Discussabout International business Scenario and the role of E-commerce and Web 2.0 services?
International business has observed a great turnover in the last decade. The coming of internet facilities has brought a new revolution in the international business. The whole world is now becoming one market place where every business wants to develop at the global level. E-commerce has played an important role in the development of new age business. The problem matters for the international business in the present day is due to the development of E-commerce and Web 2.0 services that has proved to be a deciding factor in the growth and development of the business. Therefore this topic has been chosen to figure out the impact of E-Commerce on international business and how Web 2.0 services affecting the global marketing place.
According to Ruber and Fischer (2011), International business actually intends to exploit the opportunities at the global arena for business development. The various factors that attract the international business is achievement of gains like economies of scale, increased customer base, enhanced demand for company products etc. Thus companies become international either by opening their production system in other countries or just sales offices that supplies company products from head offices in other countries. This helps the customers to get the world class facility and services at their door steps. The advancement in the information and technology has supported the development process of the International business. It has not only allowed the businesses to grow and prosper in different countries but also keep control over its business set ups at different places. E-commerce has helped these international businesses to increase their speed and quality of communication. This has resulted in quick and easy recording of transactions at various places. Also the decrease in cost has been achieved thereby meeting the financial constraints through the use of E-commerce facilities to support business operation and other functions. This way it has become an easier task to become a global business in the present day world (Reuber & Fischer, 2011).
Mostafa et. al. (2006) further found out that the Web 2.0 services has actually helped the top managers in different organizations to bring in influential decision making depending on the inputs received from these online sources. The customer reviews, views and thoughts are given due weightage and consideration leading to formulation of such policies that offers higher outcome for the business. This way the responses on the Web 2.0 services are taken as books of learning by the top managers so as to frame out future policies that prove more beneficial for the company. The customers also interact with each other through online chat and reviews which help each other share their personal experience and thoughts on particular product or service used lately. This affects the decision making for purchase by the customers. Finally the interaction between the customers and company officials also supported by the Web 2.0 services. These services offer the customers to interact directly with the company officials so that they can work together with their official teams to find out solution to the issues and problems faced by the customers. This way customers satisfaction is achieved through enhanced after sales service using the online medium. It could result in increasing customer loyalty and reference by the customer bringing more customers, profits and sales for the company (Mostafa et al., 2006).
However Constantinides and Fountain (2007) claims that the information available through online sources through Web 2.0 applications lacks the qualitative credentials. Therefore these inputs cannot be depended upon for policy making. Therefore it has really become difficult to decide on the inputs received through online medium to consider for policy formulation purpose. Sometimes the irresponsible and mischief people sends such information online that are not dependable at all. Therefore the companies should not reply or make policies based on such replies and reviews. Sometimes even the competitor’s plans to discourse the company by sending customer replies through undercover agents who asks for such changes in product and services that could affect the product quality of the company. This way the responses available through Web 2.0 can also prove to be business threatening and discoursing experience that may finally affect the sustenance of the business (Constantindes & Fountain, 2007).
According to Brabham (2008), international business through E-commerce has brought in various cost advantages to both companies and customers. The companies have to spend lesser on gaining popularity through advertisements. On the other hand the customers are able to see the online offers and compare the products with other brands which let them selecting the best featured and most appropriate product for themselves. Along with that customer loyalty and reduced risks on product development is also achieved through E-commerce. E-commerce therefore has brought in lesser distance between the business and customers. The customers can easily reach out to the business and vice versa. This has helped in removing the middle men that were actually causing issues and problems in delivering competitive prices and high quality products to the customers. This way the concept of direct selling has also come into function more effectively wherein the customers could make direct purchase through online sources from the company website that is dedicated to support the business operation (Brabham, 2008).
Berthon et al (2012) confirms that the development of E-commerce depends on the country development and state policies. Government of different countries frames out policies from time to time which they consider as appropriate for their country. This way they try to select the course of development for their countrymen. Thus a country with basic internet facilities will itself find ways of developing international business through E-commerce. The three elements that these countries with update internet abilities will observe is development of social media, shared value and finally institutional rules and regulations. These factors help in directing the trends towards a sustainable development of the International business in the country. The social and legal factors therefore play an important role in the development of Web 2.0 services and from them the international business activities using the E-commerce facilities. This way different government norms and conditions affect the development of social media that affect the development process in the country (Berthon et al., 2012).
The research problem includes the various issues and problems that the present day multinational businesses are facing due to E-commerce. Although E-commerce has helped the business to become multinational but it has also increased the global competition and issues like legal and social for the companies. The coming of Web 2.0 service provided the customers with the ability to give their feedback and response on public websites. This has affected the global business either by getting recommendations leading to growth and development or by getting defamation leading to serious cut down in sales. This way the ability of the new technology to allow its people to interact and respond to the international business using Web 2.0 services has brought in a change in the marketing process. The customer behaviour has become more of rationale and dependent on views and reviews of others. Also the present day customers look in for after sales service. All these have made the present day business become more customer’s friendly. On the other side the business itself has observed huge changes from the recent past. The present day business has to work hard and smart with a view to survive the rising competition in the market and achieve satisfaction for the customers.
The research questions can therefore be stated as below.
The first question is about the real life impact of the internet on the internet business. That is how it has changed the global marketing scenario. The second question is about the effectiveness of the new age Web 2.0 service which has proved as an important factor in deciding the customer trend and behaviour. The third question is about the various problems and issues faced by the international business in the present day scenario which includes competition, legal, social and other associated issues around the globe.
(Constantindes & Fountain, 2007)
The research questions will be answered using mixed method that is both Qualitative and Quantitative method. The Qualitative method will bring in data, facts and figures from the earlier research issued in journals and magazines. They will help in bringing the data in limelight that will give the indications towards the recent trends in the international business due to the application of E-commerce and Web 2.0 services. The quantitative method will help in getting the first hand information from the sample population about the impact of E-commerce on international business. This way it will a lot more easier to find out how the international business has been developed due to E-commerce. Also it will get information about the issues and problems faced by international business due to the new age growing trend of using Web 2.0 services (Berthon et al., 2012).
The research instruments used is survey through questionnaire filling from the sample of the target population. The data collection through qualitative research will be done by online research on latest articles, magazines, news, journals etc. The data collection for quantitative research will be done by filling the response of the sample of the target population on the research topic. The procedure followed will be personal contacts for surveying, interviewing and questionnaire filling.
The sampling will be done on random basis keeping in mind that the people of all age group, gender and business status gets equal recognition in the research. This way a simple stratified sampling technique will be used for sampling. The data will be collected and then filled in the software that would further help in analysing the data and getting the desired outcome. The use of latest statistical software will be used to get data figures that will later compared with other factors so that the in-depth outcome can be achieved.
Efforts will be made to keep the research valid by adding only the relevant questions in the questionnaire. The research process will be completed with due care to keep the record of the information safe. The processing of the data will be made error free at the best by taking precautions in filing data in the statistical software for further analysis. This way the reliability of the outcome is depended upon as all the precautionary measures of keeping data safe and update will be taken into consideration.
A pilot survey or testing of interview and questionnaire technique will also be made to find out the outcome and making its comparison with the desired and estimated outcome. Hence we will be able to figure out if the questions are relevant, understandable and fully comply with the research work. This will help in evaluating the questionnaires and interviews such that they meet the research objectives and finally are capable enough to find out answers to the research questions (Chen & Holsapple, 2013).
The ethical implications of my work will be that the personal information of the respondents will be kept secret. Also the questionnaires will be read out to them if required to ensure clarity of the research objectives and the questions that are required to be filled. Proper space and time will be allotted to the respondents so that they can carefully answer all questions without any pressure of time and enjoy full secrecy in responding.
I will gain access to the qualitative information through browsing of the research material on online magazines, news, journals etc. Further I will gain access to the quantitative information through personal contacts with the target population.
(Azam, 2007)
References:
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Brabham, D., 2008. Crowdsourcing as a model for problem solving: An introduction and cases. Convergence.
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