“Good business leaders create a vision, articulate the vision, passionately own the vision, and relentlessly drive it to completion.”- Jack Welch

E-Commerce is now a global phenomenon considering how it is the most convenient way of getting something across to the buyers. The concept of ordering a particular item online and having it delivered to your doorstep, struck gold. Prior to Amazon, Michael Aldrich breathed life into the concept and ever since the phenomenon doesn’t seem to stop. As the trend started picking up the pace, people noticed and wanted to try to establish mini e-commerce sites for their products as well. The boom has been tremendously beneficial for the retail sector.

But the process of making shopping easier comes with major challenges. A lot of companies find these challenges tough to handle on their own and this is where business alliances come into the picture. Business alliances are a much-preferred way to start a venture. It provides a sense of security and the work and responsibilities are shared amongst two groups that have a myriad of ideas.

Business Alliances and its Assets

When two businesses come together to form an alliance, there is a constant doubt about whether it’ll work towards the right direction or not. But with the right company, an alliance can do wonders for a smaller company. Ideas are exchanged with regard to what plans can be implemented, business strategies are put into place, and policies are decided. These steps decide how efficiently a particular corporation will continue to function. It is a process of exchange of information as well, from which both the parties benefit in a big way. The ideas that are the most beneficial are given priority.

The companies have to keep the upper hand here due to the fact that; no one needs to be at a loss financially. Additionally, the main thing kept in mind is that it’s not the partnership that’s of utmost importance, but the finding of favorable resources. This results in strengthening the weak points that may exist in either of the organizations. It sets off a chain reaction where the company has the chance to grow immensely and find itself on a competitive level with other ventures.

E-Commerce and Alliances: A win-win situation

Off late, we have been seeing a rise in the number of strategic alliances between much major e-commerce and retail companies. Two major e-commerce companies from India and USA decided to join hands and take the next step into the online retail world. But how far does this take them remains to be seen? It is majorly a positive situation as both the companies have earned a name for themselves. This has given them both a stand on a global level. It will not only benefit them but also the buyers and sellers. The buyers can find an even wider variety of products and the sellers can find an even bigger market for their products.

Though there have been mixed reactions, the move has gained the attention of a competitive e-commerce giant. A sale is bound to take place on their app in retaliation for this move. A defensive strategy is what the other business is trying to use so that its profits aren’t affected. This is a very popular damage control move that most e-commerce companies use to stabilize retail on their site.

Small and large companies – Effects of e-commerce

The use of e-commerce websites has helped small businesses reap large benefits for the sale of their products. The businesses that cannot afford to directly sell their products in the market or create their own site, are doing it through other websites. They give them all the necessary freedom in terms of their products. And they find it convenient that it’s the website that will bear the expenses for the delivery of the products. This has given them the benefit of direct profits from the sales. A lot of time and resources is saved due to this move.

Larger companies also use their massive reach of customers to provide them with maximum discounts if they buy the products using the e-commerce website rather than in the store. Besides this, the websites contain a large number of categories for the goods. And this can only double up when an alliance is formed.

But no matter how many advantages it holds, only a wisely thought out strategy with a systematic approach when it comes to sale and policies will work to their advantage.

E-Commerce is a way of business, which bought business and products to the doorsteps of people who needed it. This also brought a fresh change in the economy as well as the business world. In terms of economy, the sales online have increased from 256 billion in the year 2011 to an incredible 289 billion in 2012. The numbers are set to rise to 523 billion by the year 2020. E-commerce has also boosted the GDP and the expected GDP for 2030 is 300 billion. And as for the business aspect, the cost of operation is reduced compared to in-store operations. This also helps in making it affordable to run the business. And with outsourcing, it helps in the augmentation of resources efficiently.

A combination of affordable and profitable, e-commerce and business alliances are bound to build the economy even more and provide a stable variation of shopping.

– Urvasi. S. Talekar