The web has fundamentally changed business……. forever!

A small company can now really compete on equal terms with large global competitors. A local  business can become a national business. Servicing  customer online 24*7 is now easy. Online and virtual  outsourcing can cut overheads as you “buy” expertise as required.

Today’s consumer is so much better informed. When they are in the market for a particular product or service a whole world of information is available to the  consumer. Whatever the category , whatever the spend the web reveals all. Traditional media and advertising is no longer blindly trusted. Celebrity endorsements no longer carry the power they once did. In the internet age we are far more likely to trust reviews by our fellow citizens than believe a manufacturers or retailers advertised claims. We have seen massive growth in social media sites, product , price and service rating sites.

No longer is the consumer dependant on the advice of friends and family as the web offers a whole new world of advice and recommendation.

A better informed consumer has had a major impact in industries such as real estate, used car sales, and travel where the buyer can be equally as well  informed about their particular interest in the market as the professional sales person in the sector. Via the web its easy to become expert on the current  market for  4 bedroom family home in Browns Bay or  the current price of a 3 year old Subaru wagon or the best deal for a short break winter holiday  in Rarotonga.

This trend is spreading and becoming much more prevalent in many industries. The local bookshop has to compete against global giants like Amazon and their massive buying power and efficiencies. A   boat dealer in Manakau could find himself competing against a boat yard in Christchurch for a customer who live’s in Hamilton. In the service industry life insurance has become more of a “commodity” available to purchase online , share broking a global industry and that new cell phone why not buy it direct from China.

For business this is a double edged sword.  While on the one hand customers have spread their purchasing net wider (and this trend will continue)   with a smart web strategy though a local business can become a national business or  even a global business. We are seeing more specialising and niche players  as businesses become absolutely expert at servicing a particular area and understanding their customer requirements intimately.

Today its so much easier to communicate with and inform customers. Free services like Skype (internet  telephony) You Tube (video streaming) and social networks , plus cheap online advertising or even better FREE viral marketing  all offer tremendous options for smart businesses and organizations to sell , to promote, to inform. ….. to make more money more smartly while offering improved service!

A growing trend is people setting themselves up as facilitators working effectively as “brokers” for the consumer rather than agents of the principal or product supplier. This is a different mind set. In real estate we are  seeing  agents who are more focused on assisting the buyer than the traditional stance of being an agent of the vendor. Travel agents acting as brokers for the consumer rather than as agents of the airlines and suppliers. In areas like advertising rather than using an expensive full service vertically integrated agency a consultant can work online in a co ordination role buying in services as required often more efficiently and can sometimes offer significant savings over full service rivals.

A perfect example of this trend is in the car industry where there have been some major structural changes. Via a smart web strategy a car dealer can promote  and sell imported cars before they arrive in the country. No longer does he have to have an expensive street front yard but rather can work out of an inexpensive grooming shop and take his car directly to the potential buyer. He cut overheads in staff, in occupancy, in traditional advertising and in the huge holding costs of cars in stock on the yard for viewing. No longer is he dependant on local buyers but now has a national audience.

The travel industry is also a perfect example of disintermediation (changes in the supply chain). Not so very long ago a London hotel typically quoted his rate to a UK based inbound operator, who then onsold the hotel to be packaged by a NZ based Tour operator who then distributed the hotel package via local travel agents who sold it to  the consumer. Today that same hotel can sell directly via his own website or via online discounters such as www.wotif.com cutting out 3 or 4 steps and margins.

So for smart businesses embracing a clearly thought out web strategy can have a dramatic effect on the future of the business. The web can cut costs, grow sales, assist profile, improve communication , generate leads and keep you in touch with your customers and potential customers.

Today the internet has come of age as an exceptional business tool. As broadband speeds have increased and the cost of storage has dramatically reduced content can be distributed quickly and easily. The “Cloud” (content stored and accessed from a central computer rather than stored locally on your pc) will grow dramatically as a delivery mechanism especially when coupled with  low cost new devices such as smart phones and your home TV  media centre.

Not embracing the web is no longer a viable business strategy. If you don’t a digital  business strategy in 2010 the one thing you can be sure of  your competitors will.