Emerging trends the internet ecommerce Emerging trends Internet

Emerging trends: the internet & e-commerce

Emerging trends: Internet Count…… • Emerging trend of internet as a major world wide distribution channel for goods and services and has made it as global marketplace. • It has changed • • • Market & industrial structures; Products & services and their flow; Consumer segmentation; Consumer value & their behaviors; Jobs & labour market.

Advantages of internet • Media companies, manufacturing, retailers etc. are also spending billions of dollars on internet & e commerce. • Use of internet for small venture has been rising. They use the internet for a variety of operations • • • Customer based identification Advertising Consumer sale Business to business interaction Email Private internal network for employees Searching of new potential customers Smooth and Simple to work on internet Low cost Extremely efficient way to display merchandise, attract customers and handle to purchase.

The E-Commerce challenge • Electronic commerce (E-Commerce)– the marketing, promotion, buying and selling of goods and services electronically, particularly Via internet– is new wave in transacting business. • It encompasses various modes of internet use • E-retailing which is a site for shopping and making purchases. • Electronic data interchange (EDI), which is a business to business exchange of data. • E-mail and computer fixing • Business to business buying and selling • Ensuring the security of data.

Advantages of E-commerce • Ability of small firms to compete with other companies both locally and nationally (promotional tool). • Creation of possibility and opportunity for more deserve people to start a business. • Convenient and easy way of doing business transactions. • Before E-commerce It was an expensive way for a small business to compete with larger companies but e- commerce made it easy and cheap.

Challenges • Managing upgrades (anticipating business needs/applications) • Assuring securities for a website and the back-in integration with existing company system. • Avoiding being a victim of fraudulent activities online. • Handling the cost required to maintain the site. • Finding and retaining qualified employees.

The myths of entrepreneurships

The Myths of Entrepreneurships • Myth 1: Entrepreneurs Are Doers, Not Thinkers • Methodological people, who plan their moves carefully. • The emphases today is “Thinking” entrepreneurs are as important as “Doing” entrepreneurs. • Myth 2: Entrepreneurs Are Born, Not Made • Like all the disciplines, entrepreneurship has model, processes, and case studies that allow the topic to be studies and knowledge to be required. • Myth 3: Entrepreneurs Are Always Inventors • Ray Kroc don't invent any fast food franchise but his innovative idea was made by Mc. Donald (the largest fast food enterprise in the world) • Myth 4: Entrepreneurs Are Academic and Social Misfits • Business education was aimed primarily at the study of corporate activities. • Entrepreneurship is now viewed as a professional. • Myth 5: Entrepreneurs Must Fit the “Profile”

Count… • Myth 6: All Entrepreneurs Need Is Money • Poor planning, poor managerial capacity, etc. • Money is a resource but never an end in itself. • Myth 7: All Entrepreneurs Need Is Luck • “Right place at right time” is also necessary • Myth 8: Ignorance Is Bliss For Entrepreneurs • A careful planning is mark of a accomplished entrepreneur • Myth 9: Entrepreneurs Seek Success But Experience High Failure Rates • If at first time you don’t succeed, try again” • Myth 10: Entrepreneurs Are Extreme Risk Takers (Gamblers) • Most successful entrepreneur minimizes the risk by careful planning and preparation.

Approaches to entrepreneurship

Approaches of entrepreneurship • A theory of Entrepreneurship is defined as • “A variable an logically coherent formulation of relationship, or understanding principles that either explain entrepreneurship, predict entrepreneurial activates (new profit opportunity), provide normative guidance (right action at a particular circumstances) ” • One way to examine these theories is with a “School of Thought” approaches that divides entrepreneurship into different activities.

Entrepreneurial school of thought approaches 1. Environmental school of thought MACRO VIEW 2. Financial/capital school of thought 3. Displacement school of thought 1. Entrepreneurial trait school of thought (people school) MICRO VIEW 2. Venture opportunity school of thought 3. Strategic formulation school of thought

Comparison between macro & micro view of entrepreneurial approaches MACRO VIEW MICRO VIEW • It gives the broad spectrum of view entrepreneurial development. • It gives micro view of the entrepreneurial development.

MACRO VIEW Environmental School of Thought • This school deals with external factors that affect the lifestyle of a potential entrepreneur. • These could be positive or negative forces in the modeling of entrepreneurial desires. • Strong support from family and friends. • Socio-political environmental framework. • Social group (atmosphere of the friends & relatives) also support the entrepreneur

MACRO VIEW The Financial/Capital School of Thought • Based on the capital-seeking process—the search for seed and growth capital is the entire focus. • Funds applications Financial Analysis Emphases

MACRO VIEW: Displacement School of Thought • This school of thought focuses on the negative side of the phenomenon. • Political displacement (laws, policies, and regulations) • Cultural displacement (preclusion of social groups) • Economic displacement (economic variations)

Micro view Focuses on specifies from the inside looking out

MICRO VIEW: The Entrepreneurial Trait School of Thought Focuses on identifying traits common to successful entrepreneurs. Family development & educational incubation are also examined. • • Achievement, Creativity, Determination, and Technical knowledge Four factors that are usually exhibited by successful entrepreneurs.

MICRO VIEW: The Venture Opportunity School of Thought • Focuses on the opportunity aspect of venture development— • The search for idea sources (Creativity) • The development of concepts(market awareness) • The implementation of venture opportunities Are the important areas for this school of thought. • Corridor principle: New pathways or opportunities will arise that lead entrepreneurs in different directions. Right idea at the right time for the right market niche

MICRO VIEW: The Strategic Formulation School of Thought • Emphasizes the planning process in successful venture development. • Similar to the process of management • Ronstadt’s View • Strategic formulation is a leveraging of unique elements: • • Unique Markets: mountain gap strategies Unique People: great chef strategies Unique Products: better widget strategies Unique Resources: water well strategies

Process Approaches to Entrepreneurship • Integrative Approach • Built around the concepts of input to the entrepreneurial process and outcomes from the entrepreneurial process. • Focuses on the entrepreneurial process itself and identifies five key elements that contribute to the process. • Provides a comprehensive picture regarding the nature of entrepreneurship that can be applied at different levels.

An Integrative Model of Entrepreneurial Inputs and Outcomes

1. Environmental opportunity: Demographic change, new technologies 2. Entrepreneurial individual: Personal responsibility (creative approach to solve a particular need) 3. An organizational context: Typically some type of organization (sole proprietorship, partnership etc. ) 4. Unique business concept: Some unique idea 5. Resources: Different financial and human resources

Entrepreneurial Assessment Approach • Stresses making assessments qualitatively, quantitatively, strategically, and ethically in regard to the entrepreneur, the venture, and the environment

Entrepreneurial Assessment Approach