How Online Business Organizations Survive
‘Can I make money thru the web?’ That’s a difficult question, and it had an answer NO, but that was long ago, now internet is a field where everyone can make profit, easily and effectively. But what does it really take to survive? check this out!
The main aspects that all organizations point out when asked for the advantages of using the web for their business purposes. They are as follows.
Firstly, it’s the capability to generate revenues.
Revenues are earned from the advertisements that your website display.
Secondly, it’s the effectiveness to reduce cost.
An organization can easily set up a website and gain global status, than spending dollars in six digits to advertisement agencies for their ads to be played in the television, radio or displayed in the streets.
And finally, it’s the availability of a wider audience.
In this modern age, there is nobody without basic internet knowledge. Every born kid sits in front of his own computer the very next day. Setting up a business online will enable your organization to gain a wider audience and increases sales.
So we’ve got the answer. We now know it’s possible to set up an organization and make money! But wouldn’t all people think the same?? Yes! They will. Competition is very high, because we are competing with organizations from all over the globe and guess what, it rises exponentially every year.
‘So what does it take to survive?’ That’s the next big question. Let’s consider the main ingredient for the survival theory. Let’s take an example.
Organization A is a new established that sells customized T-shirts. They have priced their collections with a starting rate of 30$. Many people visits this site (Thanks to social marketing sites and good promotional campaign) and they find it interesting. Of the 100 people who have visited their site, 1 man decides to purchase a 30$ T-shirt. The same process goes on for 30 days. They have made 30 sales (1 sale a day) and 3000 visits (100 visits a day). So they will have made 900$ by selling the T-shirt and a 20$ from revenues (for the advertisement they have displayed). But after a few good years, their services lagged. It took them 5 days to send the buyer a shirt rather the 2 days they promised. The frustrated buyer thumbs-down your site, views dropped and eventually the sales. The buyer took his time to search and found another site which only rates 10$ for a customized shirt. Cursing himself for not having found this site, the buyer sends the new link to his relatives and friends.
So let’s sort out the important element that led to the sites decline.
Cost:
As price competition intensifies, businesses with lower cost will be more successful because people are not willing to pay a huge price for something that is only half the price somewhere else.
Services:
People are only willing to spend their hard earned income on your products, only if you stand behind your goods offering all the services that could satisfy your customer.
Marketing:
Even if you’ve got an awesome website that rightfully deliver what’s promised, but you don’t have the right marketing tools, then this awesome site is going to start collecting dust. (Internet Marketing is a big topic to describe along with this topic. So I’m leaving it for now, but I promise to bring it out soon).
These are the three fundamental factors for an online business organization to survive the tough competition.
