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Traditional Business vs. E-Business

Traditional Business vs. E Business PhotoTechnology has provided us with many conveniences that were not available mere years ago. This holds true especially for business, as communications and business process can now mostly be done online. Traditional business is still alive and kicking, however, although e-business is fast becoming the more dominant among the two. Here are some brief comparisons on traditional business vs. e-business, focusing on some of the core aspects of running a for profit company.


With e-business, costs are down due to low overhead. Storage costs and employee expenses are also set in the minimum, ditto display paraphernalia and rental expenses. This results in much lower prices as compared to traditional business that would have to shell out money for rental space and sales people, among others.


The Internet provides an amazing scope of potential customers, not only in your area, but all over the world. If you are capable of shipping anywhere in the world, then you can offer your services to virtually anyone. This beats traditional business by many miles, as businesses only tend to work within a specific radius.


Of course, communications are much better done face to face. However, with e-business, physical travel is no longer necessary due to email and other forms of communication. Still, caution must be undertaken as written communications can be lost in translation which may result in one or the other misunderstanding messages sent or received.


A wide market also more often than not also mean a much fiercer competition. As e-business has a much wider audience, customers also have a bigger pool of suppliers to choose from, as compared to traditional business where only about one or two dominate in a certain area at a given point in time.

Thus, it is important to rise above competitors through good pricing, high quality products, value added services, advanced marketing strategies, and other initiatives to ensure that customers will go to you when they can opt to go somewhere else to conduct their business with.

The verdict

While the above items clearly reveal e-business to be the winner in most areas, it cannot be denied that traditional business still offers up some clear advantages. Especially to “old school” entrepreneurs, traditional business is still the way to go, and they would much rather do business with people and entities who have the same way of thinking.

For the new blood, however, e-business is the best way to conduct business, as it clearly takes advantage of everything that technology has to offer. Still, whether you would like to rely solely on either methodology, or combine elements of each type of business into one, is entirely up to you.