Question

“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?” (Andy Grove, 1996).

1. According to the meteorological analogy given by Mr. Andy Grove, Chairman of Intel, used with the Internet, discuss and explain how the results of using the network for businesses can vary from a company to another.       

2. Use the case study method to justify your answers. Specify the case of companies, the industry in which the firms work, and the differences in terms of results of the use of the new technologies within their business processes.  

Answer 1

It is a force that fundamentally alters business. Andy Grove a meteorological analogy with the internet. Organizations should employ technology if they wish to stay competitive. Websites such as Amazon, Google, Myspace & Wikipedia and their innovative business models are retailers, search engine, social networking, and, open encyclopedia.

A large percent of internet users browse, and, buy products in the European Union. The products are travel tickets, TVs, electrical goods, CDs, cinema & festival tickets.

Cost Savings

• Achieved through e-mail communications, service & sales transactions; it reduces costs on staff, print, and, postage
• The objectives can be to generate 10% in more revenue for sales with the same communications budget;
• The cost of direct marketing can be reduced by 15%
• Web-self service increases to 40%; it reduces the cost-to-serve by 10 percent.

Marketing Benefits

• It can extend the brand online; and, provide a new experience to the consumers. Improve brand metrics such as brand awareness, brand reach, and, purchase intent.
• Create a two-way dialog through polls, and, e-mail forms
• Reach consumers online; conduct online market research through surveys
• Add value by giving extra benefits online
• Work on product development through online feedback, and, dialogue
• Grow sales through lower prices, and, a wider product range
• Increase dwell time duration, and, number of consumers

Strategies according to the specifities of the environment

• Operating environments have a significant impact on marketing strategy
• These affect the diversification strategy
• It impacts market exit, or, entry; the building of new capabilities; investment in new technology
• It is an integrated plan linking environmental challenges, to ensure that the organization work towards the main goals

Industrial environments impact performance:

• The five forces
• Product introduction
• Price competition
• Advertising war
• The power of buyers
• Macroeconomic conditions - fuel prices, and, politics
• Social factors - beliefs, opinions, lifestyle, and, value
• Legal, and, regulatory parameters - taxation, fair trade, anti-trust laws, pollution & pricing, minimum wage