VigiCam Business - Essay Example

?E-COMMERCE: VigiCam Business Introduction This assignment is concerned with E-commerce. This paper at the beginning proposes an innovative business idea, VigiCam business, which offers applications for electronic business. The innovative business plan being proposed in this assignment paper is described and discussed from various facets of plausibility and acceptability in terms of business execution. The paper also evaluates the innovative business e-commerce idea from the competition point of view. The assignment also discusses the target market scope of the proposed idea; what benefit would be transferred to the target market, the geographic spread of the target market, and also the revenue projection of the product from the target market. The paper at the end also evaluates the most likely negative outcomes and risks associated with the proposed idea, the product and the consumer behavior. The paper ends with a concluding statement on the topic and recommendations for e-commerce business entrepreneurs. The Innovative E-Commerce Business Idea The Novel Idea: The innovative business idea is concerned with online selling of public safety oriented electronic device that could sense the presence of a wild species in a residential locality, and develops an image of these on trespassing the wildlife vicinity and entering the human neighborhood. VigiCam: The product uses sensors, camera device, and GPS systems for identification and positioning of wild species in suburban localities. The product uses telecom network services for its operation and quick indication of species in nearby neighborhood. The product is connected with a user’s cell phone and the landline of the nearest rescue or wildlife organization. The product owned by the customer has an in built two way alert system, the customer feeds his number and the locality’s corresponding rescue team’s number. As soon as the VigiCam identifies the presence of wildlife species, it signals the corresponding rescue line and the user’s cell phone. In this way, the public can make cautious moves after getting the GPS enabled cellular location alert, and accordingly the rescue team can effectively catch the wild species through their professional expertise. Benefit Associated with VigiCam: The public safety issues associated with wildlife trespassing human neighborhood can be addressed in a quick, efficient and adept manner; ensuring both public and wildlife safety. The Nature and Purpose of VigiCam Business Purpose of the Business: The purpose of VigiCam product business is that there is an acute demand for products across the world that could ensure human safety against wildlife attack or encroachment into public property or neighborhood. Wildlife and human encounters often result in adverse safety situations where children, public property, or even wildlife itself exposed to life and health risks. This product ensures safety of wildlife as well as humans by limiting the interactions between the unprofessional friendly human beings and the wild beings. Need Behind VigiCam E-Business: Issues associated with wildlife exposure to human beings have aroused in many countries across the world like Australia, USA, Canada, India, Russia etc. in these countries people are confronted with a diverse wild set of beings that are often violent and ferocious, which can potentially harm humans’ property and put questions before human safety. In many parts of the world the public itself give wildlife the room to explore human vicinity in search of food; by placing food garbage which offers most appeal for animals. Consequently, these animals hunt after food and often react in case of suppressing of their access to food items. In other cases, the wild animals’ free access to human neighborhood is even unhealthy for both animals and human beings, as this often account for dispersion of diseases amongst both species. As a result, initiatives should be taken by the public, the business community and the security agencies run under private or government control to develop public awareness on these grounds, and also design products that could benefit both the humans and the wildlife. Model of E-Business for VigiCam B2C Style E-Store Orientation: The business proposal for VigiCam trade uses electronic retailing model of e-commerce for selling and marketing of VigiCam product across the world. The business design for VigiCam is classified under business to consumer e-commerce category. The product would be promoted through a direct VigiCam website, social media websites, and public security web pages. The VigiCam website allows customers across the world to purchase the product, which would be delivered in 24 hours. The business proposal for VigiCam e-business identifies the crucial possibility of competitors’ existence in the same industry proposing similar product - user applications for safety of living beings across the world. The proposal first determines the industry in which VigiCam e-business would be categorized, and then establishes the competitive grounds which prevails directly or indirectly by any means against the VigiCam E-business. The competitor and the relevant industry analysis is discussed and delineated below: Competition for VigiCam E-Business Industry The VigiCam e-business model falls under manufacturing and selling, electronics industry. The product, VigiCam, is a radicalized fusion of camera technology, GPS system, telecommunication system and technology and unique sensing technology, which offers innovative safety applications for its users. Direct competition The competition for VigiCam e-business does not exist directly since the product has innovative grounds of user application for human and wildlife safety and wellbeing. The analysis of direct competition for VigiCam e-business has been classified under two categories; competition in terms of product-user application and competition in terms of industry & manufacturing. There is no single company in the electronic industry that offers similar user applications of an electronic device like VigiCam. But, on the other hand, there are many companies that fall in the same category of operations for electronic manufacturing and selling of products that offer a different use for customers than for safety applications. There are many mobile phone manufacturing companies which “could pose” a direct competition to the VigiCam e-business in future. There are two reasons for them posing a direct competition; first, they fall exactly under the same industry of manufacturing and selling of electronic products; second, they use all the edging technologies of telecom, GPS and camera technology into their products, as used by VigiCam. The only distinction amongst them is the difference of their product application. Indirect competition Sound roots for indirect competition do exist across both similar and diverse business industries manufacturing similar products with different user applications. Many other companies that manufacture cameras for regular daily life customer consumption, or for corporate or civil services, like traffic enforcement camera etc; can pose an indirect competition to VigiCam E-business. The ability of indirect competitors to pose competition to VigiCam depends on their financial ability to integrate distinct applications for living beings safety and also on their strategic intent for expanding their targeted consumer market base for cameras and applications. The proposal for VigiCam e-business also evaluates the point of differentiations for using an electronic commerce platform for conducting business locally and internationally. The advantages of running VigiCam as e-business are illustrated below: Competitive Advantage of VigiCam as E-Business The e-business proposal, VigiCam, possesses competitive advantages from business point of view for entrepreneurs of electronic commerce. These competitor edges are discussed individually below: Reach to global customers The electronic business platform as proposed by VigiCam E-business, for conducting trade and commerce across borders; expands organizational reach to global customers, by sustaining customer contact 24/7 across nations. This wide span of organizational reach to international customers is not possible with traditional business presence. With e-store business model VigiCam can entertain global customers’ orders at anytime from anywhere in this world, without bearing the huge costs of deploying sales forces. Expand Customer Value Horizon The VigiCam e-business proposal offers the entrepreneurs an advantage of expanding customers’ value horizon by delivering the product using electronic commerce’s diverse distribution and channeling methods. The cost effective and time efficient distribution, communication and secure payment models of e-business platform enhances VigiCam businesses ability to leverage customer value from different sources in the value creation process. For instance, the user interface of the VigiCam website enables the international customers to learn how to install the VigiCam product all by them self by watching installation videos and customer guides at the company’s website. This would cut the customer’s cost of hiring a person for installation of the cam. Logistics The flexibility of the e-business model of VigiCam, proposes an array of approaches to marketing, distribution and communication; which would ultimately affect the operating costs associated with the logistics activities. The e-store model integrates and transforms the logistic operations by electronically linking the supply and distribution systems; such that ordering, merchandising, payment and delivery is mechanized across the board. Cost efficiency The e-business model effectively abridges the huge marketing, selling and distribution costs associated with traditional media. The VigiCam e-business can effectively develop awareness about the product in targeted countries, develop electronic marketing campaign and execute marketing plans and promotions through websites, blogs etc., develop customers’ appeal towards the VigiCam product, take customers orders globally and maintain an international customer base using a single e-store presence. Advantage of VigiCam E-Business for Customers The e-business proposal, VigiCam, possesses distinctive advantages from customers’ point of view for entrepreneurs of electronic commerce. These customers’ focused advantages are discussed individually below: Convenience The e-store presence of VigiCam business offers customers the platform to order and purchase the product at anytime and from anywhere through online shopping applications, which ease selection, purchase, and payment processes for customers. Access and Availability The electronic commerce platform allows potential customers of VigiCam to get global access to the product and services through just a single click. Any customer who has a safety concern, VigiCam needs at hand, access to internet can always approach VigiCam website for ordering and receiving the product in any corner of the world anytime. Potential Target Market The target market for VigiCam e-business is comprised of geographically dispersed global market, which encompass all customers that come across wildlife encounters day after day. The geo-target market for VigiCam comprises of USA, Australia, India, Russia, and Canada. These countries have registered most human and wild animal encounters, in different regions. Therefore, the people living those regions have the greatest potential to be included in the prospective target market for VigiCam. This is a hypothetical business proposal; therefore, the target market is hypothetically estimated by calculating 0.01 percent of the anticipated or exact population living in the aforementioned countries. The population estimates for VigiCam e-business potential target geo-market are elaborated as follows: Australian population according to the 2011 census is: 21,507,717 (Australian Bureau of Statistics) USA population according to the 2012 estimates is: 315,074,000 According to 2012 estimates the Russian populace would approximately up to : 143,300,000 (Fox News) Canada 2011 census’s estimation population is: 33,476,688 (Statistics Canada) India’s population, as per the 2011 census, is mounted to: 1,210,193,422 (Maps of India) Targeted Percentage of the Population by VigiCam It has been hypothetically assumed that about 0.01 percent of the population in the respective targeted countries would demand purchasing the product, VigiCam; in that case the hypothetically estimated target market for VigiCam e-business would be: Australia: 21,507,717 * 0.01%= 2,150 USA: 315,074,000 * 0.01%= 31,507 Russia: 143,300,000 * 0.01%= 14,330 Canada: 33,476,688 * 0.01%= 3347 India: 1,210,193,422 * 0.01%= 121,019 Total target population in numbers would be 172,353 potential customers, which are expected to buy VigiCam products to ensure their safety and wellbeing of the wildlife as well. Annual Revenues The price of the product is hypothetically assumed to be $499/-. In case the above targeted proportion of the entire geo-market purchases the VigiCam products, the purchase revenue (one-time) would be $ 86,004,147.00; however, the monthly revenue from services charges of ($99) would be $17,062,947.00 only. This would mount the annual revenue to be 204,755,364.00 only. Risks Associated with the Product There are two possible risks associated with the VigiCam products. First, they emit EMR radiations like cell phones which might produce thermal and non thermal affects to humans and wildlife. Second, these products if not handled carefully might agitate animals’ responsiveness and consequently further endanger humans and wild beings. Conclusion This is a hypothetical e-business proposal. The product is designed against a valid need. The organizational and customer benefits from the proposed product are compelling, however the product’s target market and revenue projections are absolutely supposed. Works Cited Maps of India. Census 2011, India. 2011. 6 Jan. 2013. < http://www.mapsofindia.com/census2011/> Australian Bureau of Statistics. 2011 Census QuickStats. Oct. 2012. 6 Jan. 2013. Statistics Canada. The Canadian Population in 2011: Population Counts and Growth. May. 2012. 6 Jan. 2013. Fox News. Russia. Jan. 2013. 6 Jan. 2013. Read More