Comphora - Designing e-Business Solutions - Example

Name Instructor Course Date Investigate & Design e-Business Solution Business Profile E-Business Details E-Business Name: Comphora E-Business Location: Australian Collage of Kuwait E-Business Logo E-Business Structure Comphora will be a Bricks-and-Clicks type of business as it will integrate both online and offline presence. The company will have physical stores that will be established in Australian College of Kuwait and all the major cities in the country to enable customers who prefers to have a taste and feel of the products before buying them a chance to do so in the stores. The company will also partner with leading supermarkets for the sale of the products to customers. We also acknowledge that there are a growing number of consumers who favor online shopping as opposed to just bricks-and-mortar. For this reason, our products will also be available to customers on online platform on a company website that is yet to be created. Customers with an interest on our products will have the opportunity to just visit our website, buy the products at the click of a mouse and have the products delivered to their doorsteps within 48 hours depending on their location. Besides our website, we also intend to partner with leading e-commerce companies like Alibaba and Ebay for sale of our skin care products. E-Business Objectives E-business Mission Statement Comphora is a company dedicated to providing skin care products that keep the face and body healthy, clean and clear for people who care about their skin and body looks. We endeavor to make enough profits to generate good returns for the investors and to ensure development of quality products and business growth. We are also committed to maintaining a conducive, fair and innovative environment, where diversity, new ideas and perspective and hard work are promoted. E-Business Vision Statement Our vision is to become the world’s leading skin care manufacturer. E-Business Sales SMART Objective Our sales objective is to capture at least 20% of the market share in five years E-Business financial SMART Objective Our objective it to break even in one year and to have $200,000 revenue in five years E-Business Product Actual Product Our skin care product will be sold under the brand name “Comphora.” The product is made from plant called commiphora or myrrh, which makes it absolutely natural and healthy for the skin. There are no chemicals or additives added to the product to our product. The product will come in the form of a lotion /cream for gentle application on the skin. Regarding the design of the product, we will use some of the renowned models who will appear on the package that will be pink in color and will be designed in a very appealing fashion. The skin care product will also come in different sizes to meet the needs of our diverse customers. Additionally, because of the different tastes of customers in skin care market (Campo 14), the products will come in variety, both perfumed and un-perfumed. We also intend to ensure that quality is not compromised as the company is dedicated to ensuring that the product is of the highest quality in the market. Augmented Product Our products will come with warranty of up to six months. Warrantee will be provided as an assurance to the customers of the quality of our products. Regarding payment, all the payment s will be in cash terms. We do not intend to offer the products on credit whatsoever. This is important as it would ensure that the company maintains high liquidity and that the company is not put into huge debts that might affect the smooth operations of the company. Because we will be operating both online and offline stores, customers that buy the products online will have the products delivered to their doorsteps. Customers who live near Australian College of Kuwait will have the products delivered to them free at no extra cost. However, customers buying the products at far flung locations will be charged small fees to cater for the transport cost incurred by the company. All products purchased online will be delivered to customers within 48 hours depending on customer location. As part of ensuring high customer satisfaction, the company will provide after-sale-services. Our after-sale-services will include allowing customers to exchange skin care products damaged in the course of transportation as fast as possible. At the same time, the company will have a section on our website where they can register their complaints for follow ups and complements. Besides, we intend to have a toll free number that customers can use to call the company staff and make queries. The company will also ensure that customer feedback is sought to understand their experience with the products so as to understand their issues with the products and services and where improvements needs to be made to ensure high customer satisfaction and loyalty built. Core Product Our natural skin care products will deliver many benefits to consumers of the product. First, the product has the benefit to the consumer in the sense that it helps make the skin look clean, clear and healthy. Pimples and dead skins are disgusting and this is a concern to the majority of people (Euromonitor International par. 7). Some people also have rough skin that makes them look uncomfortable (Campo 21). However, with comphora, their problems are solves as the product is capable of eliminating pimples, dead skins and keeping the skin smooth and moisturized and this makes whoever applies the product look young, beautiful and glamorous. By being able to black heads, black spots, and pimples, this also helps improve self-esteem of a person besides making them stand out and their skin become admirable. Besides using the product for keeping the skin clear, clean and healthy, this product also serves as antibiotic for scratches, wounds, or burns. The product has helped in healing quite a number of skin conditions, thus an added benefit of this product to customers. Business Analysis E-Business Opportunities The implementation of eBusiness capabilities website and Instagram account presents the company will numerous opportunities. To begin with, the website serves as an important capability for the company that creates immense opportunity for the business. By implementing the website, this gives the company the opportunity to have an online platform, where it can display and sell its products to the growing number of online shoppers. In 2016, there were more than 3.174 billion Internet users (Statista par. 1). As the number of Internet users grow due to the increased internet propagation, so is the number of online shoppers. For this reason, the implementation of the website creates opportunity for the company by enabling it to have an online platform for display and sale of its products to online shoppers. Besides, the website allows the company to reach out to the global customers, which creates opportunity for business growth and success. Instagram is the other eBusiness capability whose implementation creates immense opportunity for the company. In particular, Instagram implementation creates opportunity for the company to have a way of socializing and engaging with its online customers. Instagram has emerged as an important social media tool that companies use to promote their products and engage with customers. According to the Business Insider 2016 report, the world has more than 600 million monthly active Instagram users (par. 1). This implies that the implementation of Instagram capability will give Comphora the opportunity to reach out to these Instagram users easily and cheaply. By posting the pictures of its skin care product, and sharing them on its Instagram account, this will give the company the opportunity to promote the product, thus resulting in huge following that will in turn results in increased purchases, thus high sales and profits for the company. The Instagram account will also provide the company with a platform where to engage and interact with the potential customers, understanding their issues as it relates to the products and how they would want to be served, which creates opportunity for the company. E-Business Threats The smooth implementation of the eBusiness is faced by various threats/barriers that the company will have to overcome to ensure growth and success. The first major barrier to Comphora when implementing its business strategy will be competition. There are many companies, small and established firms that offer skin care products on offline and online platforms (Euromonitor International par. 4). This implies that Comphora will have to come up with good strategies to counter competitors’ strategies in order to succeed; otherwise it would be outcompeted. The other threat/barrier to ebusiness strategy implementation would be government restrictions. The government laws and policies, such as those to deal with taxation, manufacturing, health and marketing is a potential barrier to the implementation of ebusiness strategy of Comphora. Although these are macro-environmental factors that Comphora has little or no control over, the company will have to come up with effective strategies to overcome these barriers to ensure successful implementation of the ebusiness strategy. Additionally, inadequate capital is a potential barrier to Comphora’s ebusiness strategy implementation. To effectively implement the ebusiness strategy, Comphora is could experience financial shortage that might affect the strategy implementation considering that the strategy implementation requires huge capital outlay to succeed. Other barriers and threats to the strategy implementation include changing consumer needs and preferences, technological changes, as well as cultural issues that might be associated with our skin care products. SWOT Analysis Strengths and Threats Strengths Comphora has a number of strengths that will give it a competitive advantage in the industry. First, the company’s skin care products are of high quality and made from natural plants, thus healthy. Second, the company has skilled and talented staff that ensures the delivery of innovative products and services to customers. Additionally, Comphora has effective leadership that ensures effective management of the company. The company also has strength in the sense that it is highly innovative and ensures that it products keep with the trend in the market. Moreover, the company has strong financial resources for use in implementing its strategy. Threats Comphora ebusiness face certain threats in the business environment where it operates. High competition is the skin care industry. High cost of raw materials for skin care product manufacturing is another threat that the company faces in the industry. Additionally, possible change in consumer taste and preferences the other threat that Comphora faces in the market. Legal Issues Comphora eBusiness has many legal considerations for consideration. However, the three most critical ones are business registration and licensing, copyright laws and government laws (labor laws, product safety and environmental protection). First, the law requires that all businesses must be registered. For this reason, the company management will ensure that the business name is registered and that operating license is obtained before starting operations. Second, copyright laws are another legal consideration that the company will have to factor in by ensuring compliance. The company will seek copyright protection from the agency responsible to ensure that the innovations of the company are not stolen by malicious people or companies. Lastly, skin care product is a highly regulated industry as the government has laws and policies that regulate businesses, such as labor laws, product safety and environmental laws. In this respect, the company will ensure that it is in compliance with the labor laws, such as ensuring compliance with the minimum wage rates, adhering to laws regarding working hours and safety of workers. Because Comphora manufactures consumer products, the company will ensure compliance with the product safety by developing skin care products that meets the health and safety standards. As part of compliance with the product safety laws, the products will be clearly labeled on the packaging to enable consumers understand features, ingredients used and how to use it to ensure maximum benefits. Additionally, as part of compliance with the environmental laws, Comphora will adopt sustainable manufacturing processes that will also involve using recyclable packaging materials. The company also plans to ensure that it uses renewable energy sources, such as solar power in all its retail stores to cut down its carbon footprint. Resources - Technical Needs (Hardware) To implement the eBusiness, a number of supporting hardware resources will be needed. Computer hardware and associated hardware namely monitors, hard drive, keyboard, and mouse and power cables. The computer hardware will be used to facilitate online operations, such as online sales, and online engagement with customers from across the globe. The computers will also be used in our offline stores to manage the operations, such as sales, finance and HR operations. The other hardware resources that will be used include speakers, microphones and numerical keypads, as well as smartphones. E-Business Financials Cost of Goods Expenses Item Cost (KW$) Raw materials (commiphora or myrrh) including shipping and freight 1,500 Storage cost 5,000 Direct labor 10,000 Factory overhead 10,000 Depreciation 5000 Total $77,000 Capital Expenditure Item Cost (KW$) Premises 500,000 Plant and Machinery 1200,000 Fixtures and Fittings 40,000 Motor Van 2,000,000 Total $3,740,000 Balance Sheet             Comphora Ltd         Balance Sheet         As at 31 December 2017                           Fixed Assets         Premises 500,000       Plant and Machinery 1,200,000       Fixtures and Fittings 40,000       Motor Van 2,000,000     3,740,000           Current assets         Inventory 1,500       Cash 200,000     201,500           Total Assets       3,538,500                     Capital       2,000,000           long Term Liabilities         Loan       1,000,000 Current Liabilities         Creditors       538,500           Total Capital and Liabilities       3,538,500 Policies and Procedures Develop a Refund Policy and Procedure Goods once sold are not returnable except in exceptional circumstances, such as where the goods are destroyed while still on transit without the negligence on the part of the customer. Before goods accepting goods damaged on transit, the company will ensure that the goods were not destroyed as a result of the direct or indirect negligence on the part of the customer. Develop Shipping / Delivery Policy and Procedure Goods will only be shipped once the customer has paid at least 75 percent of the value of the goods. The remaining balance is expected to be paid as soon as the goods reach the customer. Our goods will be delivered using the most convenient mode of transport for the company, including road, rail, air, and water. Works Cited Business Insider. Instagram Hits 600 Million Users. Dec. 16. Web. 27 February 2017 http://www.businessinsider.com/instagram-hits-600-million-users-2016-12?IR=T Campo, Riku. Best in Beauty: An Ultimate Guide to Makeup and Skincare Techniques, Tools, and Products. London: Simon and Schuster, 2010. Print. Euromonitor International. Skin Care. Web. 27 February 2017 http://www.euromonitor.com/skin-care Statista. Number Of Internet Users Worldwide From 2005 To 2016 (In Millions). Web. 27 February 2017 https://www.statista.com/statistics/273018/number-of-internet-users-worldwide/ Read More