Several Limitations On The Growth Of Ecommerce Marketing Essay

Several Limitations On The Growth Of Ecommerce Marketing EssayThe branch old age of e-commerce is ungoverned (Laudon and Traver, 2009) while the todays e-commerce is stronger standard and governance (Laudon and Traver, 2009). When the e-commerce is just start to launch, the government was non set the rules and regulation for the e-commerce business and do non control over it. While todays e-commerce is having stronger regulation and governance (Laudon and Traver, 2009) than early eld of e-commerce, the e-commerce business was protecting by earnings rules and regulation worldwide and government was keeping an eye on it.The early years of e-commerce is practice pure online strategies (Laudon and Traver, 2009) where the organizations be doing their business in the virtual world with push through having the corporeal submit in real world. Whereas, todays e-commerce is practice mixed bricks and clicks strategies (Laudon and Traver, 2009) that run their business in both route w hich be doing their transaction in the Internet and in the physical store. There atomic number 18 a mount of dot com raised when the beginning of e-commerce, but on that point only a few that equal to kick the bucket until today (Laudon and Traver, 2009). The example for the organisational that pay offment pure online strategies (Laudon and Traver, 2009) in the early years of e-commerce is Amazon.com while the organizational that using the mixed bricks and clicks strategies (Laudon and Traver, 2009) in todays e-commerce is Tesco.com.The early years of e-commerce is apply dismediation (Laudon and Traver, 2009) while todays e-commerce is strengthening the process of intermediation (Laudon and Traver, 2009). In the early years of e-commerce, the organizations prefer to manage their grocery store place relationship directly with their clients without the heraldic bearing of the intermediary, they ward off the intermediation process. But the intense competition that result f rom disintermediation process (Laudon and Traver, 2009), it encourage todays e-commerce to do their business with the presence of intermediary.In the early years of e-commerce, it was practice the technology-driven (Laudon and Traver, 2009) which the organizational need to put a lot of motion to develop their organizational web aim in the Internet. They are more than emphasis on the knowledge of the information technologies that useful for their web site. In todays e-commerce, the organization is more focus on the business-driven (Laudon and Traver, 2009) where they are more focus on the strategies that apply in their business.For those organization that was the commencement exercise enter to the market in the early years of e-commerce leave behind enjoy the benefit of macrocosm the branch gear agent (Laudon and Traver, 2009). As the eldest means of the market, the organizations would build their brand name easily, get a lot of customer quickly (Laudon and Traver, 2009) and be the draw in the market. While for the todays e-commerce, the organization is practice strategic follower strength (Laudon and Traver, 2009) which is they are found out and enjoy the advantages to become the follower in the market.What are the major limitations on the growth of e-commerce? Which, in your opinion, is potentially the toughest to overcome?The major limitations on the growth of e-commerce are categorized in two segments which are proficient limitations and non-technological limitations (Turban et al. 2010).For the technological limitations, there are several limitations on the growth of e-commerceSoftware and tools for develop the web site is changing from era to time (Turban et al. 2010). The organization need to up to date by using the computer software or tools in building their company web site so it show to consumer that they are able to follow the trend. For example organization whitethorn use the old rendering of internet placer in the earlier year w hen build the web site but they need to change it to the latest version of internet browser when there is the movement of the technology.Cost to access the Internet is expensive or inconvenient (Turban et al. 2010) to some of the country. For the third world country such as Africa, the cost to access to the internet may be very costly to them and the good deal in that country may be is inconvenient to browse the internet. Many the great unwashed in the Africa is not affordable to have internet service in their stomach even get a personal computer in their house is a luxury goods to them. When they are unable to afford to buy a computer and access to the internet, they withal are not affording to get yields through the companys web site.For the non-technological limitations, there are several limitations on the growth of e-commercePeople are not having enough confidence to trust the faceless and paperless minutes (Turban et al. 2010). People especially the old-thinking generat ion volition not trust to the buy and selling growth or services through the Internet because they think the transactions in the Internet mostly are fraud transactions and doing the transaction without face-to-face communication will bring a lot of problem and do not make them confidence to the transactions.Security and silence issues are stop customer to buying and selling in the Internet world (Turban et al. 2010). Nowadays, there are a lot of fraudulent transactions and privacy information existence stolen by other people when customers are doing transaction in the Internet, this situation will make customer lost their confidence toward buying and selling goods through the Internet. When customer is ante uping by using credit card in the Internet, they will feel worry whether their personal information will being use by other people unauthorized or getting them involved in the criminal.In my opinion, the toughest limitation to be overcome would be the security and privacy i ssues (Turban et al. 2010). A lot of intelligence criminal is embezzling consumers privacy information they have modify in the Internet and steal their identity with the aid of advanced technology and software. This is difficult to overcome since the rules and regulations for the Internet are incomplete and unclear and undefined. The punishment for the Internet criminal should be more rigorous to prevent the Internet criminal being increases in the future.Task 1bWhat are some of the major advantages and disadvantages of being a first mover?First mover is defined as the organizations that first enters the market and gather market share in a short period (Laudon and Traver, 2009).The advantages of being a first mover areBeing a first mover, the true can enjoy the technology leadership where hearty was using the technological skills that were hard to simulate by other companies (later entrance to the market) (Ettington, 2010). As a technology leadership, firm also can enjoy the be nefit of patent their point of intersection to prevent other competitor to copy their convergence. For example Amazon.Com was the first company using the collaborative filtering-technologies that second them to analyze one customers purchase and raise the customer other books that people with similar preferences have bought(Mellahi and Johnson, 2000). By doing this, Amazon.Com could create brand loyalty among their customer since they are the first web sites that provide this feature. Amazon.Com have patent its affiliate programmes and one-click buying features (Mellahi and Johnson, 2000) to protect the features being ensue by others.Besides that, being a first mover achieves the benefit of preemption assets (Lieberman and Montgomery, 1987) which is the capability of the firm to manage the better resources than late fledglings. First mover was able to choose which resources that best forgather their requirement such as in natural resources, geographical location and distribu tion channels (Lieberman and Montgomery, 1987). For the first mover, the firm will have the dominant position to choose the natural resources that best suit to their firms product than the late entrants. Wal-Mart was the first retail shop that takes advantage in choosing to open a discount store in a small town.Other than that, first mover can build the buyer work shift cost (Ettington, 2010) in order to prevent customer to switch to other brands or products. When there is a switching cost barrier, the customer would not simply switch to other brands or product callable to inconvenient or cost issues. By build buyer switching cost, it may lead to geminateing purchasing among the customer. As the first mover, company will have the priority in more sense the customers preference and produce the quality product to the customer. This may help the company to build the customers loyalty toward the companys brand.As the first mover in the market could experience the high degree of con sumer awareness (Kerin, Varadarajan and Peterson, 1992). First mover firm will be the first firm entry to the market and it can make consumer pay high attention on the firm since it was the first in the market. With the successful market strategies and market positioning, it could help the firm to gain the consumer awareness toward the firm and the products. When the consumers have consumed the firms product and satisfied with the products performance, then it will leads to the repeat purchased behavior. Once the repeat purchase behavior was form, the consumer will unwilling to switch to other brand (late entrant). For example, when the first Apples iPhone is launched to the market, it creates the consumer awareness toward it product and established repeat purchase of iPhone when there is the latest version of iPhone is launched in the market.The disadvantages of being a first mover areThe disadvantages that may bring to first mover is the free equitation by later entrance in the ar ea of technology, employee training, substructure information and buyer education (Lieberman and Montgomery, 1987). For the first mover firm, they might be needed to invest a lot of capital into the product and develop a number of research and development toward the product their want to launch. While for the late entrants, they would like to imitate the first movers product since the research and development process is costly than imitation. Besides that, follower may also hire the staff from the first movers firm to prevent the heavy training cost (Lieberman and Montgomery, 1987). For example of infrastructure development, Sony have to spending their time and money for first launched the VCR product in the US market because they need to pursue lawsuit to allow consumer in have the right to record TV programmes for their own use (Lieberman and Montgomery, 1987).First mover in the market may be face the disadvantages of apply wild marketing strategies or technology (Lieberman and Montgomery, 1987) for their product. First mover firm in order to maintain their market leader position and dominate in the industry, the firm have to forecast the technology development and customer demand precisely (Lieberman and Montgomery, 1987). The risk of the firm being failed in the industry may increase when the firm was wrongly anticipated the market and process of technology development. The British Air Corporation has introduced the first commercial-jet -the DeHaviland Comet was failed when there is a mistake in the design. While Boeing has dominated the global aircraft industry after the failure of British Air Corporation by comes up with a superior design in the form 707 (Lieberman and Montgomery, 1987).In addition, first mover may need to invest a huge amount of money and time into the development of their product. First mover may face a number of failures when in the product development stage while late entrant does not need to pass through this process. Late entran t may not need to invest such a huge amount in their product development because they may copy the first movers product, marketing strategies and technology used to develop the product.Besides that, first mover may also face the problem of market uncertainty and demand uncertainty. As the first mover firm, they need to clearly clarify the market uncertainty and demand uncertainty since these two factors may lead to the failure of the product. The firms need to exactly understand what the customer really need and produce the product that can meet the customers need exactly. The firms also need to understand the market trend and produce the product that mostly suit to the market so that the firm will not failed although they was the first mover.