Business Skills For Ecommerce Essay

Question:

Discuss about the Business Skills For Ecommerce.

Answer:

Core Business Function and SWOT Analysis of “ULKOM BICYCLE HIRE”.

The core business function of this organization is to increase the sale of bicycles to customers all over the available markets. In that connection, the company need to initiate a program that will attract many customers as possible. As a profit making organization, the company should continue using the new technology so as to facilitate the process of selling these bicycles. The function of this organization also relates to the process of hiring bicycles. In that connection, the company need to record accurate data on hired bicycles so as to maintain a proper record on all transactions taking place within the company. Lastly, record keeping involves management of data. Therefore, database management system must be accurate. This process is very important to the company which remain as part of organization’s core business function. This process is facilitated by SWOT analysis as indicated below.

SWOT Analysis

Strengths

1. The company has skilled employees.

2. The company has managed to achieve competitive advantage.

Weaknesses

1. There is more market that has not been ventured.

2. The use of manual record limited profits generated.

Opportunities

1. There is an opportunity to attract more customers.

2. More sales can be made.

Threats

1. Competition may arise.

2. New stores may take time to adopt database system.

  • How to Achieve Business Aim by Considering Business Strengths.

The company has managed to develop a database management system to facilitate the process of hiring and selling bicycles from all the branches. This is the main strength because the company can increase the profit margin. The main aim of this company is to make profits. Thus, use of database system will increase market venture. Ecommerce process will attract customers all over the globe thus increasing wealth margin. The positive part of SWOT analysis can be used to explain this concept.

Strength

1. Ability to use database system for recoding sales and hired bicycles.

2. Ecommerce for selling increase wealth margin.

Opportunity

1. There is an opportunity to attract more customers.

2. More sales can be made.

Impact of Introducing E-Commerce System to ULKOM and Risk Associated to System Implementation

E-Commerce is a technology applied to conduct business transactions via the internet. In this process, customers can place orders on products they wish to purchase and then make payment via credit card transfer. For this company, there will be increase in sales made through e-Commerce since customers will be attracted from all over the globe (Dann & Dann, 2007). This will increase growth and development of the company and more profits will be collected. However, this process is not applicable in marginalized areas without internet connectivity. E-Commerce business is also affected by cyber-attacks thus becoming difficult to implement.

  • Economic and Social Impacts of E-Commerce

Economic impacts

This business process increase market venture where transactions made are simple to undertake within a very short period of time. In that connection, companies are able to increase their profit margin at a significant rate. Again, apart from internet connectivity, there are fewer transaction costs associated with this process. Customers are able to save money and time.

Social impacts

E-Commerce involves use of internet where buyers and sellers communicate so as to conduct business transaction. There is no personal relationship when using e-Commerce. Thus, human connectivity is limited (Dann & Dann, 2007). Again, interaction of people from different social perspectives is also limited when using e-Commerce because all business transactions are conducted via the internet.

The impact of privacy issue when using e-Commerce

ULKOM Company should realize that e-Commerce business system is administered from a secure server. Therefore, privacy is guaranteed unless authorized access to personal data take place. Before conducting business transactions, there must be authorization so as to enhance privacy of data.

Potential of UK for E-Commerce Solution of the Company

UK is one of the countries with high working population. Again, the use of technology in business is very advanced in the UK. In that connection, e-Commerce in this business would be appropriate because majority of the population is working. This implies that the company would make more sales in UK that some parts of developing countries where working population is below average of total population.

E-Commerce Used by Three Competitive Organizations

E-Commerce solution applied in three competitive organization has been neutralized. This is because, customers are allowed to operate from any organization because the e-commerce business system applied in this scenario is interconnected. This interconnect three organization to perform all functions simultaneously regardless of the organization.

Financial Impact of E-Commerce to the Company

The company is likely to undergo economic growth and development as a result of applying e-Commerce in conducting business transaction (Dann & Dann, 2007). This is because, through this system, customers are free to access the hiring of bicycles any time from any part of the globe. Payment are made through credit card system. Thus, as long as a customer place an order, the company gain financial growth. More market is a clear indicator for financial gain.

E-commerce Solution for the Company

ULKOM Company should use e-Commerce model designed below.

First, customers will be required to register as a member of the company in the website. This will be used as identification process.

Then customers are provided with individual credentials to log in into e-Commerce system.

After logging in, all the orders are placed in the dashboard on either to hire or buy the bicycles.

The customers pay through credit card transfer.

Finally, delivery is made to desired destinations.

4.2 Techniques to Retain Customers Using CRM Approach and to Increase Sales

The first technique involves track engagement with your emails in real-time. This system is used to communicate business transactions with potential customers. It is easy to read emails requesting sales.

Again, use of automate time-consuming tasks can be applied to update status, sending proposals and automation of tedious tasks so as to focus on selling.

Lastly, the use of ProsperWorks assists businesses to sell more commodities through use of three principles (Dann & Dann, 2004). That is, simplicity, proper decision making and accelerate sales. The image below demonstrates CRM life cycle.

References

Dann, S., & Dann, S. (2004) Strategic Internet marketing. Brisbane: John Wiley & Sons.

Dann, S., & Dann, S. (2007) Competitive marketing strategy. French’s Forest, NSW: Pearson Education.

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