, the prefix ‘emerging’ underlines the fact, that these changes are happening here and now, and, that these trends are likely to continue.

The newer modes of business are not new businesses. These are rather simply the new ways of doing business attributable to a number of factors. You are aware that business as an activity is aimed at creating utilities or value in the form of goods and services which the household and industrial buyers purchase for meeting their needs and wants. In an effort to improve the business processes — be it purchase and production, marketing, finance or human resources business managers and business thinkers keep evolving newer and better ways of doing things. Business firms have

to strengthen their capabilities of creating utilities and delivering value to successfully meet the competitive pressures and ever-growing demands of consumers for better quality, lower prices, speedier deliveries and better customer care. Besides, the quest for benefitting from emerging technologies means that business as an activity keeps evolving.

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