Online Banking Industry Essay

These advances have not only increased employment but also created different industries as a result. This is one of the reasons that technology is so significant to economic growth. ICT have also inspired other establishment of a global market that didn’t exist before. Through the online marketplace citizens and businesses of all countries/world you can buy and sell goods to anyone in minutes; by doing so it increase the economy’s trade exchange. This digital global marketplace connects individuals in fulfilling their needs and also becoming part of the foreign exchange market; transferring money from one currency to another through online payment services.

The increased access to computers by customers will allow the bank to reach more target groups through electronic communication. The tourism industry is currently growing, which should introduce more capital into the country and should create employment opportunities for locals. As more people enter the country, CIBC will be able to expand its customer base which will result in a positive impact regarding revenues. SWOT Analysis Threats Some customers prefer to do business with our competitors because CIBC 's top competitors may provide unique incentives which certain individuals find to be more appealing. CIBC may be unable to attract certain customers because it currently is in a red ocean market.

Causes According to Amin & Noor (2013), the E-consumers generally refer to the purchaser of goods and services over electronic systems such as Internet and other computer networks. This new group of consumers is increasing in number over the years as on-line shopping become a trend and manifestation of modern life style.Based from the Paynter & Lim (2001), E-commerce would provide consumers with benefits such as interactive communications, fast delivery, and more customization that would only be available for consumers through online shopping. Product information in the Internet is more compact and it ranges from various sites. Users have more opportunity to choose and compare products they want to purchase or easily find and select specialized products. This kind of open market place would increase competition, provide benefit for industrial buyers as it will promote better quality and more variety of goods.

Customers are also increasingly becoming sophisticated as they have access to the latest forms of delivery channels (such as the ATM, internet banking, etc). Consequently, many financial institutions have to focus on increasing customer satisfaction and customer retention through improved quality of their services. An element that strongly drove customer satisfaction in banking was the warmth factor related to the bank’s features and personnel attributes (Rust and Zahorik, 1993). In another study by Krishnan and Ramaswamy (1998), satisfaction with perceived product quality was suggested as a primary driver of overall customer satisfaction. This finding contradicts the notion of banking being a service with high credence features, making evaluation of core service (technical quality) difficult.

The other opportunity which Amazon has, is in terms of expanding its global footprint and open more sites in the emerging markets, which would certainly give it an edge in the uber-competitive online retailing market. Threats: 1. One of the biggest threats to Amazon’s success is the increasing concern over online shopping because of identity theft and hacking which leaves its consumer data exposed. Therefore, Amazon has to move quickly to allay consumer concerns over its site and ensure that online privacy and security are guaranteed. 2.

Proponents of internet utopia saw that it had the capability of changing commerce and more established aspects of society as well. Stewart (1996, p.67) saw the growth of the web ‘...to be a radical—and rapid—transformation of commerce and society, the greatest since the invention of the automobile’. This was due to the expansion of the web and internet network to engulf international markets and economies, creating a global market. For example, ‘the largest market in the world—the trillion or so dollars a day in international currency transactions—runs almost entirely over networks’ (Stewart, 1996, p.67). Idealists of the Internet utopia saw the growth of electronic markets being able to give businesses access to new markets due to the cost-efficient aspect of the Internet network.

The implication of this trend is that it helps the trade among countries and regions in the world develops better and stronger, and it will lead to the appearance of new transportation, warehousing and assistant services. Following are some main trends in logistics and supply chain management recent years: 1) The application of modern information technology, e-commerce will increasingly popular and more extensive in the areas of Logistics: The global information network has been, and will have a great influence on the global economy. Logistics management is one of the most difficult fields, but it is a key factor for gaining the profitability of an e-commerce business( this method of business has become more popular in the world). The process and completion of customers’ order, delivery, payment and collection of goods that customers do not like ... are the main contents of logistics in the e-commerce environment. A adequate logistics system, suitable with the processes of e-commerce, to meet the demands of customers in the information technology era, is one of the main factors to have success in business.

The Causes of Globalisation Globalisation has many causes but the one we take seriously is the economy and leave out the rest, the global causes have contributed on the world’s economy such as technology, financial, multinational corporations, labour and foreign direct investment. Technology, over the past decade technology has improve the way the economy works and communicate (people could sent important emails to a client who are half way across the world); technology has made a huge improvement in our everyday life’s through the internet (Scholte, 2000:101 in Hirst & Thompson

has also prompted the legal professionals in general, and the discourse of lawyers in particular, to become more proficient than ever. In the field of legal and bureaucratic domain, in another sense, it can be observed that the expansion of technology has changed the way people communicate, e.g. contacts between governmental agencies and citizens are handled by remote services, 24/7 call centres, emails, etc. (Gunnarson, 2009). Besides, the expanded use of the Internet has made it easier to establish global contacts, to access to a worldwide source of articles and papers, to study from distance, and to cooperate with scholars or other figures around the world (Gunnarson, 2009).

Organizations like IMF and WTO also promotes free trade organization that is one of the causes of globalization. The concept of global banking is another factor that caused globalization. • The growth of MNCs- The multinational companies growth within previous years like Nike, McDonald 's ', Microsoft and Apple is another cause of globalization and a consequence too. the growth of MNCs made globalization more reinforced and known. Globalization allows the MNCs to freely produce and move goods and services in the international markets worldwide.