Types of Organsation and their Use of ICT

Using ICT, and more specifically the internet is a key part of any successful business plan, and with the slow rise of it's importance, failure of companies to adapt and incorporate it into their business structure are starting to pay the price.Here are two examples of failing businesses and their under use of the internet.

 

 This article show how blockbuster failed to compete in the online market, as they originally made their business model based around video rentals, something which has been made far cheaper, easier and better by the internet, and other services such as netflix or lovefilm. As blockbuster ignored this market for too long, their physical sales declined, until they were forced into administration.

HMV is another great example of a retailer that failed to adapt to online markets, HMV were once the biggest retailer of music, until the early 90's when sales started to decline as the internet started becoming more and more prominent. Year over year, physical sales were on a decline while online sales were on an increase, and HMV's failure to react resulted in their failure.