The Three Crucially Important Conditions for Using the Internet System on Business Sectors
The increasing of population growth after the World War II was the significant factor to develop a business administration and to extend business opportunity as it brought about the increasing demand for merchandize and service. When the demand was met, businesses are necessary to respond to such a demand by meeting customers’ satisfaction and extending a new group of clients. However, if businesses want to pursue their customers’ need, they have to develop the new system and the new business device which is potential and powerful in order to support their jobs. It is inevitably “the Internet System”. Therefore, maybe it mentions that the appearance of Internet results from the enlarging of demand for merchandize steaming from the increasing of population growth. Moreover, it cannot appear and adopt into business if it has not had the potential computer technology and computer software. For example, Bill Gates cannot develop the browser called Internet Explorer or develop other software to support it if he did not initiate the specific software called Microsoft previously. This is merely one example of computer’s technology contributing to the development into Internet system.
Nowadays, everybody have accepted the contribution of Internet system and exploited this system to support his jobs both individual level and business level particularly the latter. You can notice from every web page on the Internet implicated the fundamental of a business matter. Why do entrepreneurs use Internet to support their business? It is not difficult to reflect this question. It is basically assumed that Internet takes numerous advantages to entrepreneurs; otherwise, they do not want to use it. From searching for information from several credible sources, I can summarize that entrepreneurs have three crucially positive effects of using Internet to buttress their businesses as follows: making the concept “Economy of Speed” to businesses(Pine, the New-Narco Capitalism) , increasing the competitive environment and competitiveness(Krugman, National Economic Productivity), and taking the availability to network with other businesses and organizations(Olrin, the Many available Network Marketing Business Opportunities) although in reality there are plenty of effects of using Internet system on business. In this paper, it mentions only three crucially important effects.
The first crucially important effect for using Internet system is that it can lead entrepreneurs to the concept of Economy of Speed. In 2002, the gigantic business sectors had to face the significant change in the production process when the big corporation, Toyota Motor Cooperation, theorized the new way of production process called “the Toyota Way”. In another word, it means the swifter businesses are, the more their benefits have. This theory emphasizes on the speed of production process and presently it is applied for other business sectors by using the Internet system to increase the speed of production process (Porter E, Strategy and Internet). For example, when customers send product orders to corporation through the corporation software on the Internet system, the employees in the part of production process acknowledge instantaneously about these orders, and then they can arrange raw material to produce. They cannot wait for these orders from selling co-workers. In the same time company may not cost the surpass wages for the workers in the extra time because they work in the normal time and economize for some raw materials which can share with other loops of product chain. For this reason, the products can produce and send to customers rapidly, and company can also reduce the total production cost from cutting cost of some raw materials. This principle applied from the Toyota Way Theory. In 2005 the business intellectuals and professors from several organizations and universities concoct a partial part of theory called “The Economy of Speed”
With the second advantage of using Internet System on Business sector, the Internet System can help small entrepreneurs to widen a new group of customer so as to increase their competitive power and competitive environment in their marketplace.(Porter, Competitive Strategy) It is intricate for small company particularly new small entrepreneurs to enlarge a group of customers and present their product to the public. If they want to extend a new group of client and present their product to the public, they have to spend a lot of money to do that such as making advertisement. Nevertheless, they can do it if they have only the Internet systems to support. It helps them to pay under a quite lower cost but sometimes it is more potential than hiring advertising company to propose products to customers. When small companies cut cost of advertisement, they are able to compete to bigger company in order to usurp market power, increase competitive environment, and enlarge a new niche of customer into their marketplace. Additionally, the consequence of increasing competitive power to small business makes directly the benefits of customers regarding more various product choices to consume both the part of a product quantity and product quality. (Porter E, Competitive Advantage)
From the repercussion of increasing competitive power and environment to small businesses, it leads to the enhancing of business opportunities with each other between big companies and big companies as much as big corporations and small corporations with regarding to having the availability to business networking. Amazon Company, Amazon.com, is the appropriate example in this case. The small businesses can use Amazon website to propose their products in the same time Amazon having large categories of products to sell till its website is one of ten world websites which are the larger Internet users. In this case it indicates that Amazon and small companies come into win-win situation and I can hypothesized that small businesses still depend on Amazon continuously, in the same solution, Amazon also exploits the benefit from them to enlarge his business more.(Johnson Mark, Amazon’s Smart Innovation Strategy) In addition to, other companies like Sony-Music Entertainment and Nokia Corporation is one of the proper case about business networking. Nokia links its system to the software of Sony-Music Entertainment via the Internet system when customers want to download mobile music or mobile ringtones. After customers completed to download them, Nokia will add these expenses to customers’ bill. Nokia did not devise its own software to support music service. It can exploit the benefits from the network connection with Sony-Music Entertainment via the Internet system and both of them take advantages with each other. (Temporal Paul, Hi-Tech and Hi-Touch)
In sum, the appearance of the Internet system is the significance stuff for business sectors in every level both big potent businesses and small powerful businesses including other Internet users because it gives them the benefits in several dimensions. For instance, they exploit the advantages of the Internet system for changing the level of speed in their production chains in order to lead to “Economy of Speed”. Moreover, they can take benefits from it for increasing the competitive power and competitive environment, and fostering the availability of their business networks with each other. From this information, I assume that the important role in the Internet system is probably more pivotal and more significant in the near future especially the significance of business sector.
Work Cited
Pine, Jason "New-Narco Capitalism" Duke University, 2007
Krugman, Paul "National Economic Productivity" Magazine Foreign Affair, March 1994
Olrin, Jam "The Many Availability Network Marketing Business Opportunity" April 2010. http://jorin.mit.edu/Working_Pages.html
Porter, Michale E "Strategy and Internet" April 2010. www.cis.gsu.edu/-emclean/R0103Dp2.pdf
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