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Sample of E-Business Plan

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E-business plan

An e-business plan for e-bookstore
Presented to the professor of E-business Radostina Ruseva

By: Anel Nussupbayeva

(3.11.2014)

Executive summary
“Read Business Easy” Company is a start-up which wants to create an e-bookstore for global usage. The e-bookstore will provide people with e-books strictly related to business topics in short period of time. The goal of the company is to acquire a market share in the e-book industry through dominant selection of products, a competitive variety of services and products including the application for electronic devices, suitable prices for chosen segments and friendly environment, good browsing and reading.
The RBE Company will have its head office in USA, Massachusetts, Boston. This area was chosen because many colleges and universities make Boston an international center of higher education in business area, and the city is considered to be a world leader in innovation. Boston's economic base also includes finance, professional and business services.

Introduction

The idea of the current business plan is to create an e-bookstore with specialized books on business topics and provide with e-book students who study business currently or business people who currently are running their own business and sometimes need to refresh the knowledge they got before.

Offered Products and Services

Read Business Easy will offer a wide range of books on business topics. This includes books on Economics, Finance, Management, Marketing, Entrepreneurship, Banking, Management Information System and etc. The selection of variety of books will be done according to the business subjects offered to study in the best business schools and universities all around the world. This action will be done in order to avoid the risk of having in the stock books which are not in the demand. Also if the book is not found in the RBE e-bookstore the store will provide the consumer with the information where the book could be found.

The following books are planned to be on the following languages: Mandarin, English, French, German, Russian, Spanish and Arabic. These languages are the most spoken in the world that’s why books on the following languages will have demand not only in the countries, where this language is the mother language, but also in the whole world. Also with an expansion of the e-bookstore’s offers the company plans to widen the range of the languages to 17 languages. In addition, the company will be able to provide its customers with the application for electronic devices (tablets and laptops) with an access to internet in order to create a possibility to reach the following e-bookstore not only with PC, but also with Ipad or GalaxyTab, and not only in the house or in office, but also in the train, car, supermarket, university and etc.

The RBE Company decided to create an application for existing devices and not create its own eReader because the Ipad or GalaxyTab are multifunction device, and users can download many apps, including different eBook reader apps. In the case of RBE Company an owner of Ipad or Galaxytab could easily download the RBE application, type his/her RBE account, name and password and gain the access to all purchased book on the RBE e-bookstore. As multifunction devices, tablets are attractive for a larger target group. Particularly positive aspects are their user-friendliness and the integrated shop function, apps.

Type of the e-commerce The following e-bookstore will take Business to Consumer (B2C) type of e-commerce because the company’s transaction are planned to deal with customers purchasing e-version of the books from RBE through the Internet. In fact, online shopping has increased significantly in recent years. B2C e-commerce transactions are not strictly bound to retail shopping. One reason for the popularity of B2C e-commerce is that consumers enjoy the convenience of purchasing products and services online.
Market Analysis
In the whole world a trend towards digital is picking up in the educational sector and is particularly strong among institutions catering to students who attend distance learning schools, for-profit institutions, and traditional two- and four-year-degree programs. Even the key players in educational publishing like Pearson, Elsevier, Wolters Kluwer and Cengage are participating in the e-book business. The growing online usage of educational content leads today to the assumption that digital textbooks will become mainstream.
Nowadays US public has embraced new reading formats like no other nation. For today’s readers, e-books became as a natural and permanent choice in addition to the printed books. According to that, publishers have effectively responded to consumers’ fast-growing acceptance of new reading style creating more new devices for reading and expanding the offers of e-books in the market. According to the research, the total share of e-books in the US trade market has rocketed up from 0.6% in 2008 to 6.4& in 2010 which is $818 million and 114 million e-books sold in the internet.
As for European market, the e-books in Germany are not in the demand, taking only 1% of the market share. The same situation is in France (1%), Spain (1.8%), Italy (1.2%). As for Asia, China, for example, China claims to be among the global market leaders when it comes to digital publishing with the 200 million of internet users.
The following includes SLEPT analysis for RBE Company:
Social: increased popularity of e-books among the society, also increased demand of usage of e-books in educational sector
Legal: No uniform regulations governing e-commerce covering all the countries; The intellectual property law and copyright
Economic: Internet retailing has a tremendous growth with sales rising. This growth is fuelled by the number of internet users in the whole world
Political: Relaxed EU and North American competition policies on e-retailing as opposed to heavy industries, which makes it easy for e-commerce to compete on the market
Technological: There is an increase in information and telecommunications technologies for internet access; Constant growth of ‘high-speed’ network services increases usability of media-applications
Market Segmentation
As it was written before, the company aims to offer its products to 2 groups with pretty similar lifestyle. The first group is students who study business related subjects and whose lifestyle forces them to find the books as fast as possible in order to do their studies. The following segment is the core segment for the RBE’s e-bookshop, because according to the facts written above, the growth of electronic academic and reference books become greater year by year.
The problem which exists in the e-book market today for students is that existing e-bookstores are not created for students and for their needs. In fact, today’s e-books aren’t the solution to students’ textbooks because they’re expensive, poorly designed products that students don’t want. This kind of problem the RBE e-bookstore is trying to solve.
Publishers make very high gross margins on traditional textbooks, and since e-books radically reduce the cost of distribution and printing, one would expect prices to drop substantially for digital offerings. Price aside, the reality is that students have never been offered excellent digital products that will help student to learn and study. A quick glance at traditional publishers’ e-books reveals mostly non-interactive PDF files and “innovative learning platforms”.
That’s why the RBE Company decided to create its own app for electronic devices, in addition to the e-books, in order to provide consumers with convenient reading service. Actually sometimes students need books for short period of time and they don’t want to have the printed version. According to those findings, the RBE Company is to provide students with good prices and high quality e-books without having heavy printed version.
The second group in addition to students is business people, who sometimes need books in order to refresh some knowledge or to gain some new ones in order to stay on the track. These types of needs will be fully satisfied by RBE Company, providing those people with the e-books in really short period of time or providing them with information where the book could be found. The following service will shorten the time of searching for consumers and will increase the competitive advantage of the RBE Company’s e-bookstore.
Competitors
Amazon always with its KINDLE (eReader) will stay as the most powerful book retailer and the most powerful competitor in the whole book-selling industry. But also there is some large book stores like Barnes&Noble in USA who introduces the NooK which is similar to the Amazon’s Kindle which gives the possibility to find the book the bookstore’s stock and buy it directly to the eReader. Also, another biggest source of book is the GOOGLE BOOKS, which also has its competitive advantages and good market share in this market.
Also, the competitors could be the local large and well-known e-bookshops, like Libreka (www.libreka.de ) in Germany, Gallica ( National Digital Library in France with more than 1.5 million digital units, (www.bnf.fr)or French dominated e-book platform Fnac (www.fnac.fr ). or Spanish Casa del Libro (http://www.casadellibro.com/ebooks) with market share of 45% from the whole market in that industry. Plus, the main competitor will always stay the printed versions of the books. There is also a big demand for this type of book and according to the evidence shown above, people today are not ready to give up reading the “normal” books.
Marketing Plan SOSTAC Analysis
Situation Analysis:
RBE Company has own e-bookstore which aim is to provide the chosen target group with e-version of the books in short period of time. The current situation of the company could not be described in details because it’s the start-up and prediction of the risk or possible success could be controversial.
Objectives:
The goal of the company is to acquire a market share in the e-book industry and to gain the competitive advantage.
Strategy:
We are to get to our goal through dominant selection of products, a competitive variety of services and products including the application for electronic devices, suitable prices for chosen segments and friendly environment, good browsing and reading.
Tactics and Actions: 1. We are to contact the world-known business universities and business schools and other business institutions in order to gain the information about which business subject are on the demand on the educational market, moreover we are to discover which type of books are more used in the business education. 2. We are to have a contract with the universities which will recommend students the RBE e-bookstore and also to have a contract with some big educational publishers to buy from them e-books. 3. We are to create a stock of the e-bookstore containing the book’s electronic version from world-known publishers and also from publishers who are recommended by student, professors. 4. Finally, we are about to create our own profile on facebook.com, linkedin.com in order to place the advertisement of our e-bookstore to create an strong brand awareness for the e-bookstore.
Control:
In order to control the whole operation process and possible success, we are about to conduct a survey for students on facebook.com in order to see do students know about us. The main factor of control for RBE Company will be the control under the website's functionality. This will be about the ease of navigating and purchasing from the website, performance of 1 click shopping, check of the inside link to other products, reviews of website, evaluation from the customer about the service provided.

Bibliography: http://www.scribd.com/doc/24854038/7/PESTEL-Analysis http://www.pcc.edu/library/about/ebooks-and-student-learning http://www.supadu.com/images/ckfinder/630/pdfs/2013Global_eBook_Market_Current_Conditions_and_Future_Projections.pdf https://www.pwc.com/en_GX/gx/entertainment-media/pdf/eBooks-Trends-Developments.pdf http://www.wikihow.com/Start-a-Used-Bookstore http://www.forbes.com/sites/janetnovack/2012/06/05/are-free-e-text-books-the-future-or-new-fashioned-copyright-infringement/ http://www.publishersweekly.com/binary-data/ARTICLE_ATTACHMENT/file/000/000/522-1.pdf www.businessmodelgeneration.com

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