Sunday, February 28, 2010

Beginning to think about e-business

So as a way to sort of use what I have been doing in school to this site is to start combining things.  I'm taking an e-business class that requires us to write posts on a variety of topics. As exciting as its been to receive comments from class members I thought it would be great to let everyone else who is interested to write down some of their comments (if any) to some of the posts I have been writing in class.  So here goes! The first post as you can see is titled "Beginning to think about e-business"

Enjoy...


"E-commerce has grown rapidly in the last decade, but the popularity of social media sites like Facebook, Twitter, and MySpace has grown tremendously over the last few years. I’m very excited to learn more about E-commerce and how I can effectively use what I learn to my own personal endeavors. I would say that I have been actively participating on the online world for quite some time. I currently work on two websites, the first one being Development Crossing (http://www.developmentcrossing.com), and the second one being World in Motion (http://www.thewim.com). To conclude, I would say that by taking this course I would like to learn more about how I can take these websites and generate money with them.

There are several reasons why the “Dot-Com” ventures and “virtual businesses” failed according to the two articles found under the virtual knowledge commons section in Blackboard. Some of the reasons include a general economic recession during this period, findings of corporate corruption, and the subsequent bankruptcy, at several large companies, including a few large technology companies, and lastly the terrorist attacks of September 11, 2001.  Additionally, most of the “Dot Bomb’s” presented unproven, theoretical models to the banks for the IPO’s. They had never shown a profit and never would because the models they used simply could not work. Therefore, when the bottom fell out of the Internet advertising market, the companies whose business models were based on selling advertising on their sites or in their networks were the first losers. 

As with any failure, you always seem to learn something after it’s all said and done, and fortunately we learned a few lessons and principles from this initial experiment in online business. According to the Ezine article on “Learning the Lessons of the Dot-Bomb Era” the first lesson we learned was that we must establish our business on a business model that can be profitable at low volumes before we can even hope to be profitable at high volumes. The secret to online profits is not cash, but rather a solid business model. The second lesson we learned was that as a small business owner, we can and must remain flexible. Especially in an untested and unproven market, we need to sustain our flexibility and keep our focus on the bottom line and the marketplace, but most importantly never to fear change. Lastly, remember to take whatever means are necessary to track the successes and failures in your advertising and always watch your bottom line. This is the most important thing to take note of if you wish for your online business to be profitable.

The above lessons have already been applied to 21st century business models, if they haven’t they should probably get on that!  For example, the success of Facebook and MySpace wasn’t just by accident, and they weren’t brand new ideas. Earlier social media sites like Friendster, Hi5, and Bebo all started off with a large follower base but MySpace and Facebook saw their limitations and gave the public more control of what they could do with their own personal pages. However, smaller social media sites are now beginning to grow after seeing what works. Furthermore, using Facebook as an example, continues to grow at a rapid pace. It used to be that only college students could sign up for a Facebook account but now anyone around the world with access to the Internet can create an account. Additionally, businesses have been able to take advantage of Facebook by creating Facebook Fan pages that allow businesses and their customers to interact in a way like never before.

   There are several trends we will see in 2010 regarding e-business. The first trend is search engine optimization. As we have seen more and more, consumers want more personalized search results and this means search engines will be looking for more relevant and personalized content from publishers and brands. The second trend we will see is social media marketing. The reason marketers love social media is because you have access to so many people. Smaller businesses will look to use social media much more in 2010 to grow their business. Lastly, a third trend you will see is blogging. Blogging continues to become more and more popular, and you will see more businesses create their own blogs with relevant news about what is happening at their company."

~Until Next Time~

WIM




No comments:

Post a Comment