Web for in­dus­try

Enterprise - - On The Web -

With the ris­ing com­pet­i­tive ad­van­tage of in­dus­tries, it has be­come per­ti­nent to con­sider the in­flu­ence of in­ter­net in the im­ple­men­ta­tion of cor­po­rate strate­gies. Most ob­vi­ously it en­ables com­pa­nies to con­duct busi­ness di­rectly with their cus­tomers and sup­pli­ers, of­ten in a more stream­lined and ef­fi­cient man­ner.

In the au­to­mo­bile in­dus­try, sell­ing a car online is dif­fer­ent than how the tra­di­tional car sell­ers are trained to first meet and greet the buyer, then demon­strate the prod­uct’s fea­tures and the last thing is to give a price. While the online sales place price as the first thing. If the price is good, then the meet­ing, greet­ing and demon­stra­tion fol­low. Also, if an­other mer­chan­diser beats the pric­ing, that’s where the cus­tomer places the or­der.

The ex­am­ple of sin­gle au­to­mo­bile in­dus­try re­veals only a part of in­dus­trial trad­ing. The in­ter­net has a de­moc­ra­tiz­ing ef­fect on the modern so­ci­ety by bring­ing a dig­i­tal wal­let to con­sumers, in which they carry all of their ac­counts as dig­i­tal to­kens and then in­ter­face with a mer­chant to ver­ify iden­tity and choose which ac­count to pay from.

In­dus­tries are fast adopt­ing the in­ter­net as a dis­tri­bu­tion chan­nel. The for­ma­tion of dis­tri­bu­tion chan­nels de­ter­mines the growth of any in­dus­try. The in­ter­net or web car­ries the fol­low­ing char­ac­ter­is­tics to suite the in­dus­try re­quire­ments, • Web-based dis­tri­bu­tion chan­nels can­not be con­trolled by com­pa­nies in any in­dus­try. Dis­tri­bu­tion costs are low. Im­pact is lim­ited (tem­po­rary). Pre­dic­tions are made, but true im­pact is not re­ally known. • It en­ables fast dis­tri­bu­tion of in­for­ma­tion prod­ucts. • The cost of chang­ing prices or even com­mer­cial­ized prod­ucts is very low, thus en­abling a rel­a­tively quick prod­uct ro­ta­tion. Se­cu­rity pro­to­cols are stronger and more re­li­able. The po­ten­tial buy­ers have now ac­cess to in­dus­trial data­base, which pro­vides them di­rect com­par­i­son of prices, qual­ity, and ser­vice re­ceived from an independent or­ga­ni­za­tion at the mo­ment of de­ci­sion mak­ing. This prac­tice has sig­nif­i­cant im­pact on the consumer be­hav­iour. The in­flu­ence of the in­for­ma­tion can be so strong that it can pos­si­bly wipe away the pos­i­tive ex­pe­ri­ence of the prod­uct. This is be­cause cus­tomers have all the in­for­ma­tion they need, and the switch­ing cost is there­fore very low.

Also, the sup­pli­ers are forced to put greater ef­fort and obliged to lower the prices and con­stantly im­prove qual­ity and ser­vice. An­other in­ferred fact is that tra­di­tion­ally cus­tomers have a ten­dency to be as­so­ci­ated with the same sup­pli­ers pro­vid­ing them a sat­is­fac­tory ser­vice. But with in­ter­net, cus­tomers look out for more new sup­pli­ers while the level of sat­is­fac­tion is never main­tained.

This does not im­ply that the web based dis­tri­bu­tion chan­nels are not fair; rather it has be­come eas­ier for a new sup­plier with at­trac­tive prices and good ser­vice to en­ter the mar­ket. How­ever, an­a­lysts ar­gue over the con­trol in­dus­try sup­pli­ers should have on how much in­for­ma­tion they are will­ing to dis­close on in­ter­net dis­tri­bu­tion chan­nels, in or­der to avoid a war in the mar­ket.

To have a closer look on in­dus­trial work­ing on in­ter­net, the ex­am­ple of US govern­ment is rel­e­vant which is push­ing hard for an elec­tronic med­i­cal record in the health­care sec­tor by 2014. The move to elec­tronic med­i­cal records — and a por­ta­ble EMR that the pa­tient con­trols —will not only shift the in­vest­ment in health­care dol­lars away from old pro­cesses and prod­ucts and into a lot more IT sys­tems, but it also has the po­ten­tial to give pa­tients more own­er­ship of their own health­care ex­pe­ri­ence, which could have un­fore­seen con­se­quences for pric­ing, provider choice, and provider ac­count­abil­ity. More­over, the stock trad­ing has also been to­tally rev­o­lu­tion­ized. Pay­Pal and eBay have had a ma­jor im­pact on the peer-to-peer ex­change of goods be­tween peo­ple and how they pay each other for them.

As a con­trast, me­dia in­dus­tries are strug­gling through the piracy is­sues. In Croa­t­ian mu­sic in­dus­try, the record­ing la­bels and some In­ter­net Ser­vice Provider (ISP) com­pa­nies are search­ing for new mod­els of le­gal mu­sic dis­tri­bu­tion. One so­lu­tion is found called kiosk re­tail­ing. This busi­ness model es­tab­lishes a strate­gic al­liance be­tween a daily news­pa­per and a record­ing la­bel and buy­ers can pur­chase pop­u­lar au­dio CDs to­gether with the daily news­pa­pers at a price which is 60 per­cent lower than reg­u­lar re­tail. Based on Economies of scale, this method is bring­ing high prof­its.

The im­pact of web on in­dus­tries needs to be reg­u­lated to main­tain the en­thu­si­asm of con­sumers in online sell­ing and buy­ing. Thus, a com­mer­cial im­ple­men­ta­tion of the web is in mu­tual in­ter­est of the in­dus­tries and the po­ten­tial buyer

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