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How Virtual Business can expand its capacity?

Capacity is the innate ability of a company through which it offers a range of services to the customers. The number of customers your company currently serving is a good indicator of capacity. How many customers more you can serve is a question related to capacity utilization. That is, the optimal performance of a company can generate more profits and can only be achieved via capacity utilization. Virtual businesses do not rely on face to face interaction with their customers but use electronic means. For instance, virtual business involves Telephone answering service, call centers, and other online facilities for the transaction are the best examples of virtual business. Capacity utilization identifies and eliminates internal inefficiencies in any sort of business whether it is virtual or physical. It transforms weaknesses into opportunities by providing some sort of practical solutions to the problems currently with confronted. It simplifies all the complexities associated with business and enlarges the domain of the business. In simple words, when each element of the business is optimally utilized, we can call it business capacity utilization.  Capacity utilization expropriates the internal hidden benefits associated with the business and in turn reduces the cost of production. It opts and seeks for optimality of all dimensions of the business in order to attain the very basic objective of every business of the world and that is, ‘’Maximization of the profit’’. Yes, business capacity utilization enables your company to achieve the very basic objective of profit maximization thus an extremely important component of your business. In many ways, we can apply capacity utilization to avoid internal inefficiencies in the business. Following are the possible internal inefficiencies of any virtual business with possible solutions.

  1. Optimal allocation of time in Virtual Businesses

Timing is one of the keys to personal and as well as to business progress. Timely production and delivery of goods and services to the customer can increase the reputation of a company. Immediate availability of what is demanded means companies are optimally utilizing their capacities. Secondly, all-time availability can also attract customers from some other regions of the world. If you can attract more customers, then what you are waiting for? Thirdly, the majority of the customers are comfortable talking to a live person instead of a recorded conversation. By ensuring the all-time availability a company can attract more customers and can generate more profit. Therefore, an optimal allocation of time leads to optimal utilization of capacity.

  1. Optimal promotion of the product in Virtual Businesses

Optimal spending on the promotion of the product can increase a company’s profitability. However, it is often difficult to figure out an exact promotional mix (a series of tools that a business uses to communicate the message of why consumers should buy their product).  Promotional mix let your customers know about the characteristics, features, and quality of your product. Out of sight; out of mind. It is extremely crucial for a company to choose an optimal promotion for the product. Various social media platforms have been used by different companies in order to increase the number of customers. The progress of online shipping is often carried out via facebook, twitter, etc, and have benefited various companies in many ways. Product sale is directly related to the level of promotion and promotion can be effective only when your product is easily accessible from anywhere. Therefore, an optimal promotion of the product leads to optimal utilization of capacity.

  1. Optimal sharing of capacity in Virtual Businesses

Sharing capacity is one of the many ways through which a company can share responsibilities with other companies in order to attract more customers. For both companies, capacity sharing can yield enormous benefits and maximize the potential of both companies. For instance, outsourcing customer services are one of the many examples of sharing capacity. Sharing capacity is usually determined by the cost associated with that responsibility. Doing my own is costly and giving it to an expert is will benefit both of the parties. Therefore, an optimal sharing of capacity leads to optimal utilization of capacity.

Optimal strategic decision making in Virtual Businesses

The process of strategic decision making is a crucial factor which determines the long run performance of a company. Introducing new ways to increase the value of product demands more energy to be invested in the identification of certain locations where your product is more demanded than elsewhere. Alternatively, which is the place on earth where your product is being highly praised if discovered will reach you to the potential customers? Different marketing strategies are there and often used by companies to reach a potential customer. This is a kind of strategic decision which can influence the future performance of a company.


Capacity utilization can benefit a company in a multifaceted way. It enables the firm to focus on its weaknesses and convert them into opportunities via the provision of practical solutions to the problems. Business capacity utilization can be achieved by utilizing time efficiently, through the optimal promotion of the product, through capacity sharing with other companies, and through optimal strategic decision making. It opts and seeks for optimality of all dimensions of the business in order to attain the very basic objective of every business of the world and that is, ‘’Maximization of the profit’’.