E-Commerce
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e-Commerce
Index:
Introduction:
The purpose of this paper is to investigate the emergence of e-Commerce, along with its importance to todays businesses and some of its effects on businesses and customers. With the rapidly advancing technologies that are occurring in modern business, organizations are required to be ready, and able to adapt within their changing environment. It is true across all diverse industries that in order to stay competitive, organizations must be able to utilize the various tools that technology has to offer. Technological factors have been of growing importance, particularly in recent years.
A major factor involved in these technology issues is the use of the Internet as a major issue to modern organizations. The Internet has been rapidly growing since its creation and is now commonly used in all sectors of societies and all corners of the world. The Internet has quickly become one of the most valuable assets in modern technology, and as such, is developing as an integral part of modern commerce. As with past technologies, the Internet will have future technological advances develop from its own growth.
The Internet has lead to the birth and evolution of electronic commerce or e-Commerce. E-Commerce has now become a key component of many organizations in the daily running of their business. Simply defined, “electronic commerce is a system of online shopping and information retrieval accessed through networks of personal computers”. (Rayport, Jeffrey F.; Jaworski, Bernard J. (2003); Introduction to e-Commerce; McGraw-Hill / Irwin Series in Marketing) E-Commerce challenges traditional organizational practices, and opens ups a vast array of issues that organizations must address.
By focusing on the varying levels of an organization, it soon becomes apparent the effects that e-Commerce can have. An understanding of the implication e-Commerce has on such organizational divisions can help businesses gain understanding hence plan for its inevitable continuing evolution. In terms of marketing, the modern organization must be critically aware of the development of e-Commerce, and the implications that it entails. “Marketers develop their own recipe of promotional tactics to fit the product lines or industries in which they compete. Now electronic communications tools are and will continue to be an important ingredient in the promotional mix” (Buyuko & Zumi; Kan, Gulcin (2004); Multi-criteria decision making for e-market place selection; Internet Research; 2004, Vol. 14, Issue 2)
In assessing the implications of e-Commerce in terms of marketing, it is important to understand its impact in respect to marketing strategy formulation. As the Internet, e-Commerce has developed, and continues to evolve and grow, it is vital that any organization, in any particular industry, must base its strategic planning around such a rapidly growing medium. The growth of the Internet is an environmental influence that must be embraced and understood to successfully plan for future marketing implementation. In order to successfully realize the impact that e-Commerce has in terms of marketing, it is important to break the area of interest into some key areas. As most of the issues that arise in terms of e-Commerce represent organizations entering the environment, I will base the discussion around this. Therefore, various literature review articles relate to existing organizations entering into the e-Commerce market environment. In successfully identifying the relationship between e-Commerce and strategy, the issues are categorized as follows (Rayport, Jeffrey F.; Jaworski, Bernard J. (2001); Cases in e-Commerce; McGraw-Hill Publishing Co.; I.S. edition):
Strategic analysis: Understanding the environment
Identifying the strategic options / SWOT analysis: Strategic advantages and disadvantages; Advertising; and Electronic cost cutting
The Strategy Hierarchy: Corporate level, Business level, and Marketing level
Retailing in e-Commerce: Implementation Issues; Performance monitoring
Conclusion
To gain a clearer understanding of the implication of e-Commerce in the formulation of marketing strategy, it is imperative to gain a clear understanding of the environment and its relevant effects. This helps in understanding the rationale in a developing marketing strategy, particularly the influences of e-Commerce on its composition. The next important element is to gain an understanding of e-Commerce itself, as well as the current and possible future developments.
In understanding e-Commerces impact on strategic foundations, an organizations strategies can be more clearly focused. Once the organization and e-Commerces respective environments are clear, it is then possible to understand e-Commerces implications in regards to fundamental marketing strategies. By focusing on tools such as the competitive strategy framework we can gain a better understanding of strategy formulation. By reviewing these traditional marketing theories and practices, it is possible to see where e-Commerce fits into current practices. This will provide relevant conclusions that can be made based on the strategic implications of e-Commerce, and its attributes in the marketing process. This adds a vital dimension to the marketer in an ever-growing technology based society that needs to be clearly understood.
Strategic analysis: Understanding the