The business world has seen a lot of changes in recent times. With the Internet, people can now buy and sell online, and this has created a lot of business opportunities both for buyers and sellers. Small businesses have grown to big enterprises overnight as a result of transforming a business into an online business, and a lot of people have preferred online business. However, just like in other forms of business, online businesses have their strengths and weaknesses, and it is up to an online entrepreneur to make the business thrive through challenges and successes. All businesses must have a considerably good management to succeed; so must online businesses.
SWOT Analysis of a Clothing Shop on Jersey Shore Boardwalk
Strengths and weaknesses of any business lie within the enterprise itself, and they can either be enhanced or stopped from within the enterprise (Tobin, 2012). One of the advantages of taking this business online is that the business will expand, and the profit will also increase. The number of customers will also increase, and this will be a big step for the business. With growing business and profit, managers of this business will be able to offer high quality goods, and this will make customers satisfied; it will also make them stick to the services of the business. These customers will also be able to make their purchases online, and this will increase their efficiency in shopping. Thus, they will shop more, as they will not have to wait to go shopping and buy what they want, and they will be ordering their purchases under the most convenient conditions.
There are also some weaknesses that taking this business online involves. First, there will be no one-to-one interaction with the customer, and the bond that exists between the buyer and the seller will be broken (Tobin, 2012). As a result, some customers may become indifferent towards the business, and they may discontinue their services with the business. Customers will also not be able to view and have the feel of the garments they are buying and will have to rely on the photos provided. They may feel disappointed when specifications described online fail to match the real product delivered. The manager will also have to prepare for uncertainties and unpredictability of the business. This is because some customers may order a great number of items that may not be available. For instance, an online customer may order some clothing that may not be available, and the manager must find a way to provide the ordered item.
Opportunities also determine the growth of a business, and they have some merits and demerits. A good business opportunity provides hope to the entrepreneur, and the entrepreneur gives top priority to the business; thus, the business gets a chance of growing (Tobin, 2012). The entrepreneur succeeds as a result of favorable conditions, and this acts as a great reinforcement for the growth of any business. Therefore, by taking this business online, the entrepreneur will be seeking new opportunities that will operate as a stage for the future advancement of the business.
However, great opportunities call for great costs, and the manager will face the challenge of providing the business with the capital it requires to meet the demand. This will mean that the entrepreneur may have to get loans so as to advance the business and take advantage of a great business opportunity. Conversely, an entrepreneur may face a lot of losses if the opportunities are not sufficient enough for running the business.
Lastly, an entrepreneur taking their business online must be aware of the threats that are prevalent in such a business. For instance, the business website may be hacked, and the manager must develop an effective way of dealing with such a scenario. An entrepreneur who follows the steps provided above is likely to succeed in business regardless of the business type.
Conduct of International Commerce
Any entrepreneur who takes their business online makes that business an international one, and that business must adhere to some international standards. This is because the Internet involves millions of people around the world, and many issues are likely to arise. For instance, the business may face the challenge of dealing with issues of trust (Trout, 2007). An online entrepreneur must prove that their business is authentic so as to win the trust of clients. Therefore, an entrepreneur can give some physical address where they can be reached instead of just providing emails.
A person carrying out a business online must also be conscious of the fact that clients can belong to different cultures. This is because people will feel more inclined to businesses that reflect their cultures rather than businesses that are culturally different. An entrepreneur can overcome this challenge by creating a business environment that looks multicultural. This will attract buyers from all over the world, and the business will grow. The choice of the language to use will also be indispensable in achieving success for a business carried out online. This is because customers will only buy things from websites whose language they understand. Therefore, to combat this problem, an online entrepreneur will have to make the language relevant to the target customers. For instance, an entrepreneur can do research and select languages that are dominant in different regions of the world. This will minimize the number of languages that should be used to translate the website.
Governments of different countries of the world support online business, but they do not support businesses that seem to be anti-governmental. Therefore, in order to succeed, any online business should not carry political sentiments. This will ensure that the business receives support from governments of different countries. An online entrepreneur must also seek to establish stores in places that have good infrastructure in forms of storage and transportation. This will ensure that the goods that are sold online will definitely reach buyers.
Managing Online Businesses
Online businesses must comply with the laws governing other businesses (Trout, 2007). This is easy in the source country, but it becomes complicated in other parts of the world. An online business must seek support beyond these boundaries, and this will ensure that the business does well beyond the borders. The business also increases efficiency in communication, and the manager should seek to find communication devices that will live up to the current communication technology. This will help in reaching many customers.
Presently, due to the growing popularity of online businesses, people run the risk of being deceived and tricked out of money. For instance, a lot of people have been defrauded over the Internet, and this happens when a person buys something and does not get it. People can avoid getting into such scams by ensuring that they are buying things from an official and recognized website (Trout, 2007). A lot of people have also been threatened online, and this is a crime punishable by law. For instance, an unsatisfied customer may post threats on the website, and this may cause panic among managers and customers. To avoid this scenario, an online business should always make sure that it satisfies the needs of every customer. The business can also sue the offender so as to avoid the repeat of the same.