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Potential Disadvantages of an Online Business Presence

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Introduction

Unit 8 - Business Online Task 3 - Potential Disadvantages of an Online Business Presence In this task I am going to describe the potential disadvantages of an online presence and give examples of businesses that may suffer such problems. I am also going to identify and describe the potential difficulties that a business may come across when implementing it e-business operations and the considerations on the desired timescale of change. Potential disadvantages of an online presence Problems relating to exposure When a website goes online it immediately exposes to the wider world. Some of the exposure is good as it attracts new customers and new markets. On other circumstances the exposures can be problematic, for the reasons I am going to explain bellow. Hostile chatrooms and negative publicity is one of the disadvantages. An online business presence can irritate its customers by poor deliveries, uncompetitive prices and late deliveries. Customers can give negative publicity using chatrooms. A business can find itself under attack in several chatrooms because the public can communicate and express themselves more easily online and to a far wider audience. An Example of business that may suffer such problem is laptopsdirect.co.uk because it offers poor delivery. The customer fears over payment security and unfamiliar trading conditions over the internet makes a disadvantage of an online presence. ...read more.

Middle

An online presence will require extensive hardware, sep-up costs (ISP charge), staff training and marketing and promotion costs. This cost large amount of money. The first stages of an online presence are very feeble as they require to invest lot of money to set up the business. But then, if the customers cope with the business, it would bring many financial benefits. Then the online presence can think about improving the services and the website. In conclusion, the initial investments of a new online business presence are a disadvantage as they will require to invest a large amount of money to set-up the business. Potential pitfalls associated with e-business implementation When an online business presence goes online there is a big risk not having the right staff, budget, equipment and time. Without these, the business will fail the customer demands. It is very important that an online presence creates a website that stays competitive and helps the business. * Potential requirements for customisation - A basic website can be created using a simple program called Microsoft FrontPage. More complicated websites can be created using programs such as Dreamweaver, Flash and Fireworks. The greater the need for customisation the greater the need for specialist skills. The disadvantage is that an online presence having a complicated website increases the money spent on the website. ...read more.

Conclusion

* Increased sales or service supply - The aim of any business online should be to improve the following: the customer service, the efficiency, the sales etc. The areas to examine such as the quality of service, the performance of the business, the important decisions, the speed of operation etc. should be frequently monitored. * Anticipated timescale of benefits - The benefits should be given priority so that these are achieved over everything else. If the main aim of the business is to improve sales and customer service, then these targets should be looked more. However, not all things can be achieved at time such as the sales of new products; the development etc may take longer to be achieved. In general, businesses use the method to set benchmarks. Benchmarks include the main objectives to be achieved and it includes the number of visitors etc. * Anticipated competitive disadvantage of not going online - This depends on the products or service being provided or sold whether these are suited to online trading or whether competitors are online. In conclusion, in this task I have described the potential disadvantages of an online presence giving examples of businesses who suffer from these problems; looking at the problems relating to exposure, vulnerability to hostile attack, potential unpopularity with staff and financial uncertainties. After this, I identified and described the difficulties of an online presence may come across when implementing its e-business operation. ?? ?? ?? ?? BTEC First in Business Unit 8: Business Online 1/5 ...read more.

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