- Research, Analysis and Critical Evaluation of a Current is...
Research, Analysis and Critical Evaluation of a Current issue for Small Medium Sized Enterprises With a ‘live’ Case Study
Introduction to SMEs
Over the last thirty years Small and Medium Enterprises (SME's)
have significantly contributed to economic growth, job creation,
innovation and promotion of enterprise. Although SME's are
important to the UK economy they face many different issues in
comparison to a large organisation. The report looks at a current
issue which affects SME's and how it is important as it can affect
the business from start-up to growth. The issue investigated in
this report is e-commerce, there is no single specific definition
of e-commerce, but leading authors of e-commerce (Timmers, 1999 and
Tassabehji 2003) agree that e-commerce 'includes the electronic
trading of physical goods and intangibles such as
In addition to the costs not being lowered at Bare Essentials,
even the initial investment has not yet been recovered by the
company. This provides further ammunition to the theory that
e-commerce increases business costs, rather than lowering
them. It is not known whether costs will decline in the
future at Bare Essentials.
Another conclusion made was that Bare Essentials do not have the
money necessary to create a known presence online as the marketing
costs and search engine optimisation costs are too high.
After investing approximately ₤400 in this area, the owner/managers
said they would not invest further unless they were positive that
some monetary benefits would be realised. From this it can be
concluded that the Internet is not a fair or equal marketplace, as
larger organisations have a healthier budget for online marketing
and creating online awareness. The research also suggests that
e-commerce had a positive impact on some business operations, but a
negative one on others. For example, customers reported that
communication with Bare Essentials became easier.