Synopsis: Impact of the Internet retailing
Accordingly, the advent of the internet has been able to revolutionize the business environment. The use of the internet as part of business marketing and retailing is changing rapidly. It is said that the internet provides the retail market a new market model which cater not just for cloths, books and music but almost every products or service buyable and sellable. Among the most recognized brands and products sold in the internet retail are books, drugs, apparel, and electronic and technological gadgets. Accordingly, the use of internet retailing has been able to create virtual communities which assure better communication and larger profits for the company. The latest techniques associated with internet retailing enables the company to gain competitive advantage as internet served as a platform for advanced technology and applications which allows the retailers by having better recognition both in the national and international level. In addition, internet retailing marketing techniques also has the ability to gain competitive advantage because of its availability in the internet market 24/7 with fewer or most of the time unlimited geographic boundaries. The internet approach also has interactive two-way communication, automation, personalization or customization, search facilitation and most of all knowledge or information sharing.
Such abilities are known to create advantage, attract, and satisfy consumers from any walks of life globally as well as increase profits. As customers’ convenience is indulged by a wealth of personalized information services and availability, they can enjoy shopping (Mandel & Hof, 2001).
The Internet also brings an easier integration of past business models and functions such as data collection and sharing. Wang and his colleagues put the idea simply that the Internet is combined communication medium and distribution/transaction channel, which is quite different from traditional marketplaces allowing simple to multiple tasks to be performed at the same time and at the same environment.
In addition, the internet retailing also allows the company to gain good customer relationship easily because of their ability to create customer participation and customization among other wide-ranged access to services. Consumers are granted powers that traditional markets limit (primarily due to the presence of intermediaries, the lack of speedy processes, cost-effectiveness, integration, and combination the Internet medium can provide). With capabilities such as this, it is inevitable for retail markets adapt to the Internet set-up, as a new marketplace and a new marketing tool, quickly. Customer value has become the centre of all business models online. Wang et al recognize however that not all e-businesses survive due to the turbulent and competitive nature of the Internet and the fact that studies regarding consumer behaviour must continue to be conducted.
In such a turbulent and competitive arena, it has been a common goal for all firms and organizations into internet retailing for this matter to create and above all, maintain value for its customers, suppliers, and manufacturers. The assurance of returning customers is what keeps internet retaining sites alive. This is performed through shopping deals created through customer loyalty.
The key for internet retailing to sustain itself in the market is to be convenient in the best of its ability and this will be performed once a firm is able to adapt to the customer’s many selective tastes best. Not only will this allow them keep a competitive edge, this will allow its brand to emerge as a dominant web presence. What’s unique with Internet retailing is how it does not limit itself to a certain industry. Traditional retail stores, or the so-called brick and mortar type stores, are greatly limited by shelf spaces and cannot thus; attempt to cross sell newly released or related products (that would win consumers).
Brick-and-mortar stores put the baby products in one place, health care in another, and vitamins for pregnancy in another area. Therefore, everything is split up in the brick-and-mortar store, whereas with online solution retailing, all these items can be bundled together as a ‘new mother’ shelf (Harrington & Reed, 1996).
The web’s flexibility allows it to cater to various other opportunities that will truly boost sales, serve to the customer’s further appeal, value and not to mention, loyalty, by giving them a wide variety of products to choose from in a one-stop shopping manner. The customer’s preferences are thus even more customized to his/her personal liking. Internet retailing brings cross-category selling opportunities, not just in grocery, but in sporting goods and everything else. In this regard, internet retailing can really be considered as one of the most powerful business approach to be considered if the company would want to be known in the global market.
Reference
Harrington, L. & Reed, G. (1996). “Electronic Commerce (Finally) Comes of Age.” The McKinsey Quarterly, 2, 68
.
Mandel, M., & Hof, R. (2001, March 26). Rethinking the Internet. Business Week, 116–141.
Credit:ivythesis.typepad.com
0 comments:
Post a Comment