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THE Internet: Its Impact On Venture Development

The document discusses the benefits of e-commerce for venture development including increased speed and flexibility through instant online communication, reduced emphasis on physical space needs, the ability to reach a high volume of global customers, and selling low-margin products in large quantities. It provides approaches to e-commerce like online shopping malls and virtual communities, and stresses the importance of considering elements like networking potential, customer relationships, and ongoing investment before launching an e-commerce venture. Strategies discussed for e-commerce success include data mining, developing an online marketing plan, building an online community, and forming strategic alliances.

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Ockouri Barnes
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290 views

THE Internet: Its Impact On Venture Development

The document discusses the benefits of e-commerce for venture development including increased speed and flexibility through instant online communication, reduced emphasis on physical space needs, the ability to reach a high volume of global customers, and selling low-margin products in large quantities. It provides approaches to e-commerce like online shopping malls and virtual communities, and stresses the importance of considering elements like networking potential, customer relationships, and ongoing investment before launching an e-commerce venture. Strategies discussed for e-commerce success include data mining, developing an online marketing plan, building an online community, and forming strategic alliances.

Uploaded by

Ockouri Barnes
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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THE

INTERNET
ITS IMPACT ON VENTURE
DEVELOPMENT
SPEED AND FLEXIBILITY

• The internet enhances speed and flexibility in


conducting business.
• The speed at which information moves via the
internet is incredible.
• The entrepreneur can communicate in a timely
manner with suppliers and also receive
feedback from customers and suppliers.
• Flexibility is gained in terms of internet banking
and enabling access to remote geographical
areas from home or office.
• Instant communication between multiple
users.
LESS EMPHASIS ON
SIZE/SPACE

• It provides a virtual space where buyers


and sellers all over the world engage in
trade.
• Physical issues such as business space
availability or building size is not a key
factor when conducting business.
Therefore, ventures that are electronic
based can have lower infrastructure
costs.
• Reducing the need for face to face
transactions. No board/meeting rooms.
HIGH VOLUME

• The internet captures the attention of


millions of buyers as there is no physical
dividing lines between countries.
• Sell high volumes of products and
services every day.
LOW MARGIN

• A low margin product is priced close to


its cost.
• They ensure that their prices are
competitive by selling at low prices but
make up for any shortfall by selling in
large quantities.
APPROACHES TO E-COMMERCE
• ON-LINE SHOPPING MALLS

• VIRTUAL COMMUNITIES – Social network of


buyers and sellers (store-front services- providing
a website that displays the products)

• INTERNET SERVICE PROVIDERS - companies that


provide internet service. Everything that we do
on our computers. (partnership with existing
online payment facilities (PayPal)

• PRIVATE INITIATIVE – hiring a professional to


customize a website for the venture (it must be
professionally done)or building a site in-house.
ELEMENTS TO CONSIDER BEFORE
LAUNCHING INTO E-COMMERCE
• NETWORKING POTENTIAL – size of network and ability to influence the
network.

• INTEGRATION OF WEB INTO OVERALL STRATEGY – provision made for site


to be professionally designed, maintained and managed.

• IMPORTANCE OF LASTING RELATIONSHIP WITH CUSTOMERS –cater to the


needs of customers. Provide videos to help them, provide good products,
provide excellent customer service.

• ON-GOING INVESTMENT OF RESOURCES - invest time, energy, talent and


money.

• DATA MINING –searching through large volumes of data to identify useful


ASSESSING THE ONLINE
POTENTIAL OF THE VENTURE

• APPEAL TO CUSTOMERS – do they need the


product being offered

• TARGET MARKET – market segment, who will you


be selling

• DISTRIBUTION COST – how will the goods be


shipped to customers and who will stand the
cost.

• COSTS AND BENEFITS – cost and benefit analysis


to see if it will be viable.
THE BENEFITS OF A WEBSITE IN
SELLING THROUGH THE INTERNET
• CAPACITY TO ENHANCE CUSTOMER SERVICE – address customer concerns
using social media

• INTERACTIVE COMMUNICATION – interactive features such as videos, blogs,


these can keep customers engaged all day.

• LOWER COST OF DOING BUSINESS - ability to grow faster so do promotion.

• TRACK SALES RESULTS – more visitors on the site can mean more sales.

• ABILITY TO SPOT NEW BUSINESS OPPORTUNITIES – persons have access to the


businesses and are able to identify new opportunities.
STRATEGIES FOR E-COMMERCE
SUCCESS
• DATA MINING – engage in this to get information about
industry trends and consumer behaviour.
• DEVELOP AN ONLINE MARKETING PLAN – give the
business direction.
• DEVELOP A COMMUNITY – connect with persons who
share similar interest .
• ATTRACT BY GIVING FREEBIES – the act of goodwill,
give free samples on-line and special offerings on the
website.
• CREATIVE USE OF EMAIL – connect with customers
• CREDIBILITY – engage in legitimate online business. No
scamming, human trafficking.
• STRATEGIC ALLIANCES – form alliances with other
companies. You sell shoes so link with the person that
sells clothes in order to benefit from each other.
• PROMOTE SITE ON AND OFF-LINE – to ensure the
product information is communicated.
MYTHS ABOUT E-COMMERCE
• SETTING UP THE SITE IS EASY AND INEXPENSIVE
• CUSTOMERS WILL FLOCK TO MY SITE
• MAKING MONEY IS EASY
• PRIVACY IS NOT AN IMPORTANT ISSUE
• TECHNOLOGY IS THE MOST IMPORTANT ELEMENT
• DO NOT NEED A STRATEGY ONLY A SITE
• CUSTOMER SERVICE IS NOT AS IMPORTANT AS IN TRADITONAL RETAIL
STORE.

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