| Product: |
The future of the .com industry |
| Date: |
20/07/01 (10 review reads) |
| Rating: |
 |
Advantages: Competitiive prices, International shopping, range of products
Disadvantages: Who are you trading with ?, Can you trust it ?
Boom or bust ?
Dot com or dot con ?
These seem to be questions that many are asking at the moment and the answers currently seem to fall more often than not on the side of bust and dot con.
Why though ? What marks the internet out as any different from any other part of the economy ?
Well, looking at the internet we can see a few things that make it different -
The internet is theoretically without boundaries - transactions over the internet are not necessarily limited to local or even national suppliers - suppliers can be international (it is true however that phone, fax and letter can be used to contact international suppliers).
The internet allows for quick, easy price comparison - if you know what you want, tap into a few websites and away you go - pick the cheapest (if that's your goal) and leave the others alone.
The internet while theoretically open to all, is NOT trusted by all. Not everyone trusts entering their details into a website and waiting for goods or services to arrive from an untried source (untried by that customer).
The internet allows international advertising, rapid notification of price changes (costless or near costless alterations - particularly in comparison to reprinting brochures) and a 'real time' or near real time presence becomes a possibility for companies.
So, what can these mean for firms ?
Competition exists and may be far more reaching than if confined to the high street or retail parks. Customers wanting to 'test and try' often can't, while others don't yet trust this new medium. Pressure exists to respond and respond quickly to the actions of others.
So does this mean that the internet is doomed to fail as a means of carying out business ?
No, not really - there is more to this than first appears.
Some businesses are ideal to be caried out over the internet and some customers are more
inclined to 'net shop' than others. What businesses need to do is to identify areas that are net compatible, the extent to which they are net comaptible and then make sure their expectations and business plans are realistic.
Customers shopping over the net want convenience - so make sure the website is easy to navigate. They want good prices - so if you can't compete with high street prices they may not be interested - and many will expect a discount over the high-street to take account of an assumed lower cost base. They want quick delivery - so if it's goods you are selling you need a good delivery service. They want to be assured of an appropriate returns and complaint procedure - yes these things do happen. They want to know who they are dealing with - so if your name isn't known already you NEED to advertise and get a GOOD reputation (an example is my wife - she won't buy from anyone she doesn't 'know' from the high street - the one exception has been Amazon).
So what can and should businesses expect from the internet ?
Well, working for a motor dealer we have a web presence - but we don't aim to be an internet trader. The web is seen as an advertising opportunity, but not the focus of our business - we calculated what the operation would cost, how we would benefit and whether the investment was worthwhile - the answer was yes.
I believe that too many people over-expected from the internet, saw opportunities and assumed that this was a new promised land - but it isn't !! It's a real world, with real customers and real world business issues.
The internet needs careful thought, careful planning and a sensible approach - it can be a fools playground as so many can take rapid steps quite easily before crashing to the ground.
The future I believe IS bright, it is positive, but we must be realistic and adjust our expectations accordingly. I'm happy to buy many th
ings over the net - but not everything and, in time, I believe many others will feel as I do. This IS an exciting new opportunity - but it is just that - an opportunity not a free ride !!
Summary:
|
Last comment:
 |
Cattycat - 20.07.01 Interesting opinion. Well- written. |
|
