E-Business and E-Commerce
“The Internet a typhoon force, a ten times force, or is it a bit of wind? Or is it a force that fundamentally alters our business?” (Grove, 1996).
According to the meteorological analogy given by Mr. Andy Grove, Chairman of Intel, used with the Internet, explain how your organization can achieve significant cost savings and marketing benefits through the use of the internet technology.
As per the analogy of Andy Groves the internet for the last few years is helping companies especially new business ventures to lower the costs regarding their demand and supply chains and entering new markets. Using the internet for customer services and the additional revenue streams has proved to be helpful for the companies (Lam, 2017). Significantly, any company can achieve major cost savings especially the capital used in the marketing and the promotional purpose of the organization can be decreased due to the use of internet.
The opportunities that can be availed through the use of internet in any business are:
- It helps the organization to enter the global market and connect with over one billion users globally. It helps to reduce the cost of promotion and helps millions of people to connect with the product.
- E-business provides the target customers with detailed product information and also have the facility of providing personalized messages for the users.
- It is evident that partnerships are key to have networked economy and online networking is easier than the offline networking. Offline communication requires advertising, personal selling, sales promotion and sponsorship (Mohapatra, 2013). Online networking includes social media marketing that provides a broader scope to communicate with the target customers as it provides an online platform for audience participation, virtual campaigns, managing social presence and provides a chance of customer feedback. Marketing and promotion of the launching products through the virtual platform is cost effective and is important for new business ventures.
- Adopting e-commerce and e-business is important for us as it is helpful in increasing both the value and the profitability (Lam, 2017). Increased revenue is a result of increased reach to a larger customer base which is difficult to obtain for new business ventures. It effectively reduces the marketing, administrative and sales costs.
All organizations operate within an environment that influences the way in which they conduct business; such environments create opportunities as well as threats. Discuss the strategy of your organization according to the specificities of your business environment!
As experts have commented that all organizations operate within an environment, which is the major influence behind the way of conducting the business and these environments can create both threats and opportunities. The environment in which the business operates, impacts upon the strategy development. As far as e-commerce strategy is concerned, the significant influences in creating the strategy of our business organization are:
- The micro environment which includes customers, competitors, suppliers and intermediaries.
- Economic influence, legislation and other business practices also influence the strategy of the business.
- Technological innovations are another major criterion that influences the strategy development.
As far as our business is concerned analyzing the e-market place the short term digital campaigning has been considered helpful in developing the strategy for this organization. as this company is a new business venture and the target customers is not scattered, the organizational marketing strategy focuses on the reaching the target audience more easily (Sharma, 2015). The company believes in using the virtual platform effectively for the promotional purposes and also attempts to provide services to the customers through minimal delivery charges. As this company attempts to enter the global market it is important for the organizational strategy to be globally accepted. The strategy of this organization is majorly established upon the customer behavior, which is important to assess as far as the E-marketplace is concerned. The consumer behavior and regular checking the customer feedback have proved to be helpful in the process of strategy development (Lam, 2017). Based on the customer segmentation the product is delivered and the promotion and the marketing is done so that, it can reach the target customers. based on the market studies destination sites are chosen according to the customer base of the destinations and the organization attempts to generate maximum of the revenues from that site.