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E- Commerce is an extensive sector where purchase, exchange, product, service and sale are some of the major factors. Simply, it can be described as a bridge for exchanging the commodities and other activities which mainly involves transfer of suppliesfrom the producers to that of the consumers. From the facts mentioned in the website of European Union, e-commerce is famous its different types of business transaction as well as exchange of information by the use of ICT otherwise known as Information and Communication Technology among diverse companies, in the companies and among the consumers as well as public administrations(Jones et al., 2000). However, from the website of IBM, the definition of e-Business is quite clear-cut and it is the modern concept regarding the transformation of major business activities with the help of internet technologies(Jones et al., 2000).
Here in Unit 30 E – Business Models Assignment research paper, the scenario of A2Z Cosmetics is the point of interest in terms of factors like- internet and e-business along with e-business solutions. It is an established manufacturing company that deals with cosmetic products. For the different marketing strategies in this rapidly-transforming and competitive business sector, structuring an e-business strategy with all sorts of e-commerce by gathering all the e-business knowledgein the mind is the main purpose of this paper. Therefore this report with four tasks and imperative questions will be presented to the Chief Executive of A2Z Cosmetics Mr. J. Simon so that the BOD or Board of Directors Committee of this company will get convinced with the implementation of the new e-business strategies(Zhu & Kraemer,2005).
The major objectives of this Unit 30 E – Business Models Assignment are-
Importance of the environmental analysis regarding an organization or monitoring the changes related to the environment is necessary for companies, like- A2Z Cosmetics. There are two major environmental factors known as micro-environmental factors as well as macro-environmental factors that have direct impact on A2Z Cosmetics(Amit&Zott, 2001).
Macro-environment factors include- Social, Legal, ethical and taxation, Economic, Political, Technological and Competitive aspects related to the organization, whereas Micro-environment consists of the aspects of e-marketplace like- the organization, its suppliers, the consumers, its competitors, the intermediaries and the public(Amit&Zott, 2001).
Internet is the most imperative environment in which all the e-commerce processes through a computer network can be conducted like- buying or selling. E-commerce based on internet has created revolutionary business style along with management and global trading. In case of A2Z Cosmetics, information sharing is a significant activity which helps to sustain the coordination among the clients and the company as well as coordination with the trading partners.(Zhu et al., 2006)Due to the vast network of internet through which people can share unlimited information and it also works like an enabler for the e-commerce of companies, like- A2Z Cosmetics as it allows cosmetic business to showcaseas well as sell the products to the customers and providing the services(Menasce, 2000).
According to the CREC or Center for Research and Electronic Commerce of University of Texas there are four key layers present in the conceptual framework related to the internet and according to this concept, those layers are- Internet Infrastructure, Internet Applications Infrastructure, Internet Intermediaries and Internet Commerce and A2Z Cosmetics will come under the forth layer as it sells the products directly to the end-users. Internet based business is directly dependent on the different types of e-business transactions and those transactions are mentioned below-
There are three stages of benefits which are being experience in case of A2Z Cosmetics and these benefits occur due to the online presence of A2Z Cosmetics in the internet world.
Those benefits are based on in terms of-
There are two types of barriers, one is- technological Barriers and the other one isnon-technological barriers.
Ethical standards as well as their incorporation in case of online business activities of the company A2Z Cosmetics is the major purpose of this assessment section. The revolutionary approach of e-commerce and its changing to new forms style have created new risks which could be the result of new style of business practices(Eger et al., 2007).
Likewise auctions are quite favorable towards fraudulent activities over internet. However, other areas like- bogus deals or investments as well as phantom trade opportunities come under the potential issues of fraud in the sector of e-business. In case of A2Z Cosmetics, Financial Criminals are there who have access to more and more people which could be due to the greater inclination towards electronic mail. The initiatives by the governments, like- exemplary activity by the US Federal Trade Commissioncan create revolutionary step by which the legitimate issues of e-business can come to the front. E.g.-the ftc.gov published twelve examples of scams that arrived via e-mail as well as located on the web(Beattie & Pratt, 2003).
Due to the progress of technology, new modes of communication are evolved and similarly the old ones are fading away. The cost-effective factor of these avant-garde modes of communication is the key reason for which people are getting more habituated towards electronic media.
Communication through Mobile Devices:The increasing manner of this style of communication has created a platform for the communication which is availableto the e-business sector. Text messages, short emails are the new forms of communication in this era with the help of cellular phonesas well as PDAs otherwise known as Personal Digital Assistants. Text messaging is the most favorable manner of communication which has been found from the researches. Quick Messages Services is a modern way of communication which occurs among the sellers and buyers(Amit&Zott, 2001).
Social Media:Social Networking Media is considered as the most prominent tool of communication which continues to take the first position among all sorts of communication modes. A2Z Cosmetics can promote the exclusive products along with the exciting offers via these social media sites which creates a center of attention for the potential customers. The recruiters as well as salespeople of the company very often get major contacts with the help of these sites.
Email:It is the oldest form of communication mode among all the three types of communication medium in e-business. But, due to its versatility it still managesto take the market as this form of communication is effective in case of asking questions as well as getting the solutions, mini conferences as well as awareness programs, sending documents and sharing of information. Nowadays, many courts are considering email as a piece of evidence and can be issued as a legal testimony so that transactions can be analyzed(Zhu & Kraemer,2005).
Business communications like- shopping carts are quite popular in this era of e-business. Shopping Cart is for the simplification of the shopping process so that an online consumer can purchase multiple goods easily from the e-commerce websites. The deeper style of infrastructure of the company website offers a user-friendly interface to the consumer which allowsthe consumers to select the merchandise according to their choices and then they can also review those and purchase them. This is a type of software with the help of which a list of products can be created by the customers and subsequently the overall fees are shown to the consumer automatically(Zhu & Kraemer,2005).
FAQs: In case of FAQs, the consumers can directly get their solutions as specific solutions are mentioned in the websites previously. Consumers have to just click on the selected problems and then the solutions related to the problems will occur which is quite a simple process. Therefore it is called Frequently Asked Questions.
Fee-for-Transaction Revenue Model: According to this model of revenue, the businesses charge an amount according to the transaction size of the deal. From this e-business type, information get received by the consumers and that information is compulsory for the completion of a transaction, so the revenue is based on the size of the transaction. E.g.-Online travel sites are based on this e-business revenue model along with the stock brokerage firms in which they get commissions according to the size of each of the transaction of stocks or the shares(Fernandez et al., 2011).
Fee-for-Service Revenue Model: This model is just the opposite of Fee-for-Transaction Revenue Model, in which the fee is dependant to the value of a few services. Some of the professional services offered by the doctors, lawyers, consultants and accountants online come under this model of revenue. The e-business related to entertainment or online games also come under this model(Fernandez et al., 2011).
Some of the emerging grounds which can be observed while analyzing the e-business models are-
The e-business models are rising in the form of new unit of study which is the major developmental step in this sector.
Holistic approaches of the e-commerce websites with the explanation of how the business is going on in case of a firm is also an innovative approach. Here, the models are being developed to emphasize the system-level approach of a company.
Organizational activities are not mentioned upon which researches are continuing and this is a topic of thinking by which e-business can be progressedfaster.
The e-business models are being improved so that these can reach up to the explanation associated with the values of the organizations.
A process of doing business by following which, revenue can be generated for sustainability is known as the e-business models. Value proposition of the customers is the future direction that is related with the business model structure and it denotes the quality services offered to the customers along with the relationship of the e-commerce companies with the customers. For this the imperative and fundamental work is to make a proper list of resources according to its availability, the need of development and those resource that need to be obtained. A proper description of supply chain of the organization along with the suppliers as well as business partners is also required for the future development. Perfect implementation of the appropriate kind of revenue model along with anticipated costs, financial viability as well as finance sources are some of the essential points of concern here.
These are the major steps and imperative elements those are required to build a good e-commerce website. In the implementation, the major components for the website design structure are required that are- template designing, content writing, backend coding and at lastthe integration of security network. Testing of the website is an important part which is obligatory before the launch of the website. Apart from this, the website must feature the multimedia aspects,content as well as other functions. Other additional components are- functional specification, change management and project planning.
Along with it, there are several details which should be developed and redeveloped while thinking about a well-designed website structure. Among the top prominent online retailers, there key elements are quite common which trigger success towards the company. These elements are-
For expansion of an organization, a well-built website with impressive design is the key element in the e-commerce world. Customers all over the world will visit the designed website, so it will create an impression in case of the consumers which will directly affect the reputation of the company. The virtual modes of shopping or getting the services should be properly elaborated with a touch of elegance and attractiveness, otherwise people lose interest and they will go for another company. User-friendliness along with attractiveness is the major areas of concern while designing a website and it has been known from the customers’ point of view(Eger et al., 2007).
Impact of a well-designed website to the e-business can be considered under the following areas-
From thestakeholders’ accessibility standpoint, the website is quite effective as they have complete access to analyze the products and services of A2Z Cosmetics. Major groups of audience will get fascinated due to the exclusivity of the product range and the services. In addition to that, the usability of the website is quite inventive due to the multi-sensory access which is very helpful for the visually impaired persons and individuals who have color blindness. According to the legal responsibilities of the company, the website perfectly fits the consumers as discrimination legislation is provided on it.
There are some common problematic issues related to the usability of the website and those are-
Jones, S., Wilikens, M., Morris, P., &Masera, M. (2000). Trust requirements in e-business. Communications of the ACM, 43(12), 81-87.
Tsalgatidou, A., &Pitoura, E. (2001). Business models and transactions in mobile electronic commerce: requirements and properties. Computer Networks,37(2), 221-236.
Zhu, K., & Kraemer, K. L. (2005). Post-adoption variations in usage and value of e-business by organizations: cross-country evidence from the retail industry.Information Systems Research, 16(1), 61-84.
Amit, R., &Zott, C. (2001).Value creation in e?business. Strategic management journal, 22(6?7), 493-520.
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