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The Rise of Multinational Virtual Corporations
The virtual corporation is the emerging organisational form, which best combines, a fluid ability to adapt to rapidly changing markets and is able to leverage its skills with the complementary skills of other corporations. In the concept's purest form, each company that links up with others to create a virtual corporation will be stripped to its essence. It will contribute only what it regards as its core competencies. It will mix and match what it does best with the best of other companies and entrepreneurs
Key attributes of the Virtual Corporations: Technology, Opportunism, Excellence, Trust, No Border
If these Virtual Corporations are to function globally then they need to be in a position to utilise global communication networks. These networks may be conventional; telephone or international travel, but added value will be yielded from the use of international computer networks. This is an argument for the use of open systems, even internally, in order that such global teams may come together rapidly and largely invisibly.
Underlying Reasons for the Rise of Virtual Corporations
The globalisation of business
People in remote nations will be able to participate in worldwide projects to add value locally without uprooting themselves and their families. Information technology also can make the organisation chart irrelevant. But the real goal of information technology for businesses is faster response times. To bring new products to market quickly and to satisfy changing customer needs, you have to work on many pieces of a complex project in parallel. Information technology makes that possible. It creates competitive advantage in a dynamic global marketplace.
Some critics claim that the national state ability to control its own destiny is being limited by shifting away the economic power from national governments and toward supranational organisation such as World Trade Organisation, the European Union, and the United Nations.
In the knowledge-based economy of the 1990s it is people and their knowledge/expertise, which are the scarcest resources in the information economy so you move work to where the people are. Virtual corporation practices are better suited to take advantage of this than more traditional, fixed corporations
Cost of offices in cities
In cities such as London, New York and Tokyo, the costs of large building are a significant portion of firms operating costs. The resulting pressure on a firm to cut costs often involves rethinking a company's location.
The lowering of trade barriers made globalisatuion of markets and production a theoretical posibility, and technological change has made it a tangible reality. Since the end of World War 2, the world has sseen major advances in communications, information processes, and tranportation technology including, most recently, the explosive emergence of the Internet and World Wide Web.
The Internet and the WWW promise to develop into the information backbone of tommorrow's global economy. From virtualy nothing in 1994, the value of the Web - based transactions hit $7.5 billion in 1997. According to a recent report isssued by the United States Department of Commerce, this figure could reach $300 billion in the United States alone by the year 2003.
Every day, more people connect online and grow comfortable with digital transactions. More companies are building relationships with new and existing customers through the Internet, as well as lowering transaction costs for corporate purchasing or their supply chain6.
Every company can use the Internet to build stronger, more eefective relationships with customers and business partners.
E - commerce and Globalisation
E-commerce has the potential to transcend national boundaries and time zones. It has the potential to create genuinely global market - one in which companies will be exposed to the full glare of competition. Given the general recognition of the roe of electronic commerce in overcoming national, geographical and temporal boundaries to trade, it is now clear that companies that wish to be at the forefront of global competition in their particular markets cannot afford to ignore electronic commerce any longer.
In a world which is increasingly competitive and where organisations are required to undertake greater levels of risk in order to compete, those companies that fail to act now may find they have left it too late as ellectronic commerce has become a dominant way of doing business in their sector. By contrast, companies that by embracing electronic commerce now, they will reinforce their market position.
Aurel Voiculescu MBA http://www.aurelvoiculescu.com Electronic commerce research as part of my MBA dissertation: http://www.aurelvoiculescu.com/mba/transmanag.htm Analysis includes consideration of theories of international trade, corporate globalisation strategies, the impact of electronic commerce (Internet, EDI) and the political factors, which have an impact on the ways in which companies conduct international business.
Shop: Is Shopping Online Secure?
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Products for a Successful Web Business
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What is SSL (the little padlock)?
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7 Suggestions for an i-Mom Friendly Web Site (e-commerce news and statistics)
The Internet began as a male dominated medium, but those days are long gone and merchants are advised to make sure their websites are female friendly to faciliate the rising surge of busy i-Moms shopping online for their family and friends.Women now account for 51.
7 Must Have Scripts to Look for When Shopping for E-commerce Hosting
When shopping for e-commerce hosting there are a lot of things you need to keep and mind. When you know what to look for it is a lot easier to ensure you get exactly what you need and not leave any important information out.
Google to Compete with PayPal?
PayPal is secure in its domination over the electronic payment industry, at least for now.Following reports that Google planned to launch a new Internet payment service (nicknamed Google Wallet), Eric Schmidt, CEO of Google, denied that Google would be directly competing with PayPal.
Complementary-Relational Linking and How It Could Save Your Internet Business
The concept of linking is that sites with common interests should link to drive more traffic to each other's businesses and to increase their "popularity." Search engines, such as Google, give much higher ranking to sites with high popularity.
E-Currency Exchange: The First Bonanza of the 21st Century?
The 21st century has introduced the world to a new way of doing business. It's now a foregone conclusion that global commerce will be as revolutionized by it as Henry Ford's mass-production techniques were a defining characteristic of the 1900s.
Saving Money On Your E-commerce Site
After building and transferring many e-commerce sites it still amazes me that owners of e-commerce businesses are still wasting money in three basic ways. For fear of stating the obvious, saving money is the same as making money $100 saved is $100 added to your profit margin.
Say Something Worth Talking About
I recently published a short e-book called 'One Thing I Know About Doing Business Online'. Seventeen people contributed - including Seth Godin, Jeffrey Zelman, Danny Sullivan, Jared Spool, Gerry McGovern and Ann Handley.
Web Users Crave Familiarity
The sad truth is, general Web users would love it if all our sites looked like Amazon.com.
Set Yourself Apart From The Ordinary
I have written at length about the need to anticipate your visitors' needs. I have talked about how the first screen of the homepage needs to connect immediately and directly with the task each visitor has on his or her mind.
Why Suppliers Should Use B2B Exchanges
Business to business e-commerce is on the rise! Worldwide B2B e-commerce revenues are estimated to reach around US$ 2 trillion in 2004. This is a significant leap from last year's US$ 1.
Credit Card Processing - 7 Things You Need to Know Before Opening an Online Merchant Account
When considering opening an online merchant account to accept credit card orders, there are a lot of things you need to keep in mind. The best thing to do is learn all about credit card processing before you open your online merchant account so you can handle everything from the beginning rather than having to go back and make many changes.
Shopping Cart Usability
Usable Shopping Carts Increase SalesE-commerce has been around since 1993 under many different names, but one thing remains constant; shoppers want usable web sites. Without a usable shopping cart the sites typically fail from poor performance.
Conducting Business through B2B E-marketplaces
Businesses, which are still sitting on sidelines and not doing business on the Internet, should think seriously about their position! If you are one of them, chances are there, that you have to pay dearly for your indecision as you might lose significant market share to your more proactive competitors in a very short period of time.Apart from the fact that e-commerce is growing at the rate of more than 25 percent a year, the use of online features can bring efficiency to virtually every aspect of business process, be it supply chain management or customer support management.
A Beginners Guide To Setting Up A Successful Online Store
A beginner's guide to setting up a successful online store Online selling is by no means a simple task. To sell products online not only requires making use of high end marketing strategies but also involves lots of planning.
E-marketplaces from Sellers Perspective
What is an E-marketplace anyway?E-marketplace is a business to business web based venue, where buyers and sellers meet online, generate business leads and conduct business transactions. The e-marketplace features are tailored in a manner so that a large numbers of buyers and suppliers can be serviced as a community.
How To Start An Internet Business - Site Layout
The fourth step of how to start an Internet business involves the layout of your site. When organizing it, two audiences must be considered.
How to Receive Payments for Your Online Sales
Once you decide which products you are planning to sell on the Internet, and what type of web store you are going to use in order to display your products, next vital decision that you have to take is to figure out how your customers are going to pay you. Whatever you plan to sell online, accepting credit card transaction is a must! A full 90 percent of all online sales occur through credit card payments.
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