1. Identify the advantages and disadvantages of taking your small business online by performing a SWOT analysis. Include 2-4 items in each category.
What is a SWOT analysis? It is an evaluation of strengths and weaknesses of a business unit and identification of opportunities presented by the markets of business units and threats posed by competitors. Strength, Weakness, Opportunities and Threats is what the letters of SWOT resemble (Schneider 2001 page 32).. Inside a business are where the strengths and weaknesses are found and what each business is capable of handling. Opportunities and threats are located outside a company and are based on the real world (Zahorsky 2011). Starting a ...view middle of the document...
Making uncritical lists without clear prioritization is an example of how weak opportunities might appear to balance long threats. Most times a simple list may not be presented critical (Haughey 2000-2011).
2. Because the Internet connects computers all over the world, any business that engages in e-Commerce instantly becomes an international business. The key issues that any company faces when it conducts international commerce include trust, culture, language, government, and infrastructure. Explain how you would address each of these issues.
To create trust in a business the customer needs to rely on their own name brands. As a new business begins and starts online they face many difficulties. Due to the kind of anonymity that exists for companies trying to establish a web presence, customers sometimes lack the trust that is expected because people have been doing business with their neighbors not strangers for many years. As a company begins to take in the growing aspect to become a larger corporation with multinational operations the reputation of the company grows too. In order for a company to do business as it grows it should prove to the customers the trustworthiness as it continues to grow. In favor of a business to be successful they need to rapidly find away to produce trust (Schneider 2011 page 34-35).
Language and customs are a combination of what forms culture. In order to do business they are to make sure they know about different languages and background that are an element of each culture. Website designers should be careful when choose icons in international commerce to represent common actions and the cultural overtones of simple design decisions can be dramatic (Schneider 2011 pages 36-37).
The most effective and efficient way to do business in other cultures is to adapt to them. First I would provide options for language versions so it can be available for customers in different cultures. Products that are made in their native language are easier for the customer to understand and will attract their attention. Given the choice, the customer will choose the product in their native language (Schneider 2011 pages 35-36). Localization uses several different elements in confined environments including industry and intellectual practices. By not doing so, it can effect or change the user’s interpretation of the text (Schneider 2011 pages 35-36).
Many countries have environments that are harsh and difficult to the type of online discussions that take place. Cultural conditions in various cases show the ways the government can control electronic commerce development. (Schneider 2011 page 38). Many governments around the world frequently avoid free expression by their citizens. They have even taken specific steps to stop the exchange of information outside state controls (Schneider 2011 page 38).
Trust, language, and cultural issues are challenges that businesses must overcome in order to succeed. Internet...