Summary

1 The constantly changing Internet environment should be monitored by all organisations in order to be able to respond to changes in the micro-environment or the immediate marketplace.

2 The Internet has created major changes to the competitive environment. Organisations should deploy tools such as Porter's five forces and the value chain and value network models in order to assess opportunities and potential threats posed by the Internet.

3 The Internet can encourage the formation of new channel structures. These include disintermediation within the marketplace as organisations' channel partners such as wholesalers or retailers are bypassed. Alternatively, the Internet can cause reintermedia-tion as new intermediaries with a different purpose are formed to help bring buyers and sellers together in a virtual marketplace or marketspace.

4 Trading in the marketplace can be sell-side (seller-controlled), buy-side (buyer-controlled) or at a neutral marketplace.

5 A business model is a summary of how a company will generate revenue, identifying its product offering, value-added services, revenue sources and target customers. Exploiting the range of business models made available through the Internet is important to both existing companies and start-ups.

6 The Internet may also offer opportunities for new revenue models such as commission on affiliate referrals to other sites or banner advertising.

7 The opportunity for new commercial arrangements for transactions includes negotiated deals, brokered deals, auctions, fixed-price sales, and pure spot markets; and barters should also be considered.

8 Customer analysis is an important part of situation analysis. It involves assessing demand for online services, characteristics of existing online customers and the multi-channel behaviour of customers as they select and purchase products.

9 Regular competitive benchmarking should be conducted to compare services.

10 The role of intermediaries in promoting an organisation's services should also be carefully assessed.

Salehoo Secrets and Tips

Salehoo Secrets and Tips

As with any web site, SaleHoo has a number of features that will help you in buying products from around the world. Once you have an account on SaleHoo, which only costs a one-time fee, you can establish up to twenty named searches for products. After that, any time those items become available, you’ll be alerted.

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