Electronic Business: the Product and Company - Research Paper Example

I. The Product and company The product is an online computer assembly business that will allow s to chose the spefication of their computers by chosing the computer parts that will be assembled. This will allow customers the latitude and novelty to create their own computers depending on their performance requirement and buget. As a company,the company will entice potential customers by offering value proposition of low cost, performance and technical support that is hard to refuse. For price, the company can guarantee that its price is lower than the traditional brick and mortar stores because it has lower overhead cost and has computer parts that are not necessarily branded but has the same specifications of the popular brands that would allow customers to save on cost. II. Competitor assessment The nearest competitor of the business is Dell Computers that also allow customization of personal computers to some extent. Dell Computers however rely too much on its own brand and suppliers that charge premium prices which is its disadvantage. This is where the business will position against Dell Computers to gain market share. The company will customize computers at a much lower cost because the parts that will make up the assembled computers will be coming from different suppliers affording customers greater latitude in terms specification and price. Other popular brands that sells online are also competitors but serves a different niche of customers who are not into customization of budget computers and such, not direct competitors. The traditional brick and mortar computer stores are also competitors only that the company can readily beat them in terms of price due to company’s lower overhead cost. III. Online marketing strategy The best way to gain market share is to differentiate from other competitors and serve a particular niche. In case of the proposed company, the product will cater to two types of customer. First, the technical users who would like to customize the performance of their computers. Second, the budget conscious users or business that are looking for ways on how to save on their computer purchase To be able to reach this target customers, the company must be able attract their attention. This can be done in several ways. First, the company can post ads in technical websites such as PC magazine, or even business websites such as The Economist where a link in such sites can land to the company’s homepage. It can also advertise with Google and even Amazon. Initially, it may suffice that the target customers has been informed of the company’s presence. But succeding marketing efforts should translate these product awareness into sales. Second, the company can sponsor popular blogs for review of certain computer parts that would lead the customers to visit the company’s website in their effort to know more about the product. If they are interested with the particular product, they can order it right there and then increasing the company’s sales. The company can also offer free online publication to those who would visit and register in the website to keep in touch with these potential customers. IV. Search Engine Optimization (SEO) Strategy There are several methods to optimize SEO for the site that would increase traffic and eventually to an increased sales. First, key words that is best associated with the company such as customized computers, computers, pc etch that would link popular search engines such as google, yahoo, bing etch to the site due to the usage of spiders that associate certain words to certain website. V. Social media integration Social media integration is now a need for business especially for online businesses where it has to make its presence felt by the customers. It also serves as a free advertisement of the company and can be taken as an extension of its official website where customers can inquire or look for information. Facebook would be an ideal venue because of its universal appeal. Twitter can be used for short notices about product arrival or updates. Myspace should also be used despite of its declining users. VI. Online Customer Relations Management (CRM) Customer Relations Management (CRM) is not only confined to brick and mortar business. Business, regardless of conducting it via the traditional brick and mortar or in the cyberspace has to maintain the goodwill of the customers for the the business to thrive. To establish and maintain goodwill among customers, a support group or customer service department has to be present to answer the customer’s inquiry either by email or phone call. Emails must be responded to promptly while calls must be answered professionally with highly trained staffs. It has to be remembered that computers are technical products and customer would expect that the customer service representatives know the products that the company is selling. This is addition to delivering the product of excellent quality and value. Engaging the customer also proves to be an excellent customer relations management method. It has the advantage of not only getting feedbacks from the customers but also engages the customer to the company that helps promote customer loyalty. This will also lessen the technical burden of the company in terms of responding to queries. This can be done having an online community in the website where customers can chat and email each other. In the process, they can ask other customers what is the best combination of their computers that will work for them. VII. The international market One of the advantage in doing business in the cyberspace is its global reach at a minimal cost. It can penetrate markets in other countries at minimal cost foras long as the website is known to the customers. This would also mean that the business will be exposed to intense competition. It will compete not only with business of similar nature but also with traditional brick and mortar where there are face to face interaction to entertain the customers. The intends to overcome this handicap by its lower price (due to low overhead cost of not maintaining a brick and mortar store) and well trained customer service representatives (by phone or online). The company however must prepare itself to have the infrastructure to facilitate payment from the international market. VIII. Projected Cost Starting the website can be cheap. For the domain and address, the company can subscribe to godaddy.com for three years subscription so it can economize (approximately $100). There are however other infrastructure that needs to be set up for the company to have an edge over its competitors. It has to have a call center and chat room where customer service personnel can respond to the customer’s inquiries and/or complains. It must also have a durable supply chain to source computer parts when needed by the customers. IX. Online solutions Doing business online meant that transactions are done electronically from advertising the product to customer’s payment. Being such, the company must invest to have a user friendly website that would allow customers to customize their computers by selecting certain products that would either suit their desired specification or budget. It is important that such website will only allow parts that are to compatible to be assembled (for example, disallowing intel CPU with AMD motherboards) to avoid technical issues that would overwhelm technical support. There should also be informational tools that would guide the customers about the rudiments of computer assembly and why assembling one’s computer is better than buying a ready made computer to increase market share and encourage repeat purchase. Above all, the company must also have the infrastructure to receive and collect online payment from its customers, otherwise, all of its efforts would be pointless if it cannot collect the sales from its customers. Read More