The paper 'Impact of the Internet on Global Business" is a good example of business coursework. Global e-commerce, which has been created by the convergence of information and communication technologies rises above territorial business boundaries while transforming the landscape of the twenty-first-century global economy. It is now widely accepted that the revolution of information technology will have a profound impact on the operation of international business. The most significant development that has taken place with respect to global business is the explosion of international marketing activity on the Internet and the concomitant emergence of the global information superhighway. This paper discusses the impact of the Internet on global business at three major levels: (1) credible exchange of information globally, conveniently and instantaneously; (2) building partnerships, creating synergies with suppliers and customers, and developing the ability to foresee new competitive threats and solutions for emerging market needs and product of service efficiencies; and (3) reformulation of the nature of relationships and the establishment of new realities that emerge from cyberspace.
The essay discusses these issues by addressing the highs and lows associated with the Internet as pertains to world business. Credible exchange of information globally With the global technological advancements, global e-commerce touches on almost every country, though the usage of the Internet varies widely among the populations of the world.
E-commerce is all about speed, connectivity, as well as exchanging goods, service, and information (Javalji & Ramsey, 2001, p. 376). Javalji and Ramsey (2001, p. 377) define e-commerce as the sharing of business details, sustaining business relationships, and facilitating business dealings through telecommunication networks. Exchange of information by businesses and their customers over the Internet can be regarded as a rather obvious phenomenon but it is still incredible.
This is because the growth of e-commerce relies on an intricate architecture of various types such as information technology, where developed and developing nations are in different stages (Javalji & Ramsey, 2001, p. 376). Hamill (1997, p. 304) discusses four main advantages associated with the exchange of business information due to Internet connectivity. These include cost savings by substituting the Internet for other communications channels with vendors, business partners, and information providers; performance improvements through the widespread internal use of the Internet to integrate information resources, supporting virtual teams and facilitating distributed decision making and organizational flexibility; market penetration which can be attained from high external connectivity with customers, including public websites and online customer support facilities; product transformation including the development of Internet-based services or products that reenergize the company’ s strategic position (Hamill, 1997, p.
304). One of the information highways used by Internet users is portals. According to Shi and Murthy (2003, p. 41), portals can be considered as information gateways for the exchange of business information over the Internet.
They are meant for conveying the appropriate information to the right user, at the appropriate time, and to the appropriate place to be used for making the right decisions. Portals are packaged pieces of information that have the characteristics of self-servicing, personalization, and delivery in real-time. With reference to e-commerce, business information is the set of timed dealings that can be activated by events in business operations (Murthy, 2003, p. 41). Through the Internet, companies are able to advertise to targeted consumer groups, thus cutting on costs as compared to general advertising.
Importantly, companies provide a wide array of opportunities for customers such as the ability to chat, hold discussion forums, give feedback on products and services, and facilitate online transactions. Building partnerships, developing synergies with customers and suppliers and having a competitive advantage It has been argued that the use of the Internet has not reached its peak as the information technology field is a relatively new area in global business (Feher & Towell, 1997, p. 199; Deeter-Schmelz & Kennedy, 2004, p. 188). Feher and Towell (1997, p.
199) note that even though significant growth is expected in terms of the use of the Internet for e-commerce, 85 percent of the firms they surveyed were of the opinion that their customers were not yet online. In a similar perspective, Deeter-Schmelz and Kennedy (2004, p. 188) discuss that data collected from purchasing professionals suggested that traditional information sources, including suppliers’ salespeople, were more useful than the Internet at the time of the conducting the research. This points back to the level of penetration of the Internet among users as mentioned earlier.
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