Applications For Business And Non Business

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Chapter 6

• Applications For Business And Non Business

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Learning Objectives

• Outline the strategic decisions that needs to be
  made before developing an Internet presence
• Identify possible uses of the Internet for
  business and non business
• Discuss the advantages, limitations and issues
  associated with e-retailing
• Recognise the processes associated with setting
  up an on-line retail presence
• Give an overview of the issues associated with
  the on-line export of goods and services
• Define different types of on-line recreational
  service provision

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Quote

• (H)e told journalists on Wednesday that he
  still thought the Internet was over-hyped, but
  businessmen without interest in the Net were
  regarded as Luddites
• Matt Handbury, Executive Chairman, Murdoch
  Magazines

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Strategic Questions for Strategic Direction

• what do we want to achieve by going on-line?
• what is the main focus of on-line activity (eg
  promotion, distribution)?
• what additional infrastructure requirements are
  needed?
• should we patch up existing infrastructure or
  develop whole new systems?
• how does the new on-line approach integrate with
  our existing activities?
• what sort of an electronic marketing blueprint is
  needed to ensure that the implementation of the
  program is as smooth as possible in the volatile
  on-line marketing environment?

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What do we want to achieve by going online?

• relationship building,
• international exposure
• additional service provision
• long term cost reductions in communications
  activities
• servicing a community or specialist needs group,
• access to new markets,

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What is the main focus of on-line activity?

• market research
• customer service and customer support
• relationship marketing
• product distribution services
• business to business communications
• intelligence gathering
• communications and promotions

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Strategic Questions for Strategic Direction

• What additional infrastructure requirements are
  needed?
• How does the new on-line approach integrate with
  our existing activities?
• What sort of an electronic marketing blueprint is
  needed?

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Five categories of Internet application

• wholesale/retail
• export
• recreational services
• promotion
• Internet dependent applications

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Retailing On-line

• Advantages
• Accessibility
• New markets
• Direct communications, market segmentation and
  target marketing
• Cost savings

• Disadvantages
• Logistics and supply chains
• Disintermediation
• Competition

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Precursors, characteristics and outcomes of
online retailing
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Retailing On-line

• precursors
• international reach
• product/Internet fit,
• lower cost
• The Web site and On-line Presence
• The Outcomes
• Impact
• Success
• Side effects

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Export Industries

• Sustainable competitive advantage
• Exporting is an industry that cannot be entered
  overnight
• Involvement in the Internet is a long-term
  investment and is not likely to generate revenue
  in the short term

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Export Industries

• Communications security is a major determinant in
  the use of the Internet for export trading
• The Internet has not yet become a ubiquitous
  medium

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Exporting and the Internet
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Transaction type

• Four types of transaction mediated through the
  Internet
• intrafirm exports or imports
• long-term exporting agreements
• interfirm exports
• discrete exchanges

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Structural Constraints

• computer literacy
• access to the Internet for importer and exporter
• ownership of personal computers
• data flow and related regulations
• language and culture

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Recreational Services

• Entertainment
• television
• music
• radio
• television
• cinema
• Tourism On-line
• cybertourism
• tourism telepresence

• Gambling
• computer literacy
• security
• gaming regulations
• language and culture
• infrastructure requirements

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