The Effects of Internet on Business
The emergence of internet and related online technologies dramatically changed the way the world operates. Internet based applications keep the world connected and specifically enhances the flow of information regardless of geographical restrictions. Evidently, such dramatic improvements in information flow have had tremendous effects on the way companies run their day to day operations. The business sector chosen for this assignment is online retail industry, which constitutes a significant portion of current business transactions. The modern business world greatly depends upon the online retail industry as this sector ...view middle of the document...
According to a Forrester projection (as cited in Wauters), the US online retail sector will grow by 10 percent during the period 2010-2015 and reach $279 billion in 2015. This growth rate is greatly enhanced by the US online retail giant Amazon.com. The Amazon was founded by Jeff Bezos in1994. Although the company began its operations as an online bookstore, it rapidly expanded its business to other areas such as DVDs, CDs, MP3 downloads, video games, apparel, computer software, food and toys. Currently, Amazon is positioned as the world’s largest online retailer.
Influence of Internet on Online Retail Sector
Evidently, improved information flow has brought tremendous changes to marketing and sales activities in the online retail sector. Before the introduction of E-commerce facilities, companies used traditional promotional channels to market and sell their products. Such promotional efforts often required companies to spend huge costs and long hours to obtain even a small increase in sales. However, advancements of online media made it easier for companies to promote their products easily, affordably, and effectively. Nowadays, millions of people around the globe browse internet everyday and majority of the people have easy access to this cyber globe. Hence, internet is today considered as the best channel for the promotion of products and services. It consequently improves sales returns also. To illustrate, before the advent of internet, it was a cumbersome task for marketers to promote items such as books, MP3s, and software because there were no effective ways for displaying those items to customers. The growth of internet based applications aided companies enable their customers to check those items before purchasing them. Amazon uses an array of marketing efforts to promote its products across the globe, and such efforts are supported by online media. In order to enhance its promotional efforts, Amazon has developed some personalized applications by which customers are treated individually. For instance, the company uses a customized application where a personal greeting message pops up when an individual customer logs in to his Amazon account. Such techniques benefit the company to make an emotional attachment with its customers. It case of products like music, software, and books, online retail stores including Amazon and eBay realize more sales revenues than any other physical store because physical sellers have no competitive techniques to market those products.
Similarly, effectual information flow has significantly restructured online selling and distribution practices too. Since internet facilitates transfer information from one place to another at the speed of an eye blink, online retail companies like Amazon assist their customers to purchase items using credit card facilities. In addition, customers are given the opportunity to check and compare different items before making a purchase. Since detailed product information...