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Table of Contents.
Introduction.........01
Task 1: Understanding the scope of E-business
1.1 List various business transactions and the environment in which e-business is conducted.....2-3
1.2 Advantages and disadvantages of online business4-5
1.3 Security and legislation matters affecting online business organizations5-6
1.4 Models of communication available in e-business..6-7
Task 2: Understand how internet works
2.1 Concept of internet technologies and importance in successful e-business7-9
2.2 Main features of HTML for effective design of website.9-10
2.3 Distinctive differences between client-servers and browsers. Explain how search engines increase
visitors to website..11-12
2.4 Compare and contrast intranet and extranet. Evaluate the use of both...12-14
Task 3: Ability to use different e-business models
3.1 Illustrate different e-business models14-18
3.2 Analyze each model in terms of its capacity to generate income18
3.3 Future developments in e-business models and its impact19-21
Task 4: Designing a website
4.1 Key elements of good web design structure....21-24
4.2 Evaluate impact of well-designed website to an e-business...25
4.3 Issues concerning web usability and suggest suitable solutions..25-27
Conclusion.28
References29-30
Introduction.
E-business is defined as all the customer services, business transactions and intra-business tasks
that are executed with the help of digital communication technology (Spiegel 2000). In other words, ebusiness involves the use of Information and Communication Technology to exchange services,
products and even information for commercial as well as communication purposes. It can occur
among businesses, between businesses and individuals, between government and members of the
public, even with governments etc. Internet is the main driving force of e-business. The Internet is a
generic term used to describe a global networked environment, which support such systems like
email, websites, and file transfer protocol. Its simply a network of computers scattered across the
globe. The exponential rise of internet and digital technology has made e-business to occupy a very
significant position, in the world of business.
This assignment looks into understanding the scope of E-business, understanding the working of
internet, usage of different business models and finally looks into designing a suitable website for a
company.
For the purpose of this assignment the company chosen is Point Blank Tours and Travel which is
under Point Blank Group W.L.L and was established in 2009 in Qatar.
List the various business transaction types and describe the environment
in which e-business is conducted.
Business-to-Business (B2B)
Business-to-Consumer (B2C)
Consumer-to-Consumer (C2C)
Consumer-to-Business (C2B).
Business-to-Administration (B2A)
Consumer-to-Administration (C2A)
Business-to-Business (B2B)
Business-to-Business (B2B) e-business encompasses all electronic transactions of goods or services
conducted between companies. Producers and traditional commerce wholesalers typically operate
with this type of electronic business. Most of these transactions can take place through internet
(Nemat 2011).
Business-to-Consumer (B2C)
The Business-to-Consumer type is distinguished by the establishment of electronic business
relationships between businesses and final consumers. It corresponds to the retail section of ebusiness, where traditional retail trade normally operates. Some good examples include: Amazon,
online banking, travel services, online auctions, health information and real estate sites (Nemat,
2011).
Consumer-to-Consumer (C2C)
Consumer-to-Consumer (C2C) type encompasses all electronic transactions of goods or services
conducted between consumers. Generally, these transactions are conducted through a third party,
which provides the online platform where the transactions are actually carried out. One of the
commonest examples of this type of e-business is the online auction, where commodity for sale is
posted by a consumer and other consumers bid to purchase it. The auction site is owned by a third
party who makes his own money from the commissions that are charged for these transactions
(Nemat, 2011).
1.2
Over the last few decades, the exponential rise of internet and the digital technology has opened a
new playing field for all categories of businesses. Business now use internet technology to provide
improved customer service, make more efficient business processes, increase sales, and reduce
wastage. Internet tools such as websites, online banking, and web based customer relationship are
used by them.
Point Blank Tours and Travel benefits immensely from e-business since they offer their customers
easy access to their products and also quick response to customer enquiries. It is easy and reliable
for both the company and customers. However, there are also disadvantages to this form of business
and many other benefits.
Advantages:
1) Worldwide Presence: The major advantage of engaging business online, to have presence
nationwide or worldwide.
Since Point Blank Tours and Travels are thoroughly established in Qatar, it is a good time to
set up internationally too.
2) Cost Effective Marketing and Promotions: Using internet to market products is a very nominal
method which guarantees the worldwide reach. Pay per click advertising is a effective
technique which ensure the business only pay for the advertisement that actually viewed.
3) Better Customer Service: E-Business has change the customer services image enormously.
Number of customers can visit or the website at same time. Some website have online chat
feature to help the customer to find out more about the product they are interested in.
Moreover orders can be placed online by processing payments securely over the internet.
This method is used by Point Blank Tours and Travel to enhance better relationship with
customers.
Disadvantages:
1) Sartorial limitation: The main disadvantage of E-Business is lack of growth in some sectors.
In case of Point Blank, sometimes customers would want to know the details of the tour
package they chose and this could be done only through face to face interaction.
2) Costly maintenance: Substantial recourses are required to setup online business which
requires computer upgrade, personnel trainings and website upgrade. This can be a
disadvantage for some organisation.
1.3
Explain the security and legislation factors affecting the online business
organizations.
Even though e-business is booming, the perceived lack of security in transacting and communicating
online continues to be seen as an obstacle to the uptake of e-business. There are three main security
issues relevant to doing business online:
a.
Verifying the identity of the person you are doing business with.
b.
Ensuring that messages you send and receive have not been tampered with.
c.
Obtaining evidence of the date, time and place at which a contract was made.
1.4
Basically, every e-business use mode of communications that are in tune with present digital and
electronic technology. These include: use of social media, mobile phones, SMS, email etc. Even
though they appeared to be simplified these modes of communication nevertheless, enables more
elaborate discussions and conversations between e-merchants and their clients. Even the Frequently
Asked Questions (FAQ) pages of the ecommerce can also serve as formidable modes of
communication, as it provides answers to initial questions, which clients may ask. Most e-commerce
maintains fanpage on these social sites, through which they converse with their general clients
(MacDonald and Smith, 2003)
Mobile Devices
Although communication with mobile devices may be less formal than other forms of communication,
people are increasingly turning to text messages and short emails using cell phones and personal
digital assistants (PDAs). PDAs with Internet capability have changed the way email works, often
turning it into a means of keeping in touch via short, quick messages--much like a text message but
with use of a different connection type. As a result, not only do business associates communicate with
one another via mobile devices, but many companies have begun marketing to customers through
mass text messages.
Procedures: Procedures are the policies that govern the operation of a computer system.
"Procedures are to people what software is to hardware" is a common analogy that is used to
illustrate the role of procedures in a CBIS.
People: Every CBIS needs people if it is to be useful. Often the most over-looked element of the
CBIS are the people, probably the component that most influence the success or failure of
information systems.
Protocol: The Internet Protocol (IP) is the method or protocol by which data is sent from one
computer to another on the Internet. Each computer (known as a host) on the Internet has at least
one IP address that uniquely identifies it from all other computers on the Internet.
The different types of protocols include:
1) TCP/IP: Transmission Control Protocol/Internet Protocol (TCP/IP) is the language a computer uses
to access the Internet. It consists of a suite of protocols designed to establish a network of
networks to provide a host with access to the Internet.
TCP/IP is responsible for full-fledged data connectivity and transmitting the data end-to-end by
providing other functions, including addressing, mapping and acknowledgment.
2) HTTP: it was created by Tim Berners-Lee in 1991. HTTP defines how messages are formatted and
transmitted, and what actions Web servers and browsers should take in response to various
commands. For example, when you enter a URL in your browser, this actually sends an HTTP
command to the Web server directing it to fetch and transmit the requested Web page.
3) TLS: Transport Layer Security (TLS) is a protocol that ensures privacy between communicating
applications and their users on the Internet. When a server and client communicate, TLS ensures
that no third party may eavesdrop or tamper with any message.
4) HTTPs: Technically, it is not a protocol in itself, rather is the result of simply layering the HTTP on
top of TLS protocol, thus adding the security capabilities of TLS to standard HTTP
communications.
5) IMAP: Internet Message Access Protocol is an internet protocol that allows an e-mail client to
access e-mail on a remote mail server.
6) FTP: The File Transfer Protocol (FTP) is a standard network protocol used to transfer computer
files from one host to another host over a TCP-based network, such as the Internet. FTP is built on
a client-server architecture and uses separate control and data connections between the client and
the server.
7) SMTP: Simple Mail Transfer Protocol is part of the application layer of the TCP/IP protocol. Using a
process called "store and forward," SMTP moves your email on and across networks. It works
closely with something called the Mail Transfer Agent (MTA) to send your communication to the
right computer and email inbox.
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The use of information technologies have greatly contributed to the success of e-business. Davis
et al (2006) listed the main ways, through which internet technologies have contributed to the
success of e-business as follows:
a.
b.
c.
d.
e.
2.2 Explain the main features of HTML for effective design of website.
Hyper Text Markup Language (HTML) was created in 1991 by Tim Berners-Lee and is the
fundamental mark-up language used to create web content. Its original intention of the designers was
to provide the structure required for web browsers to parse its content into a meaningful format. This
structure could define entire documents, complete with headings, text, lists, data tables, images, and
more. As the web flourished, it also began to incorporate style and multimedia aspects as well.
HTML uses text and a defined set of commands known as tags to create most of the content seen in
a website. These tags serve two functions:
1- They decide the design of the text (i.e. bold, italic etc.)
2- Make the text act as a command to insert a link, picture or sound to the page.
In HTML language, hypertext allows for non-linear linking to other documents and markup language
tells how the content is to be displayed. There are two types of markup:
1) Elements: are the tags that tell the browser what the enclosed text is and are fundamental
building blocks of HTML.
Example:- <h1>Heading</h1>
In this, the heading element tells the browser that this is the heading of the page. <h1> is the
beginning tag and </h1> is the closing tag.
2) Attributes: defines the characteristics of an element and is placed inside the elements opening
tag. These are made of two parts: a name and a value. The name is the property you want to set
and value is the value of the property.
Example:- <p align=center >
In this, p align (paragraph align) is the name and center is the value and should be in double
quotation marks.
Some of the main features of HTML that can be used for designing a good website include:
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Navigation
Navigation buttons and bars are easy to understand and use
Navigation is consistent throughout web site
Navigation buttons and bars provide the visitor with a clue as to where they are, what page of
the site they are currently on
Frames, if used, are not obtrusive
A large site has an index or site map
Links
Link colors coordinate with page colors
Links are underlined so they are instantly clear to the visitor
Graphics
Buttons are not big and dorky
Every graphic has an alt label
Every graphic link has a matching text link
Graphics and backgrounds use browser-safe colors
Animated graphics turn off by themselves
General Design
Pages download quickly
First page and home page fit into 800 x 600 pixel space
All of the other pages have the immediate visual impact within 800 x 600 pixels
Good use of graphic elements (photos, subheads, pull quotes) to break up large areas of text
Every web page in the site looks like it belongs to the same site; there are repetitive elements
that carry throughout the pages
2.3 Distinguish between client servers and browsers. Explain how the role of
search engines helps increase visitors to website.
The term Client servers is used to describe a unique type of relationship between two different
computer programs, where one of the computer programs (the client) makes a service request from
another program (the server), which fulfils the request (Yongsheng et al, 2013). This great model is of
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The client-server model enables the sharing of functions between individual computers (the clients)
and the server. The main functions of the server in this model are to process requests submitted from
individual computers. These requests are then processed by the server and the result sent back to
the users (Benatallah et al, 2004).
The companys website acts as a server from which its clients i.e, customers can take information or
enquire about their products
Whereas, a browser is a software application used to locate, retrieve and display content on
the World Wide Web, including Web pages, images, video and other files. As a client/server model,
the browser is the client run on a computer that contacts the Web server and requests information.
The Web server sends the information back to the Web browser which displays the results on the
computer or other Internet-enabled device that supports a browser. The browser displays the result
that has been processed by the server in a format that is comprehensible to the clients. Its also the
function of the browser to display HTML elements in an understandable format.
Nowadays, there are billions of websites being hosted on the vast internet world. Gaining access to
relevant websites has been a great challenge for many web users. This is exactly the area, where the
search engine comes. These are programs that search documents for specified keywords and
displays a list of different documents in which the key words were found.
Search engines have four functionscrawling, building an index, calculating relevancy and rankings,
and serving results. They scour the website and, for each page, index all of the text they can pick up,
as well as a great deal of other data about that page's relation to other pages, and in some cases all
or a portion of the media available on the page as well. Search engines index all of this information so
that they can run search queries efficiently.
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2.4 Compare and contrast intranet and extranet. Evaluate the use of both
within the context of e-business environment.
Currently, there is an increasing need for companies to have networks, which can enable them to
share information internally and externally. Two examples of networks that can fulfill this obligation
are: intranet and extranet.
An intranet is a private, secured network designed to facilitate collaboration, where employees can
create content, communicate, get things done and develop the company culture. It is only available to
a small group of people. These are mainly used within businesses and organizations to provide
access to files and applications among networked computers and servers. Intranets may or may not
have access to the Internet. If an intranet does connect to the Internet, a firewall is used to prevent
outside access to the intranet. The purpose is to allow people within the same company to share
information over a local area network. It is sometimes referred to as a private Internet.
Businesses use intranets for a variety of reasons, because intranets can help streamline day to day
activity, help organize people and data, improve internal communications, and increase employee
engagement. They're also very effective for remote employees, as they will never lose the ability to
collaborate with each other like they could in a traditional office setting. As companies become more
and more decentralized, intranets hold more importance in the business landscape than ever before.
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Enhanced communication within the organization as well as with clients, suppliers etc.
Productivity enhancements.
Business enhancements.
Cost reduction.
Smoother and easy information delivery.
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The major difference between the two, however, is that an intranet is typically used internally. While
an extranet allows businesses to communicate with clients and vendors, an intranet allows
employees and colleagues to work with each other in a virtual space no outside parties are
involved.
3.2 Analyze each respective model in terms of its capacity to increase profits.
The main e-business models include the storefront model, auction model and portal model. Even
though the structural design of each e-business model differs significantly from others, all models still
have the ability to generate revenue. However, the methodology through which these revenues were
generated differs from one type to another. These are briefly described below.
Storefront model: These e-business models are specifically designed for the generation of revenue
for its owner. As have already stated, its a site that is designed to enable buying and selling to take
place on the internet. Every storefront model has online payment system that enables transactions to
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3.3 Future developments in e-business models and how it would impact the
business environment.
Experts predict a promising and glorious future of e-business in the coming centuries. In the
foreseeable future, e-business will further confirm itself a major tool of sale. Successful e-businesses
will become a notion absolutely inseparable from the web, because e-shopping is becoming more
and more popular and natural. At the same time severe rivalry in the sphere of e-business services
will intensify their development. Thus prevailing future trends of e-business will be the growth of
Internet sales and evolution.
Keeping in mind the growing popularity of e-businesses and the current trends, the future of ebusiness is set to go higher and more successful. New trends has already started to develop in ebusinesses around the world.
Three trends in mature markets:
1) The shift to marketplace selling. Amazons latest numbers show that their third-party sales
volumes grew by a stunning 100 percent in 2014 and now account for 40% of total e-commerce
turnover. Clearly, the marketplace segment is where the big growth story is happening right now.
For smaller sellers and manufacturers, Amazons marketplace is a boon, and does a phenomenal
job connecting them with a vast pool of consumers. For larger brands and retailers who
chose not to sell via this channel, 2015 is crunch time: do they want stay away from the
marketplace party, or do they jump in and sacrifice some of their margins and exclusivity?
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2) A social media slowdown may be witnessed as many organisations are already feeling saturated
by social media tools. Savvy businesses may look to tools to help consolidate their use of social
platforms-perhaps through one port of entry or single sign on.
3) An online advertising revolution; Downloadable widgets (tools that allow chunks of codes to be
distributed through third party sites) will continue to have far reaching possibilities-especially to
drive online sales and further marketing and PR. So instead of static banner ads, companies will
increasingly put interactive content in their place.
4) Greater customer-centricity: Leaders in e-business already allow users to choose what content
they see, and e-commerce sites in particular can target products and service to those most likely
to make a purchase . However, sites that allow customers to choose what they see (as well as
buy) will strengthen trust and increase their sales.
5) The dawn of the e-commerce price wars: As the recession persists, price wars will continue to
break out between both store and online rivals. However as retailers drop their prices further, they
risk devaluing some of the brands they represent. Therefore, many manufacturers-dependent on
their product type-may choose only to work with more established bricks & mortar outlets with an
e-commerce channel-or simply sell directly their customers online.
Information
Utility (bulletin board, search engine, directory etc.)
Entertainment
Advice
Help with a problem
Links to useful sites
3) Speed
In this age of impatience - an average visitor will spend no more than 20 seconds to decide the
worth of your site. You can well imagine what happens if the visitor spends that precious 20
seconds looking at a blank screen slowly loading tons of images.
So, ensure that your home page at least, loads as quickly as possible. That means no big, flashy
graphics.
Keep reminding that the first page is like a billboard. When driving a car, one doesnt have time to
read detailed descriptions, or admire intricate pictures on billboards. The signs flash past and
have to make an immediate impression.
Likewise, web visitors are 'flashing past' as well, so keep the front page simple and fast.
4) Graphics and Lay-out
The graphics and lay-out of home page contribute to that first impression--think about what image
the site is trying to convey and make sure everything on it contributes something towards that
overall image.
Graphics are what eat up the loading time of a site. A rough rule of thumb to determine good
loading time for a page is to keep the entire page around 50 Kb. Images should be between 6 and
8K. Each additional 5K may add one second to loading time.
Color is also an important part of your site; colors have different effects on our emotions: Red and
orange excite the senses and increase heartbeat, blues and greens are more restful. Yellow
reminds us of sunshine and is a happy color.
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Consider the effect to be created and choose a color that is appropriate. When reading Western
texts, the eye travels from the top left of the page, across and then down to the bottom right.
Remember this when placing graphics on webpage.
Any graphic image which has a directional aspect should be placed to point towards the most
important section of the page. If a picture of a bird on the top left corner of the page, make sure it
is facing inward and that its beak is leading the eye to the centre of the page, not away from it.
The same applies to all graphics: Faces should 'look' to the centre of the page. Cars should be
'parked' facing towards the centre of the page. Roads, neck ties etc should all be placed to lead
the eye across from left to right, or down from top to bottom
This is also why navigation bars should be placed down the left side of the page - it keeps them
constantly in the visitor's field of vision.
5) Text Readability
This doesn't refer to the words used, but to the way the words look on the page. Going back to the
concept of the billboard, words need to stand out on the web page - surround them with plenty of
white space.
Dark backgrounds make one feel as if in a small space and also have a depressing effect on the
visitors mood. Certain colored backgrounds make it very difficult to read text; purples, orange
tonings and reds dazzle the eyes.
The color of text is just as important--bear in mind that different browsers read colours
differently--what looks great on the browser could well be invisible on another!
Another element that contributes to text readability is the font chosen. Plain fonts (Arial, Times
New Roman, Garamond and Courier) are the easiest to read. Fancy fonts are fine for headings,
but not for full pages (imagine trying to read a whole page in Gothic, Script, Westminster, or
Cloister).
6) Structure each page.
Make sure that the page is easy for visitors to read and this means breaking it up into little
'chunks'. There is a need for columns, (which divide the page vertically); also can divide the page
horizontally, through the use of headings and sub-headings.
7) Fonts .
Select a font for all headings and sub-headings (and stick to it). It's not necessary to have a
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different font for headings (just go up one size for headings, and then use bold on all headings
and sub-headings). This way it's easy to recognise which is a heading (large and bold) and which
is a sub-heading (same size but bold).
The purpose is to make it easy for visitors to glance at the page and make out what the key points
are. If what they see interests them, they'll stay and keep reading.
To draw attention to other important points, highlight them by putting a whole sentence in bold or a
different colour (or both). However, take care with the colours selected: some are quite difficult to
read--even against a white background.
8) Navigation
It is one of the most critical aspects of any web site - arguably the most important. No matter how
good a site looks, and no matter how much useful information it offers, without sensible navigation
scheme, it will only manage to confuse visitors and chase them away. A simple, logical,
understandable navigation scheme can increase number of page impressions, boost return visits,
and improve "conversion rate" (the number of visitors who are "converted" into customers). It's a
critical aspect of site design that has a direct effect on the bottom line.
The core of any good navigational scheme is:
1. Tell people exactly what is available on the site
2. Help them get to the parts they want quickly
3. Make it easy to request additional information
Use a well-structured navigational bar. it should run down the left side of the page.
9) Privacy Statement and Testimonials.
Credibility is an essential part of any business site, especially in the anonymous world of Internet.
One must ensure that potential customers feel confident dealing with you. Transparency and
openness are the cornerstones of lasting trust - so tell people exactly what you're doing to
safeguard their interests. In particular, how you're protecting their privacy. It's worth having a
separate page which sets out, in detail,policy towards their email addresses; how orders are
accepted; how information is gathered; who has access to this information; how you use
information gathered from children and so on.
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Visitors also like to know that real people have used the same products or services, so it's worth
asking satisfied customers if you can quote any positive comments they've made about you.
Set up a separate page for testimonials and offer to include links to customers' pages in return for
using their comments. This is one of those "win-win" situations
10) Words.
This is one of the most important elements. If this part is wrong, the rest of the efforts are largely
wasted. It reflects badly on the site owner and indicates that whoever is responsible for this page
is sloppy, careless, lazy, unprofessional or all of the above! Customers would not be impressed
and are not interested in buying anything from such sites.
Poor readability
Using non contrasting colors can make text difficult to read. High contrasting colors likewise can also
be difficult to read for those with color blindness. You should keep font size and general font
readability in mind as well.
Poor formatting
A poorly formatted web page can be rendered very differently in different web browsers. Some web
browsers may display the page correctly while others may display an unreadable mess. Some users
may use different resolutions that make some web pages formatted for a specific resolution display
incorrectly.
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Conclusion.
The rapid growth in e-business around the world has prompted many to look for better ways of
measuring the phenomenon. As more and more countries and international agencies become
involved, it is important to develop plans to ensure that there is no unnecessary duplication of efforts
and users have the data necessary for informed decision making at the earliest opportunity.
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References.
Books
Carol Carysforth (2004) et al, Business, United Kingdom, Heinemann Educational Publishers.
In Lee (2007), E-business models, services and communications, United States of America,
Information Science Reference.
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Website articles
Alex Chris (2010), What is search engine optimization and why is it important. Available from:
https://www.reliablesoft.net/what-is-search-engine-optimization-and-why-is-it-important/ [Accessed
on: 3 Jan 2016]
Amit Kumar Chatterjee (2015), 10 Elements of a successful web site. Available from:
http://www.readabilityformulas.com/articles/ten-elements-of-a-successful-website.php [Accessed on:
30 Dec 2015]
Joseph Ballard (2015), Top 6 e-commerce trends to watch in 2015. Available from: http://www.thefuture-of-commerce.com/2015/01/22/the-top-6-e-commerce-trends-to-watch-in-2015/
[Accessed on 2 Jan 2016]
Robin Williams (2012), Good design features. Available from: http://www.ratz.com/featuresgood.html
[Accessed on: 2 Jan 2016]
Tim Eisenhauer (2013), Intranets VS Extranets Whats the difference? Available from:
http://axerosolutions.com/blogs/timeisenhauer/pulse/165/intranets-vs-extranets-what-s-the-difference
[Accessed on: 28 Dec 2015]
Newspaper articles
Raed Alhout (2014), Tamimi: Cyber crime prevention law in Qatar. 16 October 2014. Available from:
http://www.tamimi.com/en/magazine/law-update/section-8/october-4/cyber-crime-prevention-law-inqatar.html
[Accessed on: 26 Dec 2015]
Other references:
assignmenthelpblog.blogspot.qa/2014/11/unit-1-internet-and-e-business_14.html
https://www.4students.us/samples/E-business.pdf
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