This 10 page paper examines a case study of Tradelink and their attempts to provide electronic commerce services for small and medium sized enterprises (SME’s) in Hong Kong under a government franchise. The paper answers 6 questions; What are the deciding factors in SMEs’ adoption of electronic commerce, what other areas of electronic commerce services could the company offer, what importance is the infrastructure for electronic commerce in determining Hong Kong’s competitiveness, should the company take part in a collaboration and if so how this could be achieved, and what advantages may be realised as a result of having the government franchise. The bibliography cites 2 sources.
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offered by Tradelink. To understand these influences we first have to consider the competitive environment. A great deal of trade is re-exporting. To undertake this trade there is the
need to complete paperwork for the Hong Kong Administration. The advantage that Hong Kong has as a hub for trade wit the geographical location is good, but there are also
many other areas which also have advantages, such as Singapore, as such businesses in this area face high levels of competition. The use of the electronic commerce has many potential
advantages, these are advantages to reduce the overall costs for many companies as well as increasing the turnaround time of goods, and many other areas in Asia have already been
embracing electronic commerce for these tasks. For small to medium sized enterprises to take up this technology their need to be perceived
advantages. These may be the maximisation of resources of the avoidance of disadvantages. In looking at these we may determine some of the deciding factors against this competitive environment.
In addition to many countries in the region developing electronic commerce capabilities areas with whom trade is undertaken, such as the US and Europe,
also make extensive use of electronic commerce. The use of this technology places SMEs under pressure to adopt the same technology is they want to undertake trade with others using
similar systems. There are also advantages that come with the take up of this type of technology, such as the reduction in costs through direct costs such as the dropped
applications costs by the Hong Kong administration to 50 cents, and increasing the paper cost of application from HK$5 to HK$13, as well as reduced labour costs of the electronic