Impact of Internet in Business Globally
Ever since its inception, the Internet has proved to be an advantageous and beneficial resource that has changed the lives of many individuals and the state of many business organizations. In the modern setting, every business in the world incorporates internet connection devices to enable them flourish in the global marketplace and compete with other business rivals. Additionally, the Internet is assisting firms and organizations in reducing costs spectacularly on either demand or supply factors. Businesses have been able to boost their customer services by innovating new ways of value proposition, ventured into new markets, attracted new investors, created marginal revenues and enhanced contemporary business relationships. By adopting the Internet, business entities have been able to reduce the costs involved in their business processes and increased sales opportunities across the globe.
The Internet has served as a constant force of information dissemination over time. Businesses have reduced their advertising costs through the media by embracing the cost effectiveness of the web. Because of the internet, companies are advertising their products and services online through their own websites or other independent websites. For instance, some websites that have enabled simple advertising include Netscape, which has a catalog of advertising corporations and businesses. The Yahoo Website also incorporates the use of advertising banners in their web pages. Some advertisements entertain customers to stay long on the websites therefore, retaining them on the websites of the companies for a longer interlude. With the reduction of advertising costs for the companies, the internet has also enabled the companies to be innovative and still exercise cost leadership with their advertisements.
Before the internet, foreign investments were rare due to the expensive costs of traveling overseas. Presently, firms are able to operate in different countries at the same time due to the internet. For instance, companies seeking to invest in other foreign countries can acquire the national economic determinants such as the Gross Domestic Product (GDP), Gross National Product (GNP), rate of inflation, import and export data, Foreign Direct Investment (FDI) and other national determinants to determine the profitability of investing in such countries. Such information can be accessed through public websites created by government departments of the respective country and country intelligence websites such as the Central Intelligence Agency (CIA) World Factbook. Additionally, the reduction in costs of financial speculation enables business organizations to explore different business opportunities.
A powerful internet resource that has drastically reduced the costs of numerous businesses is the E-commerce. E-commerce enables businesses to carry out business transactions using the internet as the platform. E-commerce is easily adaptable such that small and medium enterprises with no financial capacity to influence international potential customers are able to do so through the resource. E-commerce has not only expanded businesses’ boundaries, it has also enabled businesses acquire a large number of potential efforts coincidentally boosting the marketing efforts of the firms. Furthermore, conducting commerce online has lead to the faster receipt of payments and easy management of business. Online business has not only been beneficial to multinational companies but also to entrepreneurships. The internet has leveled the competing field whereby entrepreneurs and small businesses are able to compete with large enterprises further boosting business opportunities for them.
Indeed, the internet has enabled for the creation of a global village increasing relations between people of different backgrounds and cultures. This has provided the businesses with a platform that enables them to advertise market and sell their products or services even to the most remote places. In order to ensure businesses and customers profit from the internet, it is valid to exercise regulation to ensure quality conduction of business.