Running head: E-Business (QRT2) Task 1 1
E-Business (QRT2) Task 1 Proposal for Online Business Expansion
E-BUSINESS (QRT2) TASK 1
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E-Business (QRT2) Task 1 Proposal for Online Business Expansion
A1. Viability of Product
Gaia’s Organic Dog Treats is a small but rapidly growing business located in Atlanta,
Georgia, which derives the majority of its income from the production and direct-to-consumer sale of organic, grain-free, gluten-free dog treats. Its two best-selling products are 100% organic meat jerky (no additives or other ingredients besides meat) and organic dog biscuits made of unique, non-grain ingredients and offered in distinctive shapes such as miniature cupcakes, pizzas, etc. The company is also developing ancillary products such as dog shampoo that leverage the brand and increase sales to its existing customer base. At present the company does not have an online strategy; it has only a single extremely basic web page referring customers to an email address. All sales are local and distribution is through breeder’s clubs, dog shows, farmer’s markets, and two small boutique-style retail stores catering to very high-wealth individuals.
Although growth in the local market remains strong, the company is aware of the potential for eventual saturation. More importantly, it is clear based on the success of their existing product line that there is a tremendous opportunity to grow their sales by expanding beyond the Atlanta metropolitan region. As the owner of a premium, very high quality and high margin brand, having limited capital due to its relatively small size (roughly $500K in annual sales), the company does not yet wish to pursue mass production and distribution via retail pet stores. Instead, it is recommended that the company develop an online business expansion strategy.
E-BUSINESS (QRT2) TASK 1 3
The online environment offers numerous