There will be many benefits for a business operating from the Internet. Here I will talk through some of them and discuss how HMV and Blockbuster have responded to developing their e-business. I will analyse whether they have been successful or not and how it has affected them.
The benefits of using the Internet to conduct business are that they are able to sell their product or service 24 hours a day. They will not have to shut the website down like shops do but instead it is constantly running. This means that people up at the early hours in the morning can still buy the products from them.
For Blockbuster, they have decided against setting up a website online, that people can buy their products from at anytime, as they do not feel it is worth investing in. They have opted out of this trend and they haven’t done well without it. They created their online instant streaming content very late and by the time they had other competitors had become very big like Netflix and Amazon Instant Video. Blockbuster has left it too late and it will be very hard to compete with, and very hard to get back in the race. For HMV it’s different, as they have made it possible to buy digital products online but not have them delivered. They have set up their website and now can run it very cheaply compared with stores, but have opted out of delivering products which will make it even cheaper, but less appealing.
With them deciding not to include this they could lose out to big competitors like Amazon.co.uk. Some people may not like the idea of a digital download, as they might be old fashioned, and they may prefer the physical presence of the product they are buying. The up side will be that customers can buy the products any time, download it instantly and be using it very quickly. HMV set up their website a long time before Blockbuster and they have managed to stay in they battle a bit, but with Blockbuster they have gone bankrupt, had to sell the business and now they only have some franchises and the online streaming service.