Business Communication

Doyle 1

Matthew Doyle

Lionel Remesha

Business Comm. 119

May 17, 2013

Technology in Business Communication

In today’s business world technology is the leading tool that organizations use in order to make their business function and create revenue. But with great amounts of technology other issues have been arisen that can actually be the downfall or at least smaller revenue in certain area’s of ones business. Businesses that sell a product decide to start up an online website were they can sell the same products online, which they already sell to customers in the store, but in the convenience of their own home. Another technology that is highly regarded in today’s society is instant streaming and multiple companies are signing contracts to distribute their product into their consumer home directly without a store outlet. Are these new features of today’s marketplace benefiting or having a negative effect on our overall economic society and destroying jobs and lives?

There is really no big chain store out there today that does not have an online service available to access the products that are sold in store. The problem is if the products can just be bought online from your home with the push of a button then why even bother going to the actual store? The companies themselves rely on their stores to have individual profits but if people are online shopping through the company website then, where are the profits going? People are buying products online more and more each year and the problem is then the store locations need less and less employee’s. With companies hiring less people to work in their stores every year the jobs are getting scarce and unemployment is going up.

Companies are realizing that technology has made is so people can have everything that they want delivered to their own home without ever having to leave. Marketing people love to talk about “convergence,” the process whereby technologies are merged and wondrous new products are introduced with more and more features (Trout 20). Many entertainment companies are signing contracts with online media websites to distribute their products in addition to the retail stores. Now rather than going out and purchasing the actual movie or CD product at the store, people are downloading or streaming what they want to listen to or watch through a monthly fee service. Again this takes away the jobs of the people that make the product, transports the products, sell the products at stores, and many other more.

Using technology can to help produce revenue for companies but it can also make it so that they lose revenue in individual stores and therefore making it so companies continue needing fewer employees each time. Many companies are signing up with other companies to make it so that all the products and services a consumer needs will be in delivered home and people won’t need to go outside anymore. The problem with this way of business through the use of technology is costing people jobs and many companies are going overseas to produce their product and then sale it worldwide through the net. Many companies are benefiting from the use of the new technology at the expense of other smaller business and the people who become unemployed.

Literature Review

Best Buy online sales slide despite online boost: news.yahoo.com: In this article Best Buy had a massive decline in sales at their retail outlets but their online store profit margins went exponentially up. As the sales of the online store keeps going up best buy has been looking at the stores that do not produce enough revenue and have been delegating on which stores should be closed down. In this case technology of having an online store has brought the company revenue online but has made it so more people are not going to the actual retail store to make their purchases.

Netflix signs deal with Disney: news.yahoo.com: This article states that another company has signed a contract with Netflix to post their products Disney movies on Netflix instant streaming website. Netflix charges their subscribers a very small fee to have their service and has many entertainment companies post their movies/shows on their website. This service is making it so people are not going to the stores to buy movies or TV shows anymore but just instant stream everything for just a simple service charge. So the problem with this new technology of instant streaming your entertainment is if people are not buying the hard copies of products then our economy is going down in sales and jobs are being lost.

Trout, Jack. The New Positioning: The latest on the world’s #1 Business Strategy. New York: McGraw-Hill Inc., 1996. Print.