1.1. Influencing competitiveness in e-businesses
Competitiveness has many definitions in academic field and is influenced by a number of factors which are interrelated, it can be defined from microeconomic or macroeconomic view and is closely related to competitive advantage (Siggel 2007). Due to increased globalization of the economy, the term competitiveness has become universal and often confused by the commonly used terms innovation and productivity (Atkinson 2013). The main factors of competitiveness include: shareholder values, customer values and ability to act within a competitive environment (Feurer, Chaharbaghi 1994). Fast changing online environment has become another way to gain competitiveness as fast developing information and
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According to Porter (1998, 11) there are two basic types of competitive advantage a company can have: low cost or differentiation. Internet has created also many other ways to gain competitiveness and competitive advantage. Olivera et al (2002, 723) argues that Internet has dramatically altered the front-end, channel options for customer accessibility to the service delivery process and changed the scope of the customer encounter. It also means that customers have unlimited access to online company, 24 hours per day, 365 days per year. With increasing number of online companies, a power between companies and customers has changed. Also by gaining wider access to information, customers now have a more expanded scope for making purchasing decisions. (Olivera et al 2002, …show more content…
Although Internet allows customers to gain more information, seller is still as impersonal communication through electronic network. Absence of physical contact might cause many difficulties as customers are unable to feel and touch the product. Also as customers are unable to visit a physical store and have face to face interaction, can cause mistrust and lack of reliability in transactions and payments. For some customers physical shopping is connected with the social aspects, and e-business incorporates a fear of difficulties in returning unwanted or defective items. All of these consumer fears must be relieved by the online business, by assisting the customer in every step towards the purchase. (Zott et al 2000)
In 2006 Beheshti et al conducted a survey amongst large companies to find out if developing e-business has given them a competitive advantage. Companies, who were questioned, in America and Sweden reported that e-business has decreased costs (for example automatic billing) and increased satisfaction. Furthermore survey found that large companies thought that e-business is a competitive advantage and a powerful management tool for their complex supply chains. More than 90% of respondents said that e-business has added value and created competitive advantage for their business. (Beheshti
This allowed for more products to be developed and
A variety of new products emerged to entice people to buy more (Routledge 1-2)”. All of these examples conclude that the
Business Planning Activity – Notes Only Document (Please answer each question thoroughly and retain a copy of this information for your records) 1. Describe your vision for building your practice at Edward Jones. How do you plan to add value to the clients and communities you will serve? My vision for building my practice at Edward Jones is to provide the best financial service and knowledge to those in my community.
It can be said that by means of organisation’s competitive strategy, it can achieve an upper hand in the business market over its rivals. Competitive Advantage offers a beneficial position to business organisations over rivals in regards of some measure like expense, quality, or velocity. An efficient strategy can help an organisation to achieve an upper hand through commitment to its strategic objectives and the capacity to significantly expand execution and profitability (Bartlett & Ghoshal,
Causes According to Amin & Noor (2013), the E-consumers generally refer to the purchaser of goods and services over electronic systems such as Internet and other computer networks. This new group of consumers is increasing in number over the years as on-line shopping become a trend and manifestation of modern life style. Based from the Paynter & Lim (2001), E-commerce would provide consumers with benefits such as interactive communications, fast delivery, and more customization that would only be available for consumers through online shopping. Product information in the Internet is more compact and it ranges from various sites.
Most people today, own one at least one technological device which could be one of the access platforms that form online channels the company may apply for their digital marketing to achieve profitability and retention of customers. Chaffey and Ellis-Chadwick (2012) state that a digital marketing strategy is constantly needed to provide a sense of direction for an organization’s online marketing activities so that they integrate with its other marketing activities and support its overall business goals. According to Parise et al.
Online Marketing Internet and powerful mobile technologies have rapidly increased company efforts to market their products and services and build customer relationships via websites, social media, e-commerce, mobile apps, online promotions etc. These are very powerful tools, especially to reach the younger generations of tech savvy
Online shopping has nowadays become a widely spread way of shopping among people on different continents and in different countries. Its popularity is constantly on the rise considering the spread of Internet technologies and the increasing share of online shops in the retailing business. Online shopping activities are gaining wide spread as far as they tend to provide the consumers with numerous benefits and increase the convenience of buying without leaving the house. The popularity of online shopping grows due to a range of reasons, including its convenience as well as time- and money-saving potential.