Internet - Strategies for Traditional Business

In the future, even companies that do not participate in the Internet economy today will be forced to use Internet technologies in their business, which will lead to the disappearance of the distinction between electronic and traditional business. The Internet has forever changed the way information is shared, communicated, and transacted. Perhaps there are no more industries left that can do without the Internet in their activities. It remains only to determine how and to what extent the Internet will be applied in the traditional business of the company. Already today, the following competitive initiatives related to e-commerce are widespread:

Use of Internet-technologies for effective communication and close interaction with suppliers and consumers. We are talking about the installation of special information systems through which the company receives real-time information from suppliers and consumers, strengthening the integration of all participants in the supply chain. Such systems accelerate the exchange of data between participants in the supply chain and lead to a sharp reduction in warehouse costs and overhead costs; Reorganization of the industry and corporate value chain. Companies will have to change some activities and completely eliminate others; Increase in the share of production and assembly under the order. The automotive industry is already taking advantage of this approach; Creation of systems for processing, picking and delivery of individual orders. First of all, they are needed by companies that sell goods to individual consumers and create Web sites for e-commerce; Using the Internet as an additional channel of communication with existing and potential buyers. Traditional companies benefit from providing consumers with different ways to obtain information about goods and services, make purchases or solve problems; Using the Internet as another distribution channel to attract new consumers and tap into new regional markets. Many traditional companies, when trying to introduce (along with the usual) trade via the Internet, face serious problems in traditional channels – there are so-called conflicts in distribution channels. The fact is that the transition to electronic methods of sale undermines the business of traditional distributors and dealers, who either lose part of their market or completely lose it. Turning to e-commerce while maintaining traditional distribution channels requires a well-thought-out strategy; Obtaining information about the tastes and behavior of consumers, conducting market research and using the information obtained to more completely satisfy customers. Studying the behavior of Internet users provides a lot of valuable information.

Thus, several key factors of competitive success of electronic companies can be identified: the use of an innovative business model; adaptation of the company’s business model and strategy to changing market conditions and new opportunities; focusing on a few of the most significant activities; maintaining leadership in the development of technologies; application of innovative marketing methods; development of a value chain taking into account the peculiarities of the Internet economy, with an emphasis on obtaining a competitive advantage through cost leadership on the basis of differentiation or on the basis of the optimal ratio of price and quality.