Both parties must deliver according to the agreement terms, failure to which, legal action takes place. In addition to this, the internet provides transport solutions. The question relates the internet and business supernormal profits. It states that the increase in business supernormal profits wholly lies on the internet. It follows the standardized testing of the questions. It identifies the main idea as the increase in the business supernormal profits. The important details show that the internet has greatly reduced various costs and increased the number of business clients. All these ideas draw a conclusion of identifying the growth of supernormal profits as caused by the internet use. Businesses interact through the internet and provide information for bettering their products quality.
I became interested in this question after discovering many businesses transforming to all their businesses operations to be internet based. Internet banking, internet marketing and communication through the email increased drastically in most businesses . Many businesses were purchasing new computers and requesting for internet connections from the internet providers. Internet providers recorded increases in the internet demand and devised new and better technologies to accommodate the increase while maintaining their efficiency. I found out that, the internet providers were initially using cables but later changed to the wireless technology and the use of satellites. The change increased relay of information. Messages deliverance was at a faster rate and could accommodate the use of many interfaces. Businesses recruited employees based on their knowledge of computers and the technology level. This became an essential requirement in all companies and still a requirement to date. Moreover, the information technology department developed in most businesses. They provide support to the business information systems and ensure that the information system is according to the current technology. I also found out that business owners were paying the information technology experts good rewards for gaining the comparative advantage over its competitors. They paid huge amounts to acquire genuine software’s to ease their businesses processes. These costs were very high in the beginning but eased with time.
Many ideas emerged when narrowing of the research topic. The costs of developing an information technology department were relatively high. This hindered some businesses from developing an information technology department. However, these businesses used the current employees to do internet businesses or outsourced the information technology departments from outside. In my view, the short term benefits of the internet were minimal compared to the earnings of the business without the use of internet. There were high costs of installation and incorporating the technology. I had to shift my focus on the long term benefits of the internet to the business on the long term. The long term effects are greater and increases the supernormal profits. Installation costs and software development process, as well as, the costs associated with the change got recovered in the long run. These costs decreased with time and lead to the increase in profits.
Thus, I reformulated my thinking to the long term effects of a business using the internet. These effects were subject to changes in different businesses. Most of the businesses recorded an increase in revenue and reduction, in associated costs, thus increases in the supernormal profits. Other businesses increased the revenue as well as the associated costs thus maintained their level of profits. The final group increased costs of operations more than their associated revenue thus decreases in the profits . Thus in choosing the internet one has to evaluate the effects, it will have on the business.
The use of internet in businesses is not a guarantee to supernormal profits. Internet application in most businesses has proved to be the major sources of success. The use of these internet services in production, communication, marketing and management reduce the costs greatly. Transportation costs have been drastically reduced by the business owners too. These reductions accompanied by innovations of the information technology departments have added a competitive advantage of the business over its competitors. The internet increases business revenue by increasing the number of clients. Internet enhances interactions with many people across the world. The interactions accompanied by internet advertisements and internet marketing create the potential customers desire to consume the products thus increasing the client base . Different businesses have different objectives. The objective of the businesses, base the need of internet use. Some businesses have limited growth while others have unlimited growth.
The other argument based on reduction of relative costs in the long term is real in most businesses adapting the use of internet. Internet marketing does not require a marketer to walk over long distances incurring transport costs. The marketers will only require internet connections in their offices. Moreover, they access the whole world. This in comparison to manual marketing f moving from door to door is cost effective and time saving. It reduces the time used in marketing thus increasing the marketers’ productivity per unit time. Hence, the use of internet reduces these costs. Different transport companies advertised in the internet transport the business products to various destinations of the world. This reduces the transport costs to various destinations. The internet reduces advertisement costs and production costs too. Through the internet, businesses are able to search for cheaper sources of raw materials in the world. They minimize their cost of production greatly and thus increase the profits. Internet advertising is cheaper compared to the other sources of advertisement. Internet usage reduces operations costs of the business. There is security in the business operations and accuracy. This gives businesses using the internet in its operations a comparative advantage over its competitors.
Clients’ security assurance uses the email in a legal proceeding as the evidence. Both parties indulge in the business transaction with utmost good faith and integrity. Neither of the parties in the internet business transactions fails in its part since it would lead to legal proceedings. Businesses use electronically initiated payment methods and internet transport systems. Business owners are able to observe their employees behaviors in the business through the internet. They are able to assess their employees’ business performance. This forms the basis of appraisals for performing employees and warnings of the underperforming employees.
Through the internet, businesses grow due to interactions with other businesses and compete in the technology sector. They share information and improve the quality of their products thus allowing consumers enjoy high quality products. This increases the supernormal profits of the business more. Thus, the internet does not only increase the profits but also products quality.
does not have a greater impact on their development process.
Many businesses have increased their profits through the internet. The internet increases the number of customers thus increasing the revenue. Through the internet, cost minimization is achieved. Hence, this leads to an increase in the supernormal profits. The increase of the supernormal profits achievement by the businesses is in the long run. In the short run, the internet implementation costs reduce the profits. Installation costs are high, and development of the information technology department is high. Maintenance costs and innovation costs are relatively low thus increasing business profitability over time. On the other hand, some businesses have limited growth. Thus, the internet
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