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An Analysis Of Internet Businesses

Paper Type: Free Essay Subject: Information Technology
Wordcount: 1516 words Published: 19th May 2017

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The reason for writing this essay is to discuss The Advantages and Disadvantages of conducting business on the Internet in the Twenty First Century. In the Twenty First century the advantages and the disadvantages of the use of the Internet is tremendous worldwide. There is enormous benefit to achieve when conducting a business on the Internet. You may ask why I should invest on the Internet. It is to your advantage to invest wisely. It allows access 24/7 and 365 days a year, therefore, no need to hire office helpers for shift or normal working hours, people will visitors your website since there are computers with Internet access, which they can use to gain access the website at anytime anywhere.

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On the other while there are advantages on the Internet for business to do well, there can also be some inauspicious situation or circumstances. No physical contact, such as no eye contact, no face to face communication, products sometime, ordered might be damaged or loss, during delivered, no way of knowing until it is received, as a result loss of time and productivity.


Most people who organize, operate, and assume a business venture on the Internet know it can be chaotic and disappointing sometime. Nonetheless, with sufficient communication most businesses can gain much benefit from advertising on the Internet and minimize the disadvantage risk that comes along with it. On the other hand, it may prove to have the buying or selling power that produces a relatively constructive position.


Many services are now provided on the internet such as banking online, I have not gone into the bank for a while, I’ve done all my banking online such as paying my college fees. When I am travelling I purchased all my tickets online that usually cost less than if I purchased it off-line. I am using the internet for just about everything it is a great tool. Nevertheless as Buchannan writes one of the advantages ‘it is easy to set up and lead users from one place to the next in a logical manner. The disadvantage is that data is relatively easy to tap into and possible changed.’ [1] 

Low Cost

Internet communication provides the advantage of lower estimate and storing costs, comparing to printing posters, making a radio or television broadcasting or, supporting a media center. It allows good deal consideration for entering new buying or selling. “Internet information is ageless the advertisement also make available the advantage of being lasting.’ [2] 

It allows volunteered playing an important part to examine carefully the goods and the services and leave notes for others to use. It is cost effective; ‘compare the costs of sending out physical mailing to 25,000 addresses, with the costs of an e-mailing to 250.000 e-mail addresses. Reproduction at “zero cost” Whether 1,000 visitors come to your site or 25,000, the increased cost is marginal.’ [3] 


In all likelihood, we have heard about, “blogging” one might want to know what is it? What helpful or useful benefits will my business derive from it? “A blog is an abbreviation for “web log” and they are web notes containing up-to-date information on hot issues among the Internet community what. It is also an important Search Engine Marketing tool as it is increasingly used to promote online businesses. Having a blog helps your website get better rankings in the search engines.” [4] 

When you want to design a “blog” it is important to set a clear goal with a reasonable purpose in mind. Select a theme that will be beneficial to your website in the long run, and to the people who visit your website. Provide current, relevant and essential topics. Ask for the reason, cause, or purpose? Ask yourself why blogging would be of help to my business on the Internet. Because it offers excellent “search engine” tools that can make the “search engines,” perform at a greater speed, and make the website communicate to your all customers and other business. In fact other “bloggers” will transmit customers to your sit without cost; it gives your site a good chance for success.

June 2005, eBay

It is known that the Internet attract more shoppers for goods and services, “June 2005, eBay, “the World’s online marketplace”, occupied the 5th position in the USA top 10 parent companies with a unique audience of 39,468.000 (Nielsen/Net Ratings) The e-learning sector will grow from $10.3 billion in 2002 to $83.1 billion in 2006, and eventually swelling to over $212 billion by 2011 (Consultant Brandon-Hall) E-commerce transactions in 2005 will reach $168 billion and $316 billion in 2010. These estimates include travel, which is typically the biggest e-commerce sales driver. Excluding travel, e-commerce is expected to “grow 14 percent in 2005 (Forrester Research) The online travel industry will double its revenues in the next three years, from $38 billion in 2004 to more than $80 billion in 2007 eMarketer.” [5] 

The Internet is now known as low cost and most adequate sales tool around, because of “link” to the Internet, compare to other business. You have a chance to grow your business successful on the Internet with the right type of Internet promoting fundamentals symbol of principles promotion and decent activities

According to “Real Time Statistics for Measuring Success of Promotion Campaign the most important advantages of Internet advertisement is that it’s successful and can be seen.” [6] Buyers, and sellers use program that give immediate results. Some promotion, give visitors the ability to determine the significant of an advertise product. Which allow the customer to evaluate what is good for them and, also allow time for them to make changes of what they buy and how they it.


Here is a man by the name of Steve proclaiming in his own words that working from home via the Internet he received unexpected benefit

‘Steve is a 47-year-old father with two boys, Thomas 16 & Jack 12. “I’ve always been the main breadwinner in our household and a little while ago, received notice that the factory for which I managed Health & Safety was to close. As our children were both at critical stages of their education we decided to stay in the area and look for work locally. I’d always wanted to work for myself and luckily came across the Community Times business. After attending a seminar at their HQ. I quickly realized that the business would not only suit me but would also have benefits to the whole family. I get to work from home, spend more time with my family, watch my boys play football and earn more than ever whilst being in full control of my family’s destiny. [7] 

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It has being proven there are disadvantages of managing a business on the Internet. Challenge in verifying authenticity records, advertising on the web, challenge for the business and costumers to perform a complete analysis to determine the genuineness of a transactions. As a result most small businesses are open to attack by larceny, with “stolen credit cards and stolen information to do online transaction. With Internet credit card and identity fraud on the rise, small businesses are forced to finance costly security measures to reduce their vulnerability to fraudulent transactions.” [8] 

Other unfavorable condition isolation no physical contact with buyer’s therefore more sales opportunity is lost. Enterprise is forced to choose advertising method in order to lure back customers to the website. Nevertheless, the advantages surpass the disadvantages. With sufficient understanding, enterprise can gain to profit from Internet advertisement, particularly those owners small business.


The Internet is a very effective. It has many advantages; on the other hand, it also has its disadvantages too.


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