E-Commerce Website That Allows You to Listen to Audio Books Online - Essay Example

? E-COMMERCE WEBSITE THAT ALLOWS YOU TO LISTEN TO AUDIO BOOKS ONLINE Table of contents …………………………………………………………………………….3 Introduction...…………………………………………………………………………4 Revenue model…...……………………………………………………………………5 Payment model………………………………………………………………………...7 Marketing………………………………………………………………………………9 Technology Considerations.........................……………………………………………11 Security and privacy concerns…………………………………………………………12 Legal and ethical concerns……………………………………………………………..14 Conclusion………………………………………………………………………………14 References Abstract New business developments have been shaping up, outdoing and replacing the old ways and bringing on board new ways of operations. With the help of Internet, consumers now can have much more choice for their shopping than was the case previously. It also changed enterprise’s business model, saving cost and more efficiency than before. Businesses enjoy the ease of making money and advertising because of going the e-way. Trading and information exchange is faster and the traditional business mode has had a complete revolution because of the e-business. More companies try to design a good e-business plan for survival in competition and many good samples lead the industry developing fast. E-business brings innovation to the otherwise normal business transactions leading to greater gains for the companies/businesses adopting it. E-commerce reduces cost, unnecessary value-added links and makes company respond directly to their customers. However, there are the set business ethics, conducts and regulations that must apply even over the online business dealings. As one intends to venture into this kind of trade, specific procedures are bound to apply. Introduction: In order to add capacity or improve capabilities of functionality of an organization that deals with sale of books and such materials that can be converted into audio form, and having not to invest in new infrastructure, the emerging trend is in adopting the online strategy. It is a welcome to small businesses and such low capital ventures, which would be interested in extending the business operations across borders yet with low operating costs. It is most appropriate especially to avoid the extra high costs that are associated with setting up physical infrastructure at different geographical locations. It is also a business opportunity, which can be ventured into either privately or collaboratively (private hosting or public hosting). It has the basic advantage of not being limited by business hours and the purchase of goods the services can be done over 24 hours. However, operating an E-Commerce Website business faces the critical challenge in security matters where as a host, one must ensure the security and confidentiality of customers’ information in the highest levels possible besides putting into place reliable mechanisms to ensure ease of funds transfer. The industrial as well as scientific communities are seen to adopt E-Commerce Website offering such services as library services with conversion of hard copy books into the audio services with relatively high regard as the concept is receiving wide acknowledgement. The business sector has the main objectives of E-Commerce Website for audio books are to provide safe, fast and reliable library services over the internet connections. This critical niche provides a whole range of untapped potential in this era of technological advancement where merely all businesses are adopting information technology for the purposes of their operations. The concerns of security and safety to research data, the need to ensure quick access and retrieval of this data as well as for ease of sharing of the data, organizations are seeking the services of Commercial Websites, which operate under such confines of e-business frameworks. Therefore, this kind of business niche is very relevant in the modern day operations where the low saturation of such businesses currently provides a room for such an investment. However, it is worth noting that the business is a high capital business venture meaning that it requires a very high amount of capital and hence the need for such a financial funding proposal. Revenue Model In order to monetize business services, revenue models are designed and used. The models aid in a business to be able to monitor the costs and returns realized in operations thus enabling the investment to monitor cash flows, which is necessary for the proprietor and potential investors in the field. In this case, our model will be wholly a forecast or projection of estimates. Basic to the E-Commerce Website hosting as relates to this proposal, the business is not limited in growth and as such, it poses the challenge of what actual capital is required. However, we plan to start small and give the business time to grow and thus, relatively small capital is required from which the buildup would ensure future growth. The business idea proves to require quite a lump sum amount of money to start due to the high cost of technological infrastructure that is needed. Basic to the infrastructure is the computer systems, integrated software, the IT expertise, human resource as well as the procedural costs in establishing such a business. Nevertheless, this serves to boost our business ideology as many individual business practitioners would find it even costly to establish such libraries to manage personal data and as a result would easily buy into the idea of buying the E-Commerce Website services, as we would offer. Data management through such websites brings about higher returns not only to the investing host but also to the customers through ensuring bulk services and centralization of such services. This therefore confirms the authenticity of such a business especially in the wake of commerce through internet. The higher learning institutions such as university and colleges as well as research institutions would be the basic target in our customer base. This is because these institutions thrive in extensive reading and in some instances, having the full collection as required for their needs prove somewhat challenging. Moreover, the audio services would be most relevant to such research and learning institutions in order to cater for specialized needs such as the visual impairment. Entertainment and religious industry is another such target that would provide reliable customers where such applications as audio collections of music, play as well as religious materials such as the Bible would be easily accessible without the limitation of geographical location. Establishing business links with such players in the economy would ensure continuity of financial support and perpetuity of business relations for the business. Therefore, the focus of this business is to sell services individually instead of adopting subscription models though with no rigidity for future purposes. Our focus is to raise capital through credit facilities from financial institutions as well as interested institutions of higher learning and research, which would benefit from favorable terms of service for specified contractual periods. The flexibility of this business provides the major advantage that this proposal rides on in that it requires a manageable capital to install computer systems, the necessary storage hardware and software and basic IT professional human labor. Unlike the case with most other business ventures which require wholesome operating capitals, this business requires just the kick-starting investment from which the buildup leads to raising the other required operating revenues which are necessary for upgrading the systems and research and development. Payment Model There are different models of pricing that have been in application for payment and payment of E-Commerce Website services across the globe. These include at least the following four basic pricing models, which include consumption based, subscription based, advertising based as well as market based pricing. However, the models are specifically designed to suit different customer base and for different services associated with website hosting. For the case of this business idea, the services to be rendered are data storage access and retrieval and as such the payment model, most appropriate is the consumption based payment. In this regard, customers will be charged a fee depending on the amount of data consumed, network traffic costs incurred in collection and dispersion of the data as well as CPU time in use for the particular customer. Therefore, we adopt a model that is based only on the resources used in servicing the client. The model is often used in IaaS (infrastructure as a service) businesses across the globe. Moreover, the website services would employ the SaaS (software as a service) mode where through installing certain software; customers would not be required to purchase and install such software but instead would be charged together with the rest of the services as discussed. At the entry level, this business coverage target is at a country level. This is because the investment for a country needs is relatively lower while compared to investment for larger landmasses such as regional coverage or even global coverage. Moreover, we target to start our services for just a country due to the stiff competition that the global market offers from such other e-commerce websites especially those being operated by mobile phone service providers. In starting our operations on country based scope, we intend to adopt the ‘pay as you use’ model depending on the nature of contract; short term contracts will be attract higher charges while short term contracts will attract relatively lower rates in payment. This is because, the length of contracts assented to by an institution or individual business as a customer is instrumental in allowing this business adjust and plan for the required resources in order to be effective in offering the required services. This equally would necessitate the business to offer better value for money. This is as a prerequisite to realizing efficiency in operations. We intend to offer flat pricing mechanism as against the introductory offers, which allow clients start enjoying the services before engaging in meaningful payment because this may suppress the potential of the operations. This would however be considered in the future when stability in operations are realized as a strategic tool for competition. This business considers the provisions of two payment models, which are ‘invoice versus credit card payment’ or ‘payment in arrears versus up-front payment’. This business intends to use credit card payment as well as invoicing as against adopting the other method. However, either of the two models has associated benefits and shortcomings. This business would adopt credit card payment for the ease of convenience as well as security levels assured through its use with contractual subscribers. Electronic transfer of funds through the credit cards is more efficient as it is not limited in time as well as it has higher security provisions as compared to the invoice methods. On the other hand, invoicing mechanisms serve to provide reference materials, which are very necessary for use in unforeseen future eventuality such as involving legal proceedings. However, pay as you use services by new clients would be available through normal internet charges as used for normal website hosting services. Marketing The entire process involved between the production of products by the producer and the consumption by the final consumer sums up marketing process. It comprises a wide range of processes that include proper identification of consumer needs and wants, and formulating mechanisms to meet the needs, and satisfy the wants. Marketing involves production of products, pricing and transportation of the products through distribution channels until the final consumer is reached. Marketing has been seen to satisfy needs and wants by giving information to target groups as well as bringing the products to their reach. It is also satisfactory to the marketer by meeting marketing objectives. Nevertheless, as the above definition holds, other people criticize the process of marketing as to creating unnecessary needs and wants. Promotion services offered during marketing are always meant to attract many customers and give the company higher sales that the competitors. However, as Mattson puts it, companies fail when they raise the expectations of the consumers beyond what they can actually provide. This raises the cost of marketing and because of failure to deliver; more efforts are required to counter and correct the effect of the former promotion by both the marketer as well as the consumers (Mattsson 11-14). To meet specific customer expectations and or the failure satisfy them may also translate to spending more by the customer. The successes of all marketing procedures highly depend on training and the competency of the marketing team and this as well translates to extra cost and need to the company. On customer targeting, marketing in particular may opt for age. Marketers usually have distinctions of products that are targeted for different groups such as children, teenage, young adults and the elderly. This is strategic as the different groups have different needs, appeals and abilities in terms of purchasing power. To be specific, today’s marketing strategy for the youth bracket of 20’s is highly characterized by digital orientation. This is especially so because the world has become technological and the most affected age group is the young adults. Trends in research, innovations and education are more appealing to this age bracket. Marketers invest much in the group more so for the vigor in the group and the future prospects that are associated (Grail research 1-4). In marketing of such a business venture of website dealing with audio books, various mechanisms are appropriate. However, these methods differ in cost implications as well as strategic efficiency factors such as the customer target, geographical coverage as well as availability of marketing frameworks. We intend to adopt such services as the advertising through Google ads from other websites. Besides, the organizations or institutions that will be affiliates to the firm will be very instrumental in marketing the services to the institutional fraternity through their websites. This provides relatively cheaper marketing strategies while compared to others such as through use of print media as well as audio mass media. Other relevant and cheaper means to advertise the website is through social media such as through face book and twitter, which easily reach the target group; the literate. Return on investment through marketing via online strategies has been proved to be very high and thus confirming the selection of the method. Technology Considerations Basic to this business success is the collaboration with such software developers and host masters as the Microsoft Corporation. We intend to adopt authorized and genuine software from Microsoft Corporation through who we shall also access licenses to use customized services such as the sale of recommended software through the website. Moreover, through the technical expertise of the Microsoft team, we shall be able to institute security measures for the business transactions that will be involved. Besides the need for ample sourcing of computer systems, it is basic for the website development to consider the software to be used. In this case, we shall adopt the Web 2.0 technologies, which are the most modern technologies for use in such a venture as this. On the crash of Dot com era, the web development gave rise to a newer version of web-based applications, which would introduce rather interactive web pages than was the case with the previous versions of the web sites. The new web services introduced adopted the name of Web 2.0 and had a distinction from the previous web applications in that it allowed higher levels of interactions between people (Anderson, 2007). It therefore represents an accumulation of various ways in which the web pages are designed and put into use. Among the notable benefits to the kind of technology is the ability and ease in which people would interact in a virtual community especially through the social media platforms. People across the board can easily access, exchange and share information over the web pages in a simpler manner than was the case with the previous web technologies. The application of the new development has been widely adopted in e-learning, e-library as well as within interactive social platforms. Technology journalists as well as bloggers were the initial fields, which adopted the new development and the use of the Web 2.0. However, recent developments in technology within organizations have seen the technology gain more approval in education sector where distance learning within institutions is easily adopting the technology. Moreover, it is easily gaining dominance within the journalism and the entertainment industry where social interactions are gaining momentum through such platforms as through tweets and face book, among others. Just like the case with cloud computing, it equally employs the use of internet services and the technology of World Wide Web. The Web 2.0 has had great commendation in that it has brought about great revolution in ease of communication and interaction between people from varying localities. It has therefore eased the means of sharing information, interacting and learning through the internet or the distant learning programs. Nevertheless, social concerns within the technological era we live in have it that the interaction through the social media exposes so much of personal information which equally comprises secrecy and security as is the case with cloud computing. Organizations adopting the use of the Web 2.0 risk extreme exposure of risky information to hackers and other harmful intruders within the internet and this are the reason for our cooperation with Microsoft Corporation for customized applications. Security and Privacy Concerns Among the major concerns for the success of every business are the security as well as privacy issues. This is especially so in such businesses that are using internet as in e-commerce through websites. The use of the technology of Web 2.0 raise the concern of too much exposure of private information as through social media which would be easily targeted by hackers and malware. Malicious software in general refer to a variety of software which are intrusive or even hostile and includes such software as rogue security software, spyware, worms, adware, dialers, Trojan, computer virus and key loggers among others which normally appear in the form of active contents, codes as well as scripts (Klaus, 2013). However, it is worth noting that malwares are different from defective software in the regard that defective software may be legitimate software which would have had defective bugs before release and which were not corrected. Attackers or the developers of these malware are known to attach the malware onto legitimate software online and as such, unsuspecting victims purchase the software only to have the harmful software get into their computer system. However, such malware as spyware spread through individual installation by visiting security holes or even though installation of corrupted programs from harmful websites. Ill intentions by hackers or malware developers lead to the design and programming of the harmful software in order to access sensitive information from organizations or even private system. These software programs are used to steal sensitive financial, personal or even business information, which is targeted by the hackers. Besides the use of malware to gather or ‘steal’ important information from corporate systems, the malicious software is used to disrupt the operations of computer systems and as a result bring about much suffering to organizations or corporate. There are however, anti-malware software which offer protection against these attacks with the most known among them being the ant-viruses that are installed to computers to detect and disable intrusion by the malware. In this regard, we intend to take the highest possible precaution in installing sensitive anti malware as well as proper software that would not be hacked. It is in this way that we would be in a position to ensure high levels of security and privacy towards the customers and system in general. Legal and Ethical Concerns Ethics explain an acceptable code of conduct by individuals within a given context. In our analysis therefore, the analysis of ethics concerning electronic commerce through website imply the acceptable behavior that govern the interactions within the online community. Ethics would entail upholding integrity while transacting business transactions and concerning the content sponsored for posting to the website. For instance, it is immoral and unethical to have such content, as pornographic materials within such a website and thus these are some of the concerns that we must put into perspective while developing the website and undertake the operations. On the other hand, every business has guidelines by the government and such oversight authorities, which define the legal procedures to be followed in establishing and running businesses. The internet business is not an exception to the adherence of such legal frameworks. Through the legal frameworks in operation in this country, it is illegal to operate a business without valid licenses, which in effect allow one to comply with the tax requirements. The failure to comply with the set legal provisions leads to legal action to be taken on such a person. This therefore incorporates this kind of a business into the confines of the law just like any other business. Conclusion In conclusion, the e-commerce website, which deals with audio books, is a very relevant business idea in the modern day era. It has many potential gains from organizations of higher learning, religious groups as well as general population interested in entertainment. However, establishing it has a cost burden in that it requires high capital for installment of the necessary infrastructure to be used in the business. It requires physical planning for the location of the operations quarter, physical components such as the computer systems and the associated hardware as well as the software necessary. Moreover, much is required in technical knowledge for managing the website, transforming relevant materials into audio forms as well as in matters pertaining to security and privacy. Legal procedures in forming and patenting corroborations with Microsoft Corporation as the main anchor are capital intensive. Over and above, the legal requirements from the host country and the information technology provisions within the international scope would be expensive to meet hence the necessity for financial aid from the outlined sources. In a general overview, our financial estimations would range as follows. input Value estimate (000 US dollars) 00 Office headquarters 1000 00 Computer systems 500 00 Patent rights with Microsoft corporation 1000 00 Management and website development software 10000 00 Legal compliance costs 100 00 Human resource (minimum working of 50 IT experts) 100000 00 Total 112600 00 Miscellaneous costs 1000 00 Grand proposal total 113600 00 References Anderson P., (2007). What is Web 2.0? Ideas, technologies and implications for education. JISC Technology and Standards Watch. Retrieved from: Grail research (2011). Insights and observations about generation Z. Consumers of tomorrow, Retrieved from: Klaus I. (2013). Viruses, Trojans, Malware - and other aspects of Internet Security. Apple support communities. Retrieved from:< https://discussions.apple.com/docs/DOC-2435> Mattsson K. (2009). Customer satisfaction in the retail market. Business Economics and Tourism. 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