In the era of digital technology increasingly developing, people use the Internet more often. Along with that, the online business is also expanding, reaching many different types of customers.
So, what opportunities and challenges will businesses face in this 4.0 era?
Business opportunities will depend a lot on the size of the company as well as different business fields.
For small and medium enterprises:
It can be said that this is the part of the business that benefits the most in the 4.0 era. These businesses are just entering this field and only operating for a short time. So what benefits do they benefit?
First: Businesses will save on the cost of renting premises to open stores. Today, the cost of renting a business location is one of the most difficult problems for new entrepreneurs, online business will help entrepreneurs lessen worry about this problem and focus. into other areas to grow the company. That cost can be used to invest in additional equipment for online sales or to expand the scale or category of products.
Second: The online business will give you a solid first step and create a wealth of experience before entering a larger market, which is one of the strengths of business in the 4.0 era.
Third: Opening a traditional business store you will encounter a lot of tax papers and legal policies and brands. For an online business, it is simpler, you will only have to pay attention to a small amount of papers and policies related to branding and some other policies, it completely depends on the country that you want your business and the country in which you live.
For large and super large businesses:
For larger businesses, online businesses also bring many benefits.
First, Helping to build community, expand market file, create relationships with customers. Creating a community on social media is much easier than live chat, not only that, a social network community will be easier to manage and access. Their products will spread and reach every customer faster with just one click to send product information and promote the product to market. They can also survey to build more customer relationships and improve service quality.
Secondly, Contributing to the integration of technology in the world market: The use of technology in business will help businesses improve their image, creating an image of an advanced business, suitable for age. While the whole world is moving towards the IoT (Internet of Things), the integration of big companies with the technology market to do business such as Amazon, Alibaba, … is appropriate for the times. They are even pioneers and successful in online business.
Many competitors in many areas.
Today, many entrepreneurs move to the online business market for attractive benefits. Therefore, if the enterprise’s products are not exclusive products, it is inevitable that it is inevitable that the entanglement of countless competitors in the same industry is inevitable.
Besides market competition in industries of the same product, there is also competition in other industries. Competition for distributors, competition on items with similar features (For example: between hoods – Dehumidifiers – Air purifiers, between phones – Tablets – Laptops, … )
Difficult to create trust for customers.
Unlike direct trade when consumers can experience products or services by themselves, online business will be hard to gain trust because buyers can only see products through photos. Not only that, online businesses also encounter a number of sideline issues such as delivery policy, warranty policy, … that will somewhat slow down the buying decision process of customers.
Especially for new businesses appearing in the market, creating trust for customers is extremely difficult. Because they have no experience, they do not have the prominence and have never been known to everyone or received reviews from customers. This leads to a slow decision to buy from these businesses.
Continuous conversion, fast change.
The online business industry is associated with social networking sites in particular (Facebook, Instagram, Twitter …), sales applications (Amazon, Alibaba, Lazada …) and Internet sites in general, because So, if the web changes, businesses will have to adjust to keep pace with technology. If not, the business will become out of date and face many risks when selling products.
In addition to the changes of commercial sites in general, the change of technology, there is a change that is more important than changing according to the habits of customers. When customers change trends, they also need to change.
Above are the opportunities and challenges of online business in the digital age. Hope the article will help entrepreneurs on their way. Good luck!