BUSINESS STUDIES

PROJECT-2

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 INDEX

S.NO TOPIC page no.

1 what is traditional 3-4

business?

2 what is e-commerce? 5-6

3 difference between 7-8

traditional business
and e-commerce

4 price of products 9-11

online and in store

5 bibliography 12-12

2
 WHAT IS TRADITIONAL
BUSINESS?

Traditional business is a local store which offers its

services or products to its local customers. It is a set-up
where customers will have to visit the store physically
to buy the products.

SOME FACTS ABOUT TRADITIONAL BUSINESS;

1. Cost of Infrastructure: In traditional business,

infrastructure cost is very high. Renting and buying
office is always expensive in offline business.

2. Cost for employing staff: You need to hire staff for

sales, accounts, management and security.

3. Huge investment in maintaining Stock:  It

becomes compulsory for each and every retailer to
maintain stock of the products he is dealing with due
to which a huge amount of money remains blocked in
business.

4. Locality Limitation: Choosing the correct location

is a very important aspect. Your store has to be located
centrally so that the customers can visit easily.

3
5. Time Limitation: Traditional showrooms run for
limited time like from morning to evening and from
Monday to Saturday only.

6. Less scope for  Expansion: Little space of

showroom/ office will limit the chances of expanding
the business in future.

The main aim of any businessmen is to earn profit

which requires promotion in order to increase the
customers, generate sales and profits. They can
promote their business through below mechanisms.
• Business cards for your brand and numerous
personalized giveaways.
• Highlight your infrastructure and real structure
skills through open house.
• Design brochures for your products and distribute
to everyone.
• Run ads of your business remove through via
newspaper, magazines, radio and TV.
• Pamphlets, banners, posters for your showroom
and brand.
• Mouth to mouth Publicity.
Radio and TV advertisement is costlier in the market
and not every business representative could afford this
advertisement investment.

4
 WHAT IS E-COMMERCE?

E-commerce business is the strategy of selling products

online through web rooms on some special price, offer
price, and discounts. Generally, people are moving
from offline business to online business due to wide
use of smart-phones, laptop and desktop. In today’s
world, e-commerce has become a necessity not an
option.
If anyone wants to set up their online e-commerce
business, then they need to follow some strategies

Cost of Designing: Website designing is the most

important part to sell products online. There is no
need to invest in infrastructure, renting and buying
office in online business at all.

Stock Management: There is no need to keep all

products in stock initially; you can tie-up with the
vendors or sellers to arrange products after receiving
order.

Tie up with Shipping Agencies and Payment

Gateways: You also need to tie-up with various
shipping agencies (DHL, FedEx, DTDC, etc.) to deliver
the product timely to the customer. You also need to

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integrate payment gateways (CCAvenue, Paypal, PayU,
etc) to receive online payments from your customer.
No boundation of location: Online stores are just a
click away from you. It is easy to visit online store than
offline store. Area or City doesn’t matter.

Time Accessibility: Online web-rooms run for 24

hours. Anyone can buy products anytime even on
holidays.

Global Reach: It is easy to expand your online

business globally since physical presence of the
customer is not required.

Better customer service: In e-commerce business you

can serve your customer better since you remain in
direct contact with them. You can answer their queries
much faster via e-mails and live chat.

Financial Investment: Any Merchant can start online

business without spending much money because e-
commerce platforms are available which are providing
free e-commerce stores.
You can promote your online business by various
means like
• Create and update your website blog
• Send newsletter to your subscribed visitors
• Use Social Networking sites to spread around the
word
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 DIFFERENCE BETWEEN
TRADITIONAL BUSINESS AND
E-COMMERCE

DIFFERENCE ON THE BASIS OF :-

Comparison Traditional
E-commerce
Feature commerce

Traditional
commerce
E-commerce
focuses on the
focuses on  the
exchange of
Definition & exchange of
products and
Meaning goods and
services
services  via the
through
Internet
personal
interactions
Limited to Can be
Accessibility several hours accessed
during the day anytime 24/7

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 Customers use
Customers computing
Customer interact with devices to
Interface business face- access and
face interact with
business
Geographically
limited to Global business
Business Scope
business scope
location
Mode of Time-
Instant
Delivery consuming
Transaction
Manual Automatic
Processing
Product
Can be done Cannot be done
Physical
before purchase before purchase
Inspection
No Cash, Credit
Mode of Cash, Credit
card, Wire
Payment Card, Cheques
Transfer,

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 PRICE OF PRODUCTS ONLINE
AND IN STORE

THE STORE:- SHARAF DG

Product no.1

iPhone X (256gb) space grey:-

ONLINE:- AED 3,650

IN STORE:- AED 3,850

(Quality of the product is same )

Product no.2:-

Sony WH-100XM3B Wireless headphones

ONLINE:- AED 1,219

IN STORE:- AED 1,299

( Quality of the product is same)

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Product no.3 :-

PS4 DETRIOT BECOME HUMAN :-

ONLINE:- AED 159

IN STORE:- AED 269

( Quality of the product is same)

Product no.4 :-

APPLE WATCH SERIES 4 40MM SPACE GREY :-

ONLINE:- AED 1,599

IN STORE:- AED 1,799

(Quality of the product is same)

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Product no.5 :-

SAMSUNG GALAXY S10+ 128GB

ONLINE:- AED 2,899

IN STORE:- AED 3,599

(Quality of the product in same)

Product no.6 :-

JBL PULSE3 PORTABLE BLUETOOTH SPEAKER

ONLINE:- AED 679

IN STORE:- AED 799

(Quality of the product is same)

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 BIBLOGRAPHY

http://www.differencebetween.net/business/
difference-between-traditional-co

https://uae.sharafdg.com/product/jbl-pulse3-
waterproof-portable-bluetooth-speaker-white/

https://uae.sharafdg.com/?
q=iphone%20x&post_type=product

https://uae.sharafdg.com/product/sony-
wh-1000xm3-wireless-noise-canceling-on-ear-
headphones-black/

https://uae.sharafdg.com/buy-samsung-galaxy-s10/

https://uae.sharafdg.com/product/apple-watch-
series-4-gps-40mm-speace-grey-aluminium-case-with-
black-sport-band/

https://uae.sharafdg.com/product/ps4-detroit-
become-human-game/

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