gain a better understanding of what is known about the B2B trading context and the
online environment:
1 macro-environmental
2 micro-environmental
3 internal (organisation’s operating environment).
1 Macro-environment
The macro-environmentconsists of various external factors which can affect a business’s
success. According to Finlay (2000), these factors may include: demographic, economic,
environmental, political, legal, social and technological. Examples of how some of these
analysis factors are affecting organisations operating online are as follows.
Demographic
Hoffman et al. (2000) identified the importance of demographic factors on individuals’
uptake of Internet technologies and discussed in some detail the impact of how where
people live will be affected by the technology infrastructure that supports their Internet
access. For example, in the UK, Western Europe and North America there is a highly
developed network infrastructure whereas in the Pacific Ring (excluding Japan) techno-
logical infrastructure is poor and as a result international data traffic links are very
limited. Consumer demographics and the impact of inequities of Internet access have
been discussed in some detail in Chapter 10. However, organisational dispersion has
produced far fewer publications. The issue of dispersion of online businesses is discussed
in the next key section of the chapter: Commercial exchanges in B2B markets.
Economic
Bakos (1991) examined the impact of online markets, and how internet-based electronic
marketplaces affect pricing and competition. A major impact of these electronic markets is
that they typically reduce the search costs buyers must pay to obtain information about
the prices and product offerings available in the market. Economic theory suggests lower
search costs play a key role in determining how technology can affect market efficiency
and competitive behaviour. Reduced search costs deliver direct efficiency gainsfrom reduced
intermediation costs and indirect(but possibly larger) gains in allocational efficiency from
better-informed buyers. Ultimately the result is increased efficiency of interorganisational
transactions in the process affecting the market power of buyers and sellers.
Environmental
Do (physical) environmental issues impact on our digital marketing planning? Well for
the first time many companies are developing corporate and social responsibility poli-
cies and statements. According to Dixon (2005):
You can have the greatest strategy in the world but if your vision of the future is wrong you
just land up travelling even faster in the wrong direction. A prime example of this is the
current revolution in corporate ethics and social responsibility, which is changing major
board policies of many multinationals.Dixon (2005), an acclaimed specialist in future marketing management, suggests that
corporate and social responsibilty is an insurance policy against bad news and bad news
can hit any corporation and shatter market confidence, or even worse scandalise cus-
tomers and cause outrage in the general public. Furthermore, the impact of Internet
technology is that global media are able to stimulate great interest in exposing corporate
B2B E-CONTEXT