The internet had provided many advantages for different industries. Products and services were innovated in accordance to the IT systems present in the market. Thus, one innovative aspect of using the Internet is the online services. With a large number of users throughout the world, the easy and interactive aspect of the internet and the cheap way of doing business, online business emerged. These online businesses vary in their term of services and products that they can easily offer in the online market. The advantages in doing online business are setting and accomplishing goals on your own, you have the ability to make changes, your business is open 24 hours and the larger market brings more opportunities for your business. Thus, doing online business is a new and fresher approach basing on the trends in the market.
The emergence of online business brought challenges for multinational companies. These are the decrease in their clients as more people are transacting online and purchasing their products online. In terms of online shopping, it is more convenient to the customers, with lesser effort to go to shops and lesser time spent on purchasing products. This brings challenges to the multinational companies on how to offer their product and fit it well to the needs and wants of the consumers. Another impact of online shopping is that it is changing the trend of buying and customer relations than the traditional mode of shopping. With the use of internet and technology system, relaying the needs of the clients and choosing with just a touch away becomes easy and adaptable. This becomes a major hindrance to MNCs as this will make their offers and operations become obsolete comparing it what IT system may bring. The cheap and convenient benefits shown by online business becomes very attractive to clients, which now makes online businesses as such online shopping the latest trend.
Small and medium firms who started online shopping utilized a cheap investment in terms of some attractive products and ensure that they partner with multinational banks to that transaction of payments will be easier. This idea became a hit that there are now small online shopping businesses that emerged on the internet which can now compete with larger corporations as the internet provides extensive opportunities. To be able to understand what strategies can be best applied to multinational companies, a PEST analysis may be utilized.