The Internet with Its Low-Cost Entry - Essay Example

Introduction Of all the technological marvels, internet has emerged as one of the most popular medium of communication with its wide range of applications in the ever expanding and highly competitive business environment. “The Internet with its low-cost entry and ease of use quickly changed how information was exchanged and removed the distance barriers for business partners. The idea of trading on the Internet has generated great interest especially among the smallest companies, formerly excluded from EDI1 usage (Gottardi et al. 2004). Internet has redefined the communication with its far reaching implications and has become one of the most important parts of any business strategy. Definition of e-commerce E-commerce is broadly defined as trading on the net where people can transact their business through internet. Thus, online shopping has become increasing popular in the contemporary times of fast advancing technology and rapid globalization. Indeed, the use of internet based shopping has encouraged interactive communication between the client and the business house. The e-commerce has also utilized it to develop a professional relationship between the two, that not only provides opportunity to improve and improvise the quality as per customer’s requirements and demands, but at the same time, customer gets the best deal because of the competitive nature of internet. The online shopping, therefore encourage usage of ecommerce for a win-win situation and help exploit the vast potential of the internet to benefit both the parties. Significance of online shopping and e-commerce activities The popularity of internet has been one of the most promising instruments of advancing one’s business base. As per the article “E-commerce is an economic solvent. It dissolves old business models and changes the cost structure, and rearranges links among buyers, sellers, and everyone in between. The impact of e-commerce is happening in phases” (Kalakota, Robinson, 2002). Internet, used as a potent communication tool, would provide a vast scope of income generation avenues through increased opportunities. The internet has considerably affected the various aspects of a business activity. It has also brought unlimited opportunities to the people to tap. The impact of ecommerce has wide ramifications for the changing dynamics of global business environment and greatly facilitates in exploiting them. The ecommerce also provides small business and individuals to exploit the potential and encourages them to become self employed with more confidence. The most significant feature of online shopping is that no good or service has remained inaccessible. It helps to bring the goods and services to and from the most remote part of the world and thus promotes globalization. The ecommerce activities are backed by five major factors: aesthetic appeal of the website; the simple and user friendly website; interactive module backed by regular update and prompt response by the firm; high quality product which facilitate trust building; and highly secured online financial transaction. Internet provides a highly potential online market which is created by developing a website that is not only aesthetically appealing but efforts must also be made to make it simple and user friendly so that even a novice could use it without any difficulty. The feedback by the online and offline customers and public are important features of e-commerce activities so that appropriate improvements and improvisation of the goods and services could be made. Evaluation and analysis of database of online shoppers to meet the challenges of contemporary business The phenomenal growth in the internet user database has not only necessitated formulation of new strategies and policies that would entail active participation of the people, it has also made it necessary for the professionals and the big and small business houses to urgently adapt to the changing scenario which has a huge potential of emerging new markets. The popularity of internet has been one of the most promising instruments of advancing one’s business base. Internet has increased the clientele of the business houses, while at the same time inundated them with a wide range of options and opportunities for expanding and promoting brands whose demands can be created in far flung areas. Internet has globalized the concept of business. Indeed, advent of computers has tremendously changed the dynamics of business strategies. In the contemporary times, the customer has become much more informed and technology has provided him with more options within the similar product lines, but produced by different companies. The sales order is a very important schedule in the business information system. ‘Sales order captures demands for the firms’ product and services’ (Hamilton, 2004). The computerized sales and purchase facilitates creation of database of customers and clients that is very crucial for the firm. The initial data gives a vital clue about the personal preferences of customers and also about the various products and services that are popular amongst the masses. The e-commerce has widened the scope of business across the globe and greatly facilitated incorporation of strategic goals to meet the challenges of the changing demands of the customers. One of the most important features of the online shopping process system is the database of customers whose personal information is used to create appropriate market strategies to increase the clientele. ‘A company can outperform rivals only if it can establish a difference that it can preserve. It must deliver greater value to customers or create comparable value at a lower cost, or do both’ (Porter, 1996). The firms are increasing using the information to analyze customers’ psychology through the evaluation and analysis of customer database which helps one to know the changing preferences of the customers in the rapidly changing times. Analysis and identification of the changing trends of the customer requirements are important ingredients to gain leverage against their rivals. Conclusion The e-business activities and online sopping, greatly facilitate the creation of unique database of customers that need to be exploited to create niche position in the market. The online shopping creates customers database whose information details are effectively exploited through effective customer relationship management. The internet has revolutionized the communication and has created a whole new segment of market with diverse needs and expectations. The e-commerce has opened new frontiers of market that has unlimited scope and opportunities. It has a vast potential that goes beyond the local market and embraces a global vision which could turn out to be economically more lucrative while at the same time, promoting global values. (1052) Reference Gottardi G., Bolisani, E. and M. Di Biagi. (2004) Electronic commerce and open communities: An assessment of Internet EDI. International Journal of Services Technology and Management. Volume5. pp.151-169. Kalakota R., Robinson M (2002) E-business: Roadmap for Success 2.0. Addison-Wesley. Porter, Michael E.(1996). What is Strategy. Harvard Business Review. Nov/Dec. Vol.74 Issue 6, p61. Hamilton, Scott. (2004). 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