Is Your Business Making the Most of the Internet?

Posted by on May 27, 2011 in Business Start Up Advice [ 0 Comments ]

If the information from a recent McKinsey Global Institute (MGI) report is as accurate as we are led to believe, we have not even touched the surface of how big the Internet can be.

According to the McKinsey report (analyzing 2009 numbers and examining the impact of 13 countries — members of the G8, Brazil, China, India, South Korea and Sweden), the Internet’s contribution to the global economy is greater than both Canada and Spain’s entire economies.

MGI points out that the Internet contributed approximately $1.67 trillion to the global domestic product in 2009, with Spain and Canada coming in at $1.46 trillion and $1.34 trillion, respectively.

Expanding the study:

  • The Internet accounts for approximately 3.4% of economic activity in more than a dozen of the world’s biggest countries;
  • Approximately 2 billion people now utilize the Internet and exchange a staggering $8 trillion each year via e-commerce;
  • While having killed a number of jobs, the Internet leads to the creation of approximately 2.6 jobs for every one eliminated. In France, the Internet has destroyed half a million jobs in last 15 years but also created 1.2 million other positions;
  • In the U.S. alone, the Internet was behind 15 percent of the country’s economic growth from 2004-09;
  • The Internet’s entire contribution to the GDP is increasing faster than that of Brazil;
  • If the Internet were viewed as its own sector, its contribution to the worldwide GDP would top that of agriculture, energy, mining and other industries.

According to the researchers, “Companies using the Internet with a high intensity grow twice as quickly as low-intensity Web companies, export twice as much as they do, and create more than twice as many jobs.”

The study goes on to point out the Internet is leading to economic growth spanning the world that tops the pace of the Industrial Revolution of the 1800s.

Improving Internet Presence

So how is your company utilizing the Internet to grow its business in both the B2B and B2C worlds?

If you do not have a strong Internet presence or one at all, here are some tips to rectifying that situation:

  • Determine what you want from your Web site and how it can improve your business model;
  • Decide if you will spend a lot of manpower and money on your company’s site;
  • Use a trusted analytical tool to monitor your SEO campaigns;
  • Make sure you are utilizing the different social media tools (Facebook, Twitter, etc.) to increase traffic, promote your brand and monetize it;
  • Review your customer and vendor bases and get feedback from them as to what they are looking for to make buying and selling easier.

With there no slowdown in sight for e-commerce, businesses that have their ears to the ground and quality Web sites to boot are much more likely to reap the rewards.

Photo credit: emusicbiz.com


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