Impact of Internet on Business - Importance and Significance of Internet in the Business aspect-getinstartup

Regards to all! Well, as you all know Internet plays a major role in our lives. Nowadays, The harsh reality is that people can live without their families but can’t live without the internet. But speaking of its pros. The worldwide influence of the internet is well-established and acknowledged. In recent times, the penetration rate of the internet has been phenomenal. As almost 1/3rd of the human population is connected with the internet on their daily basis. The impact of internet on business, both positive and negative, are immense. Do you agree? Well, 90% of the businessmen agreed to this fact!

Either you are a startup or a small business, whether you are an online store or an enterprise, the internet or social media is vital for your business marketing strategy. The conduction of business in this digital era has changed due to the fair number of people logged on to the Internet.

 A business is no longer dependent on its local customer base for its survival, it now has a worldwide audience for its goods and services.

The Internet has not only changed its business customer base. But also how a business communicates with its employees and manages the competition. With the internet becoming a powerful tool for employees, the impact of internet on business is undeniable. Let’s start analyzing the facts that impact the business through the Internet.

Impact of Internet on Business

1. Marketing Opportunities

The majority of businesses use the internet for marketing and selling. Businesses can use a search engine, social media, email, websites, and blogs to promote products and services on the Internet, and this type of business is known as Digital marketing.

It is imperative that a businessman knows what its customer wants. Anyone can start an online business from home. E-Commerce, affiliate marketing, publishing, content creation, web/app development, blogging, etc. businesses have big opportunities on the internet nowadays.

2. Using Digital Advertising

Including the Internet in a business advertising budget extends a business’s ability to attract customers from their backyard to all corners of the globe. Websites, banner placement, and search engine optimization referred to as SEO. It allows businesses to have a presence on the web and reaches millions of potential customers.

3. Business Automation

Business automation is the process in which daily business tasks, operations, management are programmed in apps, websites, software, and hardware to run the business automatically. Automation of the business process is important in more complicated and challenging works.

The goals are to decrease human interaction with high-risk works and replace it with a robotic interface. When most of the things are automated in business and factories. It will reduce the cost of managing large teams of the workforce and will increase productivity in business.

 4. Competitive Advantages

 The impact of the internet on market competition is high. Businesses using digital marketing, cloud computing, online automation tools, online accounting, eCommerce, and artificial intelligence applications, and getting more benefits than competitors.

Economic growth in any country is possible if the policies and principles are covering, or opening the business for 90% of citizens. Many businesses are unable to integrate internet strategies and technology into their business models due to the lack of funds, innovation, ideas, risk management, and skilled workforce. Internet impacts positively on those businesses who are prepared for innovation and change.

 5. Social media improves user engagement

No matter what, Businesses are on social media or not. The customers follow their social media accounts every day. With the average person spending approximately two hours per day on social media.

Social media engagement is essential to make sure that your brand is capturing enough attention. Setting up a social media presence, building and engaging with them effectively with quality content is a big effort. But the biggest benefit you can get from your investment in social media is to reach out to your potential customers, wherever they can be found across the globe.

Social media engagement is positive as the reputation it generates for your brand but on the other hand, a single negative tweet can bring bad publicity overnight, which is difficult to reverse.

 6. Social media boosts your brand loyalty

   “A brand is nothing but an expression of the customer’s loyalty and trust.”

The last point of impact of internet on business. Last but not least. Social media helps you to build relationships with your customers through social media which increases loyalty and advocacy. Building and maintaining brand loyalty is one of the central themes of every business. In this competitive market, brand loyalty is hard to come by.

Customers have multiple options accessible that can lose them easily.  Loyal social media followers are more likely to interact with your posts and create meaningful conversations. Real engagement is more valuable to your online image. Developing brand loyalty ensures long-term engagement over social media. Research shows that 66% of users between the ages of 18 and 24 years old are more loyal to the brands they follow on social media.

Internet and Porter’s Five Force Model

Porter’s five force model is a framework for industry analysis, business strategy development, and study competition. The five forces of the model are the threat from upcoming and future competition, the threat from existing substitutes, the bargaining power of consumers, negotiating power of suppliers, and the threat of competition. The Internet has a great impact on all five forces of the model:

Impact of Internet on Business - Importance and Significance of Internet in the Business aspect-1-getinstartup

The threat of new entrants: The internet has considerably lowered the entry barrier in setting up a new enterprise. The setting up of a new company does not require much capital investment. For example, online retail sites, etc. Ever-increasing competition has lowered the margins.

The threat of new substitutes: The Internet has reduced the product life cycle, shelf life of products and encouraging innovation in customer service.

Bargaining power of customers: The internet has made the customer well informed about products and available substitutes. Companies have to be careful in presenting differentiation and pricing.

Bargaining power of suppliers: Suppliers are well informed about happenings in the industry thanks to the internet.

The threat of competition: The internet has made transparency and honest factor in the success of the company. Customers tend to know more about the company. The internet has lowered the cost of searching for newly available products. Well, The impact of internet on business has opened the gates of competition against each other.

Final thoughts 

The use of social media platforms to reach more customers, engage with your audience, and build brand awareness are some of the positive impacts of social media on business. However, to avoid its negative aspects of social media on your business, you can follow the suggested tips and be careful when sharing content over social media.

Well, that’s it. Hope you find my article “Impact of Internet on Business” interesting. If yes, do offer us feedback too.

For more article, you can refer to the links below.

  1. Top Investors in India – The Top 10 Investors in India Everyone Should Know
  2. Sean Parker Net Worth – Story of Sean Parker (The Co-Founder of Napster and First President of Facebook)
  3. Digital marketing scope in India – Digital marketing scope in India 2021

2 Thoughts to “Impact of Internet on Business – Importance and Significance of Internet in the Business aspects”

  1. Rownak Bansal

    Nice 👍🏻

  2. Harpreet Kaur

    Great👆

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