Global Business Environment
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Chapter 12 : Influence of the Internet on Business
Description of Internet & Internet
tools
Vague market signals
Benefiting from Internet channel
Internet, Infomediaries, Innomediaries
Industry structure in the
age of the Internet
Portals
Market makers
Product/service
providers
Industry structure and performance
No first mover
advantages
Chapter Summary
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The Internet is a network of networks i.e. computer systems
all over the world linked together so that data can be passed between them.
Different tools such as Email, Listserv, Usenet, Gopher, FTP, Telnet, the
Internet relay chart, and World Wide Web are employed when using the Internet.
Most companies have been trying to take maximum advantage of the Internet. Since
the Internet environment is quite new, they have to experiment.
This experimentation may not be economically sustainable over a long period.
Interpreting market behavior is also difficult and has to be undertaken with
caution. Companies can offer different types of services over the internet. In
some cases, they are simply substituting the services offered by a salesperson.
They can also use Internet technologies to build customer loyalty. |
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Internet technologies also enable companies to
deliver their services inexpensively, and to provide information
concerning their products/ services through features such as FAQs.
Infomediaries connect customers who want product information, and
companies who want to meet customers. Innomediaries collect and
disseminate customer-generated knowledge to companies or to other
customers or both. The Internet facilitates the tasks of both
Infomediaries and Innomediaries.
Companies are also using the Internet to collaborate with the
customers in developing innovations. Through the Internet some
companies have made available tool kits, which their engineers and
their customers can use to together develop new products.
Organizations that operate in the Internet economy are found in
three forms: portals, market makers, and product/service providers.
There is a widely held belief that early movers into the Internet
market space derive a very great competitive advantage. But research
by academicians like Michael E. Porter indicates that these
advantages are negligible, and that first movers are often overtaken
by later entrants.
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