In terms of
strategic formulation, technology is a huge issue that any organisation must be
aware of when realising E-commerce' s strategic implications. For example, an
organisation thinking of developing a Web site must be strongly aware of
technological issues that pertain to such initiations. The decision to develop a
web-site internally or externally would be a key issue for any organisation.
Internal web-site development would require a vast understanding of technology
and require this environmental factor to be constantly reviewed and analysed. In
any case, awareness of technology is vital in planning marketing and business
strategies, and should be closely followed. World economies Another key
environmental influence is an awareness and understanding of global activity
such as world economies. As the Internet provide a basis for global
communication, the awareness of world economies must be understood in regards to
E-commerce. The linking of the Internet world-wide, in turn effects the way in
which E-commerce behaves, and therefore makes an understanding of world
economies imperative. Legal/Political As with the need to understand world
economies, global integration of E-commerce highlights fundamental environment
issues such as legal and political influences. As independent countries operate
different legal and politic systems, it is obvious that an understanding of such
ideals is also important in addressing E-commerce.
For example, a recent
precedent-setting court case in New York recently, a judge ruled that New
Yorkers were breaking the law by gambling on the Internet, even if the gambling
companies were based in other countries. State Supreme Court Justice Charles
Edward Ramos stated, The act of entering the bet and transmitting the
information from New York via the Internet is adequate to constitute gambling
activity within New York State. (Public Agenda Online, 2000) Such example
highlights issues that organisation must be aware of when developing a marketing
strategy formula. Failing to recognise possible repercussions of E-commerce use,
in a political or legal manner could prove catastrophic for an organisation. It
is imperative it is carefully looked at, particularly in regards to E-commerce.
Micro Environment Market environment The growth of E-commerce has transformed
the way in which consumers purchase products as well as how organisations
operate. The Internet provides the necessary tools; easy operation and exchange
of information; and therefore effects all diverse industries and organisations.
The Internet has become a useful tool for selling, buying and distributing goods
and services globally in a rapidly growing supply chain. The potential market
that the Internet provides has little or no restrictions by either geography or
time, and therefore poses a huge impact on any organisation considering
E-commerce in it's strategic marketing formulation. Opportunities in E-commerce
are enormous, as present growth and development have proved. (Kay, E. 2000) The
Internet provides a virtual marketplace, providing huge opportunities in the
marketing strategies that an organisation my wish to develop. Forecasters have
projected that the world wide E-commerce revenues will be over $350 Billion in
the year 2000. (Jones, I. 1999) User trends The trends of Internet users and in
fact the use of E-commerce in general is extremely valuable information that the
organisation must be aware of. By knowing how the advances of the Internet are
being used, a marketing strategy can be focused keeping these ideals in mind. As
E-commerce provides different uses to varying companies or industries, user
trends and their relative importance differ.
