A business, which operates an e-commerce website is able to reach its customers all from a central point and achieve cost savings without requiring significant investment in inventory, property and personnel. Internet businesses through the use of Internet technologies are finding they are able to interact with their customers more quickly and efficiently. This offers many opportunities for direct marketing and personalised services as well as better customer support. Anderson (2000, p. 51-59) reports that Amazon.com an online bookseller has achieved a significant competitive advantage over traditional booksellers through its ability to obtain demographic and behavioral data about their customers.
The Internet has also provided opportunities for many businesses to expand into new markets. No longer is a business restricted by its geographic location. The Internet provides a business with a platform to sell its product to the global market place without the need to increase significantly in size. .
Businesses are also gaining competitive advantage through the use of the Internet with the development of online strategic alliances with other business partners. These strategic alliances take advantage of online opportunities through employing the unique strengths of each partner. The Internet facilitates the development of these alliances by providing a platform for connectivity and communication between the partners.
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The Internet also provides business with a means of communication and collaboration with employees, customers, suppliers, business partners and other stakeholders. This is achieved through the use of web publishing, interactive websites, electronic mail (email), discussion groups and chat .
rooms etc. These Internet based tools provide a business with the ability to provide and receive information, which is vital to the success of its operations.
Many businesses are utilising intranets to support their business operations.
