Technology and business

Technology is reshaping how businesses operate, how they market themselves, and how they sell. The 1BS0 specification focuses on four areas plus the impact on costs, marketing and operations.

1. E-commerce

E-commerce is buying and selling online. It allows even small businesses to reach national and global markets at low cost.

Impact: 24/7 trading; no physical shop needed; lower fixed costs; price comparison is easy for customers (squeezing margins). Examples: ASOS, Amazon, eBay, Etsy, Shopify-powered indie shops.

2. Social media

Platforms (Instagram, TikTok, Facebook, X, LinkedIn) let businesses engage directly with customers and run cheap, targeted advertising.

Impact: low-cost marketing; influencer collaborations; viral reach; rapid feedback. Risks: a single bad review or negative campaign can spread instantly. Brands must monitor and respond.

3. Digital communication

Email, video calls (Zoom, Teams), instant messaging (Slack), CRM systems, cloud storage — these tools let businesses collaborate remotely, work across time zones and respond to customers instantly.

Impact: enables remote/hybrid working, reduces office costs, speeds up decision-making. Customers expect rapid responses.

4. Payment systems

Contactless cards, mobile wallets (Apple Pay, Google Pay), Buy Now Pay Later (Klarna), QR-code payments, instant bank transfers.

Impact: faster transactions, fewer cash-handling costs, easier impulse purchases. Risks: data-security obligations under GDPR; card fees eat into margins.

Impact on costs

• Lower rent, payroll (automation), printed marketing materials.
• Higher technology subscriptions, payment-processor fees, cybersecurity, training.

Impact on marketing

• Targeted, measurable digital ads (Meta Ads, Google Ads).
• SEO and content marketing replace some traditional advertising.
• Customer reviews carry huge weight — Trustpilot, Google reviews, Amazon ratings.

Impact on operations

• E-commerce demands fast, reliable fulfilment.
• Cloud-based stock management, automated reordering.
• Cybersecurity and IT support are essential overheads.

Edexcel exam tip

Strong answers identify the specific technology relevant to a scenario (not "technology in general") and balance the cost-saving with new costs/risks (security, training, dependency). AO3 marks come from the trade-off, not the list.