Technology

E-commerce

Technology used to facilitate transactions that occur over the internet between countries.

ROLE: Facilitate financial transactions that occur over the internet between countries.


Features of e-commerce that facilitate a global consumer purchasing a product from a global business:

  • Contact info and ‘about us’ - global consumers feel secure in dealing with businesses that can be contacted using various methods. Can make decision based on provided info about ethics and sustainability.

  • Currency conversion - regardless of location.

  • Multilingual facilities - can change language of the website regardless of location.


Is a quick, low risk strategy for global expansion, as it does not require business to set up a physical store or develop partnerships in countries they are expanding to.

Enables business to access a global market 24/7 regardless of the time zone customers are located.

Website allows the business to complete financial transactions regardless of currencies.


DISCUSS

Benefits:

  • Reduces the cost of reaching a global consumer as there is no requirement for a physical presence in each country.

  • Convenience - can occur 24hrs a day, seven days a week, regardless of location.

  • Increased range - offer a wider array of products than they can carry in their physical stores.

Disadvantages:

  • Limited customer service, cannot ask about products.

  • Lack of instant gratification as you must wait for it to be shipped.

  • Inability to touch products, so may be unsatisfied if product received does not match expectations.


Issue: Data security and protection of financial information, consumers becoming concerned, and becoming a legal burden.

Distribution

The process used to get a product from the business to the end customer.

Can be direct (sell to overseas customer and then post items to foreign country) or indirect (partnering with distributors and retailers who purchase your products and resell them, which reduces the burden of navigating unfamiliar markets as they already have local expertise and established networks).


Technology such as shipping containerisation, machinery at ports, refrigeration, bar codes, tracking codes, etc.

  • Make distribution a lot quicker.

  • Tracking codes increase customer satisfaction as they can track through an app or website.

  • All types of products can be transported, including frozen or fresh produce.

  • Allows for a more direct distribution channel from producer to consumer with the ability to reach a larger audience on a global scale, as producers can use e-commerce to obtain their own customer base and distribute directly.


Some products distributed instantly via the internet (software, movies, etc), however there is a lack of a physical product.

The internet allows for the quick and easy distribution of manuals, designs, reports, templates and software.

Social Media

Use of social media platforms allows businesses to increase their ability to connect with and inform consumers, enabling them to form strong relationships regardless of language and location.


Social media has a large reach, but is not widely used in every country.

May need to change which social media platform depending on which country they are expanding into and which age group they are targeting.


HOW: Business can use features such as:

  • Video to show a product experience or how to use it.

  • Polls on topics associated with the business.

  • Receive statistics on number of followers, shares, views, etc, assisting business in identifying consumer trends and making decisions on what works best in interacting with their consumers.

  • Data collection of users allows for targeted marketing.

  • Chat facilities allow the business and customers to converse in real time regardless of the distance.