Business+and+the+Internet

__ Businesses and the Internet __

Introduction

This wiki contribution will discuss the relationship between businesses and the internet. It will look in to a number of aspects which will show how the internet has influenced and impacted on various industries. Furthermore the wiki contribution will also challenge and discuss certain views collected from a variety of relevant literature. It will also use an array of real-life examples to support any of the conclusions drawn. Not only will this contribution focus on the internet as a concept, but also look into how technological changes have intertwined with the rapid growth of the internet. Additionally touching on the flexibility that it now offers to the masses. Finally it will establish how businesses can successfully use or be destroyed by the ‘World Wide Web’.

The integration of the internet as a mainstream tool in society has significantly improved the way both large and small businesses are run. Technological changes, businesses and the internet has merged into a ‘3-way-synergy’according to Braden (1994) suggesting that the internet is a well-rounded, and most importantly, is accepted as an integral part of our culture and lifestyle. This has helped produce companies such as Spotify. Spotify started by recognizing the amount of demand shown by online users for an internet music database –a completely radical concept which would not have even been thought of 10 years ago. Tucci (2000) strongly emphasized that ‘Despite the Internet's phenomenal impact on business and its reach across all sectors, no model has emerged for thoughtfully valuing companies internet efforts’- This contribution will challenge this statement made by Tucci, by showing the reader how things have changed in the last 14 years. Explaining that there are highly effective models out there that businesses use in order to maximise the effectiveness of the internet - mainly using social media and viral marketing.

This topic is open to high volumes of debate in many topics. Therefore I will break down the discussion between the topics, highlighting both positive and negative aspects of; ‘contemporary’relevance in the business world, the impact of communication, how the internet has changed certain industries and finally how it has created online piracy and disruption regarding copyright material.

How does the internet have ‘ contemporary ’ relevance to the business world?

Bodden (2008) describes the internet as a large ‘computer network.’These networks ‘join computers around the world together’, she goes on to say how the internet is also the ‘information highway’emphasizing the speed at which data can be acquired and acted upon. Gralla (1998) expands on this by saying ‘The internet isn’t a single network; it is a vast, globe-spanning network of networks. It’s the purist form of electronic democracy’ This is supported by the concept that ‘any individual or institution can create a website with any number of documents and links’(Albert, 1999)The internet is therefore a completely revolutionary concept. One which has taken the world by storm ‘Increasingly gaining importance not only for big firms, but for a single homeowner as well’(Tkacz, 2009). Shah (2005) highlights that ‘the role of the Internet is to be a source of political information and a sphere for public expression.’We now socialise, interact and communicate in a way that has never been seen before thanks to the internet.

Created in 1991, the internet’s ability to connect to millions of webpages almost instantly is life changing and to some an essential part of living. It has reached the mass market incredibly quickly, and will no-doubt continue to grow. Since it began over 20 years ago, the advancements of the internet have had a significant impact on almost every industry. This makes it even more relevant in today’s business world. Hence why ‘business and the internet’has such a high ‘contemporary’relevance. Green (2010) describes ‘contemporary’relevance as simply the means by which ‘modern frameworks are used throughout many aspects of the internet as a way of addressing and illustrating its relevance within new media to everyday life, as of the present moment’. In this respect the internet is vital within today’s society especially in terms of business utilisation.

The internet is a vital necessity to the running of many businesses. Without it many would lack a business model and have little or no direction. ASOS for example, are one of the biggest online retailers in the world. The company would have no business model if it were not for the internet, as it relies solely on the internet to reach its market. The company became so successful because they were able to implement their business model into a big gap in the market, online shopping. This allows the company to float on the stock market and means they are currently valued with a market capitalisation of around £4.5 billion.

The Internet is becoming more and more applicable to businesses. However it must be noted that more traditional and often smaller businesses haven’t been educated on this. They are unaware of the internets relevance to society and how significant the internet could be to their businesses. Often simply by just having a presence on the internet.

‘//It is important to understand traditional management thinking theories////’ (Daft, 2010)//

Companies such as boutiques or classic pubs, are often known for using use a more traditional method for their marketing or promotional strategies, in order to reach their target audience. Thus losing out to online and viral marketing campaigns. Campaigns which could entice a whole new customer database and see improved business and efficiency within that company.

Communication & Social Media

The most influential form of communication in recent years has been the boom in social media. Social media is ‘distributing your own content online’(Zarrella, 2009) An example of just how powerful social media is in this day and age is McDonalds Twitter campaign with the hashtag: #McDStories This campaign had an adverse effect on the company’s social media reputation. McDonalds thought it would benefit for them, yet it was the negative and/or extremely sarcastic ‘Tweets’that customers made which actually undesirably impacted on the company. Rather than spreading positive feedback about their customer service and product range, it provided highly negative feedback. The campaign emphasises how companies in general need to be very cautious and understand how powerful viral campaigns can become.

Though online communication sounds bad, it is in fact incredibly effective way of communicating. Advertising and promoting online is the best way to reach out to a large target audience. It is very cheaply and incredibly quick.

Furthermore the Internet has created a platform, which has allowed relationships amongst consumers and businesses to go digital.

//‘Synergistically leverage these online branding tools to increase the online consumer experience and hence add value of their websites////’ (Close, 2012)//

Old fashion methods such as magazines and newspapers are slowly being reduced, due to the ease and accessibility of the internet. Most households can easily access the internet allowing media to be viewed in many different forms. For businesses that aim at a younger target audience, it is considered a vital element for a business to run and maintain an active website that is regularly updated, as well as Facebook and Twitter pages. These must be of a very high standard in order to reflect the businesses brand image and gain a good level of trust with the customer. Companies become significantly less competitive if they don’t have a website and/or the relevant social media pages. Barlow (2010) suggests that having a competitive edge is vital to the upkeep of the business by ‘Engaging into a process, which is acted upon by the company based on a balanced analysis of research’Also very few big businesses don’t have a website where they can advertise or sell their product or services. This is because it can be seen as financial suicide for businesses not has some form of online interaction with the consumer via the internet.

Another example of the internet working as a form of communication is Wikipedia. Wikipedia is a large encyclopaedia filled with around 4 million articles that any user can (voluntarily) edit. This portfolio of resources ensures that the website relies solely on user-generated content to continually improve as the ultimate database. Websites like Wikipedia highlight how advanced and sophisticated the internet has been for individuals and businesses in acquiring vast data easily and effortlessly. However, this form of communication using the internet has and will cause alarming worries. For example, just how reliable and valid is this kind of information? With articles, blogs, feeds and news being produced constantly, will people become alienated or ‘brainwashed’by data which may be exaggerated?

//‘According to popular mythology, the// //Internet// //will be bad for the future of language////’// //(Crystal, 2001)//

Though the statement above is somewhat controversial, there is evidence to suggest that the way we learn and communicate is being somewhat manipulated by the internet ‘Accurate sources are hard to find and trust’(Long, 1990). The video below sarcastically humours how the development and changes from ‘Web 1.0’to 2.0 has assured users that almost anything and everything is possible. From blogs, to music videos, to pretty much any form of digital interaction - the next internet phenomenon is just round the corner.

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How has the internet changed certain industries?

The internet has had a global impact not just on businesses but on sectors such as the financial industry and even the world’s economies.

//‘The internet has changed the market structure and redefines the banking business////’// //(Gunter, 2003)//

More specifically the financial services and/or investments and how they are now dealt due to the rise of the internet and changes in technology. For example, Stock markets have now been completely digitalised. Therefore it is now possible to trade international stocks from anywhere in the world thanks to the internet. Farrell (2008) discovered over the course of trading, problems such as ‘System crashes, execution delays, market errors and broker faults’can easily occur, particularly in volatile markets. This advancement in the introduction to the internet and vast technological changes has given a whole different dynamic to the world of trading stocks. It’s now easier, quicker and more efficient way to trade the markets and get news and live feeds through in a much faster and accurate way. This also applies to online banking –offering a safer and more secure way of dealing with your personal finances.

On a more macroeconomic scale, the internet has had significant impact on the UKs economy, below are a few a facts since the introduction to the internet;

//‘The UK economy benefits by// //£20 for every// //£1 invested in broadband////’ (Department for Culture, Media & Sport, 2014)//

//‘The internet contributed about// //£100bn to the UK economy in 2009, or 7.2pc of all economic activity (The Boston Consulting Report, 2014)//

These facts further enhance the internet’s stability and demand for businesses, as well as ensuring them how the platform is a vital component for the majority of businesses and the economy in the UK. For many, the internet is the core ‘backbone’for their businesses activity.

Another industry that has affected businesses because of the internet is logistics and distribution. Worldwide shipping and delivery services are now more easily available than ever. Companies like Amazon and eBay –both giant online retailers, would not be able to work, manage or communicate with any of its stakeholders anywhere near as effectively without internet as a core ingredient to their business. Controlling and managing vast warehouse facilities are much more refined due to technology and the internet merging to help these businesses operations. Buhalis (2008) emphasises that the growth, development and research within the industry is only ‘mirrored by the growth of ICT’(Information Communication Technology) Thus enforcing that technology would not grow without the internet and vice versa.

//‘The development of the Internet in the late 1990s, has transformed the operational and strategic practices within the industry dramatically////’//



=Diffusion of E-Commerce in UK SMEs.=

The adoption of the internet is argued by Wilson, H, Daniel, E, & Davies, I (2008) as being a cluster of innovations that have been adopted rather than being see as a single innovation. It is also argued that SMEs evolve through a staged approach to organisational learning. It is therefore expected that e-commerce is adopted through a staged process. The factors which affect the adoption rates of e-commerce are the relative advantage e-commerce has over existing methods of satisfying the same need; its compatibility with current practices; how readily the benefits can be communicated to the business; its complexity; ad whether or not it can be first tested on a smaller scale. This is joined by the perceived risk of adoption. It as argued however, that adoption should be based on an innovation by innovation basis. Factors affecting adoption are top management support, management understanding, presence of IT skills, availability of consultancy and prioritisation of e-commerce compared with other projects (Wilson, H, Daniel, E, & Davies, I, 2008).

The factors which affect the benefit realisation for e-commerce by SMEs are Management understanding, Training, IT skills, customer/supplier demand, top management support, prioritisation, perceived risk and divisibility.

=Retail and e-Commerce =

The internet has had a massive impact on many industries, and this next section will focus on the effect it has had on the retail sector, specifically the emergence and growth of e-commerce and the adaptations of brick and mortar retailers.

Bailey & Bakos (1997) define e-commerce as “the use of computing and communication technologies to engage in a wide range of activities up and down the value-added chain, both within and outside the organization”.

Over the last 20 years the retail environment has been significantly influenced by changes in society and the evolution of consumer needs. As the internet spread and became accessible to nearly everyone in developed countries, it has affected many if not all sectors of business. As consumers adapt to the internet as a new source of information and communication, businesses have had to adapt to maintain relevance with the new and booming community of internet-lead consumers (Chang, Jackson, et al: 2002).

The traditional channel of product procurement has been through brick and mortar retailers, where store employees are the catalyst for sales, and have the ability to persuade consumers by keeping them informed. One of the major implications that the internet has had has lead to that ability being removed from the high street; internet-lead shoppers are able to compare prices and product information with ease.

With the recent increase in smart phone usage, consumers are now able to compare prices within shops by scanning the bar code of a product and comparing the prices online, and find a suitable retailer to satisfy their needs. Smart phone-lead consumers are not limited to comparing priced in shops; they can access retail information from any geographical location, given that signal is available. The added ability to access personal funds via a smart phone has turned internet capable devices into high streets in their own right.

A new channel of product acquisition has emerged from the internet boom, and that is e-commerce. Entrepreneurs have been able to adapt to the needs of consumers and create one stop online shops, providing a vast number of products on demand that can be delivered internationally and straight to the front door. This is a similar channel to that of mail order and tele-shopping, but as the internet encroaches on television and printed media, these channels may not be around much longer.

Amazon.com is one of the most mainstream of these e-commerce ventures, and has proved a formidable force considering the way it has dominated the online market, reducing the number of consumers venturing to the high street. This approach is popular as it meets the needs of its abundant, fast paced consumers that seek speed, convenience and home delivery. As mentioned above, it is essential for retail outlets to meet the constantly evolving needs of consumers, and by modifying the supply chain, businesses may be able to act faster on trends and become more appealing to consumers. While brick and mortar retailers still bear most of the weight in terms of sales, shops have had to adapt continuously to remain competitive. Retailers have had to implement a mulch-channel approach, integrating online retail with established retail outlets (Amit: 2000).

Retailers have also been forced to utilize many other aspects of the internet to remain competitive; taking advantage of cheap marketing opportunities through social media, and boosting awareness through sponsored ads. This method of internet utilization can become a viable means of persuading consumers to choose a certain business’ products, or at least get them into the shop where the business can have more control. = =

Death on the High Street
In the first half of 2012, an average of 20 retailers per day were closed, and by the end of October 2012 over 10% of all stores in the UK were empty; evidence that more and more people are choosing alternative channels to shop through (Internetretailing.net: 2013).

It is a popular opinion that online and mobile retail is proving to be a “terminal disease” for physical shops, and recent trends in the economy may be exacerbating outlet development.

<span style="font-family: Arial,Helvetica,sans-serif;">A study by TradeDoubler (2013) shows that a large portion of consumers that look at products online (38%) still want to make the trip to a retailer to see the product for themselves, whereas an almost equal amount of people use the high street to investigate and compare prices, leaving purchases to online retailers once enough information has been collected.

<span style="font-family: Arial,Helvetica,sans-serif;">“By 2020, the UK will be a very different place with a shift in shopper make-up and a far greater role for technology,” (James Miller, Experian: 2012)

<span style="font-family: Arial,Helvetica,sans-serif;">Recommendations
<span style="font-family: Arial,Helvetica,sans-serif;">It is up to the retail outlets to adapt and integrate the internet with its operations by providing easy and seamless access to primary and alternative purchasing channels. Both approaches need to be considered with equal importance as both online and physical retailing should go hand in hand. It may not be enough to have a basic online presence as businesses will struggle to get consumers interested in the business.

<span style="font-family: Arial,Helvetica,sans-serif;">It would be quite a stretch to say that physical retail outlets will disappear in the near future, however online and mobile retail has definitely advanced boldly into the marketplace, and e-commerce is established and viable enough to maintain its growth and influence over new and evolving consumer bases. It is important for retailers to not get left behind; the future will have to involve a harmony between physical and virtual retail experiences. =How the Internet has contributed to the downfall of the traditional music and film industry?=

It was not long ago that the sale of traditional music record and film (CD, DVD and Blue ray) had declined slightly. In 2012, Mark Sweney reported that the UK music industry revenue (physical sales) fell by 14 percent, whereas the income of digital music subscription services (Spotiy and [|Napster]) increased 47.5 percent (Sweney, 2012). Hence, iTunes store was one of the very first digital media store operated by Apple Inc. – it was first started on April 2003.Thereby[| HMV] is one of the victims in such a gradual change in the taste of consumer behavior. Although, HMV has been recovering slightly over the past 12 months, it is still continuously losing share in the entertainment market (Vizard, 2014). The reason for this impact is the replacement of Internet streaming, subscription and downloading files either for free or on minimum contract monthly payment. For instance the websites such as ThePirateBay, KickAss Torrents and Torrentz are the platforms where people from around the world could access, share and download any forms of contents they want (e.g. books, movie, music, TV shows, etc.) in the format of Torrent file.

Case study of digital music service (Spotify) versus HMV (high-street music store)
[|Spotify] is a giant music streaming service, where users can get free access or to subscribe as a premium. Hence, both options provide users access to their huge music library (more than 24 million individual songs and more than 700 million tracks). Additionally, Spotify users have as much control as iTunes users. Spotify users can browse, listen, create playlists and the capability to share them with friends. Furthermore, the Spotify premium users have the priority to download the music on to their device such as phone, laptop, tablet and PC to listen to their favorite song or playlist offline (anywhere and anytime) – hence there will be not any audio advert between the songs. The price for subscription as a Spotify premium user is only £9.99 per month. In fact, students could get 50 per cent off the full price (£4.99 per month).

To operate and sell their services (subscription) at such a low and competitive price has constantly force the traditional and physical way of buy entertainment products out of the business. For example, the recent news reported that the HMV staff in Oxford made an announcement in March saying ‘we will only open until the end of June 2014’ (Herald Series, 2014). Yet other staff added that ‘originally we are supposed to close down today’ (Herald Series, 2014). Additionally the HMV bosses also stated earlier in January 2014 that ‘the company has been forced to close partly because the decline in consumer spending and intense competitive pressure from the Internet’.

However, HMV has never given up the war against the digital music services. [|Marketing week magazine] (4th April 2014) reported that now HMV had launched its new marketing campaign on 18 April by promoting the American box sets through cinema advertising with the launch of the new Spiderman film. HMV called this campaign as ‘HMV presents Superheroes’. This campaign can possibly been seen successful potentially because previously in January 2014, HMV also promoted the similar concept of ‘HMV presents awards seasons’. Will people even be bothered to arrive at the cinema early to watch the adverts before their movie? The answer for whether this campaign will be successful in the future or not is still unknown.

__** The Internet and the News Media Industry **__


 * Internet and News Media **

The increased prominence of the internet over the past two decades has signalled a shocking evolution of a number of industries, one such being the news media industry. Traditionally news had been distributed only in print, but the emergence of the internet - as an effective means of information distribution and communication - has led to a myriad of opportunities and threats in the industry. Changes in the market structure of the news industry have taken place, but how much of these changes can be attributed to the internet?

The Internets characteristics make it a potent tool for the distribution of news – it is high speed, low cost, has immense reach, can engage consumers interactively and is almost entirely free from censorship (Duncan, 2000). The internet as a medium for communication has led to a vast change in the way people exercise their freedom of speech. Many more people have started their own news broadcasting channels, as the Internets information giving and retrieving features are used in similar ways as mass-media channels such as television and newspapers (Flanagin and Metzger, 2001). The increase in competition arguably isn’t all of high quality, but may have in part caused the erosion of revenues from professional journalism (The Economist, 2012).

An interesting tangent relevant to online marketing is contained in ‘Multimedia effects on processing and perception of online news’, where authors find that the use of multimedia (e.g. videos, pictures) on websites tended to hinder memory of story content whilst improving memory for advertising (Sundar, 2000).


 * Consumers of New Media **

Before considering the relationship between traditional and new news media it’s important to touch on the consumers traits in this market. Consumer buying behaviour often varies dramatically - with age, gender, class etc. – and so consideration must be given to the defining differences between consumers of internet and consumers of more traditional news media.

The obvious difference in new and traditional news media distribution is the use of new technologies which begs the question of whether the younger tech-savvy generations are to blame for the dissemination of news via the internet. For those – potentially younger segments of the market – who’re assimilated with internet culture, the benefits of gratification and of convenience can be realized (Dimmick, Chen and Li, 2004).

However there is evidence to the contrary. A comparison of internet users and non-users found that those who used the internet are more likely than others to read newspapers and listen to radio stations (Stempel, Hargrove and Joseph, 2000). This finding would suggest that the internet is not the cause of any decline in other media usage.


 * Relationship between Traditional and New News Media **

The relationship between traditional print and new news media is one proclaimed to be obvious, but may have more enigmatic roots. It is important when studying this relationship to remember that it is highly unlikely the rise of one form of media will be the sole precedent for the decline of the other – and there is a huge range of cultural, economic, technological, lifestyle and work related factors that influence any change in market structure.

It is also important to consider that many traditional media companies have adapted to the new and volatile market environment in an attempt to retain market share. The New York Times was forward thinking in its approach to this new platform and had created its own website in 1996 – only 5 years after the first page on the World Wide Web went live (Jansma, 2010).

An article by Roy Greenslade in The Guardian (2009) entitled ‘Newspaper Sales Plunge Over the Decade’ is self-descriptive, but contains good analysis. The author points out that use of mobile phone and the internet for sourcing news cannot be the sole reason for the decline in the sales of newspapers as “the gradual, inexorable, circulation decline predated the widespread use of the net through the extension of broadband” (Greenslade, 2009).

The internet has become the most popular channel for information-sharing throughout the past decade. One study shows that as this new medium grew and excelled due to its inherent characteristics, it had a competitive displacement effect on the more traditional news media sources in the area of daily news intake (Dimmick, Yan and Li, 2004). The study also states the largest displacement has occurred in Television and Newspapers.

__** Business and the Internet **__

More than 1.8 billion individuals worldwide use the internet in some way, shape or form. A significant portion of users are business owners who have learned the power of connecting with consumers and colleagues electronically, which is now vastly becoming a new trend and a modern marketing strategy. Therefore, over time a business owner's consistent use of the internet can help propel their company to the next level, increase brand awareness, enter new markets, build relationships and advertise to a large audience (Bidgoli, 2005).

A few years ago, through the use of traditional marketing, businesses opened a storefront and put adverts in the local paper, joined a local networking organisation and hoped the local consumers required what they had to offer. All this has changed with the beginning of the internet (Francis, 2014).

A business is no longer dependent on its local customer base for its survival; it now has a worldwide audience for its goods and services. The internet has changed not only a business' consumer base, but how a business communicates with its employees, customers, and finds and manages the competition (Francis, 2014).

__ The top 7 online marketing trends for businesses and the internet __

The internet has drastically altered the way in which information is shared, and has had a profound impact on the business. Over the past few years, there has been more of a shift toward inbound techniques, while many outbound tactics have become old-fashioned (DeMers, 2013).

More businesses are finding success publishing original content rather than embedding advertisements within external content, because of the additional benefits these tactics offer, such as branding and audience growth (DeMers, 2013).

With these trends in mind, DeMers (2013) identified that businesses have to recognise a number of important new trends for the business in regards to the internet and what should be implemented.

1. Social media marketing will require more diversity

Just a few years ago, businesses were limited with regard to the social media networks they could implement into their marketing campaigns with the pages on Facebook, LinkedIn and Twitter. Pinterest, Google+ and Instagram have surged in popularity and have provided businesses with an excess of new options that allow them to produce engaging content in a variety of media forms and build their audiences across more channels than before.

Consequently, it has become common for businesses to branch out and experiment with multiple networks with the aim of reaching the maximum amount of consumers. This diversification seems to prove productive for many businesses, as it often builds brand equity by making it easier for consumers to recognise a particular brand.

2. Image – centric content will rule

As consumers are hit with an increasing number of advertisements, it is becoming more important to make content easily and quickly digestible. If businesses look at the social media sites, three of the four have common characteristics; they place an emphasis on images. The rapid rise to success is evidences to the power and viral potential of image-based content.

3. Mobile – friendly content will be necessary

Due to the widespread and quickly growing use of smart phones and tablets, it is necessary for businesses to create content that is accessible to mobile users.

According to Forbes (2013), 86% of connected device sales by 2017 will be tablets and smart phones. Whether it is creating an alternate mobile version of a website or utilising responsive web design, it is important to provide a positive experience to users that are browsing via a mobile device.

Otherwise, it is easy to lose consumers to competitors who have adapted to this trend. As the shift from traditional PCs and laptops to mobile devices continues, businesses that are not on board are likely to suffer.

4. Advert retargeting will grow in effectiveness

This trend is a marketing strategy that has really caught on. This works by utilising browser cookies to track the websites that users visit. Once they leave a certain site, the products or service they viewed will be shown to them again in advertisements across different websites.

It is fairly obvious as to why this technique can be so effective. With only 2% of web traffic converting on the first visit, advert retargeting works to increase the overall conversion rate by reminding consumers of the product or service they viewed. This keeps the brand and the product at the top of the consumers mind. There are even psychological studies that have shown that simple exposure to brand names and logos creates familiarity, which builds trust and makes the consumer more likely to make a purchase. Even if there is no immediate purchase, this can really pay off in the long run.

5. Search engine optimisation (SEO) and social signals will become even more intertwined

Although social signals still do not typically carry the same weight as traditional inbound links, it is pretty undeniable that they play a role in organic search rankings these days.

Since the goal of Google and other search engines is to provide users with the most relevant and highest quality content possible, it makes sense why they would factor in the number of social shares that blog post, article or product pages receive.

The more individuals that are sharing content, the higher quality it is likely to be and therefore the position should increase within the search engine results pages. It is no coincidence that the top ranking search results tends to have lots of social shares, whilst those ranked lower have fewer.

Besides this, social shares can serve as a stamp of approval (a trust signal) for visitors landing on a page. If they see that it has hundreds or thousands of shares, it is likely that there is something of value. That is a big reason why so many businesses are installing social share plugins and encouraging consumers to share as much as possible. media type="custom" key="26025126" width="114" height="144" Shara Swenson on the latest digital marketing trends


 * Conclusion **

It seems that the internet has changed the composition of the market in terms of distribution channels, and has been able to do this so due to its ability to satisfy the needs of consumers more effectively that it’s traditional counterpart. Thus it is possible to conclude that whilst the sales of newspapers as traditional media have been in decline for an extended period of time the presence of the internet has exacerbated the process. It is up to news media companies - who’ve now involuntarily entered into the internet business environment – to adapt and innovate in order to keep their competitive advantage. They must do it in order to defend their market share from the large influx of independent content providers and news bloggers all fighting to be heard.


 * References **

Bidgoli, H. (2004). The Internet Encyclopedia. Bakersfield's: John Wiley and Sons. 805.

DeMers, J. (2013). The Top 7 Online Marketing Trends. Available: http://www.forbes.com/sites/jaysondemers/2013/09/17/the-top-7-online-marketing-trends-that-will-dominate-2014/. Last accessed 24th May 2014.

Dimmick, J., Chen, Y. & Li, Z. (2004) 'Competition between the Internet and traditional news media: The gratification-opportunities niche dimension'. The Journal of Media Economics, 17 (1), pp. 19-33.

Duncan, E. (2000) 'E-entertainment survey: sex, news and statistics'. The Economist, 357 (8191), pp. S11-S12.

Flanagin, A.J. & Metzger, M.J. (2001) 'Internet use in the contemporary media environment'. Human Communication Research, 27 (1), pp. 153-181.

Francis, K. (2014). How Has the Internet Impacted Businesses?. Available: http://smallbusiness.chron.com/internet-impacted-businesses-321.html. Last accessed 24th May 2014.

Greenslade, R. (2009) 'Newspaper sales plunge over the decade '. The Guardian,.

Jansma, S. (2010) New York Times - From offline to online[Online] Available from: @https://www.youtube.com/watch?v=A-4EHBrNDy4 [Accessed 03/04, 2014].

Stempel, G.H., Hargrove, T. & Bernt, J.P. (2000) 'Relation of growth of use of the Internet to changes in media use from 1995 to 1999'. Journalism & Mass Communication Quarterly, 77 (1), pp. 71-79.

Sundar, S.S. (2000) 'Multimedia effects on processing and perception of online news: A study of picture, audio, and video downloads'. Journalism & Mass Communication Quarterly, 77 (3), pp. 480-499.

Swenson, S. (2014). Latest Digital Marketing Trends. Available: 4. https://www.youtube.com/watch?v=4EUcYXcA2YI. Last accessed 24th May 2014.

Unknown (2012) Economist Debate: The News Industry [Online] Available from: @https://www.youtube.com/watch?v=HHJ8kT167RI [Accessed 05/04, 2014].

Online Piracy One of the biggest drawbacks for the internet has been the evolution of internet piracy and illegal downloading.

//‘Internet technology is constantly being improved. It is becoming easier for people to find the information they are looking for and download it to their hard drives////’ (Hunnewell, 2010)//

This has damaged sales in various forms of media sectors (e.g. CDs) to the point where it has made companies such as HMV enter into administration. The vast switch from CD to internet downloading is a significant example of just how quickly demand has changed and switched within certain industries.

//‘As several organisations began to operate in the internet market space, they innovated unique propositions to create value in the process. These were either not found or difficult to replicate in the traditional brick and mortar operation////’ (Mahadevan, 2000)//

This example doesn’t just apply to the music industry, but also the film and game industry. Who also suffer from online users benefiting from obtaining free content rather than purchasing real copies. This is of course is the result of adapting to the ‘digital age’–within a world of smartphones and tablets - a physical version of something that can be streamed online is becoming increasingly likely to become extinct due to its substantial reduction in demand. Thus seeing an increase in breaching the original copyright agreement terms for much of the content downloaded online. However, in order to overcome the harsh and threatening drawback to online content, service providers are now blocking certain websites which promote illegal and downloadable content in order to reduce data that’s being downloaded kept to a minimum and increase the film, music and games markets economically. This is the result of Web 2.0.

//‘the new form the internet has taken that allows users to actively participate in the information exchange process////’ (Isik, 2013)//

Though this all incredibly negative, certain companies have set out to compete to both reduce piracy and take advantage based around the latest technologies available to the internet by meeting customer demand. Netflix is a prime example. Though they charge money so users can’t illegally watch TV shows or films for free, there small monthly premium to view all their content has targeted an audience adapting to the change is online media. They now have a significant stake in market share and are now battling against the likes of Love Film and YouTube. This brand new market is now ferociously competitive and would not exist due to the evolution and innovation of the downfall of the internet.

Conclusion

In conclusion this contribution has established that the internet has allowed for a revolutionary change in culture and lifestyle -hence the positive and negative impacts that have been discussed throughout this contribution. There are just as many drawbacks as there are positives thanks to the rate at which the internet has quickly being implemented successfully.A prime example is crushing ‘brick and mortar’retail, due to illegal downloading and piracy. This incredibly important topic has seen the industry struggle to solve a reasonable way to stop online crime from occurring. Furthermore, online hackers are now becoming even cleverer in the world of piracy. Another downfall is that businesses have to keep up to date very regularly. Keeping up with the digital changes can be hard and very time consuming, though it is a vital part of keeping businesses alive. There is a wide range of potential for the internet, in the coming years, where it will no doubt enhance and interlink with the latest technological innovations offered from the likes of Amazon, Apple and Samsung. Furthermore, there are still a lot of businesses that either don’t use the internet to advertise and broaden their target market, or use it as effectively as they should do. This leads to massive potential for businesses to benefit from and increase their customer base.

The future does host a couple of threats to the online world. Could we see a potential global internet crash, where all networks halt completely? Furthermore, the internet does lack (and always has) a ‘personal’feel will never give consumers the same response that a one-to-one service does in real-life. This occurs in industries such as fashion, where trying on clothes or getting advice will always be more difficult online than going into a store. The ‘next big thing’may come along and make internet as a whole redundant. Who knows what the latest technology has to offer? This could cause havoc and potentially eliminate certain companies from their respective industry very quickly

Finally, older generations may find it harder to come to terms with devices which have internet on. As the world converts and adapts more and more to a digital world, there is trouble with the more ‘mature’audience not appreciating or understanding how much the internet has to offer. On a more macroeconomic view, there are still millions of people that can’t access the internet whatsoever. This leads on to a vast potential for future generations, as forecasts predict that internet will continue to influential and inspire businesses and entrepreneurs. There seems to be ever growing possibilities regarding things that haven’t even been made a concept yet. These undeveloped and untouched markets will be fascinating to see how they can change and shape innovation and online advancements. References Albert (1999). //Internet: Diameter of the World-Wide Web//. Indiana, USA: Apartment of Physics, University of Notre Dame. 130. Gralla (1998). //How the Internet Works//. 4th ed. USA: Queue Corporation. 2. Braden (1994). //Integrated services in the internet architecture//. -: IEEE Network (Online). 32. Tucci (2000). //Internet Business Models and Strategies: Text and Cases//. USA: Hill Higher Education. 384. Bodden (2008). //Internet//. USA: Creative Education. 8. Tkacz (2009). //Internet - Technical Development and Applications - Technical Development//. Germny: Springer. 10. Shah (2005). //Information and expression in a digital age modelling Internet effects//.4th ed. Ohio: Sage Publications. 3. Green (2010). //The Internet: An Introduction to New Media//. UK: MPG Books Group. 12. Daft (2010). //Organization Theory and Design//. UK: South Western Learning. 330. Zarrella (2009). //The Social Media Marketing Book//. Canada: O'Reilly Media. 2. Close (2012). //Online Consumer Behaviour: Theory and Research in Social Media, Advertising//. Sussex: Taylor and Francis Group. 5. Barlow (2010). //Branded Customer Service: The New Competitive Edge//. California: Berrett-Koehler Publishers. 201. Crystal (2001). //Language and the Internet//. 2nd ed. Cambridge, UK: Press Syndicate of the University of Cambridge. 7. Long (1990). //A study of the reliability of Internet sites//. California: Computer Networks California. 14. Gunter (2003). //Internet, Economic Growth and Globalization: Perspectives on the New Economy//. USA: Springer. 193. Farrell (2008). //Day Trade Online//. USA: John Wiley & Sons. 23. Buhalis (2008). //Progress in information technology and tourism management//. USA: Elsevier. 19. Hunnewell (2010). //Internet Piracy//. USA: ABDO Publishing. 7. Mahadevan (2000). //Business Models for Internet-Based E-Commerce//. California: California management review. 4. Isik (2013). //Web 2.0 & Alternative Methods of Online Music Rights Management//. USA: GRIN Verlag. 2. Department for Culture, Media and Sport (2014) Report: //Economic Statistics// [] Boston Consulting Report (2014): //Market and Economic Forecasts//[] Wilson, H, Daniel, E, & Davies, I 2008, 'The diffusion of e-commerce in UK SMEs', //Journal Of Marketing Management//, 24, 5/6, pp. 489-516, Business Source Premier, EBSCO//host//, viewed 16 May 2014.



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