Impacts of E-commerce on the Development of the Small and Medium-Sized Enterprises and its Adoption of Strategies

With the trend of globalization and the continuous development of electronic information technology, E-commerce is applied by enterprises to develop enterprises integrating with the world market. It has become the next potent growth point of international trade development. As Ecommerce is based on electronic information technology and computer network, it is accelerating the process of market integration, creating a new measure of international trade, transforming the flow of international trade, and changing the inherent cost structure of international trade. E-commerce has replaced the main forms of foreign trade, which is also the main mode and priority area for SMEs to take part in the competition and gain competitive advantage. This thesis report begins with the related notions and characteristics of E-commerce, and explains the basic functions of E-commerce in the development of SMEs, for instance, prospecting the trade customers, consultation, negotiation, and safety management function of the transaction.