What is the impact of the internet and social media on the business?

1. What is the impact of the internet and social media on the business? By ZhanabergenovaDinara 11C grade

2. Introduction This research will explore the affect of Internet and social network to the business. The presentation will include advantages and disadvantages of internet. There you can find any facts and statistics.

3. Information technology has transformed the way companies conduct business. Technology allows businesses to automate manual operations and process information much faster. While business technology often is used through personal computers, server storage and point-of-sale or cash register systems, another major technological advancement is the Internet, which has created new communication forms and other business methods that companies use when processing financial and business information.

4. Disadvantages • However, these same changes can also have a negative impact, with consequences ranging from damages to a single company to entire sectors of high-street retail being driven out of business by more efficient online competition. • Competition Because of their reduced overhead costs, online retailers can offer customers a wider range of products at prices that are competitive with those of traditional brick-and-mortar stores. This can lead to "showrooming," a phenomenon in which customers browse products on the shelves of a traditional store, identify the item they want to purchase, and then leave and purchase it online for cheaper prices. The resulting loss of revenues can cause issues even for large retail chains such as Target, Walmart or Best Buy; small specialty stores may be driven completely out of business.

5. Advantages The Internet is a powerful tool that can make your business more productive and profitable. Business Link states that when the Internet and email are used effectively, they help you streamline business activities, communicate more efficiently with customers and even generate new customers or clients—all while helping to reduce business expenses. • A Store that Never Closes The World Wide Web operates 24 hours a day, seven days a week. Businesses that sell ready-made products benefit most from this advantage. By creating an Internet store, these entrepreneurs have the ability to maintain a virtual retail shop that never closes, affording the owner the possibility of literally making money in his sleep.

6. Benefits • Potential Customer Base Not too long ago, if a person started a business, she might place a few advertisements locally in the hopes of building a name for herself in the area. The Internet has changed that practice completely. An Internet presence instantly gives her company a global audience. Customers from around the world are able to learn about and purchase her products and services. Her potential population of customers is endless. • Cost Effective Perhaps the biggest advantage of using the Internet for business is its cost effectiveness. Opening and maintaining an online store costs a fraction of the budget required to open a physical shop. Advertising online is less expensive than in traditional media, and it allows business owners to reach a more targeted demographic. The Internet also allows business to be conducted without expensive travel. In the retail industry, for example, a shop owner can browse and purchase goods for resale from suppliers around the globe without having to leave the comfort of his computer desk. • Easy to Set Up Internet businesses can be extremely easy to set up. While some people may prefer to build elaborate websites for their Internet businesses, this is simply not required. There are many people who have set up shop on online marketplaces, includingeBay and Yahoo! Store, as sites like these require little knowledge of how to set up a site and provide store owners with a variety of tools to customize their storefronts, many of which are provided at no cost. Using this method, an Internet business could be set up in minutes.

7. Disadvantages • Impersonality Although business communication might be faster and easier over the Internet, the lack of face-to-face communication often leads to the perception of a company as impersonal, faceless and uncaring. Potential customers who receive automated or stock responses to their questions may be deterred from making a purchase by the frustration they feel. Similarly, employees who only communicate with managers and co-workers through email may feel demoralized and thus become less productive and invested in the company's success. • Security When business is conducted over the Internet, technical glitches or malicious hackers can expose sensitive data, such as addresses, passwords, credit card details or bank account details. At best, such an occurrence can result in bad publicity for the affected company, leading to a loss of revenue as the company struggles to regain the customers' trust; at worst, it could lead to fraud or identity theft. • Reputation Review websites such as Yelp, Epinions and TripAdvisor have magnified the impact of dissatisfied customers. Without the Internet, a single negative opinion may have a limited reach, reaching only the immediate social circle of the original customer. When posted on review websites, however, the same negative opinion is visible to potential customers all over the world and may deter them from doing business with the company.

8. Statistics

9. Statistics

10. Facts • 83% of marketers indicate that social media is important for their business. (Source: Social Media Examiner • 61% of global Internet users research products online. (Interconnected World: Shopping and Personal Finance, 2012) • Worldwide, we conduct 131 billion searches per month on the web. (Comscore, January 2010) • 80% of US social network users prefer to connect to brands through Facebook. • 68% of B2B businesses use landing pages to garner a new sales lead for future conversion. • 80.8% of users report reading email on mobile devices • The average sales cycle has increased 22% over the past 5 years due to more decision makers being involved in the buying process.

11. Evaluation • It wasn’t hard for me to find an information for this topic and that was very interesting • There are a lot of facts and statistics about this topic, it didn’t take too much time • I have easily found disadvantages and advantages • It was not hard to work with PPT format

12. Conclusion • Nowadays, in business industry, internet and social media plays an important role. The Internet is changing the way we work, socialize, create and share information, and organize the flow of people, ideas, and things around the globe. In today's global economy, the Internet is an effective way to market goods and services for many companies.

13. Bibliography • http://science.opposingviews.com/negative-impact-internet-business-1393.html • http://smallbusiness.chron.com/advantages-using-internet-business-320.html • http://www.hubspot.com/marketing-statistics • http://crab.rutgers.edu/~goertzel/economistnetbusiness.htm • http://www.theglobeandmail.com/report-on-business/coases-theories-predicted-internets-impact-on-how-business-is-done/article14181192/