Aside from the new industries created by the information technology, the impact on traditional business mode has urged these industries to alter the old fashioned management and business models. The impacts are diversified including the marketing, cost, efficiency and human resource management. The approaching threat from online business has deprived them from some of their market and even all. Some of the traditional industries choose to change to adapt the uprising of business models under the influence of information technology.
Shift to E-Commerce
Waterstone used to be a UK book retailer. Its operation was quite success in an old view, steady profit and cash flow, excellent brand image, good relation with presses, stable brand loyalty from a large amount of old customers. However, with the uprising of online book store, like Amazon, its business faces severe threat. More and more customers turn to online book store for affluent variety of books supplied, more convenient payment without need to walk to a book store locates somewhere. Even the carrier of information gradually changed, the paper book is slowly replaced by electronic book. Worse, the cost of online book stores present edge somehow since what they need is just a warehouse which can be somewhere with a low rent. Facing the competition, Waterhouse doesn’t persistently stick to the traditional retailing mode. It moves the business online as well. Plus, it takes advantage of good brand image of long history and tries to make a familiar atmosphere for its old customers. It gradually keeps its feet in the market with fierce competition. The case of Waterhouse presents the success of strategy adjustment to follow the trend instead of going against it.
Advertisement on Social Network
Facebook, Twitter, LinkedIn, Tumblr, Instagram, all these names come to birth recently in just a few years. The huge amount of participants on the social network community provides an excellent platform for information propagation. The traditional marketing strategies based on TV , newspaper have all encountered the threat of substitution by these online social networks. More and more youth have accepted the communication through such kind of online platform. Therefore, the traditional advertisement industry should transfer its battle field here, to the online social network. The hundreds of millions of clicks on the song “Gangnam Style” delivered on Youtube in just a few days promoted the singer to the most famous Korean all at once. The publish of the song doesn’t follow the traditional procedure. It’s a kind of risk. But the singer wins.