E-Business Options Available to Living Well - Essay Example

Assessment Description

Case Study: Living Well

Refer to the information provided on living well in Assessment 1.

1

Consider the business options available to Living Well. Consider internal, business-to-business and business-to-consumer applications for business models. Prepare a list of viable business models for one major category (e.g. the merchant model) and their key features.

 In this case, one of the models that befit this business is the advertising model. This model requires a business to secure a space on various websites over which it can exploit through advertising its products or other company’s products. In addition, there is also a manufacturer model. This involves selling goods directly to the final consumer. The need for intermediaries is completely eliminated and therefore producers can directly connect with the consumer. This model can also work well for Living Well to achieve its objectives. The last consideration is the merchant model. The merchant model is involved in the sale of products to consumers using the online platform. In this case, the company will be involved in the sale of organic produce and wellness products. This model has so many features. In order to successfully run this model, various mechanisms must be put in place in order to guarantee the delivery of goods to respective clients. Since an online platform is being used to transfer physical products, a lot of authentication is required. The other models that have been suggested a deal with mainly services as opposed to tangible goods. Living well deals with tangible goods, those suitable for the services have been overlooked in this analysis.

2

Using the information from question 1, evaluate each proposed model by detailing the:

• strengths
• weaknesses
• required resources
• costs
• other considerations

Prepare an evaluation report which ranks the ebusiness models and recommends the most appropriate model.

Advertising Model Analysis

Strengths

• It is a flexible model in terms of execution
• A wide variety of content to choose from
• It can be used on different platforms

Weaknesses

• It is mainly used by businesses offering services
• Selling advertising space can be a bit cumbersome

Costs & Resources

This model is considered somehow cheaper compared to other models. This is because what is required when using this model is mainly the advertising space, unlike others that require physical stores to handle the inventory. In addition, no costs are required in delivering the products to the customer.

Manufacturers Model

Strengths

• No intermediaries are involved
• Benefits both the manufacturer and the buyer through higher profits and savings respectively

Weaknesses

• Delivery costs are supposed to be incurred at the expense of the company
• May require other services in order to compliment it in selling products to consumers directly

Costs & Resources

The nature of this model demands physical stores in order to handle the bulk of the stock. Since there are no intermediaries, the company using this model will have to incur all the costs that deal with handling stock.

Merchant Model

Strengths of the Model

• It can be programmed to run 24 hours serving customers without the intervention of human beings
• Ability to exploit economies of scale to enhance productivity
• A lot of mechanisms have been put in place to ensure efficiency in service delivery
• There are a lot of advertisement avenues available for this kind of business

Weaknesses

• Credit card frauds and chargebacks have been constant complaints against this model
• The difficulty of supplying products to the customers within specifications of time given is quite real especially when there is traffic on the website
• Sometimes delivery is a hurdle because of the accessibility of the region from which the customer is expecting to receive the goods

Required resources & Cost

When running a merchant model, a lot of considerations must be made prior to that. Considering the nature of this business model, financial resources are critically needed. There is a need to ensure that every procedure required by customers to buy products is made efficient and effective. In order for this to be a reality, the company must make heavy investments in the project. In order to ensure the safety of the transactions being undertaken, a technology that has to be put into place must be hi-tech in nature. This indicates a financial burden on the side of the company. In addition, the retail outlets require a lot of funding in order to meet the demand during peak periods.

Conclusion

From the analysis of the various models above, I will pick on a merchant as the most preferred one. Its features align well with Living Well Company. This model will enable this business to thrive in the future,