Emerging Concepts in Entrepreneurship Growth
The emerging concepts in entrepreneurship growth are indicated by the increasing use of the internet and e-commerce. Development in information technology has made their uses possible.
Internet is a worldwide web of computer networks. It connects more than 900 million computers all over the world. It is the largest source of information which is shared worldwide. It has appeared as a worldwide distribution channel for goods, services and other products. It has provided speed and flexibility. It is having a tremendous impact on the global marketplace. It has made the customer powerful.
Doing business electronically through internet websites is simple. It requires online computers and communication devices. It provides low cost and efficient way to display products, provide product information, attract customers, handle purchase order and receive payment. Websites are updated regularly based on customer feedback.
The use of the internet by entrepreneurial ventures in increasing. It is used for product display, customer identification, advertising, product sales, customer services, and communication by e-mail. New and potential customers can be reached. Business related information is quickly gathered.
Internet websites need to be attractively designed and timely updated by entrepreneurs. It requires three steps:
- Build the website to display products and take orders electronically. It should be user-friendly and easy to navigate and main important always cost should be reasonable.
- Find someone having a web server to host the website. Get the website listed.
- Advertise and promote the venture and its products on the website. Update the contents periodically. Focus on bargain prices.
E-commerce is establishing an exchange relationship electronically through e-mail, internet, and electronic platforms to satisfy the individual needs of customers. It is direct marketing based on electronic communication. It provides opportunities to sellers and customers for interaction and individualization. E-commerce is conducted through online computers. Internet serves as the communication channel.
How to Build Customer Connectivity through e-commerce?
E-commerce takes a customer concept for individualized marketing. It is rapidly growing day by day.
Connecting with Customers
- E-commerce connects directly with customers on one-to-one basis. Voice mail has facilitated interactions with customers. Connectivity can be Business to Customer (B2C), Business to Business (B2B), Consumer to Consumer (C2C) and Consumer to Business (C2B). Database are build to provide information about individual customer. Cost time, distance and space are minimized.
- E-commerce connects with carefully selected customers. It targets profitable customers.
- E-commerce connects customers for a lifetime. It helps build relationships to make long term profits. The lifetime value of a customer is managed.
Connecting with Stakeholders
- E-commerce connects with stakeholders, such as employees, suppliers, competitors, middlemen, and marketing intermediaries. Paperwork is eliminated.
- E-commerce connects with strategic alliance partners. They can be related to marketing, logistic s, technology, finance.
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- E-commerce has facilitated connections with global customers and partners. It has expanded the geographical coverage of purchasing manufacturing and marketing.
Main features of E-commerce
The following are the features of E-commerce.
- Individualized Communication: Communication is individualized. Interaction is with the carefully selected individual customer. E-name is used for this purpose.
- Data Depository: Internet is a central depository of huge amounts of data. It can be accessed all over the world through search engines. Websites contain information. They can be downloaded as needed.
- E-mail and Electronic Platforms: E-mail and computer faxing is used for speedy transfer for messages to conduct business. Electronic platforms can be:
– EDI: Electronic Data Interchange for placing orders to suppliers. It is business to business exchange of data.
– ATM: Automatic Tellers Machine to facilitate receiving digital cash. Smart cards are used to make payments.
– Computers: They receive orders from customers.
Online Selling: E-commerce uses online selling. It has revolutionized selling through E-tailing, especially for:
– Airlines tickets and hotel bookings.
– Shares and financial services.
– Cars and other vehicles
– Computer hardware and software
– Books and music
– Consumer electronics
– Fashion goods
Relationship Marketing: E-commerce builds long term mutually satisfying relations. This leads to lifetime loyal customers. The relations are based on superior customer value and satisfaction. Long term profits are made by lifetime customers loyalty.
Impact of E-commerce on Entrepreneurship
E-commerce has impacted entrepreneurship in the following ways:
- Direct Marketing: E-commerce is replacing middlemen. Direct marketing between manufacturer and customer is used to generate sales. Personal selling is disappearing. Business to business marketing is growing fast through internet. Customer is empowered.
- Electronic Marketing: E-commerce has led to growth of sky-shops. face-t0-face interactions between marketer and customer are decreasing. Time saving is significant in marketing transactions.
- Cost Effective: E-commerce has become cost effective. Middlemen commissions are vanishing. Consumers get attractive deals. Distribution costs are also decreasing. E-mail involves a fraction of cost of direct mail.
- Marketing Mix: Marketing mix can be customized to meet the ends of an individual customer. Information can be gathered for market research.
- Promotion: Promotion is through e-mail and websites. Ads are placed online. Competition is internet-based. Sales promotion is targeted.
- Strategic Alliances: Global strategic alliance is developing. They are collaborative partnerships between organizations to pursue a common goal. They transfer technology and share resources and knowledge for specific objectives.
Limitations of E-commerce for Entrepreneurs
- Limited Exposure: Internet is used by a limited number of customers. It is mainly used upscale customers.
- Time Consuming: Millions of websites create cluster and chaos. Browsing the internet can be time-consuming and frustrating.
- Security: Unauthorized purchases create security problems. Commercial spying is possible. Security of data transactions may not be ensured.
- Ethical Concerns: Information abuse is an ethical concern. Privacy of users can be invaded.
E-commerce Strategy for Entrepreneurs
Entrepreneurs can follow 3P growth model for pursuing E-commerce. It was developed by Ernst and Young. The stages of this model are as following:
- Presence: The E-name is registered. The entrepreneur builds excitement products of the venture in the market place to make its presence felt.
- Penetration: The entrepreneur focuses on gaining greater market share for the products. Virtual integration is established.
- Profitability: The entrepreneur focuses on increasing revenue. It can be through business-to-business transactions and increased operational efficiencies.
What is e-entrepreneurship Concept?
E-entrepreneurship involves starting an online business through the internet by creating a website. The decision to venture in e-entrepreneurship should be based on the following factors:
- The product delivery should be economical and convenient. Fresh fruits and vegetables for individual customers are not suitable for online sales.
- The product should be interesting to a large number of customers.
- The entrepreneur should be willing to deliver the products outside own geographical location.
- There should be a possibility of cost reduction.
- The entrepreneur should have ability to draw customers to its website with speed.
- Credit card payment should be acceptable.
- E-mail response system should allow customers to sent their response to the entrepreneur with speed.
- The website should be advertised online in appropriate search engines.
Internet is a worldwide web of computer networks. E-commerce is establishing an exchange relationship electronically through e-mail, internet, and electronic platforms to satisfy the individual needs of customers. It is direct marketing based on electronic communication. Internet websites need to be attractively designed and timely updated by entrepreneurs.