E-Business Case Study
Basically, TechSmart.com.kw can be divided into several units which may be viewed as separate business but their effectiveness increases substantially as they are united in one company.
First of all, it is possible to speak about the distribution unit which actually searches for the newest products and serves as an intermediary between producers and TechSmart.com.kw. Another unit is focused directly on sales of the electronics and other products the distribution units supplies for the company. Furthermore, it is possible to single out the shipping unit which deals with the delivery of the products sold by the company to customers.
It is extremely important that the company has an IT unit which deals with all IT applied in the website and the company at large, it also provides the company security as well as the security of private information of customers. Finally, it is possible to single out the advertising and PR unit which deals with the promotion of the company and products it offers to customers as well as with public relations of the company.Obviously, Internet can facilitate dramatically the functioning of new business, if the company is divided into several units as suggested above. In fact, Internet will make the interaction between the units more effective, faster and better coordinate. Internet will make it possible to coordinate the actions of all units from search of a product to its shipping to customers. for instance, a new products appears, the distribution unit offers it to the sales unit, the latter addresses to the advertising unit to promote the new product and find the customers and, as soon as the customer is found, the product is sold and delivered by the shipping unit.
At the same time, all the transactions are secured by the IT unit.In general the new structure will be more effective than traditional one since all units will be specialized on and responsible for their particular function that will naturally increase the effectiveness of their work compared to a company which attempts to fulfill all the functions without such division and specialization because it is really hardly possible to find such universal professional that could equally successfully distribute, sell, promote, and ship, products in a secured environment. Moreover, Internet will also make it possible to decrease administrative expenditures compared to traditional companies. For instance, there is no need employ such a number of people as traditional companies do. Moreover, the employees may be situated in different parts of the country or even world. They will also have an opportunity to communicate with each other at any moment at any place.
On the other hand, there are certain disadvantages of using Internet. For instance, there are customers which did not get used to buying on-line, especially senior customers. Also, Internet deprives the company from the direct contact with customers, i.e. its representatives cannot directly communicate with customers, see their reactions, emotions, psychological state that is very important in sales.
For instance, it is easier to persuade a customer to buy a product when the communication is real and not virtual.Thus, regardless certain disadvantages, Internet provides really great opportunities to perform successful business due to the flexibility, accessibility and comfort offered to customers. At the same time, the division of a company into specialized units may increase the effectiveness of its work.On-line services to travelers may be very helpful to customers but, at the same time, often they have certain limitations. It should be pointed out that on-line services are relatively new services.
Nevertheless, they have already become popular due to the fact that they are very convenient to use. Obviously, customers will enjoy an opportunity to receive all essential information about their destination and services offered on-line without even leaving their home or office. Furthermore, on-line services are really timesaving since customers do not need to go to an office of a travel agency, for instance. Moreover, on-line customers have larger opportunities to analyze different offerings more carefully since they can do in a comfortable atmosphere, they can discuss the offering with their relatives, friends, etc. Finally, they can access on-line services at any time they like.Naturally, there are certain limitations.
For instance, some companies, such as American Airlines and Aer Lingus allow customers to bid only on certain types of tickets that can make certain difficulties to customers. Furthermore, it is not always possible to use on-line services since many small companies that may offer really cheaper services but of a good quality do not always offer on-line services to their clients. At the same time, it is necessary to remember that on-line services to travelers cannot fully guarantee that the services paid beforehand would be offered to customers in time. For instance, the delay of a plane can lead to the change of travelers plan and, thus, it will be necessary to make some changes in the schedule and travelers plans. Nevertheless, the limitations of on-line services to travelers are quite few and this kind of services is quite convenient to customers.Bibliography:Benfari, R.
C. Understanding and changing your management style. San Francisco: Jossey-Bass, 1999.Whitely, D. E-Commerce: Strategies, Technologies and Applications.
1st ed. Berkshire, England, McGrawl Hill International (UK) Limited, 2000.
