e-Commerce Company Essay - 275 Words

e-Commerce Company (Essay Sample) Content: E-commerceName:Institution:E-commerceE-commerce is useful for companysà ¢Ã¢â€š ¬ symbolic management of the stakeholder relation vis-ÃÆ'-vis lay audiences. By leveraging the existing e-commerce ongoing market associations, this strategy facilitates audience legitimating around the new business area through legitimacy spillover (Koontz, 2012). However, e-commerce can be detrimental for industry expertsà ¢Ã¢â€š ¬ creativity evaluation of the parent firm several reasons. Such e-commerce to the demands of lay audiences is crucial for any given business, as the general audienceà ¢Ã¢â€š ¬s perception of the firm is directly related to future profitability.E-commerce can be implemented easily given the legitimacy imperatives in the market, and thus not novel. Maintaining e-commerce is a function of firmsà ¢Ã¢â€š ¬ internal "routine rigidity," or failure to change how a firm processes its resources at the time of resource recombination. There are more frequent entreprene ur engages in e-commerce within a set period. Just as excessive e-commerce can bring about category ambiguity to lay audiences; it can bring industry experts to question the core market presence of the firm (Hassard, 2013). This can further exacerbate the negative effect of using the same name repeatedly across multiple sub-categories. Bringing legitimacy and creativity arguments together, the implication may be that moderate amount of e-commerce. Despite the fact that it is detrimental to perceive creativity at the firm level, it could still be useful for gaining legitimacy in new business areas. Once category ambiguity starts to set in past a certain point vis-ÃÆ'-vis lay audiencese-commerce needs to be halted, for it can neither attract legitimacy nor creativity.E-commerce enhances a focal diversifierà ¢Ã¢â€š ¬s creativity evaluation, but too much of it leads to the loss of initial creative appeal. Since industry experts have full knowledge of the industry, one can expect that their creativity and evaluation of mono diversifiers will also be affected by each firmà ¢Ã¢â€š ¬s social and financial standing in the market. For social standing, one can consider the reputation, as measured by the firmà ¢Ã¢â€š ¬s extent and frequency of media coverage. For financial standing, the ownership structure is necessary, as measured by the firmà ¢Ã¢â€š ¬s affiliation to a business group.Firms with high reputation tend to show strong market prominence by embracing e-commerce. This forms a causal feedback loop between their existing social standing and the amount of social scrutiny they are bound to receive from other market participants. Consequently, high-reputation firmà ¢Ã¢â€š ¬s plans to diversify are more likely to fall subject to immediate and extensive e-commerce exposure even before the plansà ¢Ã¢â€š ¬ field implementation (Hassard, 2013). This may facilitate the knowledge spread about the new venture, and subsequently, its cognitive legitimating when the bu siness starts to operate in the market. However, the novelty appeal with its swift and exclusive nature is largely gone by this point.Lay audiences take institutional cues from the relatively high availability of information about the new venture, and engage in a passive acceptance of the new product offerings as prototypical of the category. Whether intended or not intended by a focal diversifier, such passive process of legitimating creates a perception among industry experts th...