Q.1 to Gain their Market (Curwen, P. (2006)

 

Q.1 Explain the key issues and growth challenges faced by an online company in the highly competitive Internet economy.

In Highly Competitive Environment, there are several issues that faced by an online company. such challenge and issue that Companies are facing Are Given Below.

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Cultural & Language Barriers:

An online company needs to appeal to all the users throughout the world. However, it is a challenge for a western online company to run in the Middle East or the eastern countries such as China

Monetization Models:

Any barrier in Language or Communication can easily hinder the monetization because without proper monetization it’s difficult to the sold product on different geographical locations Therefore, any barrier in language or communication channels can easily hinder the monetization models of the company. For example, to overcome the cultural barrier and Entry in China & Korea Market, eBay Target the Local companies of China & Korea to Gain their Market (Curwen, P. (2006) Will Skype Fever Abate Before it’s too late)

According to Hagiu (Strategic decisions for multisided platforms), an online company is also likely to face a challenge in coming up with the monetization model. Because It’s not easy for any online company to sell his product in different geographical locations without proper monetization model.

Communication Channel:

Every Growing Company is likely to get many users and it is very difficult to communicate with all at the same time it’s a huge challenge for IT Infrastructure of Company. As well as the growing online companies also faced the problem of Handling Large Volume of Online Data and the companies need to handle these Problems without Compromising on the User Experience

Customer’s loyalty:

 it’s a huge challenge for an online company to make new Customers and keep up old Customer Trust and Loyalty because the seller and Buyer doesn’t know each other or nor they can see while making any transaction

Shipping:

It is very difficult for online companies to manage their shipping transaction because It is easy to help the online trade but it’s very complicated to ship the product and make sure that it will reach safely to the destination. Shipping always becomes a huge challenge when large volumes of products involved. The delays and the possible loss and damage to goods during shipments have a profound effect on the customers.

Product return and refund:

The Online Companies are also Facing the Problem of Return and Refund Because before buying any product Customer focus on the return and refund policy and most customers want to see the Payment option is cash on Delivery (COD), and refuse to accept the delivery.

 If the item or product returned or damaged for any reason or customer dissatisfied from the product, then it’s a huge loss of company Reputation and Shipment

 

 

 

 

Q.2 Explain the issues related to the impact of technology on the business environment, growth through acquisitions, leveraging synergies, and pricing of acquisition deals.

The Basic Issues related to the impact of technology on the business Environment are given Below.

Security Issues:

Companies are also facing the issues of handling the large volume of Online data, Storage data, Sharing Data, the Copyrights and other issues Related to Internet Securities. Every Year Several Online Companies Are Hacked by Cyber Criminals and in Return the Got Millions of Dollars from these hacked companies and their clients. Companies are trying their best to boost Cyber Securities but the Cyber-criminals invent new ways of attacking companies’ business & their Environment

Mode of Payment:

For the Online Business Transaction eBay Linked with PayPal in 2002 it’s all because of Technology which makes payment Easy through online Transactions as well as the PayPal itself a secure and trusted payment method with currency conversion, so the people from different countries can trade easily 

Growth Through Acquisition:

When we Discuss Growth through acquisition then the First thing which come in our Mind is Compatibility because Technology itself bring the Challenge of Compatibility While acquisition of the other Acquired Company Technologies are build using different platforms that’s why different companies find it very difficult to merge their platform because of Compatibility issue for this purpose companies need to invest extra money & Effort to enhance the technological compatibility of merging companies

leveraging synergies

In Leverage synergies of merging companies, only User Experience May Not Properly Work Because this we can take from the account book but for the customer satisfaction we need to check the user experience of both companies because it’s all about the value and Performance.

 

Pricing of Acquisition Deal

It is very difficult to tell about the Price of Online based companies because price depends on the physical assets and for online companies, they have lack of Physical assets so it is difficult to predict the Exact Value of merging companies to support the pricing of acquisition deals

Benefits

u  New lines of businesses

u  Better communication channels

u  Creates a new way to monetize e-commerce

u  Expand to global footprint

u  Reduced cost of doing business

Terms and conditions

u  Trust

u  Open communications