Impact of Web 2.0 on Global Marketplaces - Essay Example

Impact of web 2.0 on global marketplaces Name Course Lecture Date Introduction Advancements in technology as well as the rapid globalization of firms are opportunities and realities that are closely associated with the 21st century. Despite the fact that components and definitions of web 2.0 technologies are in some way vague, the concepts driving they are nonetheless helpful since they categorizes a set of disrupting approaches as well as technology that presents new and advanced ways of deploying, using and building IT applications. Through the application and use of web 2.0 technologies and services, the core model of contact between organizations has changed drastically from sending to sharing. Companies can gain an advantage through the use of web 2.0 if they apply them efficiently and effectively. Through its use new markets and opportunities are opened. In regard to this social media tend to play an important and crucial role in the development and implementation of business strategies. Thus, this essay, therefore sets out to discuss the impact of web 2.0 one international firms approach to the management of global marketplaces, the essay will also offer a critical evaluation of the emerging trends and lastly there will be a conclusion which will include personal comments and opinions. Impact of web 2.0 on global marketplaces and emerging trends The internet has numerous impacts on the international firms approach to managing the global marketplace. One of the major impact is based on the fact that web 2.0 allows business customers to become more interactive in the market place. Web 2.0 seemed to surround everything that is around us and each of our daily activities. For example a great number of people have adopted the use of certain platforms such as Facebook and Twitter and based on this business operating in the global marketplaces have tailored their marketing so as to meet the lifestyles of their target markets who seems to be more reliant on social media (Rusak 2009). The capability of the organization to create ties has in a way led to an increase in customer awareness and ample consideration of the products that companies offer and at the same time offered customer satisfaction. Organizations have also been able to burnish the innovation skills based on the fact that customers and companies equally shape and concrete the products by the use web 2.0Also, through the web 2.0 technology businesses are able to be in close contact with their suppliers and other business partners. Based on the close contacts businesses are able to receive necessary goods on time (Rusak 2009) . Web 2.0 also seems to be an influential lure in most organizations. The technology enables the employees to be more interactive and thus they are able be in contact with each other and at a lower cost. Through technology such as Facebook and other chat platforms that are available the organization does not have to incur the high cost of calling (Parise 2008). Also, through the use of the web 2.0 technology employees in the workplace are able to participate in projects and sharing ideas and eventually the organization poll of knowledge is deepened. Another visible and large impact that web 2.0 is related to the effect that the technology have in the retail sector. For example, through the adoption of web 2.0 a great number of companies have retrenched their staff and this is greatly attributed to the immediate rise and the use of online shopping which has been made possible by web 2.0 (O’Reilly 2005). A good example of retrenchment is in the Myer the retail giants, all the staff in the stores have been drastically reduced over the years and most especially after the global financial crisis. Though the technology comes with some associated costs, the costs will be covered by the salaries of the retrenched individuals. Based on the technology consumers in almost areas in the globe have an unlimited variety of products from which they can choose from and the some online stores also offer home delivery of the products which have been bought online. The technology allows modern day businesses from all corners of the world to compete favorably and most companies have turned on price to be an exceedingly competitive feature and the businesses which are not ready to change will suffer hard and fast (McAfee 2006).A good number of the youths seem to have technological savvy and they are more comfortable buying products online. They shop online based on the fact that there is a wide selection list and the products can be easily compared to see their prices, prices of the online stores at times are usually cheaper and from time to time they have offer sales which are usually communicated by the use of email to the stores subscribers. Web 2.0 has also played a great role when it comes to expansion of businesses. In the modern business world, information travels very fast and this is usually facilitated by the use of the internet and through this even the smallest companies can be able to compete with the larger ones without the use of expansive and premeditated marketing strategies (Gehl 2011). The web 2.0 technologies also enable companies to achieve feedback in a timely and consistent manner and based on this they can be able to be at an advantage by developing a number of strategies that enables them to obtain information and data from new consumers based of their trends and preferences and therefore they will be able to offer customers with the right products and thus customer satisfaction and loyalty will be at its best. With the emergence of global market places the cultural and regional boundaries between different countries have diminished and people who are from different cultures and regions have started to share similar tastes in regard to fashion. The web 2.0 technology seems to be effective for the businesses that want to have an international presence and those that want to expand their customer base to include customers from other countries irrespective of the fact that they may be overseas. Through online stores, the products of these businesses are usually displayed and international customers are able to view and attain these products. Through the use of the technology the customers have been offered with an opportunity to offer feedback and at the same time communicate with the sellers and at the same time share their experiences with other global customers (Eggers 2005). The increased use and application of web 2.0 seems to have a number of advantages for businesses which have adopted them and most especially to those who have a large customer base. Irrespective of this benefits web 2.0 can also backfire if not implemented well and in a business that possesses a strong strategy. A business that intends to use web 2.0 in their business ought to ensure that the technology has the ability to respond to its customers and thus offer an interactive way to deal with an issue that are likely to occur and also they should be able to respond by modifying their services and products so as to meet the preferences of their customers (Parise 2008). Through the implementation of the right strategy businesses will be able to deal with the virtual world and the actual world’s s in a simultaneous way. By this business will be able get rid of unexpected situations that may be attributed to lack of proper management of the virtual world. For example, at times, businesses can miss out on major opportunities through the misinterpretations of data and lack of feedback to the customer, the business may lose customers to their core competitors and this would have an adverse effect on the sales and revenue of the business (Breakenridge 2008). Conclusion Based on the above discussion, it is evident that web 2.0 has a formidable effect on international approach to the management of global market places. In my own opinion though business are adopting the use of web 2.0 technologies, strict measures need to be taken so as to ensure that the right message is communicated to their customers. Also based on how fast the technology conveys information, messages that are sent to the customers need to be analyzed carefully so as to avoid sending the wrong message since this can damage the reputation of the business and thus lead to decline in customer base. In my opinion business need to take advantage of the benefits that are associated with web 2.0 technologies and use them to their advantage and through this there will be an increase in their sales and thus greater revenue and profits for their businesses. Businesses therefore need to embrace the web 2.0 and they should integrate it to the employee’s daily activities. Businesses also need to encourage the adoption and usage of web 2.0. The benefits associated with the technology will be limited if the level of usage and adoption is low and thus so as to achieve the full benefits employees need to be encouraged to adopt and use the technology in the operations of the businesses. References Breakenridge, D 2008, PR 2.0: New Media, New Tools, New Audiences, FT Press, New Jersey. Eggers, W 2005, Government 2.0: Using Technology to Improve Education, Cut Red Tape, Reduce Gridlock, and Enhance Democracy, Rowman & Littlefield Publishers, Inc, Lanham, MD, U.S.A. Gehl, R 2011, "The Archive and the Processor: The Internal Logic of Web 2.0". New Media and Society 13 (8): 1228–1244. McAfee, A 2006, “Enterprise 2.0: The Dawn of Emergent Collaboration”, MIT Sloan Management review 47(3): 21–28. O’Reilly, T 2005, What is Web 2.0. Design Patterns and Business Models for the Next Generation of Software, p. 30. Parise, S 2008, The Secrets of Marketing in a Web 2.0 World, The Wall Street Journal. Rusak, S 2009, Web 2.0 Becoming An Outdated Term, Progressive Advertiser, Boston, Massachusetts, U.S.A. Read More