Cost Savings and Marketing Benefits
Internet technology is changing the way many firms carry out their business activities. It is the new frontier under which companies compete and leverage their various strengths to stay ahead of their competitors. Firms are investing in techno-savvy employees who will be compatible with this business frontier. Additionally, companies are also investing in new technologies to support their aspirations of going online. While all this sounds just like huge investments in the organization, the rewards that accrue through the use of new e-commerce platform are immense. The following paragraphs list the cost savings and marketing benefits that accrue through the use of the Internet technology.
Communication is the most outstanding way through which a company can make cost savings. Business communications take up a huge part of firm’s resources, with the organization embracing the Internet technology, as the expenses of setting up meetings with other businesses and prospective investors as well as those of correspondence with customers are greatly reduced through arranging the strengths of the Internet online conferences and using email communication instead of snail mail. The decision making process in the company is greatly improved with the Internet communication platforms.
Through the use of the Internet technology means businesses do not have to be physically present in all locations for them to do business there. Online market places have revolutionized the way businesses operate bringing logistical advantages and reducing distribution and office management costs. The distribution of goods can be monitored in real time via the Internet and the shortest and most efficient routes to a customer are identified well in advance.
The Internet is a resource overflowing with knowledge. Through the use of the Internet, employees do not need to attend expensive seminars and workshops to acquire new skills. Through efficiently structured knowledge management systems, the personnel re only a click away from any vital new information that would help in their development as a part of the company. Organizations have only recently found out that in their online loyal followers they have a highly specialized resource of people who would willingly try and give recommendations on the firm’s products at no cost. The expenses of research and development of new products is thus greatly reduced. By involving the customers in the development, testing and launch of new products, the organization not only cuts costs but also creates a loyal base of clients who will always market the company by writing good reviews about the firms’ products (Lumpkin, Droege, & Dess, 2002).
Cloud based systems are steadily taking part in the Internet technology race. They not only present a more efficient and theft proof way of storing sensitive company data but also provide a platform through which several employees of the organization can work on the same document from different locations. This eliminates the time wastage and expensess of travelling to the firm’s offices. Additionally, some of the highly intensive business processes can be conducted online to achieve some more cost savings. Procurement processes, for example, are the means that the organization can consider for automating and having it accesses online. This would not only reduce the cost of labor and administration that accompanies this business function but would also increase the efficiency of sourcing bids and transparently choosing the winning bid (Lumpkin et al., 2002).
The Internet provides a wide platform for marketing its products, with close to two billion users from all over the world. Moreover, online presence makes the organization’s products visible to a wide pool of people through various Internet-based marketing solutions such as Adwords and AdSense. It is possible to market the company’s goods in specific regions. Additionally, the email is a useful tool that can be used in marketing. A specific message can be sent to thousands of peopple through emails at the push of a button. The business can additionally create podcasts or online events where customers can interact with the organization on a more personalized level but at a much lower cost. This shows that the Internet is indeed a typhoon force that fundamentally changes the way business is done
The business environment of the organization is highly competitive and volatile. Being in the fast consumer moving goods segment, the company has to always stay a step ahead of the competitors and continually innovate to stay relevant and maintain clients. The firm has developed a two-pronged strategy that ensures that plans are followed through from the inception process to the final stage. The strategy encompasses strategic risk management, performance management and a strong research and development (Heracleous, 2003).
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Through strategic risk management, the organization ensures that a complete SWOT (strengths, weaknesses opportunities and threats) analysis is regularly performed on all business functions. This provides the company with a real time situational awareness that gives it an opportunity to mitigate risks before they occur and use the opportunities early enough to maximize the profits. The performance management strategy aims to guarantee that all measures outlined in the strategic risk management including employee responsibility are followed and accountability mechanisms are established. This ensures personnel are always innovating and carry out their responsibilities with utmost diligence.
A strong research and development are strategically set to try out new items in the market that would be responsive to customers’ unmet needs. This is to ensure that the company is the market leader and that it takes advantage of being the first to introduce products to shape the ideology, pricing and the standard of quality. Through these strategies the organization guarantees it uses the opportunities as they occur and that it addresses the threats in real time.
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