Internet and Small Business
Technology has played an imperative role in business operations. The arrival of internet has given a new methodology to conduct business faster in a cost effective way in a limited time and space.
Internet is wrapped up with thousands of interconnected networks connected worldwide. The deployment of Internet in business has given rise to perform business worldwide to unlimited audience and it is one of the best methods for globalizing business. Internet is a powerful tool for winning a business strategy that assists companies to compete with their competitors and to enhance customer satisfaction and hence internet business form has been formulated to assist companies to choose the right form at the right time.
Internet business is simply not designing websites to promote the products it has its rare course of action to automate. Internet business helps manufacturers to understand the customer’s wants and needs by understanding their behavior when they visit company websites or research any applicable information and this in-turn helps manufacturers and marketers to produce customize and personalize product.
Internet business has changed the marketing practices of company to the great extent and hence marketers need to be more and more proactive and creative to reach and convince their audience to buy products.
Today many companies have also set up extranets with their suppliers to ease information exchange, transactions and payments. Internet business has given birth to e-commerce which is more and more specific when compared to internet business or e-business. The term e-commerce encourages companies to sell their products or sets by internet. To be more precise about internet business; it is simply performing business using internet for worldwide audience in order to globalize business.
Advantages of Internet Business – Internet Business has its rare advantages
There is no need of physical location and hence you don’t need to have your own or rent place for starting up business as how traditional business requires.
Of course you need location that is DOMAIN NAME for website registration and its very cheap you can get for about $5 to $25 with free web hosting service.
You need website for selling your product or service. If you know programming and designing you can always do it on your own or you can hire a web developer and/or designer based on your requirement or already you can become an affiliate of some site which needs no website since your merchant will provide you website.
You can advertise your products or sets for free in most of the websites say free classified advertisement site.
Since internet works on the rule of 24×7 you can reach your customer at any time.
Internet business is not geographic specific and hence you can reach global audience.
Disadvantages of Internet Business -Of course, internet has major advantages but it has some disadvantages too.
by internet it is very difficult for the user to recognize what is genuine and what is not because users will not have the ‘Touch and feel’ of some product before they buy.
Internet makes you feel isolate and hence it separates manufacturer and customer, and this ultimately end-up in without of trust between two parties.
It is also difficult for the user to choose the product as there may be many products with different varieties advertise by internet.
Every Business needs form to run its business and operations. When it comes to internet it is not that companies have design or built their own models Most of the companies sustain with the following business models by internet.
Let’s understand the above six proven internet business form.
Products: This Internet business form includes stuffs like electronic goods, books, computer hardware and software, household, jewelry, etc. Companies may already use direct marketing to market its product.
Adopting this form is most inexpensive method to communicate without exception, and consumers can look into the product by company’s website or online catalogue as it cost only the fraction of what printed catalogue cost and the duplication is achieved virtually. The vital part is to observe that internet is not the business strategy. However, it helps business to formulate strategy more effectively and efficiently. These are none other than the Internet or Online retailer.
specialized/Specialized sets: This form includes specialized sets such as accountants, consultants, architects etc. The use of technology has promoted service business to devise inventive strategies to sustain the very character of the business.
Service industry advertise its sets electronically that is by internet and since internet reaches global audience by breaking the geographic barriers and hence today service sectors enjoy enormous profit and growth since internet has out-performed the traditional advertising and it directly reaches its prospective audience.
Information business: This E-business form is for those who gather, create and sell knowledge. Internet has given a new room for this kind of business. Today people use internet for many reasons and information search by internet ranks top. Many netpreneur today adopted this business methodology and has produced a success because there is lot of scope for business in this digital era and information business is one such businesses which grows with a complete speed.
Internet Careers: Many people have started making careers in internet itself. This business form includes graphic artist, web designers and developers, software programmers, computer and software trainers by online, Internet marketing professionals etc. This is considered as fastest growing business and many people have started business form.
Electronic Publishing: Today people can find free news, magazines, and newsletters in the digital format. In this business form any factual written material can be published in digital format and uploaded in the website. Online or Electronic publishing is exploding since its too cost effective when compared to the printed version of newspapers, magazines, newsletters etc. There are many inventive ways that a company can generate revenue from this business form.
E-Advertising: Electronic advertising, the business form which grows regularly and is expected to out-perform the traditional advertising methods. From this business form companies can simply sell advertising space on the web which in turn generates a mutual understanding to both the parties (advertisers and publishers).
Advertisers get revenue by posting advertisement in their website and publishers gets traffic to his website and/or brand awareness of his (publishers) product by advertisement. This is really a big business and one can monetize his/her website (if obtainable) by just selling the website space.
The above mentioned internet business form has been adopted by many companies and have produced a history in this digital era. consequently internet has become the right source and a powerful tool for the businesses to create a new and inventive business strategy in order to sustain the market.
Different authors have defined Internet business models in a different manner but the actual proposition and meaning is same. To see the different internet business form terms have a look at this article. Read Here
As a Wannabe internet business you have to analyze which internet business form is best for you or where you truly fit in the whole scenario.