Welcome back.

Last week we started with the introduction and are now moving on to the first chapter which is called “Diversifying operation risk of domestic market behavior” from my book “Adding the ‘E’ to your Business Strategy” ( Ebook | Paper Version | Amazon Kindle )

E-Business can be the specific thing you have been looking for to make your operation independent if – for instance – your “home-markets” screw up.

While the recent recession struck the US and devastated a vast amount of market segments, other parts of the world remained pretty relatively untouched, some even totally intact.

Before we go on we have to differentiate though because the memory of the masses is pretty widely subjected to Alzheimer’s.

In the 1920s we’ve had a similar situation on the global markets. Back then the governments and banks decided to take money out of the market to stabilize the system which proved to be wrong as we can all see in the history books with awe; the outcome being the great depression.

In 2008 when the situation reoccurred, the governments and banks, which had learned from the devastation they caused in the roaring ’20s, are starting to flood the markets with money in hopes that this will help the world stay out of disaster.

This opposing reaction can be the chance for your business to take off.

More money in the markets means that the buying power of the people is secured. It will of course have an effect on their buying behavior, but will lead to the fact that there will always be money in their pockets for necessities. And this covers the first group, the middle and lower class.

The upper class of course was hardly affected by the recession because they were able to diversify the investment risk through spreading their wealth to several investment channels.

This leads us back to your business.

When I say operational risk this includes a vast variety of factors. Some of which you can influence, most of which you can’t. So let’s be realistic about diversifying your operational risk.

The conclusion of the above mentioned could be to go international which will leverage the risk of a domestic market screw-up significantly.

Meaning, that if you’re a retailer in the US and with your operations limited to that specific region, you will probably be pounded by a market downturn in the US.

The fact that the economic downturn in the US has happened will also lead to a destabilization of the dollar in comparison to other currencies which will make the margin on the products you have in stock even higher.

So let us for a short while, imagine that you would have already made the investment and your website or e-commerce portal available in the other major languages around the world, which are Spanish, French, German, and now: Chinese.

You would instantly have access to the markets speaking those languages because if someone were looking for the products there they would not care where the product they are buying is from if they’re looking to save an extra buck.

Of course you’re right – I only mentioned the retailer in the US but this model can be applied to pretty much every business vertical in these times.

This chapter contains several examples of applied eBusiness models. If you want to read more, please consider buying “Adding the ‘E’ to your Business Strategy” ( Ebook | Paper Version | Amazon Kindle ).

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