Question

What is general formula for how a business is to use computer networks and information systems to compete in a global marketplace?

a. Mobile commerce
b. Procurement
c. E-commerce strategy
d. Privacy policy

Answer 1

c. E-commerce strategy

The general formula for a business to compete in a global marketplace using technology is through an e-commerce strategy, which involves online platforms for reaching global suppliers and customers, potentially affecting market competition and firm size.

Step-by-step explanation:

The general formula for how a business is to use computer networks and information systems to compete in a global marketplace is an e-commerce strategy. This involves leveraging technology improvements such as the internet for business-to-business and consumer interactions, enabling businesses to expand their reach beyond local markets and compete internationally. With the growth of online platforms, companies can connect with suppliers and customers globally, intensifying competition among local retailers and even influencing the size and dominance of firms within various markets.

In this context, the potential for both small and large firms to thrive or consolidate is a topic of interest to economists and business strategists. New technologies might encourage a proliferation of small, nimble competitors able to serve niche markets, or they could lead to winner-take-all scenarios where dominant players control large market shares.

Answer 2

An e-commerce strategy is how businesses leverage computer networks and information systems to compete in a global market, enabling them to connect with a wider audience and manage international operations efficiently.

Step-by-step explanation:

The question pertains to how a business may strategically use computer networks and information systems in the context of a global market. The most fitting answer from the provided choices is c. E-commerce strategy. An effective e-commerce strategy enables businesses to leverage technology for expanding their reach, mastering global trade dynamics, and competing in the international marketplace. This strategy includes using business-to-business (B2B) websites, which allow companies to connect with suppliers and customers worldwide.

The advancements in information and communication technologies have significantly influenced the structure and size of firms. These technologies allow smaller companies to expand their reach beyond local geographies and compete globally. Meanwhile, larger firms can manage operations internationally with greater ease. Therefore, an e-commerce strategy encompasses not only online transactional functions but also the strategic use of digital platforms and tools to improve a business's competitive edge globally.