E-business permits a new form of business that allows clients to get information and make purchases through the Internet. It is also considered as one of the major advantages that a company can have over its competitors today. During the seminar, we analyzed different cases with different companies, and saw how the entry of the Internet in business has increased brand recognition.
In this assignment, I will take the example of three companies, and I will study how the Internet tool helped them to improve their business development.
The Warner music Group specializes in the music business, and was founded in 1930. It is now an international company divided into three strategic business units: recording, licensing and publishing. The first record of the group was launched in 1958 and the group is now well developed: it has many different labels such as The Atlantic Group, Atlantic Classics, Atlantic Jazz, Atlantic Nashville, Atlantic Theater, Big Beat, and many others. The group is an international one, and is established in 50 countries thanks to its 37 affiliates and licenses. With respect to the organization, we note that the strategic business units are divided in two categories: Publishing (Warner/Chappell Music) and others.
[...] E-business is very important in its strategy and it is based on several main points: - The way of booking tickets: The majority of tickets are sold via the Internet. We notice than in of tickets were bought on the website. This strategy allowed the company to reduce costs. That is the reason why it is important to have an efficient booking service online. - E-services: Ryanair offers four services to clients: on-line modification of booking, on-line registration for passengers without luggage, on-line registration of luggage during the booking process, the purchase of travel insurance. [...]
[...] These downloads represent a real risk for companies such as Warner Music Group because if a song is downloaded illegally, the company will lose finance in the following ways: - Copyright fees that the persons who download have to pay, - The lowering of CD sales: a person who downloads an album will not buy the CD later. Mike Dougherty, the vice president of corporate and business development, said that has seen statistics showing that millions of songs, films, games and software are illegally downloaded each week”. [...]
[...] E-business also started with technology and the expansion of the Internet. For example, almost all business have a website. In the previous part, we have seen that Tupperware is aware of these new business tools. It does business online, and uses the Oracle system. However, this was not enough. In order to perform and be competitive, Tupperware created another new technology tool called TIME (Tupperware Integrated Manufacturing Environment), and the new distribution system they developed was known as Tupperware Express (TEX). [...]
[...] Using E-business allowed the Warner Music Group to save money in different parts of the company, including human costs (workforce), production costs and engineering costs for example. Doing business over the Internet reduces: - The number of workers (in general because a part of the staff is replaced by others more specialized on Internet), - Production costs, because the company does not have to buy the CDs (it is only in MP3 format), - Engineering costs, because the company does not use the machines to write the song on the CD; it is almost directly in the right format. [...]
[...] Tupperware is known in France thanks to their original and unique way of distribution. But what has made Tupperware famous, is not its distribution, but its products. I have chosen Tupperware as e-business example, because the brand has used information and technology to change its organization. Mytupperware.com and Tupperware.com Because of the nature of the market, Tupperware has developed a website in order to communicate to consumers. Its web site is traditionally designed, with the section of main companies' website (information, stockholders information, product range and where to find the products). [...]
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