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Basic E-Business Issues
The importance of existing firms to evolve an e-commerce strategy has been stressed by many specialists. All organisations should pose the following questions: (a) does the internet change the target or scope of the market, (b) does the internet help satisfy customer needs and (c) will customers use the Internet over the long time? One way of examining these issues is for each firm to examine which of the following benefits can be offered io customers through involvement in e-business:
■ Convenience in terms of being able to provide access 24 hours a day, 365 days a year. Furthermore in the case of consumer goods, the customer can avoid driving to a store, having to acquire knowledge by undertaking an in-store search and queuing at the checkout.
■ Less hassle because customers can avoid having to negotiate and debate with sales staff when buying the product.
■ Multimedia which, through exploitation of the latest technology, enables customers to develop detailed knowledge about how their needs can be satisfied, for example, examining 3-D displays when selecting the best fabric design for a piece of furniture).
■ New products and services such as being offered knowledge management software tools when accessing on-line financial service providers (for example, in the stock brokering and banking sectors).
The internet also offers the following benefits to firms, namely:
■ Lower costt through actions such as replacing a terrestrial outlet with an electronic database which the customer can visit when seeking knowledge about products or services.
■ Improved distribution because once information-based products such as magazines or software are made available on-line, the company can achieve global knowledge distribution without having to invest in obtaining placements in terrestrial distribution channels.
■ Relationship building because via a web site the firm can acquire data on customers’ purchase behaviour that can be used to establish a knowledge management system for guiding the development of new ways of delivering higher levels of customer service.
■ Rapid market response because having recognised the need to respond to changing market situations at virtually the click of a button, the company can rapidly distribute knowledge about new products or terms and conditions of purchase to customers via the internet.
So, if you realized that e-business is a business of future, you can make the first steps in establishing your own e-business.
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You membership fee will come back in profits from your site. No doubt about that!
Besides, you will undergo a practical course where you will apply knowledge you acquired in practice.
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