The use of internet by Sandvik Steel has led to enormous improvements with respect to the already existing links. In fact, for a company that majorly crafts cutting tools particularly mining, steels as well as construction equipment, embracing IT in its business dealings has helped a great deal. For instance, with much focus on strategic business while cutting through the accruing internet hype, Sandvik Steel has gone beyond undertaking transactions to offering solutions to the clients. The company has endeavored to be a leader in IT adoption and application, and from the case study, it is eminent that Sandvik Steel managed to increase its turnover and per share earnings by twelve percent and thirty four percent respectively (Chaffey, 2009). To generate these results, the company’s yearly IT budget has increased to SKr1billion.
In the global market arena, Sandvik Steel extranet has enabled the users to acquire training aids, catalogues and stock information whilst taking part in the online discussions. To achieve the long term goals, both Sandvik Steel and Coromant e-business activities have been particularly aimed at improving links with clients. The e-business strategy allows the company’s customers to buy tools via the web amidst designing their own adored products within the set parameters and advice given by Coromant. The company has opted to bypass the old customary sales outlets to avoid conflicts. This implies that a majority of Coromant tools are sold to the clients directly and only 40% will be sold through the resellers. Thus, the e-business strategy is geared towards increasing the relationships with clients with much focus on extended reach to the global market and greater personalization.
Conversely, the most imperative e-business strategies for Sandvik Steel that would help it gain real competitive advantage include shifting the already existing clients to internet, saving costs, and winning new clients. To realize its US turnover target of 40%, Coromant plans to enhance online services to the clients by offering every customer a tailored web-page. The strategy will facilitate the offering of new materials, products as well as advice on the productivity improvements. Finally, training is perceived to be equally part of the extended web offering strategy (Chaffey, 2009).
Why the amount of Sandvik online purchases vary in countries in which it trades
Basically, Chaffey (2009) asserts that the backbone of any thriving business enterprise is bestowed on the quality of services and products rendered to the clients by the company. Despite the fact that a company might be well established in the global market, variation in its products purchases is an inevitable phenomenon. Taking a case example of Sandvik Steel, the quantity of this company’s online purchases may significantly vary in various countries upon which the company trades due to lack of clients experience on how to use the internet. In essence, not every client who wants to make a purchase has the requisite skills or knowledge needed to make an online purchase. Furthermore, since not every client has unlimited access to internet, it becomes rather difficult for those customers residing in remote areas where there are no internet access to make online purchases.
According to Chaffey (2009), the proportion of online sales may as well vary from country to country due to lack of company’s focus in serving the clients via the internet. For instance, in cases where a company only yearns to derive mutual benefits from its IT services without necessarily serving the customers via the same, the clients might render such online services useless. The failure of a company to cut through and deal with the ensuing internet hype might possibly create further negative attitudes to customers who intend to make online purchases. For example, risk-averse clients tend to make purchases of products and services that are within their reach and not what is alleged to be available. Therefore, variation in online purchases might accrue as a result of challenges associated with lack of access to the internet, inadequate training on how to make online purchases, lack of proper establishment in certain countries, failure by the company to meet its internet obligation alongside the emergence of internet hype.
References
Chaffey, D. (2009). E-Business and E-Commerce Management: Strategy, Implementation and Practice. Upper Saddle River, NJ: FT Prentice Hall