The Role of E-Business and Internet Technology in Today’s Business Environment
The purpose of this essay is to critically analyze the role of e-Business and Internet technology in today's business environment. The essay will begin by first defining e-Business and Internet Technology. It will then go on to discuss the strategic management process in e-Business and Internet Technology. The environmental analysis in e-Business and Internet Technology will be discussed followed by a discussion on customer relationship management (CRM). The market segmentation, targeting and positioning will also be discussed in this essay. In addition, the product and service planning as well as promotion in e-Business and Internet marketing will be discussed. Finally, the role of stakeholders in e-Business and Internet Technology will be analyzed.
2. What is e-Business?:
E-Business can be defined as "the application of information and communication technologies (ICT) in support of all the activities of business" (International telecommunication union, 2003). E-business has transformed the way businesses operate and communicate with their customers, suppliers and partners. It has also changed the way businesses market their products and services to their target customers. Businesses have been able to use e-business to create new business models that are more efficient and effective than the traditional business models.
E-business has also led to the development of new channels for marketing and selling products and services. Businesses can now sell their products and services online through their own websites or through online marketplaces such as eBay and Amazon. E-business has also made it possible for businesses to connect with their customers through social media platforms such as Facebook, Twitter and LinkedIn.
3. What is Internet Technology?:
Internet technology can be defined as "the application of a range of technologies to support the activities of electronic commerce" (International telecommunication union, 2003). Internet technology includes web design, web development, web hosting, e-commerce, email, multimedia, security, streaming media and many other technologies that are used to support the activities of businesses that operate online.
4. Strategic Management Process in e-Business and Internet Technology:
The strategic management process is a process that helps organizations achieve their goals and objectives by making use of available resources. The strategic management process consists of four main steps which are environmental analysis, formulation of strategies, implementation of strategies and evaluation of results.
4. 1 Environmental Analysis:
The first step in the strategic management process is environmental analysis which is also known as SWOT analysis. This involves an assessment of the internal and external environment of an organization in order to identify opportunities and threats that may impact the organization's ability to achieve its goals and objectives.
4. 2 Formulation of Strategies:
The second step in the strategic management process is formulation of strategies. This involves developing strategies that will help an organization achieve its goals and objectives given the opportunities and threats identified during environmental analysis.
4. 3 Implementation of Strategies:
The third step in the strategic management process is implementation of strategies which involves putting the strategies developed during formulation into action. This step includes developing action plans, setting timelines and allocating resources for each strategy that is to be implemented.
4. 4 Evaluation of Results:
The fourth and final step in the strategic management process is evaluation of results. This involves assessing the success of the implemented strategies in terms of whether or not they have helped the organization achieve its goals and objectives. Evaluation of results also allows for the identification of any areas where improvements can be made.
5. Environmental Analysis in e-Business and Internet Technology:
As mentioned earlier, environmental analysis is a vital part of the strategic management process. The purpose of environmental analysis is to identify opportunities and threats that may impact the ability of an organization to achieve its goals and objectives. In order to conduct an effective environmental analysis, businesses need to obtain accurate and up-to-date information about their internal and external environment.
There are many different methods that can be used for environmental analysis. Some common methods include SWOT analysis, PESTEL analysis, competitive analysis and stakeholder analysis.
5. 1 SWOT Analysis:
SWOT analysis is a popular technique that is used for environmental analysis. SWOT stands for strengths, weaknesses, opportunities and threats. This type of analysis helps organizations identify their internal strengths and weaknesses as well as external opportunities and threats.
5. 2 PESTEL Analysis:
PESTEL stands for political, economic, social, technological, environmental and legal factors. PESTEL analysis is a technique that is used to assess how these factors may impact the ability of an organization to achieve its goals and objectives.
5. 3 Competitive Analysis:
Competitive analysis is another popular technique that is used for environmental analysis. This type of analysis helps businesses understand their competitors and their competitive environment. Competitive analysis can be used to assess an organization's strengths and weaknesses as well as the opportunities and threats that it faces.
5. 4 Stakeholder Analysis:
Stakeholder analysis is a technique that is used to identify and assess the interests of stakeholders. Stakeholders are individuals or groups that have a vested interest in the success or failure of an organization. Stakeholder analysis can be used to assess how different stakeholders may impact the ability of an organization to achieve its goals and objectives.
6. Customer Relationship Management (CRM):
Customer relationship management (CRM) is a process that helps businesses manage their relationships with their customers. CRM involves the use of technology to store, track and analyze customer data. CRM software helps businesses track customer interactions, identify customer needs and provide better customer service. CRM also helps businesses develop marketing campaigns that are targeted at specific customers and track the results of these campaigns.
7. Market Segmentation, Targeting and Positioning:
Market segmentation is the process of dividing a market into smaller groups of customers with similar needs or characteristics. Businesses use market segmentation to target specific groups of customers with tailor-made products or services. Positioning is the process of creating an image or identity for a product or service in the minds of customers. Businesses use positioning to differentiate their products or services from those of their competitors.
8. Product and Service Planning:
Product and service planning is a process that helps businesses develop new products or services. This process involves the identification of customer needs, the development of new product or service concepts, the testing of these concepts with potential customers and the final launch of the new product or service.
9. Promotion in e-Business and Internet Marketing:
Promotion is the process of communication between a business and its customers with the aim of persuading customers to purchase a product or service. Promotion can be done through various channels such as advertising, public relations, direct marketing and sales promotion.
10. The Role of Stakeholders in e-Business and Internet Technology:
Stakeholders are individuals or groups that have a vested interest in the success or failure of an organization. Stakeholders can be internal or external to the organization. Internal stakeholders include employees, shareholders and board members. External stakeholders include suppliers, customers, government agencies and the media.
In conclusion, e-Business and Internet technology play a vital role in today's business environment. E-Business has transformed the way businesses operate and communicate with their customers, suppliers and partners. It has also changed the way businesses market their products and services to their target customers. Internet technology has made it possible for businesses to connect with their customers through social media platforms such as Facebook, Twitter and LinkedIn.