Journal of Computer Applications (JCA)
ISSN: 0974-1925, Volume V, Issue 4, 2012
E- Commerce in Managing Poultry Business
S.C.Vetrivel a,*
Abstract - With faster communication, transportation, and
financial flows, the world is rapidly shrinking. Products
developed in one country are finding enthusiastic acceptance
in others. A German businessman may wear an Armani suit to
meet an English friend at a Japanese restaurant, who later
returns home to drink Russian Vodka and watch an American
Soap on TV. Since 1999, the number of multinational
corporations in the world’s 14 richest countries has more than
tripled. In fact, these companies today control one- third of all
private sector assets and enjoy worldwide sales of $6 trillion.
International trade now accounts for one- quarter of GDP, up
from 11 percent in 2000. Althought some Businesses may want
to eliminate foreign competition throught protective
legislation, the better way to compete is to continuously
improve products at home and expand into foreign markets.
Because of the competing advantages and risks, companies
often do not act untill some event thrusts them into the
international arena. Someone –a domestic exporter, a foreign
imorter, a foreign government – solicits the company to sell
abroad, or the company is saddled with overcapacity and must
find additional markets for its goods.
Index Terms – Business, multinational, private sector, markets,
products.
I. INTRODUCTION
Ironically, although companies need to enter and compete in
foreign markets, the risks are high: huge foreign
indebtedness, shifting borders, unstable governments,
foreign – exchange problems, tariffs and other trade
barriers, corruption, and technological pirting. Still, we
argue that compaines selling in global industries have no
choice but to internationalize their operations. To do this,
they must make a serise of decisions.
1.1 DIGITAL ECONOMY
The economy (Demand & Supply) driven by internet and
web technology is called as Digital economy.The cost,
availability of the product, price information and delivery
are the important factors that influence economic behavior.
In the digital economy, product and price information can be
readily accessed from providers across the globe, enabling
the cross comparison of various product attributes and
prices. In addition to that product transaction and payment is
also done on line. Integration of various online information
management tools through internet, companies set up
systems for customer orders, payments, customer service
and collection of marketing data and online feed back.
Manuscript received 09/Oct/2012.
Manuscript selected 19/Dec/2012.
S.C.Vetrivel, Assistant. Professor, School of Management Studies,
Kongu Engineering College, Perundurai, Erode – Dt, Tamilnadu, India,
E-mail: scvetrivel@yahoo.com , Mobile : 094422 10999.
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1.2 E –COMMERCE
The capability to buy and sell goods and information and
services on line through public networks is called
E – Commerce.
It is concerned with systems and business process that
support
 Creation of information sources
 Movement of information over global networks
 Effective and efficient interaction among
producers, consumers, intermediaries and sellers
Electronic commerce is a system that combines the
resources of information systems with the reach of network
connectivity, to directly link the key business constituents –
customers and businesses – to improve the efficiency of the
structures and elements of commerce.
The information exchange element in the electronic
commerce system may include banner advertisements;
web site containing details of products/services, and
electronic catalogues providing detailed information on
pricing, quality, delivery and payment terms. In some
systems that provide customized offerings, it may also
entail guided customization or an interaction via
electronic mail.
The customer, after the due level of interaction, enters
the second phase or the contract and order element. The
customer, having already decided to order the
product/service, negotiates the final payment, delivery and
service options, and formalizes the contract. This phase is
akin to a customer interested in buying a book, after
having identified the book at firstandsecond.com or
fabmart.com, pressing the “buy one now” or “place an
order” button.
The “contract and order” stage is followed by the
exchange of values which may involve, physical or
electronic shipment. Payment, in electronic commerce,
can be done through traditional methods, using the credit
card over the network; or by new methods, utilizing
electronic wallets containing digital money.
In the case of digital goods such as software packages,
digitized music clips, digitized video clips and other
multimedia information in digital format, the shipment or
delivery is done instantaneously, over the network. In the
case of physical goods, once the payment validity is
confirmed online, the shipment and delivery department
is alerted to prepare the delivery package and ship it,
using the buyer’s advise. The business may tie up with
the information systems of delivery companies to
schedule the pick up and delivery.
1.3 BENEFITS OF ELECTRONIC COMMERCE
Electronic commerce is directly dependent on the
integration of network connectivity with information
systems. Many of its advantages are the same as those
that make the internet a preferred infrastructure. The
internet is available globally and distributes information
to anyone connected through it, twenty four hours a day,
seven days a week.
 E- Commerce in Managing Poultry Business
The global access offered by the internet, to everyone
who is connected, expands the market reach of a
company beyond its geographic location, as anyone at
any corner of the globe can transact business with the
company over the network. All companies that offer
products or services over the network are on equal
footing , irrespective of their sizes. Therefore, it is easy
for a new entrant bookseller to compete with well
established brick and mortar bookstores. On one hand,
the global market reach opens up new markets, on the
other it brings competitive pressure from those who have
already set up their electronic commerce presence,
leaving no one unaffected.
II. IMPACT OF ELECTRONIC COMMERCE ON
POULTRY INDUSTRY
The cost and availability of price and product ( raw material
and finished products) information is important
determinants of economic behavior in poultry industry.
Buyers often bear substantial costs in order to obtain
information about the prices and products offered by
different sellers in the market. This is applicable to both the
directions in the poultry industry. E commerce is very useful
to the poultry industry in the following ways.
In the input level
 To analyze the project cost and feasibility study in the
initial stage
 Finding out the availability of infrastructure materials
used to establish the form and to study the method of
forming to be used for the optimum cost- benefit.
 Helping in booking and delivery of chicks, feed,
vaccines and other medical facilities available for the
birds.
 Role of intermediaries in the input process in
eliminated.
 Price fixed for the eggs in the market is known to the
producer faster through the e media, it is helpful for the
price analysis also.
In the product delivery level
 Co- ordination between producer and the dealer /
retailer is increased.
 Much useful in export marketing.
 Multiple choice preference for marketing the eggs
and meat is available.
 Helps in understanding the market position
quickly.
 Product advertisement campaign made easy and
effective.
 Online suggestions and feed back on the product
and related services will be made easily.
 Change in product ( meat & egg ) prices can be
made available to customers at the earliest.
 Benefits of using the product will be available to
the customers in the electronic media ( web site ),
since it cannot be printed on the product packing
covers.
III. BENEFIT TO THE BUYERS/CUSTOMERS
 Customers can enjoy lower prices because of
increased competition among the sellers.
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 Customers will be better informed about the
available product and thus choose sellers who suit
their needs better. This will generate substantial
allocation efficiencies.
 Transaction costs and searching costs incurred in
obtaining the best possible product features and
prices are largely minimized.
IV. COMPETING ON A GLOBAL BASIS
A global industry is an industry inwhich the strategic
postiations of competitors in major geographic or national
markets are fundamentally affected by their overall global
postitions². A global firm is a firm that operates in more
than one country and captures R&D, production, logistical,
marketing, and financial advantages in its costs and
reputation that are not availble to purely domestic
competitors. Global firms plan, operate, and coordinate
their activities on a worldwide basis. Ford’s ” world truck”
has a European – made cab and a North American- built
chassis, is assembled in Brazil, and is imported into the
united States for sale. Otis Elevator gets its door systems
from Frances. Small geared parts from Spain, elextronics
from Germant, and Special motor drives from Japan; it uses
the United States for systems integration/. A company need
not be large to sell globally. Small and medim-sized firms
can practice gloal inchemanship. Even a sports league can
be global.
V. DECIDING WHETHER TO GO ABROAD
Most companies would prfer to remain domestic if their
domestic market were large enough. Managers would not
need to learn other languages and laws, deal with volatile
currencies, face political and legal uncertainties, or redesign
their products to suit different customer needs expectations.
Business would be easier and safer. Yet several factors and
drawing more and more companies into the international
arena:
Global firms offering better products or lower prices can
attack the company’s domestic market. The company might
want to counterattack these competitors in their home
markets.
The company discovers that some foreign markets present
higher profit opportunities than the domestic market.
 The company needs a larger customer base to
achieve economies of scale.
 The company wants to reduce its dependence on any
one market.
 The company’s customers are going abroad and
require international servicing.
 Before making a decision to go abroad, the
company must weigh several risks:
 The company might not understand foreign
customer preferences and fail to offer a
competitively attractive with foreign nationals.
 The company might underestand foreign country’s
business culture or know how to deal effectively
with foreign nationals.
 The company might underestimate foreign
regulations and incur unexpected costs.
 The company might realize that it lacksmanagers
with internationsl experience.

 The foreign country might changes its commerical
laws, devalue its currency, or undergo a political
revolution and expropriate foreign property.
VI. EVALUATING POTENTIAL MARKETS
Suppose a company has assembled a list of potential markets
to enter. How does it choose among them? Many companies
prefer to sell to negighboring countries because they
understand these countries better, and they can control their
costs better. It is not surprising that the largest U. S. Market
is Canada, or that Swedish compaines first sold to their
Scandinavian neighbors. As growing numbers of U. S.
Compaines expand aborda, many are decinding the best
place to start is next door, in Canada.
In general, a company prefers to enter countries that
(1) rank high on market attractiveness,
(2) are low in maket risk,
(3) in which it possesses a competitive advantage.
Once a company decides to target a particular country, it
ahs to determine the best mode of entry. Its broad choices
are indirect exporting, direct exporting, licensing, joint
ventures, and direct investment. These five market-entry
strategies are shown in each succeeding stratdy involves
more commitment, risk, control, and profit potential.
VII. INDIRECT AND DIRECT EXPORT
The normal way to get involved in a foreign market is
through export. Occasional exporting is a passive level of
involvement in which the company exports from time to
time either on its own initiative or in response to unsolicited
orders from abroad. Activeexporting takes place when the
company makes a commitment to expand into a particular
market. In either case, the company produceds its goods in
the home country and might or might not adapt them to the
foreign market.
Compaines typically start with indirect exporting – that is,
they work thorughindependent intermediaries. Domestic –
based export merchants buy the manufacturer’s products
and then sell them abroad. Domestic – based export agents
seek and negotiate foreign purchaseds and are paid a
commission. Inclued in this gorup are trading companies.
Cooperative organisations carry on exporting activities on
behalf of several producers and are partly under their
administrative control. They are often used by producers of
primary products such as fruits or nuts. Export –
management compaines agree to manage a company’s
export activities for a fee. Indirect export has two
advantages. First, it involves less investment; the firm does
not have to develop an export department. An overseas sales
force, or a set of foreign contact. Second, it involves less
risk; because international – marketing intermediaries bring
knowhow and services to the relationship, the seller will
normally may make fewer mistakes.
VIII. JOINT VENTURES
Foreign investors may join with local investors to create a
joint venture company in which they share ownership and
control.
 Coca – Cola and Nestle joined forces to develop the
international; market for ” ready to drink” tea and
coffee, which currently sell in significant amounts
in Japan.
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Journal of Computer Applications (JCA)
ISSN: 0974-1925, Volume V, Issue 4, 2012
 Procter & Gamble formed a joint venture with its
Italian arch – rival Fater to cover babies bottoms in
the United Kingdom and Italy.
 Whirlpool took a 53 percent stake in the Duth
electronic or political reasons. The business to
leapfrog into the European market.
A joint venture may be necessary or desirable for economic
or political reasons. The foreign firm might lack the
financial, physical, or managerial resources to undertake the
venture alone; or the foreign government might require joint
ownership as a condition for entry. Even corporate giants
needs joint ventures to crack the toughest markets.
IX. DIRECT INVESTMENT
The ultimate form of foreign involvement is direct
ownership of foreign – based assembly or manufactureing
facilities. The foreign company can buy part or full interst in
a local company or build its own facilities. If foreign
company can buy part or full interst in a locl company or
build its own facilities. If the market appears large enough,
foreign production facilities offer distinct advantages. First,
the firm secure cost economies in the form of cheaper labor
or raw materias, foreign – government investment
incentives, and freight savings. Second, the firm strengthens
its image in the host country because it creates jobs. Third,
the firm develops a deepar relationship with governement,
customers, local suppliers, and distributors, enabling it to
adapt its products better to the local environment. Fourth,
the firm assures itself access to the market in case the host
country starts insisting that locally purchased goods have
domestic content.
The main disadvantage of direct investment is that the firm
exposes a large investment to risks such as blocked or
devalued currenices, worsening markets, or expropriation.
The firm will find it expensive to reduce or close down its
operations, because the host country might requires
substantial several pay to the employees.
X. THE INTERNATIONALIZATION PROCESS
Most countries lament that too few of their compaints
participate in foreign trade. This keeps the country from
earning foreign exchange to pay for needed imports. It also
raises the specter of domestic companies eventually being
hurt or taken over by foreign multinationals. These
countries are trying to encourage their domstic companies to
grow domestically and expand globally. Many countries
sponsor aggressive exportpromotion programs to get their
compaines to export. These programs require a deep
understanding of how compaines become interbationalized.
Johanson and Wiedersheim – paul studied the
internationalization process among Swedish companies.
They see firms moving throught four stages:
1. No regular export activites.
2. Export via independent representatives (agents)
3. Establishment of one or more sales subsidiaries.
4. Establishment of production facilities abroad.
The first task is to get compaines to move from stage 1 to
stage 2. This move is helped by studying how firms make
their first export decisions. Most firms work with an
independent agent and enter a nearby or similar country. A
company then engages to managents to enter additional
 E- Commerce in Managing Poultry Business

countries. Later, it establishes an export department to

manage its agnet relationships. Still later, the company
replaces ite agents with its own sales subsidiaries in its
earning potential.
To manager these subsidiaries, the company replaces the
export department with an international department. If
certain markets continue to be large and stable, or if the host
country insitis onlocal production,the company takes the
next step of locating production facilities in those markets,
representing a still larger commitment and still larger
potential earnings. By this time, the company is operating as
a multinational company and is engaged in optimizing its
global sourcing, financing, manufacturing, and marketing.

XI. CONCLUSION
International compaines must decide how mush to adapt
their marketing strategy to local conditions. At one extreme
are companies that use a globally standardized marketing
mix worldwide. Standardization of the product, advertising
and distribution channels promises the lowest costs. At the
other extrem is an adapted marketing mix, where the
producer adjusts the marketing – mix elements to each
target market. For a discussion of the main isssues, see
”Marketing Insight: Global Standardization or Adaptation?”
Between the two extremes, many possibilities exist. Most
brands are adapted to some extnet. Even global brands, such
as Pringles, Always, and Toyota, will undego some changes
intheir product features, packiaging, channels, pricing, or
promotion in different foreign markets.

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BIOGRAPHY

SC.Vetrivel.M.A.,LL.B.,M.B.A.,M.Phil., (Ph.D), The

author is having 24 years Industrial experiance in the
field of Aeronautical engineering and Administration.
Completed Management studies from Pune University.
Specialised in Marketing Management, Human
Resource management and Business law.He is
possessing teaching experiance nearly 10 years. Participated 34 National
and International Conferences and published 18 Articles in International
and 10 National journals.Recently submitted his research project report in
Anna University, Chennai

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