Chapter 10 Lecture.docx - Chapter 10 Lecture E-Commerce and...

This preview shows page 1 - 4 out of 12 pages.

Chapter 10 Lecture E-Commerce and the Entrepreneur Introduction The most successful companies are embracing the Internet not merely as another advertising medium or marketing tool but as a mechanism for transforming their companies and changing everything about the way they do business. E-commerce has launched a revolution, but business basics still apply; companies still have to take care of their customers and earn a profit. The Internet has produced informed shoppers who are taking price out of the buying equation due to the increase in the availability of price information. This causes
Image of page 1
retailers to emphasize other factors, such as customer service, deep product lines, or convenience to build long-term relationships. In addition, customers value other shoppers’ opinions about the products they purchase and their shopping experiences with companies. Modern shoppers expect to be able to make purchases across multiple channels, including the Web, mobile devices, social media, television shopping channels, catalogs, and brick-and-mortar stores. E-commerce has removed the obstacle of size for many small business entrepreneurs. One of the Internet’s greatest strengths is its interactive, social nature and its ability to provide companies with instantaneous feedback, giving them the opportunity to learn and to make necessary adjustments. The Internet has changed the face of business and it is important for small businesses to incorporate e-business into their strategies to remain current in the marketplace. Online retail sales in the United States are consistently increasing. Figure 9.1, U.S. E- Commerce Sales shows projections through 2018. Figure 9.2, Internet Penetration Rate, demonstrates how consumers have adopted the Internet as a way to shop much more quickly than any other major innovations in the past. Factors to Consider before Launching into E-Commerce As with any proposed change or new venture, business owners must consider all variables and challenges they face. The Internet can transform relationships with suppliers, customers, and others. However, not every small business is ready to embrace e-commerce. Web success requires a company to develop a plan for integrating the Internet into its overall strategy. Before launching an e-commerce effort, entrepreneurs should consider the following strategic issues: How to exploit the Internet to transform relationships with suppliers and vendors, customers, and other stakeholders. How to integrate the Internet into its overall business strategy.
Image of page 2
Developing deep, lasting relationships with customers are even more important in e-commerce. An ongoing investment of resources is required to create a meaningful presence on the Internet. How to measure the success of its Internet-based sales effort.
Image of page 3
Image of page 4

You've reached the end of your free preview.

Want to read all 12 pages?

  • Fall '19

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern

Stuck? We have tutors online 24/7 who can help you get unstuck.
A+ icon
Ask Expert Tutors You can ask You can ask You can ask (will expire )
Answers in as fast as 15 minutes
A+ icon
Ask Expert Tutors