E-business or e-commerce refers to the process of utilizing the technology of Internet and related technologies for transforming every process of business and further enable every aspect of the value chain of the organization from serving, retaining and acquiring customers for interacting with partners, employees and the world eventually. E-business can be very safely denoted as a very crucial but small aspect in the overall architecture of business. There are two fundamental kinds of businesses that are conducted over the platform of Internet.
E-business can be regarded as the technology which helps in improving the processes of businesses. It includes management of the internal business processes like the goods and services supply, human resource, administrative and financial systems along with the management of external processes like the customer relationships, marketing and sales, etc. before making an approach to conduct business on the online or Internet platform, it is very important to have a business strategy (Adebanjo, et al., 2016).
A business strategy can be referred to a broad based formula regarding what extent the competitiveness of a business is going to be effective. The goals, plans and policies that are needed to be carried out in an e-business is required to be carried out. The strategy of e-business would include the plans regarding allocation of resources, forecasting, core competency, analysis of the company, overall planning of the business and environmental analysis. The e-business strategy can be also considered as a pure play, customized plan for any physical business that exists which is now considering selling over the Internet (Agudo-Peregrina, Hern?ndez-Garc?a & Acquila-Natale, 2016).
The e-business that I would like to develop is regarding a sporting goods and clothing company which would be named a Marky G’s. The company would be based in Australia and would be proving its products and services to all across the continent. Due to the expansion in the sports industry, the demand for the sporting goods and clothing has increased at a tremendous rate in the past years (Yang, et al., 2017). Moreover, the scarcities of amount of time that generally people of the advanced era have facilitated the need and demand for online platform for business. This has been easing out the time management for the sports persons as well as the authorities conducting sports events and training as they get the delivery of the products without spending much of their time in searching for the best sports stores that would provide the goods and clothing according to their requirements (Andam, 2014).
Australia has witnessed a number of international events of sports. It has also been the land where many entrants have established their business base in the fashion sector. However, sportswear and products is one such area where the availability of online delivery services is still lagging. The Australian market provides broad opportunities for the e-business of sporting goods and clothing to usher. Marky G’s would sell the sports clothing and other products from all the leading global players like Adidas, Nike, etc. The e-business platform would provide Marky G’s with much required integrated digital strategy, store operations, in-store visual merchandising, enhanced management of customer service and operations of the store (Barreira, et al., 2016).
As an entrepreneur, the analysis of the Australian market is conducted. The e-business of platform of the sporting clothing and goods is expected to grow at 3 percent annually. The products that Marky G’s would provide to its customers would include various types of clothing that sports persons and other active people generally need such as support compression top, customized sports t-shirts for various events, tracksuits, caps and gears, piping training bibs, wrist bands, headbands, gloves for different requirements in various sports, uniform playing kit, sports jackets, jerseys, sports swim wear. Swimming glasses, sports inner wear, etc. (Da Costa, 2016). The other goods and products that the company would provide to its customers online would also include the equipments that are used in various sports and games. Marky G’s would also provide customized goods and clothing for any particular events in bulk to its clients and customers.
The goals of business of Marky G’s would be:
- To become the global leader in the e-commerce industry dealing with the sporting clothing and products. It can be achieved by having a in-depth comprehension of the wants and needs of the customers and consumers. The company has to have a multi brand strategy to be the global leader in the e-commerce industry.
- To give the best performance in the operation and finances. This would be achieved b creating very flexible supply chain.
- To deliver the profitable share growth in the market and become the leading organization in respect to sales in the sporting clothing and goods industry. This would be achieved by delivering a very sustainable and healthy growth along with reaping a great return on investment.
The e-commerce strategies that would be required to be implemented in achieving these e-business goals would be multi-facet. The business goal of being the best leader in the international market of sporting clothing and goods industry would require integrating innovation in the products, processes and services. Marky G needs to address all the areas of the sports industry for generating new factors of innovation and valuable improvements in the products. The e-business strategy for Marky G’s would also include the inclusion of a wide variety of products to a broad spectrum of the consumers (Hiles & Hon, 2016).
The strategies for the e-business would include the plan for creating an environment of work which encourages teamwork, innovation and achievement by building very strong leadership and engagement of employees (Wymer & Regan, 2013). It would also include the plan of improving and developing the various systems and processes for enabling the faster and more effective production of the goods. In order to deliver highly profitable share growth in the market and becoming leading organization regarding sales in the industry, Marky G’s needs to strategize the display of the wide range of products and goods of sports through the centers of brands. This would also include developing very profitable channels for distribution. Further strategies regarding becoming the top sports e-retailer would include the provision of a clearance channel via factory outlets.
A very prominent strategy of e-commerce operation would also include learning from won experience of e-business which would help in improving the sales along with enhancing and innovating the strategies. The strategies of Marky G’s regarding e-commerce operations for achieving the above goals would also include plans for ensuring the expansion of market and opportunities in the categories of the brands. This will be materialized buy catering a constant flow of innovative, inspiring and creative products (Kaur, 2017).
By expanding the e0commerce activities in the emerging areas of the Australia and by targeting the games like basket ball and running will provide much growth opportunities for the company. Expansion of the latest fashionable products in the clothing of sports would enhance the business of Marky G’s which would help the company in achieving its goals. Strategies of Marky G’s for achieving its e-business goals would include the objective of achieving sustainable and qualitative growth by building the desirable brands in the perception of both the consumers and customers. This can also be materialized by the company by establishing enhancement in the consistency and speed in reaching out to the customers. The strategies would also involve presentation of various products and clothing form renowned brands in a very consistent way in regards to pricing and variety. In order to achieve the goals and objective of Marky G’s would include ensuring the competitiveness of the cost which denotes to the fact of lowering of the costs of manufacturing and the costs spend on the demand and supply chain of the company. It also would include the selling the price of the products for attracting more customers (Kim, et al., 2015). Reduction of the supply chain and product costs by increasing the efficiency and level of the production machinery in the process of manufacturing would also help the company in achieving its goals. Effective use of most of the cost effective and high quality materials will also help the company in its internal business processes which will lead to company to achieve its organizational goals. The e-business strategies of Marky G’s can be determined on the basis of the SWOT analysis of the company(Kollmann, Lomberg & Peschl, 2016).
Potential to create heritage and legacy: The Company, through its innovative use of platform of Internet in providing sporting goods and clothing in Australia, has the potential to set a heritage and legacy in the sports industry. It can outshine the performance and demand of the traditional sports stores and other competitors in the Australian market.
Distribution network: By making and generating large number of sales to various customers and clients, Marky G’s has a very well developed distribution systems for the sporting goods and clothing products that are available through various channels .
Diversified portfolio: Marky G’s has multiple portfolios of products with different range of clothing, accessories and footwear of various brands both of mid range segment and premium segment (Lai & Luo, 2016).
Collaborations and memberships: Building string associations and relationship within the section of sustainability will provide the company an edge of over its competitors even after being a new company in the market (Xu, et al., 2016).
Developing a brand by creating touch points with various communities: The potential to have endorsements by celebrities and sponsoring big sports events and organizations will provide increased awareness of Marky G’s in the targeted base of customers of the Australian market.
Fresher in the market: The fact that Marky G’s is a fresher to the market both in terms of its service and location cannot be denied. The company has a long way to go in regards to gaining experience of the market. Its needs to have complete knowledge regarding the ever- altering aspects of the market (Lee, 2013).
Fluctuations in the range of prices: Being new to the Australian market, it is evident that the prices of the sporting clothing and goods will vary from season to season. This would lead to minor setbacks in the carrying out the pricing strategies of the company.
Opportunities of Marly G’s
Changing lifestyle: Along with the saturation in the economies, the altering p[references and tastes, changing lifestyle and educations of the Australian economy, there is an increasing rate in the demand of the premium services and goods.
- 2)Development of market: Entering into the Australian market along with other untapped market is the only way for being successful in the future as the other economies have too much of competition (Leung, et al., 2016).
- Product line expansion: Expanding the product line of Marky G’s will result in a fresh set of opportunities. On the other hand, it can also pave ways for differentiating itself from other competitors.
- Backward integration: This is will prove to be smart technology as it will help the company in securing the integration of operational strategies with the marketing team in order to have efficient work in the open e-system.
- Increasing demand for online platforms of shopping: If we happen to consider the Australian market, the growth rate of demand of premium sports products is very high. This provides us with the future opportunities of business and market size that is constantly increasing in the Australian economy (Xue, Li & Pei, 2016).
Threats of Marky G’s
- Supplier Dominancy: Due to the huge outsourcing of the products of the suppliers, more bargaining power is vested on the suppliers that Marky G’s which the possible threat is.
- Competition: Though Marky G’s is a innovative platform for providing sporting goods and clothing online to its customers, the competition from the already established brands is a constant threat to the company.
- Regulations of the government: The import regulations, tariffs and duty imposed by the governments of different countries form which the suppliers are operating form have a critical role in the pricing strategies of the company (Lu & Zhang, 2002).
The business model of the Marky G’s denotes to the structural layout which would depict the company regarding the central transactions with all the external constituents in regards to the products and factor markets. It has been handed over to the cutting edge of the management of strategies of Marky G’s. This provides new possibility figure through fast advances regarding supply chain and other operation of the company. Integrated in the concept of the e-business, the strategies inculcated by Marky G’s describe the ways in which the concepts and operations of business will be implemented (Mali?, Makitan & Petrov, 2016). The value proposition of Marky G’s denotes that the company will give to its clients and customers along with to its associations. Marky G’s will be able to offer better value to the customers than its competitors through building effective business models and strategies so that the buyers and the customers of the products provided by Marky G’s will benefit the most with its sports products and clothing. The strategies of Marky G’s would include the value proposition regarding reduced price, pace of the assistance and delivery, convenience or improved services like the “ 1 click “ checkout. It would also include the sporting products which lead to increased productivity and efficiency. The access to a very huge and available inventory which presents various options for the customers is also included in the strategies regarding creation of value (Wymer & Regan, 2013).
Porter’s Five Forces Analysis of Marky G’s
There are various external factors which determine the intensities or strengths of forces that impact Marky G’s. These are described as follows:
Competitive Rivalry: Competition will determine the way in which Marky G’s will maintain its share of the market in e-business of sporting goods and clothing. The factors such as low growth rate of the market, moderate number of companies and high aggressiveness of the companies.
Bargaining power of the buyers or customers of Marky G’s: The customers of Marky G’s have direct impact on the performance of business. The external factors that contribute to the moderate power of bargaining of the customers include the low costs of switching, small size of the buyers and moderate availability of substitute (Mazzarol, 2015).
Bargaining power of the suppliers of Marky G’s:
Suppliers have effects on the business of Marky G’s through the availability of goods. This factor handles the influence of the suppliers on the environment of Marky G’s. In the case of Marky G’s, the external factors that lead to the weakening of the supplier’s bargaining power are overall high supply,moderate size of the individual suppliers and large suppliers’ population.
The substitutes pose considerable threat against the performance of Marky G’s to be a leading player in the global market of sporting goods and clothing. This element identifies the force of substitution on the environment of industry and e-business. The aspects that are included in the external factors which maintain the moderate threat of substitution against Marky G’s include the moderate substitute’s availability, moderate performance per substitutes’’ price and low costs of switching (Monteiro, Swatman & Tavares, 2013).
New companies or new entrants can derail or affect the industry environment of Marky G’s. This aspect denotes to the extent of influence of the new entrants on Marky G’s in the sporting goods and clothing market of Australia. The factors that are included in the weak threat of new entrants against Marky G’s are high brand development costs high economies of scale, moderate costs regarding doing business (Wang, Chaudhry & Da Xu, 2016).
Marketing and Advertising Strategy
The marketing and advertising strategy for the e-Business of Marky G’s including the proper setting of the e-Commerce website. Designing high quality website with original content will lead to setting up the success in the business as it will suit with the demands and requirements of the customers. This will also facilitate the interaction of the customers with us in regards to any service including purchasing. The strategies of advertising and marketing of Marly G’s would also include social media marketing which would allow us to communicate with the customers in the sports industry and market our products and services in a personal way (Saba, Rolandi & Pilloni, 2017). Utilization of the social media can be done for generating the interaction and engagement of the customers, boosting of the traffic to the website of Marly G’s and eventually developing a huge base of the customers in the market. Making use of various platforms of social media also would carry a rich and effective presence for Marky G’s which will diversify the efforts, abilities of the company and will eventually assist in catering to the needs and wants of the customers and client in a way that enhances the growth of the business with advancement of time. The cost benefit analysis of Marky G’s will provide the comprehension regarding the feasibility of the e-business operations. The costs associated with technology and further, development in the technology will be structured (Skrabniou, 2016). The costs associated with consultancy assistance and support would require the involvement of a number of programmers that will be able to interpret the functional needs of the website of the company. It is to be noted that during the technological development of the website of Marky G’s , allowing the admin staff for regulating the pilot system of the website on a daily basis as training initiative has to be conducted (Srivastava, 2016). The running costs including the maintenance and web server costs are to be regulated. The running costs for the change of process have also to be taken into consideration. This will result in improved flow if cash and increased revenue. The non-financial benefits of the process would include the enhanced communication between the clients, customers and Marly G’s, increased transparency in operation, exposure of the company to new opportunities and wider considerations regarding business. (Srivastava & Panigrahi, 2016)
The assignment illustrated the significance of advancement of business operations through the platform of technology in the form of e-business. The services and products that would be provided in a hypothetical e-business company are discussed. The strategies that are required to b e integrated in ecommerce are illustrated. The description of the external environment through SWOT analysis and value proposition is elaborated in terms of the company. The description of the strategies regarding marketing and advertisement for the e-Business company are also discussed in brief.
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