Discuss about the Knowledge Management and Ecommerce.
Knowledge management and ecommerce play crucial roles in enhancement of the business practices and improve its contextual factors like internal environment and organisational factors. Knowledge management refers to acquiring, preserving, using and sharing business data to conduct business with the help of modern technology like cloud computing. Ecommerce refers to use of digital platform to advertise and sell products which allows companies to offer goods to a global consumer base and earn huge profit. New entrepreneurial ventures like small hotels come under the influence of various factors like political and economical while operating in the market. They face threats from strong competitors like established hotel chains and new local hotel chains of the same size. These risks to budding hotel businesses have made it important for them to use knowledge management system(KMS) and ecommerce to conduct business on regular basis. They help budding business organisations like the hotel and catering business in Sydney to gain and maintain loyal consumer base. This loyal consumer base generates repeated business for these hotels and encourages them to expand further.
The new hotel and catering business in Sydney would knowledge management system to manage its huge amount of data and use it efficiently to operate the business. The new hotel organisation will be impacted by a number of external factors like political, economical and legal(Knif, Kolari & Pynnönen, 2014). These factors will affect its business operations deeply but the hotel will have no control over these factors. The new business organisation in order to thrive the competitive hotel industry will have to incorporate these macroeconomic factors in its business strategies. Knowledge management would help the business organisation to acquire, store and utilise the vast body of knowledge and gain access to it easily while making strategies(Sein-Echaluce veta l., 2013). For example, the organisation using KMS can keep a track on the new laws levied on the hotel organisations. This would allow it to incorporate these new laws and avoid penal actions from the various government departments. Thus knowledge mangemnt can help the new business organisation acquire vast knowledge about the external environment and apply the data by incorporating it in its strategies. Thus, KMS can help new business organisations to adapt to their environment faster. This adaptability with the external environment help the business organisations to enforce stronger organisational culture within their business contexts(Krajewski, Ritzman & Malhotra, 2013).
Knowledge management can be instrumental in helping the new hotel business acquire and retain a vast data about customers which help the business generate repeat business. The new hotel business in Sydney should aim at attracting huge numbers of customer right from its budding stage. It should offer fooding and lodging services to its guests at affordable rates to counteract the threats from the established hotel chains. KMS would allow the new hotel chain to acquire and save a vast amount of data about these customers like their lifestyle, occupation, lifestyle and preferences(Shaw, 2016). The hotel organisation can use this crucial data while forming future marketing plan. For example, the hotel management may use the data regarding room designer preferences of customers during restructuring the layout of the hotel or during making a new hotel. This structuring of facilities keeping the customers’ preferences into consideration will help the hotel chain attract more customers. Moreover it can give special offers and discounts to its old customers. This treatment of the customers will enhance customer satisfaction and yield the hotel chain loyal customer base who would give it repeat business. This generation of revenue both from existing and new customers which would generate huge revenue(Rahimi & Kozak, 2017). Thus knowledge management can help the new hotel business to maintain data about customers and provide them customised offers to enhance their satisfaction and obtain their loyalty.
Knowledge management will help the new hotel and catering business in Sydney to acquire, manage and use business data more effectively. Hotel organisations irrespective of their sizes need to work with a large numbers of suppliers who supply them with raw materials. These organisations need to maintain large data on financial transactions, sources of financial capital and other relevant data for the internal usage while operating and decision making. Maintaining this vast amount of crucial data in physical formats would be very expensive and add to their cost of operations. It would erode their financial resources and occupy a lot of storage space. Knowledge Management makes acquisition and usage of enormous amount of business data possible virtually anytime and anywhere(Liebowitz & Frank, 2016). This enhanced availability of scientifically managed data has made decision making more appropriate and business environment or context.
Ecommerce like knowledge management has added value to the newly established hotel in Sydney and its business development. The hotel industry in Australia is extremely competitive with strong presence of both Australian indigenous hotels and international chains of hotels. This intense competition has made it very risky and challenging to sustain in the market. The hotel industry can use ecommerce websites to promote its catering and lodging services. It can partner with ecommerce hotel booking websites to advertise its rooms, their rates and facilities to a global base of consumers(Asadi, Abrifam & Mohamadzadeh, 2014). This collaboration helps the hotel organisation in Sydney earn new customers who may attracted by the facilities and the rates. Thus, ecommerce allows the hotel organisations partner with travelling organisations to advertise their rooms to attract a global base of consumer.
Ecommerce enables the new organisations to achieve product differentiation which is very important to gain high position in the market. The hotel market of Australia is extremely competitive and profitable. This has attracted a large number of hotel groups and home grown hotels. Today in order to exist in the competitive markets hotels are required to attain product differentiation to make their hotel services distinct from their competitors and attract more customers. The hotel chain can advertise the salient features of its products like rooms, facilities, layout and rates to attract consumers. The revenue earned due to differentiation can be used to bring about restructuring of organisation to elevate contextual factors like organisational culture and organisational goals (Wang, Cavusoglu & Deng, 2016). Thus, ecommerce can help companies to gain product differentiation and earn huge revenue by providing customer service which teh customers perceive as unique.
Ecommerce will help the business hotel organisations earn high profits by advertising before a global base of customers. The small hotel in Sydney would be able to advertise its facilities like room and tasty food on ecommerce websites. This would attract a large number of consumers and help the hotel to earn high revenue(Lu, Gursoy & Lu, 2016).
Ecommerce will not only help the hotels especially the new ones to earn more revenue but also to manage their business risks. The advertisement of the hotel and catering facilities on ecommerce platform would allow the new hotel in Sydney to showcase its facilities before a global base of customers. This would earn the hotel new customers and enormous revenue. This revenue can provide platform to the new hotel organisation to diversify its business risks(Chiu et al., 2014). Moreover, the organisations in order to sustain in the stiff competition have to bear huge initial investment in areas of knowledge management and advertising its products on the ecommerce websites. The huge body of profits earned by the new hotel company in Sydney provides a substratum where the business can diversify its business risk and uncertainty.
Ecommerce helps the newly formed business find new markets to sell their products. When organisations advertise their products before a global consumer base, it opens ways for business expansion. The hotel chain using the ratings on ecommerce website are able to assess their market image. Strong image available on the websites show growing demands of the hotel amnong new customer base. This growing demand encourage the hotel organisation encourage it to expand overseas. Thus, ecommerce helps hotel organisations to find new markets and expand overseas. Moreover, the new hotel businesses can use to ecommerce platforms to find suppliers of raw materials(Ahmad et al., 2015).
It can be concluded that knowledge management and ecommerce are very useful to new hotel businesses in Sydney. Knowledge management help these organisations to acquire, maintain and use a large volume of data to allow appropriate decision making. Ecommerce helps the hotels to advertise their facilities before a global base of consumers to attract a large number of visitors. Thus, combining ecommerce and knowledge management new business can explore the market opportunities like new consumer bases to earn high profits.
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