Научная статья на тему 'THREATS AND BUSINESS PROSPECTS TO THE INTERNET'

THREATS AND BUSINESS PROSPECTS TO THE INTERNET Текст научной статьи по специальности «Экономика и бизнес»

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Ключевые слова
ADVANTAGES / INTERNET / CONSUMERS / ELECTRONIC COMMERCE / SWOT

Аннотация научной статьи по экономике и бизнесу, автор научной работы — Amiraghyan L., Pantykin D.

In this article the analysis advantages and threats of the electronic Commerce market and reviewed the main categories of issues of internal and external risk factors.

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Текст научной работы на тему «THREATS AND BUSINESS PROSPECTS TO THE INTERNET»

СОВРЕМЕННЫЕ ТЕХНОЛОГИИ УПРАВЛЕНИЯ

ОРГАНИЗАЦИЕЙ

УДК 65

L. Amiraghyan student

2 master student, Institute of Management in the economic, ecological

and social systems

ENGINEERING AND TECHNOLOGY ACADEMY SFU

D. Pantykin student

2 master student, Institute of Computer Technology and Information

Security

ENGINEERING AND TECHNOLOGY ACADEMY SFU

Russia, Taganrog Scientific director: A. Andrienko assistant prof. offoreign languages

Амирагян Л.М. студент 2 курса магистратуры институт управления в экономических, экологических и

социальных системах Пантыкин Д.С. студент 2 курса магистратуры институт компьютерных технологий и информационной

безопасности

Инженерно-Технологическая Академия ЮФУ

Андриенко А.С. научный руководитель, доцент кафедра иностранных языков Россия, г. Таганрог THREATS AND BUSINESS PROSPECTS TO THE INTERNET Annotation. In this article the analysis advantages and threats of the electronic Commerce market and reviewed the main categories of issues of internal and external risk factors.

Keywords. Advantages, the Internet, consumers, electronic commerce, SWOT.

Internet is changing the development of electronic commerce. Using ecommerce businesses can trade with other businesses or consumers from any part of the world at whatever time, bringing more business opportunities. Some of the businesses have reacted and developed their e-commerce to cope with the changes, but some others have been eliminated as a result of the challenge to their traditional business model.

Every day business owners go to the web to draw information about

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important issues on topics like human resource, legal challenges and opposition from competitors. And yet despite the incredible benefits of this priceless resource, there is negative side which have serious threats.

Firstly, we must consider the benefits of e-commerce. E-Commerce advantages can be broadly classified in three major categories:advantages to organizations, advantages to consumers, advantages to society.

Advantages to Organizations

1. E-Commerce helps organization to reduce the cost to create process, distribute, retrieve and manage the paper based information by digitizing the information.

2. If organisations use e-commerce it can help them expand their market to national and international markets with minimum capital investment.

Advantages to Consumers

1. Eliminating the limitation of store-timings is a big convenience for consumers.

2. A customer can put review comments about a product and can see what others are buying or see the review comments of other customers before making a final buy.

3. E-Commerce increases competition among the organizations and as result organizations provides substantial discounts to customers.

4. Easier to compare prices. There are several shopping search engines and comparison shopping websites that help consumers locate the best prices.

Advantages to Society

1. E-Commerce helps government to deliver public services like health care, education, social services at reduced cost and in improved way.

2. Customers need not to travel to shop a product thus less traffic on road and low air pollution.

3. Business on the Internet helps reduce the cost of production.

So, e-commerce may increase sales opportunities since sales can take place at any time during the day and the market is no longer restricted to the place where the business has established its sales force. Orders can come from any part of the world as long as the potential customers can find the vendor's website. In some industries, e-commerce may cause the elimination or reduction of intermediaries and manufacturers may benefit by reducing the selling and distribution costs paid to these intermediaries. Furthermore, e-commerce enables businesses to link directly with their customers.

All of these are undoubtedly benefits, but there are also downsides. Nearly anyone can start an online business, which means competition is fierce. Also there can be hacking, which may deter some people from online transactions.

E-Commerce Disadvantages

Of course, e-commerce isn't perfect. It's all online, which means that customers can't touch or feel or try on your products before buying. Online transactions often feel less personal, which can make it harder to make a genuine connection with your customers to keep them coming back for more.

So, e-commerce has two major categories of disadvantages:

1. Technical disadvantages

• Software development industry is still evolving and keeps changing rapidly.

• Can be lack of system security, reliability or standards owing to poor implementation of e-commerce.

• Could be software/hardware compatibility issue as some e-commerce software may be incompatible with some operating system.

2. Non-Technical Disadvantages

• User may not trust the site being unknown faceless seller. Such mistrust makes it difficult to make user switch from physical stores to online/virtual stores.

The reality of doing business online is that your site may get hacked. Customers want to feel secure when they make an online purchase and want to be reassured that their financial information won't be shared or compromised.

Often companies are using SWOT-analysis to better understand and predict threats to commerce on the internet.

S.W.O.T. is an acronym that stands for Strengths, Weaknesses, Opportunities, and Threats. A SWOT analysis is an organized list of your business's greatest strengths, weaknesses, opportunities, and threats.

Here are some questions to ask during a SWOT analysis.

Strengths (positive factors)

Strengths describe the positive attributes, tangible and intangible, internal to your organization. They are within your control.

• What internal resources do you have?

• What do you do well?

• What advantages do you have over your competition?

Weaknesses (negative factors)

• Does your business have limited resources?

• What areas need improvement?

• What does your business lack?

• Is your business in a poor location?

Opportunities (external, positive factors)

Opportunities are external attractive factors that represent reasons your business is likely to prosper.

• What opportunities exist in your market or the environment that you can benefit from?

• Is the opportunity ongoing, or is there just a window for it? In other words, how critical is your timing?

• Is the perception of your business positive?

• Have there been other changes in the market the create an opportunity?

Threats (external, negative factors)

Threats is external factors beyond your control that could place your strategy, or the business itself, at risk. You have no control over these, but you may benefit by having contingency plans to address them if they should occur.

• Who are your existing or potential competitors?

• What about shifts in consumer behaviour, the economy, or government regulations that could reduce your sales?

• Has a new product or technology been introduced that makes your products, equipment, or services obsolete?

• What factors beyond your control could place your business at risk?

• Are there challenges created by an unfavorable trend or development that may lead to deteriorating revenues or profits?

The point of a SWOT analysis is to help you develop a strong business strategy by making sure you've considered all of your business's strengths and weaknesses, as well as the opportunities and threats it faces in the marketplace.

Using SWOT analysis will give you a broad overview of ecommerce industry trends, show you where you stand in relation to your competitors, and provide insights into mitigating your weaknesses and building on your strengths.

The Internet is a powerful tool that can make your business more productive and profitable.

References:

1. Preimushchestva dlya predpriyatij, ispol'zuyushchih internet // [Elektronnyj resurs] URL:http://smallbusiness.chron.com/benefits-businesses-using-internet-322.html Data obrashcheniya: 27.12.2016.

2. Ehlektronnaya kommerciya - Preimushchestva // [Elektronnyj resurs] URL:https://www.tutorialspoint.com/e_commerce/e_commerce_advantages.htm Data obrashcheniya: 27.12.2016.

3. Nedostatki i preimushchestva ehlektronnoj kommercii // [Elektronnyj resurs] URL:http://wmgood.ru/articles/advantages-and-disadvantages-of-e-commerce.htm Data obrashcheniya: 27.12.2016.

4. SWOT-analiz dlya kompanij ehlektronnoj kommercii // [Elektronnyj resurs] URL:http://www.practicalecommerce.com/articles/3971-SWOT-Analysis-for-Ecommerce-Companies Data obrashcheniya: 30.12.2016.

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