Saturday, November 15, 2008

Can the internet and social media change a B2C company’s group structure?

http://www.linkedin.com/groupAnswers?viewQuestionAndAnswers=&gid=102576&discussionID=445139&commentID=592971&goback=%2Ehom%2Eanh_102576#commentID_592971 .. in response to a question posted in Linked In

I think it already is.
The supply chain will be radically altered by Internet which is already bringing products and experiences directly to the end consumer. This eliminates a lot of the agents in the chain between the source and the consumer. Not only does it bring direct access, it also has direct bearings over the costs of channel management and the staffing. Hence a lot of companies today are paying more heed to their online presence. Presently these would only be a supporting tool, but in days to come it will become a delivery channel. What ever little remains in terms of physical deliveries is being outsourced.
This is just scratching the surface as many technology companies are already thinking of co opting and inventing with the consumer. Case in point is Dell. From the configuration of the product/services (as Dell does) to Payments (directly thru the internet) to after sales service, intenet is altering the nature of transactions
As far social media is concerned, C2C referrals are in. A consumer tends to believe another consumer more than the source. Social networking communities are gathering more clout as more and more consumer affiliate to them. Hence the developers and the businesses are seriously looking at engaging these communities. It is a much more focussed advertising media than anything else, where you are speaking directly to your target audience. Hence as you see, internet is chopping out the physical channels and social networking is redefining the role of marketing.
The direct advantage of this goes to the small and nimbler companies who find this focussed and cost effective medium to be more effective than blowing millions of dollars on channel, people and marketing as such. Currently the trend is catching in. So it is a supporting tool. However the next 4/5 years could see these mediums to beecome very relevant and substituting mainstream channels. (This substitution is also a function of the nature of your business). B2B also evolves more or less in the same manner.

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