• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Potential Disadvantages of an Online Business Presence

Extracts from this document...

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.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our AS and A Level Internet section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related AS and A Level Internet essays

  1. Marked by a teacher

    Benefits of an Online Business Presence

    3 star(s)

    SET is not itself a payment system, but rather a set of security protocols and formats that enables users to employ the existing credit card payment infrastructure on an open network in a secure fashion. When the cardholder buys online the credit card company authenticates the card via digital signature.

  2. Marked by a teacher

    ict online service

    when you are on the phone you can go into detail in a conversation Commerce Online shopping Online shopping is when you buy products using the internet. In the modern society many people buy things online as they find it easier and less depressing, as going out wasting time looking for things to buy.

  1. In assessing the competitive position of a large online trader, we would use the ...

    The bargaining power of the consumer is based on the competitive strategies of each active firm in the industry. Thus, consumers can challenge one firm for charging more than the other one such that the firm will beat the price of the competing firm.

  2. Know the benefits of an online presence.

    Whilst it may be worthwhile taking a long or tedious journey on a special occasion, most people would prefer to make routine purchases quickly and easily online.

  1. Online dating services - review

    proposition due to the increasing pool of users is increasing to the point where it overcomes more and more people's preference for offline dating. 8 Decision between Services While it is important to understand the increases in online dating as a whole, another important question to answer is: which service

  2. Design and create a website for a company of my choice. I have decided ...

    that they will be able to get in touch with the company. This would be beneficial for the customers as this means they can have different options of contacting the company. Question fourteen shows that most of the people are connected to a printer so they can print off any

  1. Making a website for a specific company

    Not everyone has Publisher, or even the up-to-date version. Here is a questionnaire that was asked in the hypothetical situation that the person was the client for our website: What would you want the page for? Information. Who would be your desired audience?

  2. Online Business Activity

    There are also some disadvantages for the user: user must have basic computer skills and Internet knowledge, security concerns like "hackers" accessing the bank accounts and finally the user need and account with an Internet Service Provider (ISP). Examples The majority of the banks operating in the UK have banking online accessible for its costumers.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work