E-Business and E-Commerce Management - Case Study Example

E-Commerce This study is based on critical appraisal of the growing dominance of Dell in the marketplace and to prepare a counteract course of action for its competitor. The primary issue of discussion is evaluating Dell's website and its e-commerce/e-business strategy. It also assesses how Dell has gained and sustained its competitive advantage. Contents Contents 3 Describe Business Model 5 Describe Revenue Model 5 Describe Marketing Mode 6 Analysis of Co. Web Site 6 Usability 6 User friendliness 6 Consistency 7 E-Commerce transactions of the firm 7 Analysis of Co. Infrastructure 7 Security Systems 7 Ethical/Legal Perspective 8 Technology Related 9 Description of various mechanisms supporting E-Commerce Activities within Co. 9 Strengths and Weaknesses of Co. 10 What have you learned' 10 How will you apply this knowledge' 10 References/ Bibliography 11 I. Introduction Our report will comprise of two sections. Section one, will be accredited to critically appraising Dell's website, a major threat to our clients online success. Using Dell as a benchmark, we will emphasize their key characteristics and make recommendations to our client regarding enhancement of their own e-business strategy. The importance of engineering principles will be extensively covered as well as legal and ethical issues associated with conducting business online. In section two, we will critically appraise the business models used by Dell, identifying their sources of competitive advantage. The technology used to facilitate their success will also be addressed. A concluding summary will emerge from the body of our report, ultimately placing the client in a more competitive position. a. Why chose this co. / what is special or unique about this co' Dell is the largest merchant in selling all types of computer sizes and understand the customer well. It has a great website and the critical appraisal of the website is done for fetching the business model and knowing the sue experience. II. Background on E-commerce Company Besides buying products, Dell allows users to search for products, technical support, articles and solutions, read reviews/ content of the investor relations and corporate governance, recommendations /personalized services. It also provides its customers with online tutorials and order tracking. Users can interact with the technicians via chat services with technicians. Dell also provides intensive support services. Describe Business Model Dell was an early and enthusiastic convert to the Internet, creating its first web site in 1994 and moving many of its business activities to the Internet ahead of its competitors. (Kraemer & Dedrick, 2001) The company witnessed that its direct model gave it a lead in selling online. Unlike indirect vendors such as Apple, IBM, HP and Compaq, Dell did not have to worry about channel conflict with resellers and distributors when it began selling online. It operates in business to consumer model (B2C). Describe Revenue Model Dell represents a new breed of retailers; changing the way business is conducted online with their business to consumer model (B2C.) It is a virtual reseller, one of the main new intermediaries (Sarkar et al, 1996.) They are an electronic-commerce only intermediary; business and customer relationship management (CRM) is conducted purely via their website. Describe Marketing Mode Dell's marketing is done through their site itself. They also resort various other forms of marketing like e-banners and web advertisement in social bookmarking websites. Analysis of Co. Web Site Usability Dell's homepage provides the user with an overview of their whole site, most importantly it speaks about all the products it sells, which is vitally important as (Nielsen, 2002) explains "The homepage is your company's face to the world." User friendliness Dell use standard blue hyperlinks, mouse over navigation, browse box, graphics and a search input box to help users interactively navigate the site, which is very user friendly. Consistency Dell reveals real site content (Nielsen, 2002) offering easy access to recent homepage features. Homepages are updated almost upon every refresh; visual graphics are kept meaningful and often represent new product releases and recommendations, adding to the informal site personality. Text and graphic design is simple, not increasing loading time. Color is basic, mainly white. We recommend the use of a white background; it makes the content easier to read "White in its nothingness acts as a wonderful balance between colors." (Vaishali Singh, 2001.) E-Commerce transactions of the firm Dell's one-click purchasing system considerably increases purchasing efficiency. An Ask Jeeves searching organises bookmarks and saves browsing history, helping flexibility and efficiency of use (Nielsen, 1994 and Instone, 1997.) Dell allows ecommerce transactions using electronic payment methods. Analysis of Co. Infrastructure Security Systems Data encryption: To help protect credit card number and personal information, Dell encrypts every order. Encryption is a process by which we use software to scramble your credit card number and personal information so that they're unreadable by anyone (Forouzan, 2002) but Dell. The Dell Secure Shopping Guarantee: In the unlikely event that customer's credit card company holds you liable for any unauthorized charges to your account resulting from online purchases at dell.com, Dell will cover liability up to '50. Ethical/Legal Perspective Legal and ethical issues are vital to online success. Building trust and user confidence is essential to our client, respecting consumer privacy and adhering to data protection legislation. "Consumers are extremely concerned about security and privacy on the Internet" (Trepper, 2000.) The online store at www.dell.co.uk is designed to give options concerning the privacy of one's credit card information, name, address, e-mail, and any other information provided. Dell is committed to keeping the information collected over the site secure. It offers the industry standard security measures available through the browser called SSL encryption. If at any time a customer would like to make a purchase, but do not want to provide credit card information online, an order can be placed without credit card information and a representative will contact them. Alternatively, a sales representative can always be contacted over telephone. It is Dell's policy to contact customers in the event of a potential problem with their purchase or any normal business communication regarding purchase. Technology Related "Dell takes customer fears about security seriously" (Chaffey, 2004) we strongly recommend the competitor to emulate Dell's security policies to provide customer reassurance. Dell makes clear terms of trade and offer warranties/returns policy. They address copyright, patents and trademark protection, which Dell's competitor should adopt. Description of various mechanisms supporting E-Commerce Activities within Co. Technology is vital to Dell's continued cut-throat advantage. Over the last several years, Dell has consolidated a wide range of legacy systems to its own industry standard platforms - allowing the company to realize dramatic financial and operational efficiencies. It has improved the manageability and availability of equipment, saved resources, improved skill utilization and service levels, simplified the computing environment, and increased overall organizational flexibility. Strengths and Weaknesses of Co. The various strengths are increased customer support and enriched sales through the website. What have you learned' Dell presence in the internet is quite genuine and offers high usability and attracts the customer base for all types of customers using its technology and consistency in the website. One must replicate the Dell's presence and usability for growth. The business model is worth noting. How will you apply this knowledge' This knowledge can be applied in fetching the right ecommerce website with high acceptance towards customers and to build up a standard website for business. References/ Bibliography Chaffey, D. (2004) E-Business and E-Commerce Management, 2nd Edition, Prentice Hall, Pearson Education Limited, pp.46, 53, 55, 224, 492. Murugesan, S. & Ginige, A. (2005) Web Engineering: Introduction And Perspectives. Pressman. R. (2000) Software Engineering: Practitioners Approach, McGraw-Hill, Maidenhead. Trepper, C. (2000) E-Commerce Strategies, Mapping your Organizations success in today's competitive marketplace, Microsoft Press, pp.138-140, 153. Read More