How does the Internet change consumer and supplier relationship? Introduction The Internet, this worldwide and open network with millions of computers connected has been an impressive success story in recent years. The rapid advancement of the Internet in business marks the starting point of our reflection. Personal computers and the wide availability of internet service providers, consumers have seen a drastic change in their relationship with suppliers.
The use of World Wide Web which enables the direct connection of consumers to appliers have certainly created a more effective method of eliminating the middle man as well as enabling the consumers to have a greater access to the ever growing list of services and goods providers. This piece of technology has been more of an enabling tool to shoppers. It has enabled consumers to access a wide selection of suppliers, their reputation, prices as well as create an environment which comparison shopping has become substantially easier.
Nevertheless, the fundamentals have not changed. The consumer and supplier relationship Is still a symbiotic in which both parties rely on each others ablest to attics their respective needs. Consumers need suppliers to satisfy their wants In terms of necessary products and services. The Internet has change the supplier and consumer relationships in so many ways. The internet has created online communications, where people with similar interest are able to communicate with each other from many different locations.
The internet has also allowed social networking among people that is the practice of expanding the number of one’s business or social contacts by making connections through individuals where sites have become very popular. For example Face Book where both consumers, suppliers, casual friends have take advantage of this technology to advertised In some way or another and keep the networking going among themselves. We hypothesize that the use of the Internet for communication purposes would increase relationship closeness, whereas the use for information purposes would 90% of the time I used the Internet to keep in touch with my suppliers.
Be it by mail or even liaising with them on MS, it has develop a stronger relationship with them to the extent that the situation has become one that we are o longer strangers with each other. This has led to a strong connection with my suppliers to the extent that if I ask for a delay in payment or something else they will understand and grant it to me Also with the introduction of web-based technologies led to the e-commerce paradigm; companies started to adopt the new technologies in order to enter new markets, to enhance revenues in existing ones and to supply better customer services to the final consumer.
Soon the e-commerce became e-business due to the interaction of the new technologies with all processes within the company. As a matter of fact, also processes going beyond the boundaries of the firm are influenced by this trend and in particular the relationships among companies within the supply chain are changing in order to face new threats and opportunities. As far as the relationships across the supply chain are concerned, the Internet seems supporting two apparently contrasting trends. On one hand, standardization and market mechanisms are emphasized through electronic catalogs, auctions and liquid exchanges.
On the other hand, there is the opportunity to enhance the value added with higher customization and to improve supply chain performances with close relationships through new technologies, which make integral different companies’ information systems. In reality, the consequences of the introduction of the new technologies are rather complex and, although they do not change dramatically traditional business concepts, their influence on supply chain management and companies’ relationships is not easy to analyze. The Internet changes the nature of traditional relationships and leads to new possible configurations.
Those changes are allowed by the genealogy, but its introduction will not be worthwhile if it is not supported by an integrated analysis within the company and beyond it, upstream and downstream in the supply chain. It must be noted tough that the type of business to consumers (BBC) relationship have change drastically over the years through the use of the Internet. Business to consumers electronic commerce are being practice all day every day over the Internet. It involves retailing products and services to individual shoppers.
Business to Business (BIB) and Consumers to consumers (ICC) all of these business orientations are being done over the internet to conduct their business. So the relationship among parties are intertwined with each other. Environment more and more organizations engage in long-term relationships with their suppliers. These inter-organizational relationships have proven to create value for both parties involved. However, the management of such relationships require resources and is a complex task. Recent advances in information technology particularly the Internet offers new ways of managing inter-organizational relationships.
Also the Internet has been developing the relationship between consumers and appliers so quickly that the idea of relationship marketing has become an important marketing strategy for most organizations. Relationship marketing attempts to move the relationship between supplying firms and buying firms from discrete transactional exchange to relational exchange. The interaction approach considers the relationship between buyer and supplier as central to the exchange process. Research has shown that the relationships formed by these interactions are often lasting and committed.
These long-term relationships are based on mutual trust, commitment and loyalty. These key dimensions of atmosphere are adequate to explain and even to predict the likelihood that a long-term relationship will be formed between buyer-supplier (Morgan and Hunt, 1994). Question 2 The Internet may not make corporations obsolete, but the corporations will have to change their business models. Do you agree ? Why or why not? I quite agree with the statement that the Internet may not make corporations obsolete but the Internet Businesses has surely excel at “Cutting Out the Middleman in the business world.
Now businesses have to get innovative and start developing strategies to improve their businesses and remain competitive on the market. In the age of internet, personal computers and wide availability of internet service providers, consumers have seen a drastic change in their relationships with suppliers. The use of World Wide Web which enables the direct connection of consumer to more effective method of eliminating the middle man as well as enabling the consumer It must be emphasized that the Internet presently is changing the nature of work in any organization.
Many economists point to the World Wide Web to explain recent boosts in productivity and the sustained growth of the economy. An example is here the Airline industry is saving billions of dollars by enabling consumers to bypass travel agents and buy tickets direct. Such changes may be good news for the economy, but they’re wreaking havoc on certain home-based service businesses if they ignore e-business or e-commerce. At the least, the Web will substantially alter the nature of some while it will render others obsolete. Eel estate industry as well as the financial investing industry. These businesses have taken over the Internet especially the real estate where it would be faster and cheaper to search on line for houses and apartments. At the same time it would be more rewarding if you go to an estate agent’s office to get concrete information on the houses or apartment you would like because sometimes this same property you are looking at is already been purchased but it is still on the website showing available for purchase.
It should be taken into consideration that the Internet is creating opportunities, but those opportunities may involve dramatically altering what you do and what should you do if the Internet threatens to make your business obsolete. It is the different strategies you need to put in place for example you must be prepared at all times to attack. Because the Internet is changing not only the way large companies do business but also the way people shop for products and services, it’s best to assume your own business will be affected.
The question is, how? Business personnel must start getting online and find out who’s doing what in your field and how are they doing it. Another strategy that businesses must be doing is that they must be proactive. Businesses should not wait to see what happens around them. The writing is on the wall, even if you don’t see it. Develop a plan and try to implement it as fast as possible now. If you don’t have a Web presence, create one , businesses especially small ones need to get your feet wet, even if it’s Just with a simple home page. Internet they need to consider new directions and if it could become obsolete, start exploring one or more of these possibilities such as Take your existing operations online. Many newsletter publishers, for example, offer both online and print versions of their publications. Some have gone to “online only. ” Real estate agents are using Web sites to display listings, thereby attracting new customers and providing time-saving options for busy would-be buyers. Provide other services that are unrelated to the Internet for the same clients you’ve been working with.
Listen to what your clients complain about. What do they need help with? How could you help? Some travel agents, for example, are becoming travel consultants, charging to arrange elaborate itineraries for clients wanting arrangements like destination weddings, where an entire wedding party will be traveling to an exotic location. Find a new niche can be very innovative. Could you provide an existing or similar service to other types of clients for whom the Internet is not a solution?