Technology has played an imperative role in business operations. The
advent of internet has given a new methodology to conduct business
faster in a cost effective way in a limited time and space.
Internet is wrapped up with thousands of interconnected networks
connected worldwide. The deployment of Internet in business has given
rise to perform business worldwide to unlimited audience and it is one
of the best methods for globalizing business. Internet is a powerful
tool for winning a business strategy that assists companies to compete
with their competitors and to improve customer satisfaction and hence internet business model has been formulated to assist companies to choose the right model at the right time.
Internet business is simply not designing websites to promote the
products it has its unique process to automate any business function.
Internet business helps manufacturers to understand the customer’s
wants and needs by understanding their behavior when they visit company
websites or research any relevant information and this in-turn helps
manufacturers and marketers to produce customize and personalize
product.
Internet business has changed the marketing practices of company to the great extent and
hence marketers need to be more and more proactive and creative to
reach and convince their audience to buy products.
Today many companies have also set up extranets with their suppliers to
facilitate information exchange, transactions and payments. Internet
business has given birth to e-commerce which is more and more specific
when compared to internet business or e-business. The term e-commerce
encourages companies to sell their products or services through
internet. To be more precise about internet business; it is simply
performing business using internet for worldwide audience in order to
globalize business.
Advantages of Internet Business - Internet Business has its unique advantages
There is no need of physical location and hence you don’t need to have
your own or rent place for starting up business as how traditional
business requires.
Of course you need location that is DOMAIN NAME for website
registration and its very cheap you can get for about $5 to $25 with
free web hosting service.
You need website for selling your product or service. If you know
programming and designing you can always do it on your own or you can
hire a web developer and/or designer based on your requirement or even
you can become an affiliate of some site which needs no website since your merchant will provide you website.
You can advertise your products or services for free in most of the websites say free classified advertisement site.
Since internet works on the principle of 24×7 you can reach your customer at any time.
Internet business is not geographic specific and hence you can reach global audience.
Disadvantages of Internet Business -Of course, internet has major advantages but it has some disadvantages too.
Through internet it is very difficult for the user to recognize what is
genuine and what is not because users will not have the ’Touch and
feel’ of some product before they buy.
Internet makes you feel isolate and hence it separates manufacturer and
customer, and this ultimately end-up in lack of trust between two
parties.
It is also difficult for the user to choose the product as there may be
many products with different varieties advertise through internet.
Business Models:
Every Business needs model to run its business and operations. When it
comes to internet it is not that companies have design or built their
own models Most of the companies sustain with the following business
models through internet.
Products
Professional Services
Information Business
Internet profession
E-Publishing
E-Advertising
Let’s understand the above six proven internet business model.
Products: This Internet business model includes stuffs like electronic
goods, books, computer hardware and software, household, jewelry, etc.
Companies may already use direct marketing to market its product.
Adopting this model is most inexpensive method to communicate
universally, and consumers can look into the product through company’s
website or online catalogue as it cost only the fraction of what
printed catalogue cost and the duplication is achieved virtually. The
vital part is to note that internet is not the business strategy.
However, it helps business to formulate strategy more effectively and
efficiently. These are none other than the Internet or Online retailer.
Professional/Specialized Services: This model includes Professional services such as accountants,
consultants, architects etc. The use of technology has encouraged
service business to devise innovative strategies to support the very
nature of the business.
Service industry advertise its services electronically that is through
internet and since internet reaches global audience by breaking the
geographic barriers and hence today service sectors enjoy massive
profit and growth since internet has out-performed the traditional
advertising and it directly reaches its prospective audience.
Information business: This E-business model is for those who gather,
create and sell knowledge. Internet has given a new room for this kind
of business. Today people use internet for many reasons and information
search through internet ranks top. Many netpreneur today adopted this
business methodology and has created a success because there is lot of
scope for business in this digital era and information business is one
such businesses which grows with a full pace.
Internet Careers: Many people have started making careers in internet itself. This business model includes graphic artist, web designers
and developers, software programmers, computer and software trainers
through online, Internet marketing professionals etc. This is
considered as fastest growing business and many people have started
business model.
Electronic Publishing: Today people can find free news, magazines, and
newsletters in the digital format. In this business model any factual
written material can be published in digital format and uploaded in the
website. Online or Electronic publishing is exploding since its too
cost effective when compared to the printed version of newspapers,
magazines, newsletters etc. There are many innovative ways that a
company can generate revenue from this business model.
E-Advertising: Electronic advertising, the business model which grows
constantly and is expected to out-perform the traditional advertising
methods. From this business model companies can simply sell advertising
space on the web which in turn generates a mutual understanding to both
the parties (advertisers and publishers).
Advertisers get revenue by posting advertisement in their website and
publishers gets traffic to his website and/or brand awareness of his
(publishers) product through advertisement. This is really a big
business and one can monetize his/her website (if available) by just
selling the website space.
The above mentioned internet business model has been adopted by many
companies and have created a history in this digital era. Thus internet
has become the right source and a powerful tool for the businesses to
create a new and innovative business strategy in order to sustain the
market.
Different authors have defined Internet business models in a different
manner but the actual proposition and meaning is same. To see the
different internet business model terms have a look at this article.
Read Here
As a Wannabe internet business you have to analyze which internet
business model is best for you or where you actually fit in the whole
scenario.
