Exporting with E-commerce

Small and medium sized enterprises (SMEs) are engines of sustainable economic growth and innovation. Because they represent more than 97 percent of businesses in the United States, their contributions to the commonwealth’s socioeconomic development are critical. Small firms made up 97.3 percent of all identified exporters and pro­duced 30.2 percent of the known export value in FY 2007. (SBA) Faster economic growth needs a wider market; therefore SMEs should expand their operations beyond the local markets and developing a e-business into their market strategy would help them achieve more success and sustainability, particularly in this time of economic uncertainty. The business world is better connected today than ever before with growing technology available worldwide, it is making it easier for business to connect with consumers around the globe. However, most of America’s small business owners never think of competing in foreign markets or realize that 67 percent of purchasing power comes from outside the United States and this global marketplace could be a benefit to America’s small business community. (SBA) Two thirds of the world’s purchasing power is in the hands of 96 percent of the world’s population, these two statistics should be incentive enough.(SBA) Developing a strategy to build an extension and penetrate foreign markets through e-business provides a diversity of customers that generates significantly more transactions, which certainly will increase revenues and profits. Additional foreign sales through online sales over the long term, once export development costs have been covered, there will be an increase overall profitability. A small business that expands their sales through online portals typically stay in business longer, create more jobs and pay higher wages to their employees. This can also alleviate adverse economic conditions at home by having market penetration of foreign markets that still demand U.S. goods.
 

SBA,  http://www.sba.gov/advo/stats/sbfaq.pdf

E-commerce has changed the face of retail, online shopping is a worldwide trend that has accelerated over the past decade. The option to make the purchase of goods from your home or office is a great convenience with the demands of busy schedules. Working class families often have to juggle their schedules and factor the time it takes to run errands and buy the necessities they need for everyday living. Consumers are busier than over, more mobile, more affluent, and ever more impatient with time consuming tasks. As a result of these social and attitudinal changes, people are drawn to convenient, reliable alternative solutions for everyday tasks; this makes the appeal of online shopping even more sensible. Online shopping can be a great convenience, but just as any smart shopper you have to be prepared, if you’re the type of consumer that likes to walk around the store, not really sure on what you want to purchase and your decision is influence by what you see in hand, online shopping will not be for you. Most shoppers are focused on price; they want to get in and out of the store quickly. Making lists will help the consumer in finding opportunities to save on their food bill. This service is a great tool for the elderly or individuals that cannot move around easily, such as handicap individuals that would have difficult time getting around a crowded store, or buying large bulking or heavy items.

Consumers who shop online can investigate all options of the product from multiple web sites who are offering that particular product. Most consumers make the decision where purchase is based on price, but I also believe that customer service and its reliability make an enormous difference as well.  I would purchase from the retailers who offer product guarantee and a hassle free return policy, it can be worth much more than saving a few dollars on the product itself.

Choosing to purchase products on-line or at a traditional "brick and mortar" retailer has its advantages and disadvantages that contribute to making decision. On-line shopping is not well suited for items that require any specifics such as size, or freshness. However, on-line purchasing is great for general items, such as CDs, books, electronics, software, and hardware. On-line shopping is great for convenience, while shopping at brick and mortar stores is great for quality control. The in-store stimuli can influence affect, cognition and behaviors that online cannot compete with it.

Getting more out of the internet

Technology has become a major part of our daily activities and it seems to be taking over our lives. The Internet has become a compendium of opinions that signals unity. It also serves as a global meeting place for people from all over the world and eliminates national and geographic boundaries. The Internet sometimes serves a networking function in linking together people of a like mind. Similarly, the Internet allows for activism such as through email newsletters, provocative blog entries, and other forms of self-expression.
The Internet can symbolize a universal mind: the confluence of ideas and the absence of artificial boundaries like nation or language. According to an article “Digital Natives, Digital Immigrants” by Marc Prensky, “Today’s students K through college represent the first generations to grow up with this new technology. They have spent their entire lives surrounded by and using computers, videogames, digital music players, video cams, cell phones, and all the other tools of the digital age. Today’s average college grads have spent less than 5,000 hours of their lives reading, but over 10,000 hours playing video games (not to mention 20,000 hours watching TV).” Computer games, email, the Internet, cell phones and instant messaging are integral parts of their lives. In the article by Prensky, he talks about how “digital natives”; those grew up with digital technology, think differently from “digital immigrants”; those who did not grow up with digital technology. Research has shown that adolescents do not have fully developed executive functions. “Digital natives” are mostly all adolescents since technologies like the internet and cell phones have only been available to large numbers of people for 15 years or so. That means they have been exposed to digital technologies before their executive functions have fully developed. Some believe that the next generations is going to be the most high-maintenance work force in the history of the world, but also the highest-performing, They'll be the highest-performing, partly because of their skilled use of technologies that didn't exist when baby boomers and Gen Xers grew up, such as Smartphone’s and Internet search engines. It would be interesting to see if multi-tasking behavior is a function of development at the time of exposure to technology more than just growing up with technology.

Prensky, Marc “Digital Natives, Digital Immigrants” On the Horizon (MCB University Press, Vol.1. Retrieved August 18, 2010
http://www.marcprensky.com/writing/Prensky%20-%20Digital%20Natives,%20Digital%20Immigrants%20-%20Part1.pdf