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Question
State any three differences between e-business and traditional business.
Solution
The differences between traditional business and e-business are presented in the table below.
| Basis of difference | Traditional business | e-Business |
| Ease in formation | Formation is relatively difficult as there exist numerous formalities that are required to be fulfilled | Relatively easier to start |
| Internal communication | Follows a hierarchical communication structure (from top to bottom) | Follows a non-hierarchical communication structure (no defined structure) |
|
Start-up cost |
Heavy start-up cost | Relatively low start-up cost (as physical facilities are not required) |
| Market access | Access is restricted to the physical domain. | Access is comparatively wide and unlimited. |
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