Internet as a new business tool: challenges and responses

Abstract

The Internet has become a household necessity of the age. Internet business or ecommerce is getting the edge over traditional marketing. This study examines and analyzes the research theme of the Internet as a new business tool, and its challenges and responses in three essays. They are Issues and Challenges of e-commerce, Company Case Analysis of the Dell Computer Corporation, and The Internet Use and e-commerce in Malaysia based on two survey questionnaires, one for the users and the other for the companies in Malaysia. The data for this thesis firstly came from two survey questionnaires. Sources of nonsurvey data, namely the press reports and standard publications of books and articles on Internet and e-commerce have also been used. Web sites have been used to get the readily available updated data. E-journals and electronic books have been used as well. E-mail was the main media of communication between the researcher and the sources of data. The study found a positive trend as the usage of the Internet is increasing remarkably in Malaysia. It was also compatible with International Data Corporation's estimate that e-commerce in Malaysia accounted for just US$4 million of sales in 1997, but that figure will grow to US$20 million in 1998, and US$95 million in 1999, hitting US$1 billion in 2001. Online advertising has a great potential to be an effective way to reach thousands of customers in Malaysia. Customers do not have enough trust yet to purchase expensive products online. 95% of people surveyed agreed that Internet is useful. Most of the people were optimistic about the usefulness of the Internet and are accepting e-commerce. Users were very much concerned about privacy and security over the net. 74% supported some sort of censorship on the Internet either by government or parents and guardians. On an average, a momentous executive awareness and commitment to e-commerce exist among the senior management of the companies in Malaysia. Yet, the companies' current e-commerce activities are still moderate. However, from the overwhelming positive responses, we can conclude that companies in Malaysia are very much optimistic and willing to adopt e-commerce activities in the future, especially in business-to-consumer and business-to-business e-commerce.