The Internet can be very useful for companies to advertise and sell their products. Since anyone can have access to the Internet, sellers can reach the majority of the consumers through the use of the Internet. The two companies Sina and ASM both rely on the Internet to run their companies receiving revenues through the Internet and reaching their audience.
Sina is a company that has “ … become the most heavily trafficked Web sites in the Chinese language market.” (Laudon, 18). “ Sina is known in China for providing first-rate, comprehensive, up-to-the-minute news, it also offers popular chat rooms, community platforms, financial information, online shopping platforms, search and free email throughout its four sites.” (About Sina, 1). Sina uses the Internet to link people all over to other Chinese language sites. The Internet is very essential for Sina to operate its business. The Internet is the way that Sina operates with its users. Revenues are generated for Sina by advertising for companies on its Web site that is primarily for the U.S. and Taiwanese. Sina is hoping to generate profits through charging subscription fees for access from users to their sites and to add electronic commerce and Internet telephone capabilities to its Web sites.
Asia Source Media (ASM) “ … offers services via Internet for companies participating in global trade.” (Laudon, 18). ASM used to be an Asian trade magazine that eventually installed software and offered an interactive catalogue of products and factories on CD-Rom and converted its catalogue to a Web site. Consumers view products and then contact the sellers using email. Using email and the Web sites helps the buyers and sellers come together saving money on costly travel or telephone calls. ASM helps to provide users online information on trade shows, product alerts and discounted prices from factories. ASM earns its revenues by “ … accepting ads to be displayed on its Web site.” (18) as well as getting paid for listings by sellers and very soon to be buyers.
The whole make up of these two businesses relies wholly on the Internet to run them. Both of the companies generate all their revenues through use of the Internet. If there were no Internet, Sina would not be able to advertise on the Internet therefore not being able to generate revenue and not surviving as a company. Both of the companies use the Internet to better serve their customers and potentially adding new customers in the long run as well. Without the Internet these companies would not be able to operate their business and not serve their customers or gain potential new ones. These two companies help their customers find what information or products they are looking for in the comfort of their houses or offices. The Internet saves the customers time and money by proving a fast way to retrieve what they are looking for. Without the Internet the customers would have to search for products and information by going to these sellers to shop around or by sitting on the phone for hours calling these sellers for information. They can just click a button and find whatever they need or are looking for in less time and money.
Laudon, Kenneth and Laudon, Jane, Management Information Systems, 6th Ed. Prentice Hall, 2000. 18.
About Sina, www.sina.com, 2000. 1.
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