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How Internet has changed the Business
- 1. How the Internet change the Business Plan
- 2. Group Members Shah Abdul Azeem Ammara Ishfaq Shehnam Ishfaq Muneeb Ahmed Saad Salman
- 3. Table of Contents • Internet • Communication • Telecommuting • Marketing • Advertising • Collaboration • Research • The Effect of the Internet on Modern Businesses & Corporations
- 4. Internet • The Internet is the global system of interconnected computer networks that use the Internet protocol suite (TCP/IP) to link billions of devices worldwide.
- 5. Communication • Communicate with employees • Email and instant messaging • Videoconferencing & Long-distance conversations • Companies can exist in multiple locations
- 6. Effecting on business plan
- 7. Telecommuting • Working at Home • Satellite office • Neighborhood work center • Mobile teleworking
- 8. Marketing • Product Development • Information Exchange • Increased information • Interactive Business Agents • Pricing research
- 9. Advertising • Attract customers from all over the globe • Easy to convey Message
- 10. Collaboration
- 11. Research
- 12. The Effect of the Internet on Modern Businesses & Corporations
- 13. SWOT Analysis of E-Business
- 14. E-Business (Strengths) • 24-7 operation • Global business from anywhere • Products reach to customer directly from producers at lower price than market value • Fast and effective
- 15. E-Business (Strengths) More affordable advertising Low staff cost Financial transactions through electronic fund transfer fast Can be started with very low investment
- 16. E-Business (Weakness) • No direct customr-seller interaction • Sometimes, transportation cost inceases product cost • Intangible product & services
- 17. E-Business (Opportunities) • Internal users rapidly increasing • More are feeling comfortable buying through internal exclusively • Big companies already In the field blaze the path and bear the cost of developing a market
- 18. E-Business (Threats) Dishonest online businesses damage consumers confidence and faith in the entire enterprise of internet marketing
- 19. CompaniesThe Internet Changed Forever • NewYorkTimes • Bank of America • Blizzard • Wired • Charles Schwab • 1-800-Flowers
- 20. NewYorkTimes • Online ad sales has gone from 6% in 2005 to 14% in 2009
- 21. Bank of America • 25.4 million users in January of this year • 29 million of the bank’s customers currently operate online •
- 22. Blizzard • Largest video game developers which produced PC titles • More than 12 million subscribers by the end of 2010 •
- 23. Wired • Circulation of about 794,000 • magazine’s website receives 37 million pageviews a month
- 24. Charles Schwab • $1.57 trillion in client assets • 7.9 million brokerage accounts
- 25. 1-800-Flowers • $235 million in revenue in the quarter ending December 2010 • $155 million came from online sales
- 26. counclusion • The concept of internet , necessitated by communication technology and the effect of globalization have transformed the contemporary society as regards business operations, governments, banking institutions, individuals, educational institutions, international organizations and subsequently provided consumers with adequate information which is instrumental in determining their choice, rights and knowledge acquisition (Layton, 2007).With such technologies consumers are adequately informed and thus stand at a key position of critically determining their product choice and preferred product (McNab, 2004).
Editor's Notes
- A business' ability to communicate with its employees, customers and associates changed dramatically when the Internet yielded new communication tools. Email and instant messaging have changed the face of business communication. According to a study conducted by the Small Business Administration, 36 percent of women business owners and 38 percent of male business owners use email very frequently, while over half of both men and women use email at least occasionally.
- Working at home: The most popular method, in which the employee designates workspace at home to conduct business functions Satellite office: Remote office location, usually placed near a large concentration of employee residences, which allows employees at a single company to share common office space and reduces the time and expense of the commute to and from the main office facility Neighborhood work center: Provides workspace for employees of different companies in one location; each company housing employees at such a location is usually responsible for the administrative and technical requirements of its employees Mobile teleworking: The newest form of telecommuting—the telecommuter's office may be an airport, a hotel, or a car; these mobile telecommuters are constantly on the road and use technology to link to the office
- Product Development: The Internet has allowed small businesses instant access to any new product developments and technological advances that can help improve their products and compete with larger companies. Information Exchange : The way that small businesses exchange information has changed drastically since the Internet has become popular. Small businesses did not have the financial resources to arrange large meetings with suppliers or developers that would require air travel and accommodation expenses Increased Information : One major effect of the Internet is the explosion of information that has resulted in more competition among firms and lower prices (Zettelmeyer, 2000). Many Internet-only companies offer substantially lower prices than other retail or even mail order firms. 3) Interactive Business Agents : The Internet makes the search for the lowest price for products easy, quick, and at a low cost, especially with the various interactive shopping agents which provide one-click access to price and availability information about a relatively large number of online suppliers 4) Pricing research the Internet allows marketers to research and test pricing decisions in real-time and with low costs. By making it easier to track consumer responses to prices, e-tailers can set prices with far greater precision - and make appropriate price adjustments when necessary
- Including the Internet in a business' advertising budget extends a business' ability to attract customers from their back yard to all four corners of the globe.
- Working with other businesses and professionals is simplified with the use of the Internet. Internet seminars, also called webinars, make collaborating on projects with people all over the world as easy as logging onto a website.
- Businesses use the Internet to research new product ideas, new methods of creating products and pricing information. A business can also research the competition to see what products and services are offered. If a company is looking to expand into a particular location, the Internet can be used to research the population, its needs and what products and services would sell best in that area.
- The New York Times has more than 71 million unique visitors to its properties, while the daily newspaper has only one millions subscribers. The portion of the company’s total revenue that is from online ad sales has gone from 6% in 2005 to 14% in 2009, and it is expected to continue to grow. While this is only a fraction of total earnings, there are far more viewers of the online publication than those of the print newspaper. It is expected that the Times will soon begin charging online subscribers $10-$20 per month. It is still unclear whether the move will be successful, or will drive customers away.
- In the past few years, online banking has gone from an added perk for select banks to becoming the modus operandi for most account holders for deposits, withdrawals, balance checks, payments, and most normal interactions that were once the main purpose of branch tellers. As proof of this, Bank of America’s (NYSE BAC) online site, which allows users to access their account, transfer funds, and even pay bills, has become one of the most popular sites on the web. BankofAmerica.com is currently, according to Comscore, the 48th most popular site on the web, with 25.4 million users in January of this year. Overall, 29 million of the bank’s customers currently operate online.
- Blizzard was, at one point, among the largest video game developers which produced PC titles. The company had many popular titles including the “Diablo,” and “Warcraft” series. The shift to a more online format began with the release of “Starcraft,” a single-player game which came with multi-player capabilities. It was the multi-player aspect, however, which allowed the title to become a worldwide gaming phenomenon. Blizzard’s true breakthrough came with the release of “World of Warcraft” a game which is only played online. The game is the most lucrative and successful video game ever, with more than 12 million subscribers by the end of 2010, and Blizzard continues to reap revenue from these monthly subscribers, rather than merely taking their initial purchase price. The game, along with its add-ons, gross roughly $1 billion each year.
- Perhaps it is the result of the publication’s technologically-minded audience, but Wired magazine, is significantly more popular in its online form. Although well-known, the magazine only has a circulation of about 794,000, making it one of the less popular titles offered by Condé Nast. The magazine’s website, however, receives 37 million pageviews a month, 11.2 million of which come from unique users. Wired also released a very popular “tablet edition” in late May, 2010, which sold over 100,000 copies in its first month.
- Charles Schwab Corporation (NASDAQ: SCHW) was founded in 1971 as a brick-and-mortar brokerage firm. It is now one of the largest online brokers in the world. The company has made a number of moves over the past few years to either entice new customers or retain current ones, including dramatically cutting the costs of online trades. The company now handles about $1.57 trillion in client assets and 7.9 million brokerage accounts. Its success speaks to the popularity and subsequent growth being enjoyed by the online brokerage industry. Customers can do a number of things online which they cannot do in a Schwab office or over the phone such as accessing data.
- 1-800-Flowers’ business has become so dependent on the Internet that the company is now officially called 1-800-FLOWERS.COM. Although the company still offers its services over the phone, the majority of revenue is derived from e-commerce. Of the $235 million in revenue in the quarter ending December 2010, $155 million came from online sales. The company’s Mobile Flower & Gift Center was named winner of the “Best Mobile App for E-Commerce” award by Digiday’s Publishing & Advertising Awards and Mobile App of the Year Award in the “Best Shopping” category for Retail Info Systems in 2010. In short, the company is no longer, by any means, primarily a toll-free flower business.