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Single-Stop Shop – Internal Issues
Another major weakness with hosting companies is that they are not aware of core competencies on which they are masters. They want to sell every hosting services like a single-stop shop. The primary hosting services include Shared Hosting, Reseller Hosting, VPS, Dedicated Servers, Cloud Hosting and other related hosting products or services.
Lengthy Sign up Process and Complex Payment modes – Internal Issues
In search of legitimate customers, most hosting companies ask for identification proof or payment made through Paypal. No doubt, they are doing right, as the industry is full of fraudulent customers. Most customers pay using the credit cards of different people may be in relationship or buying hosting services for them.
The designers and developers buy hosting services in the name of the customer name and use their credit details or ask the owner to pay. The credit cards are in the name of the person, not in the name of any company. But, again, when buying hosting services, if there is any mismatch the signup account goes to fraud, which is not moderated by most. Hence, they lose new signups especially from developing countries because of the above issue.
Lack of Proper Managers – Internal Issues
The Managers can perform Strengths/Weakness analysis to evaluate the business. And if they are not aware of the weaknesses, how can they fix it. Thus losing the market, which they could acquire by developing new strengths coping with gaps.
Review Objectives – Internal Issues
Most hosting companies don't review their objectives concerning magnitude and time. The industry moves very fast. The new developments and technologies emerge daily. That led to the change in hosting plan structure, target customers and resources required.
Lack of Contingency Plan – Internal Issues
Most Reseller hosting companies are dependent on parent providers for support, backup, and resources. They don't create any contingency plan for risk containment, improvement, and innovation. They run the business with the objective to get lowest price reseller plan and resell resources at right margin to increase profits. Furthermore, they overlook the new opportunities to improve ROI. They don't take long-term business growth vision.
No leadership left in the market – Internal Issues
Most hosting companies although state that they are leaders, in particular, hosting services, but in reality the market is hyper-competitive. The profit margins are low as there is an abundance of underpricing competitors in the market. Every hosting company state that they provide high-performance hosting services.
The hosting customer is so much confused that it needs quality leadership, who can guide the best features in plans, inspects and monitor hosting companies regularly and carefully and provide trusted unbiased reports.
Technical skill development – Internal Issues
Most companies do not have the budget to do research and development, strengthen technological intelligence and develop leading-edge services.