The internet has changed the way people conduct businesses in the world. The internet has enabled people to pass information freely from one point to another. This means that people can easily access information that was previously restricted to a small group of people.
Indeed, the information age has brought about some advantages as well as disadvantages. Many businesses are able to conduct business online meaning that the society has been transformed from an industrial society to an information society. Industrial revolution was achieved through the process of industrialization where companies concentrated on producing goods and services for the market. In the current society, the economy is base on manipulation of important information.
Therefore, it can be observed that the internet has shaped modern society by enhancing swift large-scale communications and networking. In fact, the world today is a global village implying that goods and services are to be produced and consumed almost at the same time, irrespective of geographical distances.
Introduction of World Wide Web in 1989 changed the way people conduct businesses. The internet has taken over other mediums of conducting businesses mainly because of its effectiveness and efficiency. This paper will therefore analyze the strengths of the internet in conducting business in society. The paper underscores the fact that new technology is not accurate. For that reason, it has some weaknesses that will also be addressed. However, the paper concludes by asserting that ecommerce is advantageous.
The internet has offered many things to people in society. For instance, it allows small businesses to advertise their products, which would otherwise be faced out due to competition. The mass media has become expensive meaning that small firms cannot afford to compete with conglomerates in promoting goods and services through it.
It is true that many people have acquired goods through the internet, especially in the third world. Small businesses use the internet as virtual market (imaginary market). Customers can view the details of goods and services before making orders or inquiries. This has improved small businesses since customers can easily use their computers to link up with sellers in the market.
The internet gives small businesses a chance to compete effectively in the market. Small businesses may actually utilize internet services to grow financially. Furthermore, a business may perhaps cut the costs of advertising and marketing by creating a website. The firm saves resources that could be wasted on fliers and newspaper advertising.
Another advantage of the internet is that a firm has access to large customer base. A firm may access customers all over the world. The internet allows small firms to exchange ideas and share opinions as regards to market demands. Small firms can actually open emails and paperless fax accounts.
It should be noted that while the internet improves the way people conduct business, it has some shortcomings. Customers are the most affected because fraudsters may exploit the clients using dubious online companies. Many people have been deprived of their resources thinking that they are dealing with genuine companies. Customers should therefore be aware of fraudsters.
Production of goods and services is becoming more information-intensive. Furthermore, the economy is becoming less labor and capital demanding. All these are attributable to globalization, which is the product of information age. Workers are becoming more productive in their fields.
This is an advantage to small business firms because they are able to employ and sustain a competent workforce that would drive the firm to its success. Conversely, the value of workers is ever decreasing because of globalization. The workforce is easy to acquire as compared to the industrial age when companies had deficits in labor.
Financial analysts suggest that the value of capital is decreasing at a high rate. Before the internet age, capital was a determining factor in business. Those with huge sums of money could successfully invest in prestigious ventures such as real estate.
Such individuals could also capture the best personnel. Due to the internet, it is possible for small firms to establish successful investments, with little capital. This means that capital is no longer a determining factor in investment. On the other hand, mechanization and computerization has led to high efficiency as well as unemployment. Small firms can take advantage of this to expand.
From the above analysis, it can be concluded that the use of virtual storefront would be easier as opposed to operating within the local community. In the community, only limited number of customers is accessed. Opening a virtual storefront would expose the business to various customers. It is not surprising that the business can even sell products abroad because many people access the virtual store across the globe.
Apart from establishing a customer base, opening a virtual store would also help the firm in reducing competition. Other small firms may not compete favorably, especially when they do not have the virtual store. In society, people have embraced technology fully. This means that people use the internet in doing everything.
Bhagwati, Jagdish. In defense of Globalization. New York: Oxford University Press, 2005.
Cooper, Arnold. “Initial human and financial capital as predictors of new venture performance”. Journal of Business Venturing, 9.5, 1994.
Kluver, Randy. Globalization, Informatization, and Intercultural Communication. Oklahoma: Oklahoma City University, 2010.
Reich, Robert. The Work of the Nations, Preparing Ourselves for 21st Century Capitalism. Toronto: Alfred A. Knopf, 1992.
Randy, Kluver. Globalization, Informatization, and Intercultural Communication. Oklahoma: Oklahoma City University, 2010.
Robert, Reich. The Work of the Nations, Preparing Ourselves for 21st Century Capitalism. Toronto: Alfred A. Knopf, 1992.
Jagdish, Bhagwati. In defense of Globalization. New York: Oxford University Press, 2005. P.61
Arnold, Cooper. “Initial human and financial capital as predictors of new venture performance”. Journal of Business Venturing, 9.5, 1994.