The internet is one tool that has influenced virtually everyone in the world. It is hard to think of any institution where the internet has had no impact. The fast developing internet has turned to be a major force in global market changing how businesses operate in a number of ways. This essay discusses the major ways in which how businesses operate has changed in the face of internet.
A major impact of internet on global business operation is a global market arbitrage. This is a phenomenon that results from the removal or disintegration of trade barriers. Internet has reduced any unnecessary trade boundaries created by geographical borders collaboration. The creation of global market arbitrage eliminates trade barriers such as tariffs and good’s transportation cost. Due to internet businesses today operate in more favorable ways where buyers and sellers interact freely all over the world. Morever, the internet has enabled wide variety of avenues for exchanging viewpoints and ideas hence setting grounds for superior products and services.
Closely related is the impact of internet on global business regulation and oversight. The internet has enabled business operation to move faster. With the internet and invention of laptops, personal computers, ipods and such up-to date devices and programs, old-fashion ways of managing tasks have been phased out. Today, business people and individuals within organizations can easily keep tracks and their events and tasks at any time and place. This is to say that streamline operations and organizational bureaucracy are no longer problems to businesses. Regulation and oversight committees do not need to make unnecessarily long and expensive trips within businesses which have made it so easy to even manage businesses with global coverage.
Another major impact of internet on global business operation has been significant reduction of running costs. The internet reduces both advertisement and distribution costs. Marketers for instance do not have to go through advertisement intermediaries such as mass media; it is possible to reach potential customers directly for instance through social media. Not only does advertising through the internet reduce advertisement cost but it also reaches a bigger audience which translates into higher sales and bigger profit margins.
Having talked about advertisement, the internet has made it easier for start-ups and small businesses to conduct their businesses online. This means that a relatively small capital fee is sufficient to start a business which can even grow to attain a global coverage. Businesses no longer need physical offices and stores to exist. It is possible to sell virtually anything from the comfort of one’s home. A business person could for instance manage to sell home-made cakes by just advertising through the internet. Internet marketing has also made it possible to shop from home, or for businesses to shop for supplies without making physical visits to the seller. On the other hand internet marketing has led to cut throat competitions as businesses try to impress their customers and stay ahead of competitors. This has led to businesses having to put up with shipping costs and procedures of goods to their customers.
The internet has indeed greatly impacted how businesses operate in the global market place.