IMPACTS OF THE INTERNET

ON THE WAY THAT PEOPLE

TRADE
• Many companies in the traditional business environment were unable to directly sell goods or services
to consumers and other businesses. These companies, such as manufacturing and intermediate goods
producers, often needed a middleman to help sell goods in the business environment. The Internet
allows these companies to set up websites or other electronic order systems to sell products and
generate a pipeline for future business sales.
NEGATIVE IMPACT OF THE INTERNET ON BUSINESS
• Competition-This can lead to "showrooming," a phenomenon in which customers browse products on
the shelves of a traditional store, identify the item they want to purchase, and then leave and purchase
it online for cheaper prices.
• Impersonality-the lack of face-to-face communication often leads to the perception of a company as
impersonal, faceless and uncaring. Potential customers who receive automated or stock responses to
their questions may be deterred from making a purchase by the frustration they feel.
• Security-technical glitches or malicious hackers can expose sensitive data, such as addresses, passwords,
credit card details or bank account details.
• Reputation- Without the Internet, a single negative opinion may have a limited reach, reaching only the
immediate social circle of the original customer. When posted on review websites, however, the same
negative opinion is visible to potential customers all over the world and may deter them from doing
business with the company.