Impact of the web on the Macro-environment

  1. Explain the impact of the Internet on the macro-environment.

The macro-environment requires a broad perspective of the factors that effect a firm's strategy and performance. Developing fads in the macro-environment can present significant opportunities and hazards to a firm's strategy. Therefore, first of any strategy formulation, it pays to to investigate the styles that characterize the macro-environment in its different proportions: politics, legal, economic, sociable and technological.

The political and legal environment

The politics and legal environment pertains to issues on different organizational levels. At country and industry levels, it includes issues such as taxation, monopoly legislation and environmental laws and regulations.

New IGR Review Forecasts That Almost 98 Percent of Broadband Data Use in U. S. Homeowners will be on Wi-Fi Devices by 2018. Many government authorities recognize that Internet is future and just lately India recently elected government released Broadband high ways as their major plan. Developed countries like US are marching towards 1+ Gigabyte speed and producing countries want towards LTE and 4G systems.

Ecommerce companies have already started concentrating on 3D Augment certainty or content wealthy mobile software or web applications to capture Broad Band Internet Wi-Fi influx.

The economical and communal environment

The financial environment identifies broader economic advancements within the context of your country, a local dimension or globally. One of these of how this aspect impacts the business was the climb and land of dotcom companies.

The sociable environment considers factors such as inhabitants demographics, income syndication between different areas of society, social mobility of individuals, and differing behaviour to work and leisure.

According to US census Bureau

In 1997 18. 7% households got Internet use and mainly 59% of these are family computer users using to learning them.

In 2012 78. 9% of most households possessed a computer at hom. 94. 8% of them used to hook up to Internet

Every home is linking to Internet from different devices like laptop computers, computer, devices, tablets, game consoles, advertising cast devices. Cloud is new standard for storage area. By 2018 most people will be saving on cloud.

The above all figures show how Internet is influencing average consumer decisions.

The technical environment

The technological environment is of significant importance in the context of e-business. Technologies (such as the Internet or wireless devices) resulted in the emergence of new market opportunities and business models

With Invent of IPhone in 2007 new era has commence in mobile computing. Technology in Internet is moving at faster stage. The Internet Infrastructure is moving towards 1 Gigabyte + acceleration. In very forseeable future, house locks and Automobiles will be connected to Internet. Home automation through Internet is likely to be popular soon.

  1. Review the impact of the internet on the five pushes industry framework and make clear how it works

Porter proposes a five causes framework, which describes the key factors determining a firm's capacity to capture the quality it creates.

The five forces provide a guiding platform for understanding the sustainability of profits against competition and bargaining power. The five structural features that determine industry elegance are: (1) industry rivalry, (2) obstacles to access, (3) alternative products, (4) bargaining electricity of suppliers and (5) bargaining electricity of buyers.

Industry rivalry occurs when firms within an industry have the pressure or the possibility to improve their existing market position. High power of rivalry in a industry results from the next structural factor

The Internet trend geographical boundaries are receiving reduced. People anywhere in the world are getting connected to the other person through Internet. Inside e-commerce industry there are so many mergers and acquisition of companies taking place because fierce competition and rivalry to gain Internet customers.

The recent spat between Verizon and Netflix depicts basic example for latest Industry rivalry. The National Communications Commission (FCC) has demanded usage of private peering contracts between Netflix and Comcast as well as between Netflix and Verizon. The agreements are central to an ongoing dispute between your Internet providers and Netflix about the speed of which the streaming training video is sent to consumers.

Barriers to entry determine the risk of new opponents to enter the market of a particular industry. As Internet accessibility is low priced every one thought it would get rid of most barriers to entrance.

But as Brick and mortar companies has enough identification and cash they found it easy to start Online business than the companies, which don't have any occurrence.

Out of many Internet companies, very few companies like Alibaba, eBay, Amazon succeeded. There may be steep learning curve for Internet business but still success is not that easy.

If there are numerous competitors, then individual firms may choose to make a competitive move, e. g. by minimizing prices. Furthermore, the Internet has reduced the importance of geographic limitations, which usually limited the amount of competitors within a region. For instance, B2B e-marketplaces, such as alibaba. com, amazon. com (quickly broadened into new locations. Since competition following a same strategy, competition became more intense.

Companies like Yahoo, Amazon, Apple, and Microsoft are acquiring the intellectual investments to prove the dominance on music Industry and increasing huge market share whose market share is non-existent a decade ago.

Since the intro the iTunes Music Store on April 28, 2003, music sales have plummeted in america -- from $11. 8 billion in 2003 to $7. 1 billion last year 2013, based on the Recording Industry Relationship of America. When fine-tuned for inflation, income has been more than halved since Apple (AAPL) launched the iTunes Music Store

Nevertheless, the iTunes Music Store's influence on just how people buy music within the last a decade has made certain that the music industry will never again be the same.

Regarding substitute products and bargaining ability, the Internet has increased the competition where low priced and high cost products can be found on same platform, which is open to all. Internet has opened up entrances so that similar kind of products availability is no scarce. With minimizing shipping costs, consumers are not afraid to shop online from different countries. The barging electricity of consumer and supplier both increased because of fierce competition and simple availability and presence on Internet. As there are less and less Physical barriers in the Internet time companies are also releasing their products in various countries at same time

  1. Go to www. ecommercetimes. com, which gives a sensible archive of e-business-related articles an publications. Select one to article on.

Amazon's About to Planting season a 3D Smartphone

The article talks about about rumours and possible success of Amazon Cellphone. Few encrypts from this article and my views are reported below

Can Amazon disrupt the smartphone market with its own top quality 3D device? It isn't likely Samsung and Apple are too worked up over the chance. On the other hand, Amazon might not have to make a lot of income on its phones. If it can please it's dedicated hordes of customers with a new way to shop for its goods and content, that may be the big differentiator that spells trouble for opponents.

In my view, this is a good move by Amazon. Today Amazon released its telephone and reviews are positive. I really believe still m-commerce still did not pickup its speed like e-commerce. People like me still be reluctant to look through phones because search is clumsy on small screens and reading reviews not user-friendly. But Amazon shows its product in 3d view, if its success then others will follow.

"This is not the first 3D phone we've seen. HTC released one; so have LG. Since that time, we haven't seen a 3D telephone on the market. 3D all together, on devices, hasn't really taken off. As a subject, as a feature, it just does not have that kind of long lasting quality, " Ramon Llamas, mobile phones research supervisor at IDC, informed the E-Commerce Times.

"The thing that really makes sense to me is that they could tie it into shopping, "

"Amazon is nothing if not just one of the best trusted online retailers. Shopping over a smartphone is difficult: You don't have a lot of real property. You don't have a lot of space, but if you can show people almost in 3D what you can do with this, that might be pretty nice. But I must rein my passion back because that's a great deal of content you have to put through the 3D machine in order to offer it, " Llamas pointed out

I believe that with mobile payments in next to feature Amazon learn to innovate somewhere so that it cannot loose it customers to brick and engine.

"The stakes are pretty high, " said High Karpinski, mature analyst at the Yankee Group. However, "the odds of it being successful in the smartphone business are not high. It's brutally competitive, and new entrants have a hardcore road before them.

"Facebook, specifically, has shown affinity for mobile phones, has a great brand and huge user basic, and has failed. Amazon, of course, did very well with tablets -- but mobile phones are a different storyline, " Karpinski informed the E-Commerce Times.

"What I am most restless to determine is how much Wall Street allows Amazon to invest in losing profits in the smartphone business in the expectation of which makes it up in the areas, " said Carl Howe, vice president of research and data sciences at the Yankee Group.

I think from Amazon side this is a good move whether Mobile itself is successful or inability. Already the handset market is too congested, but people still like innovation. Amazon is relocating direction and millions of its shopping lovers are prepared to line up.

  1. Outline the e-business market segmentation matrix based on its two underlying dimensions.

The e-business market segmentation matrix classifies different kinds of discussion between consumers, businesses and governmental companies.

The e-business market segmentation matrix provides an overview of different participants in electric business. It differentiates three types of participants - consumers, businesses and federal - who are able to act as both suppliers/providers and customers/recipients.

The consumer/peer/citizen as a dealer/provider

Through the web, consumers can act as suppliers themselves. Consumer-to-consumer (C2C) romantic relationships are those where one consumer serves as a company and sells goods to other consumers. Probably the most prominent examples for C2C connections are Internet auction places, such as eBay, where consumers can sell used and new products to other consumers. When relationships between individuals are not of commercial nature, we call them peer-to-peer (P2P) connections. These are voluntary in dynamics and are cost-free. Types of P2P sites include online music-sharing programs, such as Kazaa and Gnutella.

The second romantic relationship enter this section is the consumer-to-business (C2B) marriage, where, in general, consumers supply businesses with information about their activities with products. Examples of C2B interactions are the reserve reviews at Amazon. com and consumer thoughts at Ciao. com, a product-comparison program. The info that consumers provide is then distributed to other consumers to help them make more prepared purchasing decisions.

The third category in this segment includes consumer-to-government (C2G) relationships, like the online distribution of tax come back varieties, and citizen-to-citizen relationships. An interesting example of the last mentioned is the partly Internet-based campaign that Howard Dean is operating in the USA for the 2004 presidential election. Through the primaries of the Democratic Party, Dean leveraged the Internet as a primary platform for interacting with supporters and individuals at large, outlining at length his viewpoints on different insurance policy issues and boosting funds. For example, his website has in-depth portions on such diverse issues such as agriculture, advertising campaign financing, education, health and foreign insurance policy.

The business as a provider/provider

The most typical form of relationship is one where businesses act as suppliers to other get-togethers. In business-to-consumer (B2C) relationships, firms sell products and services through online means directly to their customers.

Business-to-business (B2B) relationships are systems for the web purchase of operating or production inputs that other businesses dependence on making their products and services. The e-marketplace program Covisint, which will serve car manufacturers (as clients) and component suppliers (as vendors), is a visible example of a B2B program.

Business-to-government (B2G) connections include for illustration, the online submission of corporate taxes return forms.

The authorities as a supplier/provider

Compared with the above mentioned two categories (i. e. consumers and businesses), federal activities in e-commerce have so far been relatively low. However, this is changing, and it can be expected that in the foreseeable future a substantial part of governmental companies' connections with people and businesses will be conducted online (for a detailed discourse of e-government applications, start to see the e-government case study, p. 000).

The e-business market segmentation matrix shown below provides a classification of the several interaction types permitted through the web.



e. g. eBay - peer to peer

e. g. Craigslist

Business to Consumer:

e. g. Ducati. com, The modular Project-Google

Goverment to Citizen:

e. g. Information regarding pension statements of citizens, Rules. Gov



e. g. Amazon. com


e. g. Alibaba. com

Goverment to Business:

e. g. Information regarding latest legal regulations


Citizen to Goverment:

e. g. Online Tax return forms

Business to Goverment:

e. g. Online filling of corporate duty returns

Goverment to Goverment:

e. g. exchange of diplomatic information

5) On online and choose an e-commerce example and discuss what sort of company can use the web to put into action the co-opetition principle.

While the five forces industry framework focuses on the unwanted effects that market individuals may have on industry attractiveness, the co-opetition framework enriches this point of view by highlighting that relationships with other players can also have a positive impact on profitability. These interactions can include (1) joint setting of technology and other industry criteria, (2) joint innovations and (3) joint lobbying.

The term, co-opetition (co-opetition) is a mixture of what cooperation and competition. It's the concept that competing businesses sometimes benefit by cooperating so that every gains higher capacity to contend in the market.

Today Amazon declared it's liberating its new Amazon telephone entirely on AT&T network. This is a good example of co-opetition. It proved helpful for Apple before and Amazon attempting to check out the same mantra. Rather than releasing multiple service providers at same time exclusivity in the beginning gives more target for Amazon. For AT&T its succeed situation as it's the only professional for Amazon mobile phone if it is launched.

Future co-opetition example, which can impact repayments industry, is discussed below.

If Apple comes with lets say ITunes wallet many repayment institutions will be in trouble. Apple cannot get it done alone and it requires to co-op with some one

In current scenario

Vendors are unwilling to buy new equipment for handling obligations unless enough customers demand it. Customers however, are likewise hesitant to employ a payment system that vendors don't support. Apple, an organization that has millions of iTunes accounts, could've solved this.

Imagine a repayment system, which can read your ITunes bank account straight from any product owner location on your mobile or tablet.

Whom the Apple should co-op with?

If it co-op with Visa and Expert credit card then ITunes wallet will be a huge success

Why to co-op with MasterCard/Visa/Amex- Mixed market show of three companies is 85%.

Apple's move troubles both e-Bay's (EBAY) PayPal and retail consortium MCX, Morgan Stanley says in a report

For a Customer Apple is a observed brand same as Master cards, Amex and Visa. For Payments to happen through Phone there is certainly lot of responsibility and Apple needs Professional greeting card, Amex and Visa network and competence to achieve payments. I hope this friendship may happen for real and cardholders will not carry any more plastic in forseeable future.

The same co-opetition will happen between credit card companies and Google in near future also I really believe. But if Apple begins first rest will observe to achieve success.


http://www. wisegeek. com/what-is-co-opetition. htm#didyouknowout

http://www. computerworld. com/s/article/9247242/Microsoft_scraps_Windows_first_practice_puts_Office_on_iPad_before_Surface

http://newtech. about. com/od/mobile/a/Apple-And-Mobile-Payments. htm

http://news. shareholders. com/technology/051314-700657-apple-ties-seen-growing-with-credit-card-networks-in-mobile-payments. htm

http://blog. starpointllp. com/blog/?p=3776

http://www. marketwatch. com/story/new-igr-study-forecasts-that-almost-98-percent-of-broadband-data-use-in-us-households-will-be-on-wifi-devices-by-2018-2014-06-18

https://www. census. gov/hhes/computer/files/2012/Computer_Use_Infographic_FINAL. pdf

http://www. techtimes. com/articles/8501/20140615/fcc-wants-to-play-referee-in-netflix-v-comcast-verizon-fight. htm

http://money. cnn. com/2013/04/25/technology/itunes-music-decline/

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