This report would be focusing towards elaborating how internet has reshaped business procedures globally. However having said this, the report would focus towards identifying as how macro environmental factors have then seen to facilitate much of this decision making among the entrepreneurs. That being a decision based on going virtual and carrying out business in a global market or being more what physical and ignoring all the benefits what E word always had to offer.
Every nation always has seen of carrying a serious concern over maintaining a healthy GDP. This being because GDP (Barro p.173, 2008) itself gives a clear indication over the economic situation of any country. That apart from the government’s interest, also provides a clear picture to investors and businessman of whether they should invest or divest and later also to the consumers, that whether they should increase the demand for a particular commodity or will it be better choose perfect substitute instead.
With this being stated, literature also reveals that it is not just the GDP that has left people with unexpected changing level of demand and supply patterns but it is with the increasing recession, one factor that results in changing GDP levels (Carbaugh p.502, 2008), that too has further persuaded both buyers and sellers to rethink and that too being from a global perspective.
In this regard for many, doing business initially from a global perspective was seen as being an impossible task to be achieved whereas for customers an even more impossible task to be undertaken where even being given awareness of a particular product consumers just didn’t find goods/ service being easily reachable.
However with the advent of Internet, the concept business changed dramatically. It was from this point businesses were starting to think from a new angle. That is in going global from being local. Where with an interface that promised no barriers to communication (Gibbs p.56 2002) and at the same time had a global reach too offer, the concept of business was now termed under a new word and this being from Business to E-Business.
Internet Business / E Business
Internet Business, a word all may be familiar with, has reshaped economies globally. Where with an interface that promises of carrying a global presence, business are seen actively involved in getting the E word in their profiles.
The reason being simple, to attract as many customers one could whereby then catering all with the needs as proposed by the buyer.
From perfect online business that accounts for business being just present virtually and not physically such as amazon.com to businesses that then facilitate much of trading activities that being for B2B transactions to B2C transactions such as Ebay.com.
This medium has thus uprooted many barriers to communication and later for trade too where goods can be ordered through just a click and go interface and that too at the same time from a vast variety to choose from an even vast number of suppliers.
Apart from just the products, the internet business also has played a significant role for service oriented companies where virtual universities or distance learning programs (Gerencher p.71 1998) being a significant example to be mentioned.
However apart from just mentioning the what business people are seen of doing by using Internet as an active source, this word itself has contributed nations a lot from a macro perspective.
Like distant learning education programs, companies are also seen of carrying a demand for freelance online work (Lankford p.94 2000) where through internet people are seen of doing freelance online jobs may that be for data entry professionals to content writers to Photoshop designers and much more. This word has thus assisted many nations in lowering its unemployment level where even a person sitting at home can do a job as all what is needed now is the internet to connect to the global world and searching skills to find best online jobs with promising rewards.
Followed by this Internet business has also assisted countries in smoothing out its trade activities. Where apart from daunting procedures that involved to many papers and a lot of custom checks the process can now be done smoothly where virtually other business can be contacted through any AIM service/ email service (Network World p.30, 1999) or video conferencing service and much of the business settlements can be done in a matter of seconds thus avoiding wasting time.
Along with this traders have also found this medium as being very helpful for them where searching best possible trade shows and buyers was never as easy as before. Where now every search what trader does, he/she finds an even greater market with greater potential of incurring sales. Thus rise in trade activities resulting in more trade tax being payable by the business people to government that later then stabilizes the GDP level of country.
With greater awareness of products and service that being either locally or internationally consumers find themselves of being even better decision maker. Where every time a consumer searches out for a commodity to be consumed he/ she then looks out for best possible prices for any particular product and then after having inferred all then decides of whether to buy or not . This medium in this aspect for some has seen to save a lot of cash and for some has seemed to offer a lot of quality (Smith p.26, 1999). For the first one saving lot of cash and for the second one buying quality products, it all has made consumers more sensible and left more money for them to spend on other commodities. This indirectly has seemed to increase the consumption level of consumers to a certain extent and thus has seen to assist nations in wisely earning money through injecting tax for online payments too.
With internet giving in-depth information to investors over the economic, political, legal, technological issues of the nation, has left the decision making of investors easier and more sensible. Thus with this transparency, nations that in past were seen of being neglected even though they all had a lot to promise are not treated the same these days. This global reach of investors has thus brought in more chances for nation to attract investors in investing (Pottruck p.158, 1999) in their homeland. Where having done so it later then assists the nation in earning more money from these investors and lowering unemployment rate too, where now more jobs would be looked out for in a country, due to the fact that is investor wants business, and for business he will search out for man power in the domestic market.
However as discussed earlier too, internet has seem to contribute a lot in educating the masses may that be through series of distant learning programs as offered by different universities to merely just a virtual university program where people can learn right from their homes. This benefit has thus seen to contribute a lot in bring illiteracy level down in many nations. Where having done so it has helped many countries in educating its population well for a much safer and healthier future all leading towards the prosperity of the nation.
With such wide range of benefits that not only consumers but nation as a whole seem to enjoy from the E word, it has for sure left a vulnerable market of its own.
Where apart from emphasising towards the advantage what E word has offered to economies there are much of the disadvantages too that nation have seemed to face with.
The most prominent one being fraud and theft. The existence of this element still at this date has left many customers uncertain of whether they should conduct business using this medium or not. This goes for fake websites claiming people won lottery prizes followed by fake auction web sites that first take money and then refuse to give back e.t.c
This act thus leaves consumers in wasting a lot of cash and then opting out for loans. Where if found of being unable to pay loans, leaving a credit crunch in banking sector. That later fall just under the heading of Bad Debts for banking professionals.
However, apart from merely analyzing Internet on the basis of its advantage and disadvantage would for sure not sound right. Be it good or bad, but Internet for sure has redefined how business can now be done, where it has assisted many companies in bringing up paperless environment to even assisting them in find employees that would do task at a relatively low cost and also in bringing greater market exposure. Where business can consider the entire global market as their target market and foresee of incurring lots of profits from these target market that would then help them all to sustain growth and enjoy a greater market share.