Business Internet Phone

According to Porters Five Forces Model, in my opinion, competition has increased overall as a result of the internet and e-Commerce. The internet and IT has made it possible to both focus on the top and bottom lines and market share is expanded and costs are cut. Many products and services exist just online, major companies have gone online to successfully augment the brick and mortar corporations, and the playing field is all the way to edges of cyberspace, wherever that is. We will further evaluate this stepping through all five forces.

Buyer power is higher when buyers have more choices. Businesses are forced to add value to their products and services to get loyalty. Many loyalty programs include excellent services that customers demand on-line. Customers want to solve their problems and many times they are more successful on-line than on-phone. Also, we see internet savvy businesses springing up offering more valuable goods and services at lower costs. Now with the advent of eBay, many people are assuming roles as drop shippers. Individuals can have a thriving business selling goods of larger companies without having to carry inventory.

Supplier power is higher when buyers have fewer choices from whom to buy. As mentioned earlier, drop shipping has increased the amount of suppliers available. All an individual has to do is form and agreement to sell products for the company. The company takes care of all the logistics. The same is true of associates programs that amazon.com and google.com offer. Associates allow a webmaster to earn money by recommending products from others. This increases supplier offerings.

Threat of substitute products or services is high when there are many product alternatives. This is different than having many suppliers. Examples of alternatives are exchanging brand names, substituting credit card capabilities, and looking at better values from cheaper sources. The internet allows this with the global economy. I can substitute my product by purchasing from companies overseas where labor, services and products are cheaper, but of comparable quality.

Threat of new entrants is high when it is easy for new competition to enter the market. Well, what have we been talking about? Now, small operations can open shop with less than $10.00 per month and make a lot of money. As inventive as people are, there are always opportunities to do improve a product or service or just create and sell something new. Recently, many new entrants have made even more money authoring Ebooks that tell others how to do what they did. Rivalry among competitors is high when competition is more intense within industries.

On-line book stores and catalog companies are an excellent example. Amazon.com and Barnesandnoble.com are very competitive. However, there are many also smaller niche affiliate bookstores that when combined take a great deal of market share. They offer even more competition. However, both major bookstores have used IT to create value for their customers. These values include associates programs, ease of payment and shipping and many, many others.

The internet offers avenues of competition to existing companies and opportunities for start ups. Now businesses can enter the market on-line with few barriers to entry. Porters Five Forces Model can help demonstrate the attractiveness of starting your on-line business. A business person should use the model to identify competition, make a plan, and implement the process.

About the Author: Jeffrey W. Bennett is the Founder and director of LayMentor Ministries. This ministry is dedicated to training church and other volunteer leaders to be more effective. Jeff speaks and writes on similar concepts taught in most MBA courses and makes it easy to adapt to all leadership levels. The volunteer drives our churches and communities and the impact can be amazing. For PowerPoint presentations of this article, visit http://www.jeffreywbennett.com/index_files/resources.htm He is also the author of the Missionary/Adventure novel Under the Lontar Palm available on line at http://www.jeffreywbennett.com or in major and online bookstores.

# posted by cpm-marketing21052 @ 2:18 AM 0 comments

Reliable web hosting is vital for anyone attempting to earn money with a business website.

Choosing a host for your website is not easy when you are an internet newbie and don't really know bandwidth from Band-Aid. What selection criteria do you use? If you are a total newbie, about the only thing you will know how to compare is price but if you do a search for web hosting you will have ads coming at you for all prices from $10 per year to $25 per month. Should you go for the most expensive on the basis that you get what you pay for or should you go for the cheapest because saving money is a priority while you are getting your business running?

The first thing to rule out is free web hosting. There are many great free resources to be found on the internet including excellent anti-virus and anti-spy ware software. Free hosting is fine if you have a hobby website but, if you are running a business online and wish to achieve credibility with visitors and search engines, free web hosting won't do the job.

I discovered the hard way that cheap web hosting is not necessarily the bargain it might seem. When I started looking for hosting for a new website, I already had top class hosting that had come with my first website. There was an option to add on further domains for an extra $5 per month. That was cheap enough but I thought it would be a good idea to have my new website hosted completely separately (you know, the old eggs in one basket caution).

When I started checking around, there seemed to be millions of web hosts all offering what (to my untrained eye) seemed to be the same thing but at wildly varying prices, so I settled on a cheap hosting package. The cost was 1 per month (which was about $1.70 in those days) and I certainly got what I paid for!

At first everything was fine: I paid up, they hosted my website. The trouble is, you don't realise you have bought rubbish hosting until things start to go wrong.

The first sign that all was not well came a few months later when I was unable to locate my website. I raised a support ticket and waited. Four days later came the reply "everything seems ok now". Four days of downtime without a sensible word from support made me feel more than a little uneasy.

Things seemed fine for a while after that but then another problem arose: when I tried to log into my control panel all I got was a message telling me the licence fee had not been paid. This time the reply to my support ticket was quicker, it only took two days. Unfortunately, however, it was completely unhelpful. The reply was "It seems to be a site-wide issue". Was I supposed to feel better because the whole site was messed up and not just my bit? They must have got round to paying the licence fee because after a few more days, login was available again.

After that, I wanted to move to a new host but I had never moved a website before and assumed it would be really difficult and technically challenging (actually it is extremely simple). As a result of this fear my website remained where it was.

The crunch came when my domain name came up for renewal. In response to an email from the hosting company, I visited their website to make the required payment. Their PayPal link and credit card options did not work and there were several error messages showing on the pages I visited.

Emails to their support and billing departments went unanswered. My only means of arranging payment was via their website, so I kept trying. Each time I visited, there were more error messages, nothing worked and it began to look as if the site was actually melting bit by bit. It seemed the company had just packed up and left their website to self destruct.

Enquiries revealed that the only way I could renew my domain name ownership was through the hosting company because they had registered it on my behalf and they retained control of it. As they could not be contacted, there were only two options available. The first was to pay an agent a pretty hefty (and non-refundable) fee to try to contact the hosting company and negotiate the purchase the domain name from them. The second option was to lose the domain.

When you have to choose web hosting, the first thing to look for is quality of support. To keep prices low, the easiest way for the company to economise is to provide sub-standard support. Forget the offers of unlimited bandwidth, hundreds of email accounts, spam filters and other freebies. If support is non-existent, give the company a miss no matter how good their other terms might seem.

You will find ideas about how to earn money working from home and useful home business resources at Elaine Currie's Work At Home Directory For more articles about online writing visit Writing Tips

# posted by cpm-marketing21052 @ 2:14 AM 0 comments