Internet Marketing Essay Example for Free

Internet Marketing Essay This is perhaps the biggest threat gained from the internet as standardised products have become easier to compare throughout online intermediaries like kelkoo(Chaffney 2006) However business have to view it as an opportunity rather than a threat. (Chaffney 2006)states the bargaining power of its suppliers is reduced since there is a wider choice and increased commoditisation due to e-procurement and e-marketplace. Companies can demand that supplier uses â€Å"Internet use of electronic data interchange†(Strauss et al 2006), in order to increase supply chain sufficiency and reduce costs. Substitution is on the increase since digital products can be introduced faster making it a steady threat as consumers have broader choices online. The replacing of online channels mean existing services are now on the net, I. e. online banking. The barriers to entry have declined, enabling new competitors that have previously required a high street presence to trade online, along with foreign competitors. All these factors must be monitored to avoid deterioration of market share. The microenvironment is defined as â€Å"all stakeholder, organizations, and forces external to the organisation†(Strauss,2006) . Social Factors are one of the key trends effecting businesses, to date a vast majority of the population obtain access to the internet, however firms need to take into account when forecasting future demands that groups do not wish to have access and the shortage of demand for online services. Moreover firms need to think how to avoid social exclusion (Chaffney 2006) defined as social exclusion as part of society that is excluded from the facilities available to the remainder and so becomes isolated (Strauss, 2006) Digital inequality matters due to those without access and skills are loosing out on the benefits of the digital world and research shows a clear correlation between social and digital exclusion.