The Practice of Electronic Trade Nowadays, most experts recognize that Internet is part of the environment of businesses; they also note that the level of its use varies considerably from one firm to another. For Jean Talbot, electronic trade has so far given rise to five different strategies open to a firm when it envisages developing an Internet site. Drawing on examples taken from different industries, Prof. Talbot reported on the current status of commercial use of Internet. For many firms, an Internet site is above all a marketing device. In this first 'Internet strategy', the site essentially contains basic information about the firm and its products. In another approach, promoting the firm can, according to some, be done better by relying on the pertinence of the information that is available on their site, rather than by directly promoting their products. The firm 'Pampers' is, according to Prof. Talbot, one of the best examples of this approach, since they provide 'disinterested' healthcare information for young mothers. Thus, rather than find information about the firm's products, users can find a large quantity of non-commercial information - in this case, about babies. The evolution of the technology naturally induces firms to move on to selling on the Web. From modest beginnings, Web sales climbed to $7.8 thousand millions in 1998 and by 2003 should top $108 thousand millions. The range of products and services available through Internet is continually increasing. Using Internet as a tool for sales is the third way for firms to approach Internet. But beyond selling products, another category of web sites is coming in rapidly, providing for the sale of information and of electronic services. Some of them work on a subscription basis. Outside the traditional markets, new business opportunities are already available to those who want to profit from the Internet flood tide. More and more firms are acting as intermediaries between traditional firms and consumers. Also, one can mention 'virtual shopping centers', also sites for specialized services, for electronic financial transactions, etc. These 'newcomers' represent the fifth alternative. Internet has contributed to radical changes in the nature of industrial competition. Indeed, it can be said that from now on, new approaches are necessary if one is to remain competitive. Thus, new attitudes towards technology, the provision of client-oriented services, the reduction of geographic barriers ... are all features of the "click here" economy; they are forced on enterprises if they wish to stay in the race for the global markets. The very appearance of the new intermediaries ought to be a warning to firms who are reluctant to move over to the Net. |