How the internet, through e-commerce, supports global competition
The emergence of digital and online technologies has paved the way for new opportunities and trends in global trade. In particular, the Internet has provided businesses with new communication channels that have sharpened the competition and introduced new commercial activities at a global level (Australian Competition and Consumer Commission, 2001). The development of such digital devices as I-phones, web conferences and mass mailing has accelerated marketing activities and has put less technologically savvy businesses beyond the competition.
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E-commerce: emphasis on quick innovation and diminishing the value of a business
Quick innovation has a positive impact on global business because it allows people to easily purchase products from all over the world. Information flow is also facilitated and provides consumers with valuable facts about price fluctuations and new products at the market (Hanly, n. d.). However, because the Internet has made it possible to conduct meetings online, the importance of face-to-face communication has been diminished. Lack of physical presence also decreases communication and brainstorming. Also, monitoring software established in the workplace does not contribute to employees’ trust and respect and, as a result, it does not foster their productivity. The increased popularity of e-market negatively influences traditional retail stores that face rigorous competition on the part of Internet businesses.
Australian Competition and Consumer Commission. (2001). E-Commerce and Competition Issues under the Trade Practices Act: Discussion Paper. Web.
Hanly, S. (n. d.). Technology’s Negative Impact on Business. Chron. Web.