Choosing an entry strategy - E-commerce
3 important questions on Choosing an entry strategy - E-commerce
When looking at e-commerce, name four reasons for the expected increase in power of the customer
- Desire for convenience
- The incorporation of the net in the buying process
- A shift in loyality (consumers buying online are more loyal to a brand)
- A change in business practice (companies (B2B) are expected to buy more online in the future)
Name the advantages of e-commerce for a company
- Saves money
- Provides access to larger markets
- Leads to more efficiency in distribution
- Opportunity to develop direct relationships with customers
- Opportunity for customer service
- Reduces delivery times
- In the B2B market the consumer can choose from more suppliers than with the EDI system
Name the disadvantages of e-commerce for a company
- Customers cannot examine the products physically
- Exchange of knowledge is often limited to codified information
- In-depth information about suppliers and customers is limited by the lack of face-to-face contact
- It takes a lot of time to navigate through sites
- Extra logistical costs
- Companies cannot benefit from cheap, non-transactional functions
- The absence of physical facilities restricts the number of functions
- Attracting new customers is difficult because of the huge amount of available information and the enormous number of possibilities to buy on the internet
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