The Internet will greatly alter the structure and operation of all industries. For the management of any existing business the central question is not whetherthe Internet will be relevant to your business, but rather what will we need todo to profit from that change ( “The Internet” ). The Internet is evolvingmany aspects of business and it creates many new business opportunities. It isdeveloping what is called the “New Business Environment”, because it changesthe way products are developed, distributed, marketed, sold, and serviced (“Business on the” ). In theory, doing business over the Internet withconsumers should be ideal however, many people are not comfortable with it yet.
It will take a little while before most people are completely at ease and orderproducts. First off, the Internet will provide many capabilities that will bevery beneficial to a business. Some of the benefits include E-mail, MailingLists, UseNet, Telnet, FTP, Gopher, and of course the World Wide Web. All ofthese are a way to keep you informed and in touch with business associates andcustomers anywhere in the world ( “What can the” ).
With an Intranet inplace you’ve got an infrastructure for group applications, you don’t need toinstall software on everyone’s PC, they can just use their Web browser andwhile the main costs are in employee time, the cost of software has droppedsignificantly ( “Put Your Own” ). The effects of the Internet will take adecade or more to generally replace existing patterns of business. The Internetand its strategic impact are not technological issues, they are business ones (“The Internet” ). Executives are likely to carry responsibility for whethertheir organization ultimately prospers or perishes in an Internet impactedworld. The particular impact will differ between industries, so you need toidentify the likely form of impact it will have on your industry and adoptappropriate strategies.
A few threats are when using the Internet, competitorsbecome relatively more effective, e. g. reducing costs, improving service andincreasing sales impact. Also, some important customers or suppliers may havemigrated exclusively to the Internet and are inaccessible in any other way. Somefirms redefine the industry in a very fundamental way that threatens allexisting competitors ( “The Internet” ). With the advent of the Internet, ithas dramatically improved operational and sales effectiveness in numerousdifferent applications.
A few such areas are, on-line stockbrokers: such asE*Trade and Ceres, on-line travel agents, banks and other financial services:such as on-line banking systems, and insurance and fund management. Right now,there are many companies whose outreach is global such as Amazon. com and CD Now,soon all of the above areas will be global ( Daring ). Another area of thebusiness environment that will be significantly changed due to the Internet aresmall firms, especially ones who wish to export.
The Internet can relativelyeasily give small firms access to international markets, and engage in electriccommerce ( Cragg ). However, not much is known about the use of the Internet bysmall firms, mainly because it is such a new method. An example of such an ideawas taken advantage of by Elizabeth Botham ; Sons Bakery. The bakery islocated in a small town called Whitby in North Yorkshire and business is toughbecause it is geographically restricting and it is based in a very seasonabletown. In order to do business and keep their staff hired year around themanager, Mike Jarman turned to the Internet. He found a company called OctagonLtd.
, which helped him get started. Since going on the Web in 1995, the companyhas had over 25,000 potential customers visit the site and receives a dozenhefty orders a week ( “Yorkshire Bakery” ). The Web is a great distributiontool, the information you place on your Web site can be accessed 24 hours a day,7 days a week. The Web can save you time and money in information distributionover traditional mail and printing methods ( Daring ). Rather than reading astatic advertisement, your customers can go directly to their areas of interestand see an intriguing web page.
They can get detailed information on your staffand services, browse your product lines, and get up to date information on whatis happening in your company. One of the benefits of a web site is that yourcustomer can respond to you directly ( Shaw ). Even though the Internet has manybenefits, there is still a few drawbacks to this technology. First of all,communicating with clients and customers via E-mail only goes so far. It ispretty difficult to market a product over a computer, basically whatever acustomer sees they get. Also, empowerment is being transferred from sellers tobuyers.
The Internet is decreasing the importance of a merchant’s locale andinformation about competing products is readily available ( “Business on” ). Customers cannot be swayed by a salesperson over the Internet. A benefit as wellas a side effect of the Internet, is it is knocking down market entry barriers,the Internet has no borders and the company’s market is global. A smallcompany can be just as easily found on the Internet as a large one. The biggestproblem that the Internet is going to have to overcome is the fact that peopleare still very skeptical about making purchases over the Internet.
You could getscammed and not even know it. This will change eventually when people can becomfortable with the services that it provides, but this will take some time. With the incorporation of the Internet, business have undergone many changes inthe past few years. They have become more in touch with many overseascompany’s and even company’s here in the US. Many industries have realizedthat if they don’t adjust and incorporate the Internet in some way, they maynot be around for much longer.
Businesses are going to be on the Internetbecause it represents an additional and inexpensive resource for findingcustomers because they can market directly with less advertising and a smallerwork force ( Dearth ). The bottom line is that the Internet needs to focus ongrowing existing accounts, extending to new markets and new customers, providingbetter customer service, and providing a higher level of customer satisfaction. Even though this may take some time, it is going to eventually happen and Ithink that most people who take a chance will be very satisfied with theoutcomes.
