...involved in Internet (as opposed to brick and mortar) startups? Answer Both Brick-and-Mortar companies and internet startups each face their own unique opportunities and challenges characteristic to their type of business and industry. Opportunities which internet startups have over brick and mortar are detailed below; • Immediate access to a global market place, a platform from where internet companies can mass market products, or use a more intelligent marketing approach through search engines, based on specific search results of users on Google, yahoo, AOL, etc. • Reduced warehousing and distribution costs, if products sold are tangible, through achieving economies of scale by having the portfolio of products on offer available and visible on the website (e-catalogue) and doing all deliveries from one central location. Most companies incorporate a lead time on their products (similar to Apple) and only manufacture once order and payment confirmed, and thereby reducing warehouse costs, almost in totality. • Simple, streamline and efficient business processes are vastly enabled through web functionality and capability. • Access to customer data and their shopping preferences through your e-catalogue records, allows for greater customer relation management possibilities, and also generating higher cross sell and upsell ratios if data is “mined” correctly. • Reduced staff numbers, therefor reduced costs, as interaction is mainly done through the company website, and...
Words: 1471 - Pages: 6
...Traditional Versus Online Management American InterContinental University Abstract This paper will address the internet structure of an organization and the traditional structure of an organization. The Appalachian Lending Corporation is a small finance organization that will be used to show the traditional organization. The online retailer used will be eBay. The management and leadership roles and functions will be explained. Two challenges facing both the types of organizations will be described. The similarities of the challenges will be discussed. Suggestions will be given, about how to transition from a brick and mortar organization, to an online organization. Traditional Versus Online Management The new age of business is moving towards the internet age of business. The internet is attractive compared to the traditional brick and mortar because of the low startup costs. New companies need less capital for their initial startup and this allows more small businesses to be established. The internet also allows new businesses to reach consumer markets, which could not be reached before, by the brick and mortar businesses. With the change in the type of business comes the change in the leadership styles and management styles needed to run these businesses effectively. This paper will look at both, brick and mortar and internet organizations, and discuss the differences in structure, management obstacles and the solutions to these issues. Addressing Management and...
Words: 1529 - Pages: 7
...of Amazon’s growth and diversification of business and specialization, and make recommendations about what Amazon could have done differently. As the economy continues to grow and change so will consumers with how they shop and purchase their everyday needs. Having a successful business online takes time and effort to ensure that consumer needs are being met. This paper will discuss how Amazon has been able to stay so successful with new and upcoming competitors. In addition to discussing the success, the struggles will be evaluated as well as ways to improve the company. When visiting Amazon, one obtains several products at one time;-it is a one-stop shop similar to an online “Seven-Eleven Store. “ Amazon is the largest online book retailer composed of a multi million-customer base. Jeff Bezos, the founder of Amazon, had great confidence in the World Wide Web even before the dot.com boom. He used the internet as the core of Amazon's business model. Amazon customers are able to search inside the book before buying it, read customer ratings on products of interest, and purchase products at low prices. Amazon’s initial target market of online book consumers, proved to be very lucrative. In addition, the expansion into more diverse product offerings beyond books, such as music, DVD & video, toys, electronics, home improvement and auctions only served to increase the company’s product list. Branching into other areas such as automotive, apparel, jewelry, office equipment, and...
Words: 2201 - Pages: 9
...Movie Rental Industry Introduction People born in the early 80’s have the advantage of experiencing the digital age from birth. Today people can go online to Netflix, Blockbuster, or VUDU and rent a movie to stream immediately to their flatscreen HDTV or computer monitor. This is a far contrast from mom and pop VHS video rental stores that emerged in the late seventies and early eighties. The immediate download of videos without having to drive to a brick and mortar building to return the video without incurring late fees is a thing of the past. In 1977 George Atkinson opened the first video rental store in Los Angeles offering videos for rent at $10 a day with a $50 or $100 membership to raise capital[1]. Since that first home theater store George opened, there have been a plethora of mom and pop video rental stores that sprouted up. As video renting became more popular due to the availability of the VHS recorder and the DVD player, larger movie rental chains entered the market with better buying power and lower prices. These larger chains were able to offer rental movies at lower prices with a larger selection[2]. The technology revolution has changed the landscape of video renting. Using Porter’s Five Forces model, entrance into the video rental business will be examined. Technologies used to stream movies, download full length movies, renting movies from store front, and renting from kiosks are the available avenues for the budding entrepreneur. With new...
Words: 1622 - Pages: 7
...business on the internet, not only buying and selling but also servicing customers and collaborating with business partners. History of ecommerce dates back to the invention of the very old notion of "sell and buy", electricity, cables, computers, modems, and the Internet. Ecommerce became possible in 1991 when the Internet was opened to commercial use. Since that date thousands of businesses have taken up residence at web sites. At first, the term ecommerce meant the process of execution of commercial transactions electronically with the help of the leading technologies such as Electronic Data Interchange (EDI) and Electronic Funds Transfer (EFT) which gave an opportunity for users to exchange business information and do electronic transactions. The ability to use these technologies appeared in the late 1970s and allowed business companies and organizations to send commercial documentation electronically. Although the Internet began to advance in popularity among the general public in 1994, it took approximately four years to develop the security protocols (for example, HTTP) and DSL which allowed rapid access and a persistent connection to the Internet. In 2000 a great number of business companies in the United States and Western Europe represented their services in the World Wide Web. At this time the meaning of the word ecommerce was changed. People began to define the term ecommerce as the process of purchasing of available goods and services over the Internet using secure...
Words: 2496 - Pages: 10
...Along with the above brochure, the internet is an inexpensive mode and invaluable tool to market our business and reach potential customers. The first step would be to develop a website in which customers learn about the unique business approach of United Candle in offering beeswax and soy; from here they can order products, ask questions and get more information about the products and services we have to offer. Here customers will learn about United Candle’s commitment to being socially responsible and the many health benefits of choosing our candles over our competitors. The internet and our social media accounts will also give us the opportunity to reach customers who would not otherwise know about our new start-up company. Customers...
Words: 427 - Pages: 2
...Arden Brazzeal Case Study #4: Blue Nile Corporate Strategy 1. Prepare a five-forces model of competition in the online retail jewelry industry. Conclude as to the strength or weakness of each force as well as the attractiveness of the industry overall. Rivalry Among Competing Sellers- There are many competitors in the online retail jewelry industry with overlapping characteristics in their business models. A very similar competitor that Blue Nile faces is Diamonds.com. Diamonds.com has expert gemologists. They offer "more than 40,000 loose diamonds" in a selection of settings. (Page 326) Their customers have the option to customize their purchases. They provide their customers with widespread educational knowledge for purchasing a diamond. They have excellent customer service by providing free shipping, an appraisal of the diamond, and non-customized orders receive 30 days to return the purchase after delivery. (Page 327) Diamonds.com offers substitute diamonds that are readily available and easily accessible to their customers. Another competitor in the diamond industry is Whiteflash.com. They too provide their customers with the option to customize jewelry. One service that they provide that is unique from their competitors is their diamond trade-up policy. This policy provides customers with a less expensive option to purchase a new Whiteflash diamond by trading in or exchanging their old diamond for a new, more expensive one. Their customer service features...
Words: 4551 - Pages: 19
...Contents 1.0 Executive Summary 3 1.1 The Products 4 1.3 Mission Statement 5 1.4 Management Team 5 1.5 Sales Forecasts 6 1.6 Expansion Plan 7 2.0 Company and Financing Summary 8 2.1 Registered Name and Corporate Structure 8 2.2 Financial Position 8 2.3 Investment 10 2.4 Management Equity 10 3.0 Products and Services 11 3.1 Online Sales of Products. 11 Baby Care 11 Grocery 11 Personal Care 11 OTC Medicines 11 Cosmetic 12 Fitness Centre 12 3.4 Shipping and Handling Fees 12 4.0 Strategic and Market Analysis 13 4.1 Economic Outlook 13 4.3 Customer Profile 13 4.4 Competition 14 5.0 Marketing Plan 17 5.1 Marketing Objectives 17 5.2 Marketing Strategies 17 5.3 Pricing 18 The Company believes in healthy Competition, so we will offer our Products at competitive Price. The Company will offer discounts on the large order or at wholesale Quantity. 18 6.0 Organizational Plan and Personnel Summary 18 6.1 Corporate Organization 18 6.2 Organizational Budget 19 6.3 Management NOTE: 20 7.0 Financial Plan 23 7.1 Underlying Assumptions 23 7.2 Sensitivity Analysis 23 7.3 Source of Funds 24 7.4 General Assumptions 24 Monthly Sales Revenue (PROJECTED) 25 Yearly Sales Forecast 26 7.5 Profit and Loss Statements 27 Executive Summary The Summit, RX Inc. (hereafter, “The Company”) business plan provides the structure and focus against which we can measure future financial positions for success in the near and far term. It serves...
Words: 7308 - Pages: 30
...E-BUSINESS Understanding the Power and Appeal of Operating an Online Venture Do You Already Know? • How the Internet and World Wide Web got started • The advantages of selling on the Internet • What kinds of products you can sell online • The primary e-business models www For additional questions to assess your current knowledge of the Internet and e-business opportunities, go to www.wiley.com/college/ holden. What You Will Find Out What You Will Be Able To Do • Use the Internet and World Wide 1.1 The history of the Internet and Web as a public space that mirWorld Wide Web and what their rors the real world developers hoped to accomplish 1.2 The several advantages of operating an e-business compared to the physical business world • Recognize and use the advantages of starting and operating an online business • Select an appropriate product or 1.3 That almost any product can service for selling online be sold online—consumer goods, information, professional services, and much more 1.4 That there are three commonly used e-business models • Choose an appropriate model for creating an e-business 1 Copyright © 2009 John Wiley & Sons, Inc. JWCL019_ch01_001-022.indd Page 2 2/15/08 9:55:36 PM epg1 2 /Volumes/JWCL/JWCL/JWCL019/JWCL019-01 Chapter 1: An Introduction to E-Business INTRODUCTION Many of us take the Internet for granted; it has become an integral part of our lives—so much so that many people cannot imagine living...
Words: 8129 - Pages: 33
...McBride Financial Marketing Luke T. Covalt University of Phoenix May 7, 2012 * McBride Financial Marketing McBride Financial is a new startup organization specialized in conventional, FHA, and VA loans for the purchase or refinancing of homes. McBride Financial is currently headquartered in Boise, Idaho. McBride is a rapidly growing company with plans to open a total of eight company branches located throughout Idaho, Montana, Wyoming, North Dakota, and South Dakota. McBride’s mission is to break even financially within six months of commencing operations. Because McBride is a little known, new company, an aggressive marketing campaign will help make McBride Financial a well-known, trusted lender. By developing a proper advertising and marketing campaign, McBride will be more apt to meet their ambitious financial goal of breaking even within six months. Target Market McBride Financial specifically targets the following types of home buyers: Professionals seeking a primary or secondary residence, retirees seeking a primary or secondary residence, and families or individuals purchasing recreational properties. By determining who their primary markets are, McBride will be able to better conduct market research into those groups of people. In turn, this will allow McBride to custom tailor services and marketing to their intended audience. Market Research Conducting market research will allow McBride financial to better understand its target customers and learn how...
Words: 845 - Pages: 4
...freestanding Internet bank under the auspices of the First USA division of Bank One. It was an Internet-only bank that marketed itself with the claim, "If your bank could start over, this is what it would be. Created in a record four months and launched with a huge advertising campaign in year 1999, Wingspan provided one-stop shopping for financial services. At first glance Wingspanbank appeared to be a hugely successful startup, and in a way, it was because it had met virtually all of its goals and led the industry. However, the First USA division had performed poorly since then, it suffered $70 billion in outstanding receivables and shares of Bank One had fallen more than 40 percent since May 1999. Finally, "Wingspanbank was downgraded to be a test lab because it didn't attract enough customers. Bank One officials said in September 2000. But was Wingspan, a standalone Internet bank, a flawed business model or a good idea doomed by circumstance? The answer may be both. Internet pure plays don't have staying power, especially in banking. "Pure online banks are beginning to look like failed dreams, said a report issued by Newton, MA-based Meridien Research. However, the bad management in Wingspanbank also contributed to its failure. The internal problems included the direct competition between Wingspanbank and its parent company? Bank One, frequent system failure, huge marketing campaign, the lack of planning, and the ongoing management turmoil within its parent company. The problem...
Words: 1927 - Pages: 8
...com A creation by founder and Chief CEO Executive Jeffrey Bezo's, Amazon has grown to become the world’s largest retailer. Amazon's original Promise to revolutionize retailing is under scrutiny, as Bezo’s is seen to be taking the company to new different direction, from where it initially began. Bezo’s aim is to transform Amazon.com into a digital utility for the 21st century, where it runs the messy technical and logistical parts of other businesses, using the same technology and operations that power Amazon.com. Amazon’s quietly launched new business, are unrelated to its core retail stores and include; computing, crowd sourcing, Media, search, Distribution and Web Measurement. Amazons strategy is to make available its capabilities and resources for rent to all, suppliers, outsiders and retailers. The resources for rent include its many square feet of warehouse spaces worldwide to spare computer capacity, data storage on its disk drives and software codes written to coordinate all of the operations (Cravens& Piercy). Even though skeptics have claimed that Amazon is on the path to destruction, the organizations is focused to the big price, that one day all the investments and planning will pay off. Bezo’s’ reassures, that the company has in the past been misunderstood, which is something it is comfortable with. Amazon’s ability to innovate and to stay aware of its customers’ needs and preferences will keep them at the forefront of other competitors and retailers worldwide...
Words: 1144 - Pages: 5
...[pic] E-Commerce Business Plan Owners/Authors: Joseph MacQuarrie & Jamie Ramsey Table of Contents I. Executive Summary 1. Business Owner(s) & Product/Service 2. Mission Statement II. Company Description / Structure III. Market Analysis 1. Competitive Analysis 2. Demographics & Target Market 3. Entry Barriers IV. Marketing Strategy V. Management & Operations Plan VI. Financial Plan 1. Assumptions 2. Funds I. Executive Summary The following business plan outlines the details and implementation of a business plan for an e-commerce website and online retail company called “Made to Order Pet Food” that will offer customers custom and made to order pet food options for their pets. This company will bring a new aspect to the canine and feline food market where the owner is in complete control of what they feed their pet. We have partnered with multiple pet food suppliers, veterinarians, and chefs to offer a wide array of both dry and wet food options that are both delicious and healthy for your pet. All of our freshly prepared products are priced well below that of premium over the counter or in-store purchased national brands. Our customers will not only have a happier and healthier pet but also save money. 1. Business Owner(s) & Product/Service This partnership...
Words: 2473 - Pages: 10
...Dot.com Bubble Christopher Smirnes Professor: Dr. D The Dot.com bubble, otherwise known as the Dot.com boom was one of the most significant events in the Internets history. It brought upon millions upon millions of dollars in losses and many of these start up companies never even made a profit. The business world was flipped upside down, and a whole new world was opening up to entrepreneurs. However, since this was such a new technology, as with anything new, there are always risks. The dot.com bubble can be broken down into three different stages, the investment stage, the failure stage, and the recover stage. It all started in the early 1990’s when the Internet truly got its start. During this time period, everything was very slow and many people did not buy computers due to the extremely high cost. By the mid 90’s everything changed, and the world was going nuts over the possibilities of the Internet. Businesses and investors were part of that group that jumped right on in. With the ability to reach millions of customers with click of a button, the Internet certainly has a huge draw. Everyone was trying to get into the game and investors were dumping tons of money into all of these companies that had to essentially start from scratch. It was during this influx of cash pouring in that everything seemed perfect and profits would just go through the roof. It seemed as if everyone had a domain name and being able to access...
Words: 899 - Pages: 4
...side by side analysis. The main thing for my e-business though would be the superior customer service that is provided to my clients by means of email, live chat, and a customer service hotline if you would prefer to talk to a representative. One of the final details that would make my site superior to others would be a hassle free return policy that even included return shipping for those who need to return their products for any reason. To be able to make this dream come true there are several other factors that I will be discussing throughout this paper as I present my business plan for establishing my storefront. I. E-Commerce Infrastructure Just as brick and mortar companies have an infrastructure to help them succeed in business, so do e-businesses. By having the correct infrastructure in place allows a company to run smooth, must be viewed as part of the overall picture at start up, and evolve as the business expands over time. Infrastructure can be broken down into several different categories that include facilities, customer service, and information technology. When setting up your marketing strategies for a business, you first need to know who your target audience is and make them aware of your site....
Words: 2620 - Pages: 11