E-Commerce Strategy for Bloom erg Limited - Research Proposal Example

Topic: E-Commerce strategy for Bloom erg Limited Student Name: Student ID: Institution: Tutor’s Name: Date of Submission: TABLE OF CONTENTS Executive Summary 2 1. Introduction and background 3 1.1. Organization background: Bloom erg Limited 4 1.2. E-commerce background of the company 4 2. Business Concept 5 2.1. Intra-business e-commerce 6 2.2. E-CRM 7 3. Industry, Competitor market and organizational Analysis 7 4. Business Online Model 9 5. Strategy 11 6. Recommendations 13 7. Conclusion 14 8. References 15 9. Appendix 18 Executive Summary In spite of increased sustained improvements in electronic commerce, most companies conduct businesses and investments with little profits. This is because there is the need for revaluation of the current business strategies used by companies and development of strategies that result into high profitability (Whiteley, 2010). This paper provides an analysis of e-commerce strategies that can be used by Bloom erg Limited to improve marketing and access to its products by use of digital capabilities that exist in their organizations. It presents the findings such as the contribution of electronic methods of completing transactions, fulfillment of orders, mobile service and customer service towards meeting customer needs and improving the overall e-commerce strategies in the target market areas. It also involves investigation of level of competition that the company experiences in terms of competitiveness of competitors in comparison with the company. Some of the strategies that are suggested include the use of intra-business e-commerce, mobile commerce and the use of the internet towards improving e-commerce activities in the organization. It also presents the strategies for revaluating the current business strategies with the focus of increasing customer base and revenue growth. It also provides additional insights into development and implementation of e-business that result into the overall improved profitability of the company. 1. Introduction and background Bloom erg is better placed to increase the amount of sales of computer devices and other digital products by implementing the right e-business strategy such as increased use of the internet during research, engaging in sharing of experiences through networking and use of methods of payments that are inclined towards the use of the internet such as mobile support and electronic payments (Tatnall, 2010). The main e-commerce strategies that are explained and modeled for the business include intra-business e-commerce, e-customer relations, mobile commerce and the use of the internet to market products and create competitive advantage of the company in relation to other companies. 1.1. Organization background: Bloom erg Limited Bloom erg is a New York based computer company that has a number of branches in various parts of the world and sells computers of various types and other electronic equipment Electronic (Participation, ePart, 2011). The company has relied on other methods of marketing its products such as the use of posters to attract customers but little focus has been out in marketing the company through the internet. For instance, the company has initially targeted people living in the cities as their primary customers due to their capability to reach the retail shops in the country despite the limited number of customers that can access its premises in the cities (Somers, Cain & Jeffery, 2011). Consequently, a number of competitive advantages that the company can benefit from have been ignored and the company’s profitability has not been as high as that of its competitors. 1.2. E-commerce background of the company Companies involved in internet marketing have applied e-commerce strategies in a wide range of application areas such as the use of websites to advertise products that the companies deal in. In addition marketing strategies have involved the use of theoretical models that identify target markets for distribution of products and services that the company deals in (Singh, 2012). A mix of various forms of e-commerce has been applied in the latest organizations to improve access to potential customers and increase competitiveness of the companies in marketing environment. These have been achieved by designing the companies in ways that ensures the factors that contribute to enhanced e-commerce activities are achieved in the areas of operation. For instance, intra-business e-commerce has been used by most companies to manage activities within the organizations while e-customer relations management has been used to manage communication and transactions with customers in some of the successful organizations (Schneider, 2011). However, there are many challenges that current businesses face that need to be addressed by applying the right e-commerce strategies to ensure competitiveness of companies in competitive environment. For instance, there are new entrants into similar businesses that have efficient means of communication and this result into rivalry among organizations. There are also a number of substitute products that are produced by other companies which make popularity of existing companies low. Thus, it has been necessary to develop e-commerce strategies that ensure competitiveness of existing products is enhanced while threats of new entrants are counteracted (Schneider, 2011). Due to the potential of the internet to dramatically affect competitive forces, Bloom erg needs to take these forces into consideration during formulation of their strategies. 2. Business Concept The purpose of e-business concept is to provide Bloom erg Limited with the competence of marketing its products online through web sites in the internet such as social networking sites, collaboration and online designs. It will be possible for the company to create web pages that serves a number of web users (Pride, 2013). These strategies will ensure the company is able to create awareness regarding its products and interaction with customers will be highly enhanced through the use of e-commerce strategies such as intra-business e-commerce and e-CRM. When the company posts its products in social networking sites such as Google, yahoo, Amazon.com and Facebook, it will be possible to find information about the products and enhance marketing processes (Mohapatra, 2013). In this paper, a model is developed that will provide the strategy that needs to be used to determine e-commerce strategies that will be used to market products of the company. This involves an analysis of various forms of e-commerce and establishing the right strategies that can be applied by the company. The training requirements needed to make employees conversant with these strategies are also explained. This is followed by a strategy that should be used in implementing the selected strategy and the resources that need to be put in place to maintain the function of the selected strategy. Some of the e-commerce strategies that exist include the following: 2.1. Intra-business e-commerce This refers to the process where internal business activities in the company are conducted by use of digital technology such as connecting exchange of information between members of staffs of the company online (Manzoor, 2010). Intra-business e-commerce can be done between business partners as well as within the organization. The company will improve its operations by finding ways to do business electronically with its employees. For instance, information will be disseminated to employees over the company intranet. Employees will also be allowed to manage their fringe benefits and participate in training classes electronically. Furthermore, it will be possible for employees to buy discounted insurance, travel packages and obtain tickets to events through the corporate intranet and they can be able to order supplies and required materials in their work. Intra-business e-commerce will also be facilitated by creation of e-commerce activities between business units within the company. Since, Bloom erg is a large organization that consists of a number of business units that sell materials and products and services to each other, it will be possible to make transactions automatic and able to be conducted over the intranet (Plunkett, 2009). For instance, in the case where there are minor branches of the main company, these branches will obtain goods from the main company. This form of e-CRM will ensure an improvement in internal operations of the company supply activities. There are many benefits associated with c-commerce such as reduction in supply chain, reduction in costs of operation, an increase in customer satisfaction and creation of a competitive edge over competitors. 2.2. E-CRM This refers to the process where the company will apply a number of strategies of maintaining customer relations such as the use of company intranet, extranet and the internet. These will enable managing relationships with customers by use of information technology. Bloom erg will implement IT to integrate internal organization resources for the purpose of understanding customer needs. It ensures communication with customers is enhanced. E-CRM will involve the use of all traditional methods of contact with customers in addition to the use of the internet, e-mails, wireless and PDA technologies (Mohapatra, 2013). In addition, there will be no need to download various applications to view web-enabled applications because customers will be able to use the internet. E-CRM also enables personalized individual views based on history of purchase and changes in programs, reduction in costs and time and implementation of systems and their maintenance at one particular server. 3. Industry, Competitor market and organizational Analysis Electronic industry is an example of the fastest growing sectors in IT products and service industry. There are constant improvement in the methods of advertisement and improvements in the products components with the purpose of creating customer satisfaction. The main products in the industry include TV sets, computers, mobile phones and their accessories (McPhail, 2010). It also includes audio products such as PA systems and radios. It is the fastest growing economic sector and an example of a source of income for many entrepreneurs. Bloom erg Company faces high competition in its attempt to improve its marketing activities for electronic products such as computers, TVs and other products that are sold by companies that compete with it (Martin, 2011). For instance, there are other companies that provide similar products at a reduced price than those of the company. This results into lack of popularity for the company products and the need to improve its commercial activities. There are also other companies that produce quality products than those sold by the company (Manzoor, 2010). These are beyond the control of the company and there is the need to ensure its commercial activities are expanded to make the company equally competitive in the sales of computers as its competitors. Electronics equipment market is composed of people who prefer quality products that are made in the latest designs and technologies (Kaye & Quinn, 2010). However, due to constraints such as high costs of improvement of operations to produce high quality electronic equipment, it has been difficult for most companies to produce these products to satisfactory level. In addition, there are areas where people who would like to have the products produced by the company are unable to get these products because they do not have the information regarding the products. Thus, there is the need to create a marketing strategy that is less costly while ensures the goals of the company are achieved. 4. Business Online Model There are a number of e-commerce models that exist and that can be used by Bloom berg to enhance its marketing and transaction activities with customers as well as improve its competitiveness in the retail of electronics products in its areas of operation. An example of e-commerce model that can be used by the company is mobile commerce. This is the process where buying and selling of goods and services take place through facilitation of the wireless technology such as cellular phones (Goldfinch & Wallis, 2009). In this process, interactions between customers and staffs of the company are facilitated by use of mobile phones. These include providing customers with mobile tickets when they purchase products from the company, provision of information services such as information regarding existing products through mobile communication or text messages that are sent to clients and provision of mobile banking. It also involves the use of mobile forms of payments to facilitate transactions where customers are able to pay for the products bought through mobile phones. Another form in which e-commerce can be achieved in an organization is by installing computers in the offices in the organization which facilitate communication among employees in the organization as well as storing information about customers in electronic from (Fitzgerald, 2011). There are other functions that can be served by the computers such as sending online messages to customers and suppliers in the form of e-mails and online chatting between employees in the company and its stakeholders. In addition, computers in the organization can be used to serve other functions such as exchange of information about activities in the company. For instance employees are able to exchange information through intranet when there is a local network between computers in the company (Clark, 2010). Database about customers of the company and transactions can be kept in these computers and used during auditing of activities of the company. This ensures accountability for activities in which the company is involved in. A company can also facilitate e-commerce through the internet by designing a website and creating ways in which people who log in to the site are able to access the products and make a decision such as buying the products or not (Budde, Wansink, McNamara & Paul Budde Communication Pty. Ltd, 2012). In the web sites, pictures of the products can be posted and described in details to facilitate the decision of whether to buy them or not. Popular sites that can be used by companies include social sites such as Facebook and G-mail or Google. The site can be designed with a number of links which lead to obtaining additional information about the product. For instance, the description of the product can include the price of the product, the amount of discount and forms of delivery to the customer of he/she opts to buy the products. In addition, it should include alternative products that can be used by the customer to serve the same purpose in case the exact product is not available. The website can also be designed in such a way that customers are able to pay for the products online and obtain tickets which they use to collect the products from the stores (Bookbinder, 2013). The IP Address of the web sites can also be sent through a number of routers that are sent to the data center of the organization and enable connection with systems within the organization. This should also enable response to customer requests and their attitudes towards the products posted on the company web site. In addition the site should be designed so that customers can register and get updates regarding latest products that the company produces. This ensures those who are willing to buy the latest products get the opportunity to do so. There are a number of advantages that the site should have in order to attract customers. For instance, it should be easy to use and provide a wide range of inventory from which customers can make choices for products (Abeysekera, 2011). In addition, it should be accessible and should have links to various sections of the sites that provide additional information about products of the company. Faster and more efficient delivery of goods can involve integration of online and brick-and-mortar businesses. This involves full automation of distribution warehouses to meet the requirements of customers who use the internet. If Bloom erg invests in physical assets such as warehouse, it will be possible to compete favorably with its competitors. 5. Strategy Before the Bloom erg can be efficient in the use of e-commerce methods of conducting businesses in the organization, particular strategies will have to be followed. The first strategy will involve investment in latest technologies that facilitate e-commerce in the organization such as purchase of computers and mobile phones to be used by employees in the organization (Manzoor, 2010). This should be followed by designing network systems such as software that enable sharing of information within the organization. The company also needs to invest in a web site where its products are displayed and customers allowed accessing the site. The second course of action that needs to be taken by Bloom erg is to train employees on how intra-business e-commerce is conducted and how they can use the technologies in the organizations to facilitate transactions such as sharing information with customers in the organization or with other staffs within the company. They also need to be trained on how to store information in databases and ensure the data is secure In addition, Bloom erg Limited needs to apply a number of e-commerce strategies of advertisement by posting products such as electronics equipment in the web site of the company (Mohapatra, 2013). For instance, the use of the internet can be applied by posting advertisements in sites such as Amazon.com, Google and creation of a website where products of the company can be accessed by willing buyers. In the sites, the company needs to specify terms of payment and forms of delivery in cases the customer is willing to buy the products. Internet marketing can also be enhanced by posting products of the company in social sites such as Facebook, Twitter, and Gmail. The target groups of this form of advertisement are younger generations who have interest in owning electronic devices such as televisions and computers (Whiteley, 2010). When people log into these sites, it is possible to see the products and make a decision whether to buy the products or not and be able to know the prices of the goods. Despite the possibility that they may not buy the products, it results into creation of awareness about the product and customers are more likely to buy the products on the future. The next course of action will involve training employees on the use of mobile services to conduct transactions with potential customers. In this form of e-commerce strategy, it will involve encouraging communication between customers and staffs of the company regarding products and services of the company and transactions (Tatnall, 2010). For instance, they need to be trained on the use of mobile money transfer services in managing transactions between customers and the company. They also need to be trained on how they can send the more through their mobile phones and receive the goods. In addition, they will be trained to communicate with customers by talking to potential customers and staffs of the company. These include communication in the areas of public relations, advice regarding products and terms of transaction between customers and the company (Somers, Cain & Jeffery, 2011). Communication with customers will also be enhanced by allowing potential customers get access to mobile number of the business. This facilitates communication when customers need products of the company or need these goods to be delivered to them. It also ensures customer needs and complaints are attended to and any variations in service procedures are followed. 6. Recommendations In order for Bloom erg to maintain efficiency in the electronics market, the company needs to focus its activities on a number of areas of e-commerce and marketing strategies that creates high competitiveness for the company. These include the application of e-customer relations management and intra-business e-commerce (Singh, 2012). These strategies will ensure the company is able to acquire competitiveness and costs of operations are considerably reduced. Exchange of business information between employees of the company will be enhanced by improved business to business e-commerce and business to employee e-commerce. In addition, the use of the internet can be useful in facilitating its e-commercial activities. By posting its products and services in social networking sites such as Facebook, Google, Yahoo and Amazon.com, more customers will be aware of the products that the company produces and those who are willing to buy them will become loyal to the company (Schneider, 2011). It is also highly recommended that the organization needs to invest in the latest technology such as the purchase of computers to facilitate activities in the organization. When this is done, it is further recommend that the company should train its employees to use this equipment to facilitate communication with customers and other activities of the organization. When this is done, a number of advantages will be realized that ensures the company is able to compete favorably in marketing its products through e-commerce (Plunkett, 2009). For instance, it will facilitate communication among employees in the organization and sending and receiving e-mails, it will facilitate the storage of information relating to the company in databases that can be accessed and it will enable advertisement of products of the company online. Mobile commerce is also a factor that is recommended that the company should use to enable its success in the marketing of electronics products such as computers and televisions Employee of the company are strongly encouraged to use mobile technologies such as mobile money transfer and communication to facilitate transaction with customers (Morrison, 2009). The ticketing process should be designed so that customers are able to get receipts for the products they buy through mobile phones. In addition, mobile payments should be developed so that customers can pay for the products they buy through mobile phone transfer. There are a number of advantages associated with these modes of e-commerce. These include reduction in costs of business operations, reduced effort in conducting business activities and high efficiency of e-commerce activities. When Bloom erg Limited implements these strategies in its operations, there is the likelihood that it can benefit from these advantages. 7. Conclusion This discussion shows that Bloom erg Limited has a high potential to remain competitive in the electronics markets when the right e-commerce strategies are implemented by the company. The main e-commerce strategies that are useful for the company include the use of company intra-net, websites to advertise products and the use of mobile commerce. There are various advantages associated with these forms of e-commerce and the company can benefit from them when applied in its marketing processes. Bloom erg is still in the traditional category of companies. Thus, it experiences the problems of traditional companies. An example of a significant challenge experienced by traditional companies is the difficulty in deciding the extent of integration of online services. The difficulty is that during integration, benefits of cross-promotion, sharing information, purchasing power, reduced costs of distribution, but these are accompanied with high decision making capabilities, flexibility and creativity. There is also the challenge of price competition during integration and the need to avoid cannibalism for customers among online and offline companies. Due to these challenges, there is the need for traditional companies to develop unique specific business strategies that ensure they are competitive against Internet companies. When the model of e-commerce suggested in this paper, it will be possible to transform Bloom erg from the traditional stage to a modern competitive stage. 8. References Abeysekera, I. (2011). Reputation building, website disclosure and the case of intellectual capital. Bingley [England: Emerald. Bookbinder, J. H. (2013). Handbook of global logistics: Transportation in international supply chains. New York: Springer. Budde, P., Wansink, K., McNamara, S., & Paul Budde Communication Pty. Ltd. (2012). Australia: E-commerce, marketing and advertising. Bucketty, N.S.W: Paul Budde Communication. Clark, E. E. (2010). Cyber law in Australia. Alphen aan den Rijn, The Netherlands: Kluwer Law International. David, E., Workshop on Agent-Mediated Electronic Commerce, & TADA 2009. (2010). Agent-mediated electronic commerce: Designing trading strategies and mechanisms for electronic markets ; AAMAS Workshop, AMEC 2009, Budapest, Hungary, May 12, 2009, and IJCAI Workshop, TADA 2009, Pasadena, CA, USA, July 13, 2009, selected and revised papers. Berlin: Springer. Fitzgerald, B. F. (2011). Internet and e-commerce law, business and policy. Pyrmont, N.S.W: Thomson Reuters. Goldfinch, S., & Wallis, J. (2009). International handbook of public management reform. Cheltenham: Edward Elgar. International Conference on Information Systems and Development: Methods and Tools, Theory and Practice, & Nilsson, A. G. (2006). Advances in information systems development: Bridging the gap between academia and industry. New York, NY: Springer. Kaye, J., & Quinn, S. (2010). Funding journalism in the digital age: Business models, strategies, issues and trends. New York: Peter Lang. Manzoor, A. (2010). E-commerce: an introduction. Saarbrücken, LAP Lambert Acad. Publ. Martin, C. (2011). The Third Screen: Marketing to Your Customers in a World Gone Mobile. London: Nicholas Brealey Pub. McPhail, T. L. (2010). Global communication: Theories, stakeholders, and trends. Chichester, West Sussex, U.K: Wiley-Blackwell. Mohapatra, S. 2013. E-commerce strategy: text and cases. New York, Springer. Morrison, A. M. (2009). Hospitality and travel marketing. Clifton Park, N.Y: Delmar Learning. Plunkett, J. W. (2009). Plunkett's e-commerce & Internet business almanac 2009: The only comprehensive guide to the e-commerce & Internet industry. Houston, Tex: Plunkett Research Ltd. Pride, William M. (2013). Marketing 2014. South-Western Pub. Schneider, G. P. 2011. Electronic commerce. Boston, MA, Course Technology Cengage Learning. Singh, N. (2012). Localization strategies for global e-business. Cambridge: Cambridge University Press. Somers, G., Cain, J., & Jeffery, M. (2011). Essential VCE business management: Units 1 and 2. Cambridge: Cambridge University Press. Tambouris, E., Macintosh, A., Bruijn, H. ., & IFIP WG 8.5 International Conference on Electronic Participation, ePart. (2011). Electronic participation: Third IFIP WG 8.5 international conference, ePart 2011, Delft, The Netherlands, August 29 - September 1, 2011 : proceedings. Berlin [etc.: SpringerLink. Tatnall, A. (2010). Web technologies: Concepts, methodologies, tools and applications. Hershey, PA: Information Science Reference. Whiteley, D. (2010). E-Commerece ; stratefy, technologies and applications. New Delhi, Tata McGraw Hill Education Private Ltd. 9. Appendix Forms of e-commerce Activities Social Networking sites Posting products in social networking sites such as Facebook, Yahho, Google and Amazon.com E-CRM Enhancing customer service by use of technology such as communication through mobile phones Intra-business e-commerce Use of technology to improve activities within the company such as delivery of products and exchange of information within the organization Mobile commerce The process where transactions such as payments, communication and banking is done through the use of mobile phones Read More