In today’s digital age, most all brick and mortar stores have migrated to the Internet to expand their business globally. This migration has come with many sacrifices, lessons learned, and challenges along the way. However, the businesses that demonstrated determination and a willingness to overcome the challenges that they were faced with, have ultimately succeeded in expanding their clientele. One example of the type of company that can be found online is an electronic retailer, or a cybermall type of a site. Electronic retailing, also known as e-tailing, is the direct sale from business to consumer through electronic storefronts. These e-tailing sites are typically designed around and electronic catalog and shopping cart model. This could be a store that has a physical storefront, but decided to reach a broader market by opening an online store as well. Examples of an e-tailing cite would be Kohls, JCPenny, Target, or Walmart. Additionally, a cybermall is a single website that offers many varying products and services on the Internet without a physical storefront. An example of a Cybermall is Amazon. These companies that succeeded in e-tailing are in a mode of constant analysis, to ensure that they will be able to overcome any challenges that may pose a risk to the profitability of the business.
Challenges of Implementing a Global Strategy
Effective Global E-Commerce Strategy
The first major challenge of any business that decides to go global is to define an effective e-commerce strategy. The company needs to determine if they can build the infrastructure to meet the needs of an online presence with the staff and equipment that they have, or if they need to hire IT professionals to get them up and running, while remaining profitable. The company also has the option to outsource the website development out to other companies that specialize in this type of technology, such as; Hostway Global Web Solutions, Network Solutions, an Znode (Stair & Reynolds, 2012). Once a decision has been made and the work has started on the online presence, the company needs to appeal to customers in a global capacity. The information displayed on the virtual storefront needs to remain fresh, because, if each time a customer visits the site and they see the same content, they could get bored with the site and likely never return. So, the content needs to be dynamic, the content needs to peak their interests such as with current sales, new products in the inventory, listings of other companies that have recently partnered up, and what the company’s stock prices are doing. These are all great examples to be cognizant of to ensure that the content on the page remains dynamic and fresh at all times.
An additional key element of the global e-commerce strategy is building a sense of community. “Studies generally recognize that virtual community building is an effective marketing strategy for forgoing deep and enduring affective bonds with consumers” (Pai...