Keys to internationalisation

The term e-business includes the set of commercial transactions, information interchange and relationships between parties over the Internet . E-business does not only include electronic commerce or e-commerce (buy and sell operations) rather it represents a global approach in which all transaction types take place: after sales service, supplier management, administrator relationships, etc. Electronic markets present the same components as traditional markets but Internet facilitates automated transactions, reduces distances and time zone issues, and allows you to personalise your offer.

The use of e-business opens infinite possibilities to participate in international markets and is one of the keys to success in competition.

In electronic commerce there are all types of relationships:

• Business to business (B2B): is of great importance to international trade. Involves all type of exchange of information, purchase and sales between companies.
• Business to consumer (B2C): involves the sales of products by Internet directly to consumers.
• Business to Government (B2G) facilitates numerous procedures involved in international trade such as customs formalities; in a matter of minutes for example you can release goods to enter or leave the country.

One of the most important uses of e-business is as a marketing channel both for sales and purchases. The use of electronic commerce as a complimentary channel to the traditional channel increases sales and also improves the efficiency of purchasing management.

The creation of a marketing channel via the Internet is a complex task that requires great technological effort and marketing. Its correct use requires the restructuring of the company to optimise the full potential of electronic commerce.

• Market expansion: Companies can access remote markets via the Internet, 24 hours a day.
• Interaction: Purchases, sales and queries are made without moving location. Relationships are more dynamic.
• Personalisation of the offer: By using forms or simply monitoring users, companies can personalise offers according to user preference.
• Reduction in costs: The Internet reduces intermediary costs. Using the Internet reduces intermediary costs  because all operations, including storage, can be made from the head office, eliminating intermediary costs, storage costs and increasing control over the process. In addition, it reduces costs in traditional operations such    as business trips, faxes and telephone calls.

Even though the creation of the virtual channel should be a personalised process adapted to the product and the requirements of the company itself, to develop appropriate e-business strategies you need to know the general characteristics of electronic markets:

• User profile both for business with companies as well as consumers, potential clients of the electronic channel have a high educational and technological level and their purchase decision is based on the evaluation of information. It is a market where the objective attributes of the product are evaluated and not the subjective attributes, such as personal relationships, so important to a traditional channel.
• Characteristics of the products and services: The product presented must be appropriate for commercialisation via this channel.
• Security: This is the most highly valued aspect by users; companies have to guarantee that the transaction is confidential, integral (cannot be modified), authenticated (each party to the communication can assure themselves that the other party are who they say they are) and irrefutable (each party can prove that the other participated in the communication). To guarantee security, encryption techniques and digital certificates can be used.
• Methods of Payment: Sales via Internet can use traditional payment means, such as transfers, payment orders, cash on delivery but also other electronic commerce payment means such as virtual POS or Paypal, especially designed for business with consumers.

Even though the Internet is a virtual space remote to any state, companies who participate and carry out business are subject to their own state law which can be restrictive to a greater or lesser degree. In Spain electronic commerce is regulated by law 34/2002 of 11 July on services for the information society and electronic commerce and complies with European directive 200/31/CE.

What must you do?

According to this legislation, you are obliged to:

• Provide identification data to users visiting the web site.
• Inform on prices of services.
• Enable the user should be able to know, print and save general conditions of contract.
• When the contract involves consumers, the users must be guided through the contract process and must be able to correct the data.
• When the contract involves consumers, they must be allowed to confirm the operation.

• Corporate web sites
• E-business