What are the advantages and disadvantages if the company go into
electronic commerce?

Hi! Thanks for the question.

Our first article discusses the different benefits or advantages of
having an e-commerce business. Here are some of them:
 
- Your business will not be limited by geographical constraints
- Transaction costs will go down.
- Better presentation of goods.
- Can be integrated into your regular physical business.

The link immediately below provides more advantages.

?eCommerce Benefits?
http://www.learn-ecommerce.com/ecommerce-benefits.html 


-----------------------------------
However there are different disadvantages as well to being an online business.

- It is hard to find your online business with billions of sites around the web.
http://digitalenterprise.org/navigation/nav.html

- Your site must be designed that will be easier for the customer to use.
http://digitalenterprise.org/design/design.html 

- Due to a variety of choices, customer loyalty is harder to achieve.
http://digitalenterprise.org/markets/markets.html

- channel conflict
http://digitalenterprise.org/channels/channel.html

- Security and encryption
http://digitalenterprise.org/security/security.html

- Reassuring customers about their
privacyhttp://digitalenterprise.org/privacy/privacy.html

- Problems with Intellectual Property
http://digitalenterprise.org/ip/ip.html

- Being exposed to the delicate issue of web ethics ex. SPAM
http://digitalenterprise.org/ethics/ethics.html 


Search strategy used:
ecommerce business issues benefits 
I hope these links would help you in your research. Before rating this
answer, please ask for a clarification if you have a question or if
you would need further information.
                 
Thanks for visiting us.                
                 
Regards,                 
Easterangel-ga                 
Google Answers Researcher

Disadvantages:

- Harder to gain consumer trust.   Everyone AND their grandmothers has
a website selling something these days.  It's hard to sift through
them all to find which products and services are really genuine.

Other key advantages:

- Cross-referencing dynamic information.  Ie, loading stock tickers on
your website, listing album tracks and cover art from CDs you are
selling (supplied from another site), etc.

One the major advantage I see.. any and everyone becomes a buyer from
any part of the world (off course you need to have products to cater
all people).

It remindes of Amazon Vs. BN in pre-dot-com era, one pure eCom
company, and other having a lot of brick and mortar shops, yet the
former is valued more than the latter.. :)

One again just a passing comment :)

This one has been perfectly described by till-ga
(http://answers.google.com/answers/ratings?user=4750276924366970529):

http://answers.google.com/answers/threadview?id=317905