Introduction
TAB Telcom is a company that deals with the sale of IT related products such as laptops, desktops, system software and website creation. The company has two physical computer shops located in the business district.
Internet technology
Internet technology has been widely adopted by a large number of organizations as a result of the proven benefits it has on their respective industries. According to Rooney, internet technology can lower costs associated with the business considerably, thereby improving profit margins (22). In order to achieve cost savings, TAB Telcom can create an online computer shop where customers can buy products via the company’s website. As a result, the company can switch from a physical address to an online model that can be managed from any location with internet connectivity, as opposed to the current situation. Therefore, office related costs such as rent and utilities are eradicated thereby resulting in cost savings.
Furthermore, the company does not have to invest heavily in their employee training seminars in terms of travel and accommodation logistics. In this case, the company can opt to use a distance learning approach where employees can be trained online. This strategy ensures the company reduces its training costs.
In addition, the company can also adopt online marketing techniques such as paid advertising, Search Engine Optimization (SEO), social media advertising and email marketing (Bailey 13). The advantage of internet marketing is presented by the wide reach of the channel. According to Weber, there are more than one million users around the world who access the internet on a daily basis (22). This situation means that businesses can advertise their products and services online hence have a great market reach and improve the possibility of generating sales.
Business environment
Business environment is defined as the operational landscape of an organization. This environment is often affected by forces which the business cannot control. As such, strategy development becomes vital in ensuring the survival of the business in an uncertain environment (Aaker 23).
The environment in which TAB Telcom operates in is influenced by both micro and macro forces. The micro environment comprises of customers, suppliers and competitors. In this case, TAB Telcom aims at improving its business systems in order to guarantee customer satisfaction. In addition, it undertakes extensive research to stay ahead of its competitors.
On the other hand, the macro environment is affected by economic, technological and legislative influences. The economic forces such as currency exchange rates dictate the financial performance of a business on a local and global scale (Capon 20). Technological influences are represented by innovations and trends (Fernando 11). In this case, TAB Telcom undertakes extensive research on upcoming technological developments to ensure the company remains relevant in the market. The company also tailors products and services according to customer preferences. This strategy ensures that the company’s potential and existing customers get real value for their money.
The company is also affected by legislative policies at the local level. Although the company cannot control this aspect, it takes into consideration existing and new laws and assesses the susceptibility of the company in terms of the available opportunities and threats.
Conclusion
The adoption of internet technology yields numerous positive results for businesses. However, organizations should develop an appropriate strategy as per the needs and environment of the company to ensure a seamless transition.
Works Cited
Aaker, David. Developing business strategies. New York: Wiley, 2001. Print.
Bailey, Matt. Internet marketing: An hour a day. Indianapolis: Wiley Technology Publishing, 2011. Print.
Capon, Claire. Understanding the business environment. Harlow: Financial Times Prentice Hall, 2009. Print.
Fernando, Anthony. Business environment. New Delhi: Pearson, 2011. Print.
Rooney, Anne. Internet technologies. North Mankato: Chrysalis Education, 2003. Print.
Weber, Sandra. The internet. Philadelphia: Chelsea House Publishers, 2004. Print.