Commerce Strategies Set By Organization †Myassignmenthelp.Com

Question: Discuss About The Commerce Strategies Set By Organization? Answer: Introduction Clicktowear.com is the website or the e-business which provides an all-around solution if any person wants to buy clothes and apparels. To make the company and run an e-business an entrepreneur needs to thoroughly know each and every aspect of the business. E-commerce or e-business is a tricky game in the field of business which can prove to be profitable or not run at all. An entrepreneur needs to focus on some points before planning to start such a business. Name of the website is a very important part for an e-commerce business to run and make profits (Awais and Samin 2012). It should be catchy and trendy and should even be relevant to the kind of business it denotes. Some of the business strategies which are to be implemented can be pricing strategy, advanced marketing strategy, brilliant customer service and support. The site needs to be online all the time and should not crash. Some of these features and business strategies are discussed in the following report for the apparel e-business site called Clicktowear.com. There is a wide range of apparel products available on the site which appeals to every age group and kind of people who shop online.Clicktowear.com aspires to become the leader in online apparel stores by being a part of the lifestyle of its customers. For this the company has to develop a state of the art business model. Business Goals To create a market and a customer base the company will give offers and gift vouchers to the customers who visit the site and purchase a product for the first time. This will enhance the shopping experience a great deal. Every business has some targets and goals which the company wants to achieve to continue their business and even expand their territory in one way or the other (Balaraman and Kosalram 2012). Some of the business goals which are to be achieved by Clicktowear.com are: Provide best online shopping experience: Owners and management of Clicktowear.com are determined to provide a brilliant shopping experience to its customers. E-commerce business is all about the making available the products to the customers with much ease and satisfaction. To achieve this goal Clicktowear.com has to design its website in such a way that visitors tend to find out every detail of the product they are interested in. The showcase of the product should be descriptive and lucrative for the visitors to get an idea of the real product just by seeing its pictures (Gkmen 2012). Moreover, the website should be light weighted so that it can run on slow internet speed as well and should load each page quickly and without much delay. Customers should be awarded with loyalty points and other such perks so that they feel privileged by shopping on the website. To reach a customer base of million people in a year: Every e-business is run by its customers who constantly visit the site and keep the traffic of the site high. It is due to those customers that the products of the site get popularity. Without a staunch customer base an e-commerce business like Clicktowear.com will not flourish (Laudon and Guercio Traver 2012). More the number of customers more will be the sale from Clicktowear.com which will generate more profits for the company. When this will happen the company will be motivated to expand its product range and bring in new trendy and fashionable products for its customers. To reach the first million number of sales and customer can take up to one year but is not an overambitious target. Increase profits by 30% in 6 months: Profit is the consequence of sale and is the difference between the procurement and delivery (Laudon and Guercio Traver 2012). Products sold on Clicktowear.com should be procured from the sources which are much cheaper from the sale price which is displayed on the website. To achieve this type of rate difference the responsibility of product procurement should be in the hands on most experienced sales professionals who hold a tight grip on the apparel business. The difference in rate of procurement and sale will increase the profit margin of the Clicktowear.com. To make more profits in less time the company has to give offers and announce sale so that large number of products are sold within a short time span. E-commerce Strategy Business strategies are the most vital part of a business to run and flourish. The following are some of them. Value propositions Some of the value propositions for Clicktowear.com are: Qualified buyers who are willing to shop regularly from the website and provide them with feedback and rate its products (Meier and Stormer 2012). Exclusive integration of products, services and advertising which makes a holistic display of apparels on the website. Content Syndication adds to the exclusivity to the range of products as no other website is selling the same product as Clicktowear.com. Revenue Models Clicktowear.com has to follow an integrated revenue model in which there are number of aspects put together to generate revenue for the company other than the sale of the products (Moertini 2012). These factors are: Sponsorship: The Company will provide selected sponsorship to a group of sponsors. For paying for the company the sponsors will get a premium slot in the website for advertising and content integration of their own products (Waghmare 2012). Affiliate Commissions: The payment for products will be done through payment gateways assigned which takes a part of the payment as commission and the website also earn through per click of advertisements which the payment gateway receives (Chen and Zhang 2013). Advertising: Any e-commerce website is seen to generate its revenue from the advertisements it does on the interface of the site. Slots are rented on the site for ads to be displayed and every click or visit to the site has a fixed rate which the company is paid for (Gkmen 2012). The rates of the ads are determined by the performance of the CPM. It also generates traffic as well as revenue for Clicktowear.com. Banners and posters are fixed on the allocated slot and it varies according to the choice of the customers and the trends which is analyzed during multiple visits to the website. Value added services: Every customer wants to get more during their shopping streak (Gajendran, Brewer and Marimuthu 2013). The value added services which Clicktowear.com provides is the gift vouchers redeemable within a span of time and that too on the same website when the customer visits the site again or purchases another product. These vouchers do not cost much to the company but derive a high possibility of future sale from the same customer. Target Markets Clicktowear.com has to analyses and target different types of customers according to their choices of products and shopping potential. Business of apparel is an open one and everyone intends to but new and fashionable clothes (Gangeshwer 2013). The company has to find out the demographics of its customers such as number of males and females, age group of these people, kind of education they have got which says a lot about their choices, kind of employment which determines their purchasing capacity, total household income, their marital status, degree of internet access they have got and the time duration for which they are online (Niranjanamurthy, Kavyashree and Chahar 2013). All these characteristics help in defining the target market for Clicktowear.com. Business Models The most common and relevant business model in the e-commerce business is the Business to Consumer model (Sobihah, Salleh and Amin 2013). It is justified that one entity of business is selling its products directly to the customers with no middleman or any entity in between. This model is followed by the e-commerce giants such as Amazon.com, Ebay.com, and Alibaba.com all located around the globe. Capital Realization It is the most important entity of the business. As capital required for starting an e-commerce business is huge its realization becomes a tough task (Distante, Camelier-Carvajal and Rossi 2014). If the capital investment is not done in a proper way the business is not going to succeed and it will incur huge losses. There are some ways which can reduce this risk in capital realization such as: Saving in logistics: E-commerce business does need a showroom or a market store. It only needs a huge warehouse and a good logistics system (Guo and Hu 2014). Saving by reducing the cost of warehousing and logistics is one way to go. Accelerator, incubator and mentoring: These are some programs which the owners and management needs to join to gain some valuable tools, connections, resources and expertise about the business they are doing which helps them to reduce cost and gain in profits (Saini 2014). Crowd funding: This method will help the owners of Clicktowear.com to raise capital from different sources and investors in the market. It is done by exchanging equities in return of the investments made by different parties in the company (Sivapalan, Sadeghian and Madni 2014). Pre-orders: This method is very useful in adding up to the capital as money comes in and there is a surety of the product to be sold (Chaffey 2015). Pre-orders are actually arranging capital from the customers itself. SWOT Analysis Strength: E-commerce has the biggest advantage as it is a part of global market (Mazzarol 2015). There are no boundaries and restrictions to the scope of business as anyone who uses internet becomes a potential customer. There are no time constraints in shopping as one can shop from anywhere anytime. It is faster method of purchasing as one can but many items in very less time. Weakness: Security is one of the biggest issues in e-commerce as integrity of the payment is always in question (Weiwei and Yue 2015). There are many fake websites with the same name and interface which confuses the customer. Credit card frauds are a common thing to happen as details of cards and other private information is on the website. Opportunities: Customers who spend money are brand conscious and dont intend to buy local made products (Akter and Wamba 2016). If the quality of product is up to the mark then they dont mind buying the stuff from Clicktowear.com. Threats: As the market gets huge threats also increase in size. Global markets induce global competitors with huge customer base and capitals (Deng and Wang 2016). There are many laws and rules which needs compliance in doing business at such global level. Porters Five Forces Model Supplier Power: The volume and concentration of supplies is of utmost importance as it keeps the availability of the product intact (Chaffey 2015). Threat of new entrants: com needs to keep track of the new entities entering in the same business to keep its supremacy in the market (Mazzarol 2015). Threat of substitutes: Costs of products vary in this business. Clicktowear.com needs to be aware of the substitutes available in the market of its products to maintain its own sales (Weiwei and Yue 2015). Buyer power: Volume of products purchased, bargaining, brand integrity, price variation, difference in products and incentives for the buyers are some key points to be kept in mind (Deng and Wang 2016). Rivalry: The intensity of rivals in the market which can create barriers determined by the growth of this industry is to be tackled by Clicktowear.com. Behavior Model Demographic and psychological factors are prevalent in the e-commerce business as customers follow the local trend of dressing which is determined by their mentality (Guo and Hu 2014). Tech-savvy and young people tend to shop more online than the older ones. Consumer Profiles Analysis of the choices of customers is done by Clicktowear.com to know the type of products they want to purchase in the future. Profile contains gender, age, marital status, demography, income etc (Saini 2014). Trust and Validity In e-commerce trust is the foundation of business which is to be established from both ends (Sobihah, Salleh and Amin 2013). Customers should trust for the services, products, quality and delivery of the products and the company should trust on the loyalty of the customer to shop more and pay more. Mobile, apps, email, social media and transaction logs They are the basic features of e-commerce. Every e-commerce company makes its own mobile app, sends emails to notify about the offers and advertises on social media through online marketing techniques (Sobihah, Salleh and Amin 2013). They also keep their transaction logs to calculate their sales and to provide as evidence at the time of audit. Cost Benefit Analysis Clicktowear.com needs to do CBA for it business keeping in mind the aspects such as cost of the project technology being used by the company, savings done in the operations cash flows in and out of the company (Sobihah, Salleh and Amin 2013). These are done on the model of CBA which includes: Model Design:com does designing of the model of cost they will use for their business. Data Collection: A time period is set for collection of relevant data depending upon the kind of operations done by Clicktowear.com. CBA Model preparation: Selected models are used specific to the apparel business of Clicktowear.com. Review: Going through each and every detail of the CBA which includes formation of charts, graphs and tables of data is done to get a holistic idea of the exact costing and revenues by Clicktowear.com. Conclusion It can be concluded that the business model of Clicktowear.com which is an e-commerce business has been done in the above report. All the business strategies covering fundamental features of a business to be established is discussed in details taking all the dimensions into consideration. Business models have been discussed which are apt for online apparel store with its implications and requirements. The products and services which are required for Clicktowear.com to flourish have been stated. Being an entrepreneur the business goals which the company needs to achieve have been written and explained in details with its prerequisites and consequences. 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