|

Because the Internet provides a flexible and dynamic marketplace
to exchange goods, services, and information with consumers
and business partners, it is becoming increasingly important
for businesses to use the Internet to reach new markets. One
main business advantage of being online is the ability to
market products both locally and globally. The following list
offers some reasons for companies to build commerce-enabled
Websites:
- Low entry costs: A company can establish itself on the
Internet, and open for business, with a relatively small
investment. Thousands of companies operate simple, inexpensive
sites that are successful in their markets.
- Reduced transaction costs: Dealing with customers over
the Web, whether to process orders or to attend to customer
support, is more cost effective than traditional marketing
methods. For example, Dell Computer Corporation estimates
that it saves eight dollars each time a customer checks
the status of an order at the Dell Website, instead of calling
the company.
- Access to the global markets: With a traditional business,
the target market may be the local community or, with a
higher advertising budget, it may extend to neighboring
communities. The web extends the reach of even the smallest
businesses by allowing them to market products globally.
- Secure market share: Getting a business online protects
its current offline market share from being eroded by an
online entrepreneur. If a business enters the e-commerce
market too late, competitors who have already established
a Web presence may make a successful market entry more difficult.
|