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Anxieties about establishing a company website:
1. High costs involved
It‘s costly to develop a website or to outsource (pay an information technology firm to
develop the website) development due to the high level of expertise required. Maintenance
costs of the website would also be very high since maintenance of websites is an activity
that needs to be carried out frequently. The cost of hosting the website would also have to
be considered.
2.Business process reengineering
Establishing a company website may involve change of business processes. Setting up an e-
commerce site may force an organization to change its business processes to foster the
selling of goods and services over the Internet. Changes to business processes may
encounter internal resistance from company employees or external resistance in the form of
customer reluctance to comply with the change e.g. customers may be reluctant to switch
from the traditional channels of doing business to the Internet.
3.Exposure of organizational information to competitors
Setting up a corporate website would mean that organizational data such as the nature of its
business and the products and services offered will be available to competing businesses.
Some companies are usually conservative to setting up corporate websites because the
information that is displayed on the websites could be used by competitors to improve their
competitive advantage.
4.Security
If the company website is hosted (contained) within the company then setting up the
website would expose organizational data to security threats from the Internet. The website
would also provide an avenue for hackers to access the organization‘s computers.
5.Training
Company staff may have to be trained on how to use the website. For instance, employees
may need to be trained on how to log-on and how to access, say, their business e-mails.
Training would be expensive in terms of time and costs (trainers salaries).
gregorymasila answered the question on November 21, 2017 at 20:33
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