In modern economies, the volume of trade transacted enterprises over the internet is rapidly increasing that transacted through the traditional channels. Discuss how any two traditional functions of doing business have moved to the internet and the benefits this movement has brought to enterprises.

CPA-Quantitative-Analysis-Section-4 BLOCK RELEASE

Functions that have moved to the Internet:
Most businesses today in addition to selling their goods through traditional channels also sell their goods through the Internet. Purchase of goods is use of credit cards. Consumers are increasingly adopting this mode of purchase of goods because it‘s very convenient to them. The consumers can purchase the goods and services at any time at the convenience of their homes. Benefits to enterprises:
1. Globalization
A company based in only one continent is able to reach consumers in all the other continents through this approach. Thus, the customer base is increased with this approach.
2. Virtual businesses
Organizations that totally adopt this approach do not have to set up premises for the purposes of sales. They only need a warehouse to store their stock. Thus, this approach is beneficial because it lowers premises costs.
3. Reduced sales personnel
With this approach organizations can reduce the sales personnel since part of the sales are through the Internet. Thus, they are able to cut labour costs.

Most businesses today are also marketing their goods and services through the Internet. The marketing of these products and services need not be necessarily through a company‘s corporate website. It could be through search engines via sponsored links.
1. Large consumer reach
This approach is capable of reaching customers in all parts of the world.
2. Easy to target specified groups/categories of customers
A company could advertise in sports sites, health sites, music sites and news sites to enable it target a specific clientele.
3. Personalized marketing
A company could personalize its marketing strategy targeting each individual consumer through e-mail. This has the effect of improving the effectiveness of the marketing since it makes customers feel that they are important to an organization.

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