Question

For each of the following parts of Question 5, write about 150 – 200 words per discussion question.

1. Discuss the following statement with reference to how an organization should react to the Internet. ‘Is the Internet a typhoon force or a light breeze’. Can these forces fundamentally alter your business model?’.

2. Suggest how an organization can evaluate the impact of the Internet on its business. Moreover, examine this in terms of the current pandemic and lockdowns.

3. What are the main barriers to adoption of e-commerce by consumers and suggest how a company could counter these forces.

Answer 1

Ans.

1.

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.

Good and rapid communications can help increase productivity, improve business decision-making and a company’s expansion into new territories or countries.

Streamlined work flow systems, shared storage and collaborative work spaces can increase efficiency in the company and allow employees to complete a greater level of work in a shorter period of time.

Adoption of information technology resources such as internet allows companies to have and maintain a competitive advantage over their rivals and to get a better share in the market and be more profitable.

2.

The fact is that it’s impossible to conduct business without the internet in terms of the current andemic and lockdowns. In business from idea to management, production to marketing, selling, and purchasing and accounts management to tax filing it seems the internet is impacting the traditional methods, ongoing operations, and innovations in business.

The Internet is in every tool that business is using and will use in the future. You can also say that every innovation and new technology is just a part of the internet. Without the internet, nothing will work and that’s why the internet is the main source of current and in the future for all kinds of innovations, technologies, and business models.

            Internet connects businesses and consumers to the platforms of communications, trade,                education, and entertainment. Now entrepreneurs, leaders, and companies investing in digital marketing, business automation, remote hiring, e-commerce, and online collaboration tools and trying to increase the speed of creativity and excellence in daily operations with the help of internet technologies.

Through analysis of above mentioned points an organization can evaluate the impact of internet on its business.

3.

Barriers for the adoption of e-commerce by consumers:

· Quality evaluation: On the Internet, it is more or less impossible to make sure, beyond doubt, that (tangible) products have the desired features (e.g. design, material, color, fit), giving rise to a quality evaluation barrier to e-commerce.

· Security risks. It has been suggested that transaction security (such as the credit card number being picked up by third-party hackers) is mostly a perceptual problem in e-commerce. Nevertheless, the fact remains that it may be one of the more complex barriers to be overcome.

· Lack of trust in virtual sellers. The fear of fraud and risk of loss has commonly been cited as a significant barrier to B2C e-commerce, with empirical research findings supporting this assumption.

· Delivery times. In tangible product categories, any home-shopping method involves delivery times which mean that the Internet is at a disadvantage to physical stores as it fails to meet the customers’ need for instant gratification. Consumer’s may thus be reluctant to wait for the delivery of ordered goods for days/weeks if the same product can be collected immediately in physical outlets.

· Lack of personal service. While e-commerce offers great opportunities for one-to-one marketing, it significantly reduces, or even puts an end to the personal service characterizing traditional commerce.

· Time-consuming nature. As noted, e-commerce may offer consumers savings in time. In practice, however, using the Internet for commercial purposes may prove to be too much time consuming for many users.

Ways to overcome above barriers for the adoption of e -commerce by consumers:

· Opt for Flexible Technology. ...

· Support Cross-border and Global Sales. ...

· Adopt a Mobile-First Approach. ...

· Create a Seamless Brand Experience. ...

· Integrate Advanced Analytics. ...

· Experiment with Ideas. ...

· Outsourcing Talent. ...

· Look for Social Commerce Opportunities.