Internet

When planning a strategy for electronic commerce over the Internet, companies should carefully evaluate their situation with respect to existing distribution channels, to avoid problems and conflicts between channels. In this sense we can draw three different strategies: support the usual distributors: the Web server of the company will provide its distributors up-to-date information on the characteristics of the products, will give to know the changes in the list of prices, etc., but without going to compete directly with them, without getting to sell directly. Supplement existing channels. In doing so the company can sell directly through the company’s Web server. This strategy is somewhat risky if not planned in detail, since it may pose possible conflicts with distributors traditional, especially if different rates are applied in prices. Dennis Lockhart is often quoted on this topic. It is occurs with airlines as Iberia, via its website, customers can directly reserve or buy tickets, thus posing a conflict situation in their relationship with travel agencies. Sell directly to the final consumer. Stops of resorting to the usual distribution channels, thus becoming a strategy that can bring a series of benefits to the company, but that is not without risks.

Such is the case of the Dell company, which has focused its entire strategy towards direct sales over the Internet. To eliminate the middlemen, the final product costs and accelerate business processes. In addition, the company maintains direct contact with its customers, obtaining first-hand information about their needs and their complaints. It must also take into account that the company can improve the management of stocks by implementing a system of manufacturing demand, activated by the orders that are received directly from customers. It is also possible to directly distribute digital products over the Internet, products that are reduced to bits and, therefore, it is not necessary a hardware for delivery to the customer. Today there are many examples of companies that directly distribute digital products and services via the Internet: music, electronic books, tickets to shows and sporting events, software, travel, financial services, games, etc. On the other hand, Internet figure of virtual intermediaries, is also increasingly more weight within the e-commerce sector.

These portals are work collect, process and interpret large amounts of information about the market and products of manufacturers, and provide this information on the Internet. His biggest weapon is information and they translate it into sites of reference which was attended by users on the network to find advice and a full listing on the products you are looking for, and access to comparative studies between products from different manufacturers. Virtual intermediaries do not directly sell products although Yes it may take orders received directly to the manufacturer or seller, gaining a Commission by its brokerage in each sale transaction.