Emerging Opportunities in

Business

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 Learning Outcomes

Students will be able to

 1.Analyse various emerging opportunities in Business
 2.Apply these opportunities in the field of business management
 Emerging Trends in Business

• A new ideas of entrepreneurs coupled with advances in

technology has lead to a changing business environment.
• Various forms of business organization have emerged –
– Network Marketing
– Franchising
– Business Process Outsourcing
– E-Commerce
– M-Commerce

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• The success of every business
depends on adapting itself to
the environment within which
it functions
– With change in government
policies, the business has to
make the necessary changes to
adapt it to the new policies
– With change in technology,
may render existing products
obsolete.

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Business Comprises
A. Trade in goods only
B. Trade in goods and services
C. Trade in services only
D. Trade within the country only
 Network Marketing
• A business model in which a distributor network is needed to build
business.
• Multilevel Marketing -payouts occur at more than one level.
• Independent business persons act as a distributors of company’s
products.
• Each distributor can further engage sub- distributors who can
further add other distributors and so on.
• Thus, a network of distributors is formed who operate at various
levels.

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 Profits for Individual
Distributor
Popular Network Marketing Companies-
• Network Marketing distributor
purchase the product at wholesale
prices, may either use discounted
products themselves or retail the
products to others for a profit.
• Distributors receives a commission
for their personal volume, which is
the value of every product which the
customer buy or sell.
• Net Commission on overall turnover
from their group personal volume.

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Advantages of Network Marketing
1. Network grows continuously- distributor manage
their own sales force.
2. Network companies can maintain higher margins on
their products. No Advertisement expenditure &
retailer margin.
Product
FIRM Distributor

3. Lower overheads costs as no infrastructure is

required
4. Opportunity to earn unlimited income in form of
commission & sales revenue .
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 Disadvantages of Network
Marketing
• As sales forecasting is difficult, under stocking
or overstocking of various products occur.
• Manufacturer do not have effective control
over his sales team as distributor take over the
control of the company.
• Networker needs extra efforts other than core
line of work, which creates risk of failing in
business, which happen in 95% such cases.

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 Franchising
• A ‘franchise’ means the special right given by a manufacturer
or a parent organization to another individual or a firm to sell
the product or service in a given specified area.
• In franchising a firm allows another firm or individual to use
technical know-how, trademark, patents & trade secrets.
• The individual or a firm which grant the right is called as
‘franchisor’.
• The individual or a firm to whom the right is granted is called
as ‘franchisee’.
• The right granted by a franchisor to a franchisee is given
under a special agreement known as Franchise Agreement
• Franchising helps to build the chain stores.
• Franchisors success is franchisee success. 10
 Franchising Advantage
• To the Franchiser
– Expansion
– Feedback of local customer preference from franchisee
– Increased Reputation & Goodwill by expanding the network
– Rights are protected- only franchisee can use it
• To the Franchisee
– Ground work check out can be done before committing.
– Full assistance in staff training, product promotion & designing
store layout.
– Brand Advantage
– Can satisfy customers by supplying quality products.
– Exclusive rights

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 Franchising Disadvantage
• To the Franchiser-
– Franchisee may start a similar business
– Image can be tarnished if standards are not maintained
– Initial assistance has to be provided
– Trade secrets are leaked out
– There are ongoing costs of supporting the franchise & national
advertising.
• To the Franchisee-
– Restrictions
– Payment of Royalty
– Conflicts may arise in maintenance of accounts, payment of
royalty, violation of quality norms
– Business cannot be sold without Franchiser permission.
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 Business Process Outsourcing
(BPO)
 Knowledge Process Outsourcing (KPO) & Legal Process Outsourcing (LPO) are
some of the sub-segments of bpo.
 Contracting of operations and responsibilities of specific business
functions to a third party service provider.
Ex- Coca-Cola outsourced large segments of its supply chain.
BPO is typically categorized into back office outsourcing like-
• Human Resources, finances or accounting
• 24*7 Customer care service, telemarketing

BPO that is contracted outside the company’s country- offshore

BPO that is contracted to a company’s neighboring country- near shore

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 Advantages of BPO

• Ensuring Smooth operations

• Expansion of Business
• Specialized Performance
• Getting Better Results
• Cost Effectiveness- Outsourcing IT
requirement save 30% of company’s
expenditure
• Skilled Manpower
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 Disadvantages of BPO

• Communication Challenges & Different

Standards
• Time Zone in off shore bpos can create
problems for online meetings
• Loss of control in case of loss of
transparency
• Service Provider looks for
diversification
• Dependence- Reduces the flexibility 15
 E-Commerce

• Comprehensive system of trading that uses

networks of computers for buying and selling
of goods, information & services.
• E-commerce includes buying & selling of-
– Goods- eg. Digital cameras, music systems,
clothes, accessories.
– Information- eg. Subscription to a site & get
access to information.
– Services- eg shaadi.com, naukri.com

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 Types of E-Commerce
• Ecommerce can take place-
a) between the companies
b) between the companies & the customers
c) between the companies & government departments

Based on the type of entities involved in transaction, e-

commerce has been classified into the following category-
1. Business to Business (B2B)
2. Business to Consumer (B2C)
3. Consumer to Business (C2B)
4. Consumer to Consumer (C2C)

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 B2B
• B2B e-commerce, or e-biz, is a slightly more evolved version
of commerce. This type of e-commerce is the electronic
exchange of business documents among businesses for the
purpose of conducting commerce.
• This began with the Electronic Data Interchange (EDI), which
started in the 1960s. Trading partners within supply-chain
networks are typical participants, as they exchange electronic
documents in support of the purchasing of goods and
services. B2B e-commerce is used for contract manufacturing,
customs declarations, global trade compliance, order
management and supply-chain logistics.
• By using B2B e-commerce, companies can improve
communications among partners and enhance the purchasing
experience from business to business. 19
•
B2B examples
Company Websites- This software includes site-building tools and
templates, database features and methodologies for best practices, plus
transaction software.
• E-procurement websites- These B2B websites enable the exchange of
product supplies and procurement.
• Brokering sites act as an intermediary between service providers and a
potential business customer. For example, a construction company may
need to lease equipment. A broker site can help the construction company
find an equipment manufacturer that is willing to lease out the needed
equipment.
• Infomediaries- Trade & industry standards organization sites
• Quill.com, Grainer.com are other examples
• Indiamart

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 B2C
• In a Business-to-Consumer E-commerce
environment, companies sell their online goods
to consumers who are the end users of their
products or services.
• Usually, B2C E-commerce web shops have an
open access for any visitor, meaning that there
is no need for a person to login in order to
make any product related inquiry.
• The most widely known ecommerce businesses,
such as Flipkart, Amazon, etc. are ones where a
product sells directly to a consumer.
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 C2B
• In a Consumer-to-Business E-commerce environment,
consumers usually post their products or services
online on which companies can post their bids. A
consumer reviews the bids and selects the company
that meets his price expectations.
• Example - Freelancer websites elance.com, where the
end-user lists jobs that businesses (either individual or
larger businesses) can buy from them. In a way, job
portals are also C2B as here, the ‘end-user’ (the
prospective employee) lists their ‘product’ (resume) to
attract businesses to hire them.
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 C2C

• In a Consumer-to-Consumer E-commerce
environment consumers sell their online
goods to other consumers.
• A well-known example is eBay

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OLX represents

 A. B 2 B
 B. B 2 C
 C. C 2 C
 D. C 2 B
Advantage of E-commerce
• Global Advantage
• Lower Transaction Cost & Higher Margin
• Saving of time & effort
• 24*7 working
• Quick Supplies- less inventory
• Wider Choice
• Customer Convenience
• Launching of new products is easier

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 Disadvantages of Ecommerce
• High-start up costs
• High Risk
• Organization require trained staff
• Trained staff is required to maintain the web page
• Fulfillment problems- website crashing during festive
seasons
• Lack of personal interaction
• Security
• Viruses can cause unnecessary delays, file backups, storage
problems
• Corporate Vulnerability- Access to the competitors
• People’s Resistance- Sofa
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 M-Commerce
• M-Commerce or mobile commerce refer to buying & selling
products through wireless handheld devices such as mobile
phones & personal digital assistants (PDAs)
• The phrase mobile commerce was originally coined in 1997
by Kevin Duffey at the launch of the Global Mobile
Commerce Forum
• Mobile Commerce is often called as "a retail outlet in your
customer’s pocket.“
• M-commerce opened the door for new application &
services
• Critical news which people need while traveling is made
available- traffic news, weather news, stock market reports
• Ex- Book my show, Paytm
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• Advantages-
– Ready convenient & secure way to do transactions
– New distribution network is open
– Large reach
• Disadvantages-
– Existing technology is not best suited
for M- Commerce- slow data transfer
– Acceptance of m-commerce is slow
– Poor display in cell phones

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Business Trends For 2021

Work from Home. . .For Real!

 When employees were under lockdown orders due to COVID, companies had to
quickly adapt operations to a remote workforce. Now that there are some
distance and lessons learned from that initial experiment, most businesses are
now rethinking their entire business model.
 Are offices still needed?
 Some companies experienced an increase in productivity when their workforce
went remote. However, working from home wasn't ideal for others.
 Therefore in 2021, businesses need to reimagine their own workspaces as well as
provide the proper support for people working from home, such as outfit them
with the right office equipment, mental health support, and more so everyone
can work from home comfortably.
Data as an Asset

 Over the last few years, data volumes have grown massively.
 Cloud solutions allow us to access data from anywhere. Businesses need to
protect and secure data just as they would any other asset.
 Another important thing for businesses to consider is how to boost data
literacy in their company in 2021 in order to gather decision-making insights
from it.
 This also requires an investment in systems that can efficiently and effectively
process, analyze, and store the data streaming into the organization.
Business Model Innovation

 In 2021, every business leader needs to reflect on what they're offering

customers and how they operate as a business. There were lots of industries
that were completely transformed in 2020, such as the hospitality and events
industry.
 The businesses that are currently thriving even during a pandemic are those
that reacted quickly to the changes. For example, restaurants that pivoted to
enable expanded take-out abilities or Formula 1 companies that were producing
ventilators altered their typical operations to ensure survival.
 Although businesses have always had to think about how the market is shifting
and what transformations that means for business, it will be more important in
2021 to innovate your business model.
Automation

 Another top business trend in 2021 will be automation.

 Businesses will evaluate their business processes to see where they can take
people out of the process when they aren't adding any true value. There have
already been quite a few shifts in this direction from warehouses, supply chains,
autonomous vehicles, trucks, and ships, as well as chatbots that automatically
take over customer service inquiries.
 In 2021, it is expected that white-collar automation will be a trend as we
consider what bits of a lawyer, doctor, or other white-collar professional's jobs
can be given over to computers and smart robots and delivered through
automated interfaces.
Decentralized Finance

 As a result of the economic turmoil COVID-19 left in its path, capital markets
continue to be nervous. This creates a challenge for businesses that want to
raise capital to expand or start a new business.
 One solution for raising capital has been crowdfunding (Kickstarter,
GoFundMe, Lending Club and Indiegogo), blockchain technology, and other
decentralized finance options.
 This will be a big trend in 2021 that will allow businesses to acquire capital
easier than through traditional channels. 
Virtual Interfaces

 As companies raced to find new ways of delivering service to customers that

were not walking into stores, they began to consider how to deliver some of the
services in digital forms using technology such as augmented reality, virtual
reality, and mixed reality.
 To comply with stay-at-home orders, people would use virtual avatars to "try"
on make-up, eyewear, and clothes. Ultimately, this "try before you buy" with
virtual interfaces will transform how businesses offer their services.
Going from Global to Local

 In 2020 there were a lot of reasons to begin to think more locally rather than
globally—COVID-10 disrupted international supply chains, there were
increasing tensions between the U.S. and China, and Brexit was delivered.
 Companies began to rethink where they were sourcing and selling their goods
because international turmoil could disrupt business.
 More localized manufacturing and selling are also appealing for environmental
awareness.
Purposeful & Meaningful

 There's a trend to have more purpose and meaning in our jobs. Younger
generations that are entering the workforce want to connect with a purpose or
work for a company that has real meaning.
 Companies that don't have a clear or meaningful purpose will struggle to attract
talent and customers.
Sustainability

 Sustainability has been a concern for some time, but during the pandemic,
things shifted in emphasis.
 As disruptive as the coronavirus was to business, companies are recognizing the
environmental crisis could be much more damaging to the world as well as the
bottom line than the pandemic.
 Therefore, every company needs to rethink operations, environmental impact,
and their products and how they are being used.
 This trend of sustainability links closely to the previous trend of a meaningful
purpose as companies work to reduce their carbon and water footprint.
Social Engagement

 During the pandemic, brands relied on engaging with their customers and
potential customers across social media.
 In 2021, there will be a big push toward a more authentic presence on social
media and one that's less curated by social media experts, such as real behind-
the-scenes looks at a company. Along with this will be engaging influencers and
micro-influencers in your industry—those key people who are driving
conversations and engage with your customers.