The role of e-business and the internet for Starbucks Essay

The role of e-business and the internet for Starbucks - Essay Example The paper tells that in the modern day and age, the use of the internet is ever increasing and more companies are getting involved in electronic business, often shortened to e-business. It now plays a major role in the economy at a global level. E-business consists of all the products and services that are offered in the online environment, including things such as online purchasing, customer service, communication of sales and new products. There are many advantages to e-business, not in the least because it can reach a different audience than traditional physical business. In addition, the two are not mutually exclusive; many businesses have a strong e-business component as well as a strong physical business component. One business that has incorporated e-business successfully into its business model is Starbucks. From starting as a single store, Starbucks is now a chain that spans the globe with more than 15,000 distinct stores worldwide. Part of their success is their ability to integrate new type of business into their model beyond the business of being a physical coffee shop. Starbucks offers franchising opportunities; sells coffee, tea, brewing items, food and a wide variety of drinks, with many of their products also being available in their online store. The term business-to-business (B2B) transactions refer to transactions between a manufacturer and a whole sale seller or a franchisee. As the product is sold in a bulk the cost per product is less for the buyer and the sales volume of Starbucks is improved as the selling quantity is large. Business-to-business transactions contribute to a major portion of transactions in any selling company as it is done in bulk. In the example of Starbucks, a B2B transaction would involve selling its products to a supermarket, which would then mark them up and sell them at a profit. In contrast, business-to-consumer (B2C) transactions are direct sales between one customer and the business . Generally an individual con sumer will buy a much lower quantity than a business; however, Starbucks is able to sell their products at a higher price to consumers than it can to businesses. Business benefits to having a website Having a website allows a business to establish an online presence. This is particularly important in modern times as the internet is becoming increasingly important and many more people are making the decisions based on information they find online. There are many competitive benefits that having a website and e-business in general can give a company . Advertising – The internet can be used to advertise new products on the home web page and also on other related web pages in order to reach out to a greater mass . To communicate – Communicating online via chat windows to possible customers can help in easier ordering for the customer and bring more business to the company . Communication helps to maintain customer loyalty . To inform – Any special offers and discoun ts offered can be announced on the web page. This will lead to an increase