Table of Contents
The Benefits of Internet Technology
The current technologically connected world impacts virtually every aspect of business. The result of this is the fast moving environment characterized by stiff competition where businesses strive to earn advantage over their rivals. Basically, this puts a lot of pressure on especially small businesses that are not yet established in the market. However, Henderson (n.d.) notes that the internet has in many ways leveled the playing field for everyone to contend for their market share. This is exhibited in the way companies, both big and small, use this technology to reach potential customer populations that were never noticed before. In doing so, enterprises remarkably increase visibility and revenues.
Business managers who use the internet acknowledge that it is a powerful tool for achieving significant cost savings and marketing benefits. As an example, according to Bhatia (2012), the World Wide Web operates around the clock seven days a week. Companies that sell ready-made products benefit a lot from this advantage. They can choose to create an online store, thus, maintaining a constantly running virtual retail shop. This will surely increase sales as the company will be able to make money beyond the working hours and at night (Henderson, n.d.). Such online stores are also cheap to maintain because if managed properly, they will provide high returns.
The internet also saves significant costs when it comes to advertising. Not so long ago, launching a business or expanding an already existing one to new markets was burdensome because building a name entailed placing advertisements in strategic points with the hope that target customers will spend some time to look at them. The other option was TV or radio commercials which are very costly considering the current dynamic market. The advancements of the internet technology have completely changed this pratice (Bhatia, 2012). Today, any company can push its products and services through the internet to even the most remote or unlikely customers (Henderson, n.d.). What is more fascinating about the internet advertising is that it is very cheap, and it gives the opportunity to reach global audience.
Lastly, besides cost effective advertising and increased business courtesy of the global community, the internet has also proven efficient in reducing mailing expenses. With the current competitive and fast moving environment, businesses are seeking to minimize spending as much as possible. As such, they are putting to an end most traditional postal mailing methods that are not only expensive but also time-consuming. Apparently, this move has been influenced by the introduction of the internet which has brought with it better and more productive communication means (Henderson, n.d.). Today, companies stay in contact with their customers, stakeholders and partners via internet resources such as email and online network tools, namely, chat rooms, discussion boards, Facebook and Twitter, etc.
The Most Ideal Business Strategy
Business today is run in a different way than before in many aspects. As noted earlier, the current corporate environment is characterized by very stiff competition that has pushed most enterprises to their limits. Actually, Spender (2014) mentions that surviving in such conditions has become subject to how effective our business strategies are in taking the available opportunities as well as addressing the numerous potential threats. Ideally, every successful organization is built on effective business strategies that outline how it can gain a competitive advantage over its rivals (Spender, 2014). The strategical plan highlights a number of actions taken to provide value to customers and exploit core competencies of the company which are usually focused on achieving above average returns by satisfying customer needds and goals. As such, business strategies determine how companies cope with competition, and hence, their position in the industry.
For some time now, a number of organizations have depended so much on business models that aim at improving profitability and securing the long-term viability. As such, most of them have focused on offering high value-added products to ensure superior financial returns for their shareowners (Spender, 2014). More so, in line with their target goals, these companies greatly emphasize customer responsiveness so as to satisfy them by providing high quality services.
Regarding the success of a number of companies, the above business strategies have proven to be tremendously beneficial. In fact, looking at companies such as Apple and Samsung, one can observe that their substantial market share is the result of these strategies. Bhatia (2012) notes that these enterprises have a sizable competitive advantage over their closest competitors. Nevertheless, to stamp their authority in the industry and realize their full potential, they both require a more diverse business model that would address complex challenges associated with the current technology-based communications. For this reason, I suggest an integrated cost leadership and differentiation business-level strategy for my company.
This recommendation is influenced by the fact that this strategy improves the ability of companies to adapt to new environmental changes, learn new technologies and skills as well as implement a strategic advantage of core competencies across their business units and service lines (Spender, 2014). As such, using this strategy will give my enterprise a superior benefit over its rivals, and hence, provide its offer products with differentiated features at lower costs. As a result, the organization will have better chance of maximizing its profitability and improving its marketability in the industry.
Related Management essays
- Business Management Case Study of IKEA
- Community Supervision and Corrections Program
- FanDuel and DraftKings Policy
- HR Assessments V
- Project Risk Management
- Planned Change in a Unit
- Training and Development
- Project Procurement, Outsourcing, Closure, and Evaluation
- Actions to Improve Security of Intermodal Transportation
- Introduction to Private Security