15 October 2008

Online Industry and Economic Crisis

With the U.S. dollar sinking to new lows, oil and gold attaining new heights, and both food and gasoline prices rising quickly: corporate CEO's, the media and government officials finally acknowledged what millions have seen coming for years - the U.S. economy is in BIG trouble – and the future looks bleak.

Indian Banking and Aviation sector is the first who feel the heat of international economic crisis. Our Finance minister Mr. Chitambaram firmly denied any penetrated effect on Indian economy which was hoax created by USA Financial sectors

As expected, those hit hardest by the current downturn are working people. During uncertain financial times, people without jobs don't spend money, while those who do have jobs tend to cut back on discretionary spending and postpone larger purchases, which doesn't sound like a happy prospect for those of us who want to sell to them.

If we consider an Online Business segment and economic downturn effect on it, which are really make the difference, as per experts opinion, the internet commerce getting mature day by day, the value added process and services makes the difference, but there is a side effect of economic downturn surely. That online business model directly associated with the financial sectors as well as aviation industry (Online travel business, Online Commerce, banking) face the trouble. The effect of economic downturn on other business model shows its effect later on. Meanwhile we have the sufficient time to avoid the crisis.

The dotcom industry is not just dotcom which is something more and capable to sustain in this crisis enviro, the maturity of online business shows in recent downturn. We feel the responsibilities and we must keep our shoulder forward to take it.

Few measures and precaution taken by the online marketer is:

Optimize your current business model and avoid unnecessary cost factor.
The Value added services and product should be introduced in the market.
Close watch on pricing strategy of respective segment as well as market condition.
Avoid the new business entries till the situation is getting better.
Utilizes the human resource up to mark and concentrated effort needed.

The situation is changing rapidly, you have to have patience and vision, always be ready for future trouble, the integrated marketing and business optimization process is the key to success in such a critical situation.