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Internet's Impact on E-Business Profitability

The document discusses the impact of the Internet on the structure and profitability of e-business companies, highlighting both positive effects, such as increased information and market reach, and negative effects, including intensified competition and reduced profitability. It emphasizes the importance of leveraging internet technology and data analytics for strategic positioning and innovation in the market. Companies must balance differentiation with price-based competition to sustain profitability in an internet-driven landscape.

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6 views9 pages

Internet's Impact on E-Business Profitability

The document discusses the impact of the Internet on the structure and profitability of e-business companies, highlighting both positive effects, such as increased information and market reach, and negative effects, including intensified competition and reduced profitability. It emphasizes the importance of leveraging internet technology and data analytics for strategic positioning and innovation in the market. Companies must balance differentiation with price-based competition to sustain profitability in an internet-driven landscape.

Uploaded by

kl2412017743
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd

ITC2083/ITC2243

E-BUSINESS
Topic 4 The Impact of the Internet on The Industry Structure of e-
Business companies
 By understanding and leveraging the positive and negative
effects of the Internet, businesses can adapt their
strategies to the changing landscape of their respective
industries.
 The Internet has had both positive and negative effects on
industry structure.
 On the positive side, it has increased available information,
giving more power to buyers and enabling companies to
reach a wider market.
 It has also enabled the reconfiguration of existing
industries, allowing for new business models and ways of
operating.
However, there are negative effects as well.
The Internet weakens industry profitability by
reducing entry barriers and intensifying
competitive rivalry.
It also levels the playing field, making it harder for
companies to establish sustained operational
advantages.
Despite these challenges, businesses can leverage
the positive effects of the Internet to gain a
strategic advantage and drive innovation in their
industry.
The impact of the internet on industry profitability can be seen in
two ways: cost reduction versus increased competition, and
balancing differentiation and price-based competition.

[Link] on industry profitability: Cost reduction vs. increased


competition
[Link] technologies enable companies to reduce variable
costs, leading to price pressure in the market.
[Link] competition arises as the internet expands the
market and lowers entry barriers.
[Link] may struggle to maintain profitability as they
face intensified competition and reduced pricing power.
Impact on industry profitability: Balancing differentiation and
price-based competition

[Link] internet increases information availability and widens


market options, reducing product differentiation.
[Link] that shift the basis of competition to price make
it harder for anyone in their industries to turn a profit.
[Link] differentiation and price-based competition
becomes crucial for sustaining profitability in the internet-
driven market.

Innovative companies must carefully navigate these challenges to


maintain profitability while leveraging the opportunities presented
by internet technologies.
Leveraging Internet Technology for Strategic
Positioning

 To effectively leverage internet technology for strategic


positioning, businesses must carefully consider how it can be
utilized to differentiate themselves in the market.
 The internet offers a vast array of opportunities for innovation
and strategic differentiation. One key aspect of leveraging
internet technology is the role of data analytics.
 By harnessing the power of data analytics, businesses can gain
valuable insights into consumer behavior, market trends, and
competitive landscapes.
 This information can then be used to make
informed decisions and develop effective
strategies that set them apart from their
competitors.
 Data analytics enables businesses to identify
new market opportunities, optimize their
marketing and sales efforts, and improve overall
operational efficiency.
Question:
1. Define the meaning of Data Analytics.
2. What are the examples of data analytics?
3. Describe the applications of data analytics in e-
business.
Thank You

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