E-Business Strategy of CK-E-LINK - Report Example

CK-E-LINK Table of Contents Introduction 3 Discussion 3 Analysis of Industry by Porter Five Forces 3 Analysis of the Business Environment of the organization by SWOT 4 Value Proposition of CK-E-LINK 5 E-Business Strategy of CK-E-LINK 5 E-Marketing Plan 8 Potential Risks and Downsides 8 References 10 Introduction In the recent years, the living standard and lifestyle of the individual enhanced with a remarkable percentage. This is mainly due to the enhancement of the per capita income of the citizens that also offered a considerable impact over their buying behaviors. As a result of which, the demand of the organizations operating under the umbrella brand of Chinese and Korean foods enhanced to a significant extent as compared to many other rival players. As a result, the demand and profit margin of the Chinese and Korean dishes enhanced that improved its loyalty and dominance in the market of United Kingdom. Moreover, as most of the individual in this age are busy in their professional life, so the craze of Chinese and Korean food dishes increased. As a result, the profitability and brand value of the organization selling varied types of Chinese and Korean dishes enhanced resulting in amplification of its popularity in the market. Therefore, due to remarkable growth of the Chinese and Korean dishes, clothes and accessories, the brand image and equity of CK-E-LINK increased. However, in order to increase its range of customers and total sales, the organization of CK-E-LINK desired to create an online presence along with brick and motor presence (Li, 2007, pp. 867-886). Discussion Analysis of Industry by Porter Five Forces In order to analyze the industry and business scenario of Chinese and Korean food items, Porter’s five forces is used. This is because; it is considered as one of the best analytical tool to evaluate the market competitiveness of United Kingdom. Threat of Substitute products: The threat of substitute products related to Chinese and Korean food items is extremely high. This is mainly due to the presence of numerous rival brands of Chinese and Korean food items and accessories in the market of United Kingdom. Due to which, the rate of competitiveness in the market of United Kingdom is extremely high for the organization of CK-E-LINK as compared to other segments. However, in order to enhance its popularity and dominance in the market of United Kingdom, the organization needs to offer varied types of dishes such as jajangmyeon, jjamppong, tangsuyuk, kkanpung saeu, staples, ancillaries, beverage and many others. Only then, the organization of CK-E-LINK might attract the customers of varying cultures, creed and races that may improve its total sales and profitability. Bargaining power of the suppliers: due to the presence of very few suppliers in the market of United Kingdom, the bargaining power of the suppliers is quite high. As a result, the organizations operating in the segment of Chinese and Korean food dishes had to offer high prices at the time of purchasing the raw materials for their dishes. The high price of the raw materials offers a considerable impact over the net income of the organization of CK-E-LINK. Bargaining power of the Buyers: Due to the presence of numerous competitors such as Hakkasan, Yauatcha, Bar shu, Kai Mayfair and many others, the bargaining power of the customers in the market of United Kingdom is extremely high. However, in order to retain the customers for a longer period of time, the organization of CK-E-LINK might try to offer varied types of Chinese and Korean Cuisines such as staples, condiments, jjamppong, kkanpunggi and many others. Apart from this, the organization of CK-E-LINK might also try to offer varied types of discounts in order to reduce the switchover costs of the customers (Li, 2007, pp. 765-778). Threat of new entrants: as the citizens of United Kingdom offer high preference for Chinese and Korean food items, so maximum extent of the organizations, operating in this segment desire to create its position. As a result, the threat of new entrants is extremely high in the market of United Kingdom as compared to others. However, in order to maintain its popularity and brand value in the market, the organization of CK-E-LINK need to offer its qualitative products at competitive prices. Competitive rivalry among the firms: due to the presence of numerous competitors in the market of United Kingdom, the rate of rivalry is extremely high. However, in order to cope up with such type of rivalry, the organization of CK-E-LINK need to offer high concentration over relationship marketing. It is prove effective for the organization in enhancing its image and popularity in the market among others. Analysis of the Business Environment of the organization by SWOT The business environment of the organization of CK-E-LINK is analyzed with the help of SWOT analysis. Strengths: Wide range of products: the organization of CK-E-LINK comprises of wide range of products that enhanced its market demand and profitability in the market of United Kingdom. High market value: the market value of the organization of CK-E-LINK is quite high due to the presence of varied types of modern and trendy accessories and clothes. Weakness: Only brick and mortar presence: the organization of CK-E-LINK do not comprise of any online presence. Due to which, the organization of CK-E-LINK fails to attract a wide range of customers of various nations and countries. As a result, the net income and profit margin of the organization of CK-E-LINK is quite low. Opportunities: Expansion in new markets: the organization of CK-E-LINK desires to increase its dominance and market share by expanding into new markets. By doing so, the profitability and competitive position of the organization might also get increased (Li, 2007, pp. 554-565) Threats: Numerous substitute products: the threat of substitute products is extremely high in the market of United Kingdom. Therefore in order to retain the market share of the organization of CK-E-LINK, it needs to offer various new dishes so as to retain its customers. Value Proposition of CK-E-LINK The value proposition of the organization of CK-E-LINK is to offer hygienic and qualitative products at an affordable cost. This is because; in this age, most of the customers crave for extremely hygienic and cholesterol free dishes, so as to get freedom from varied types chronic disorders such as obesity, heart diseases, stroke etc. This might prove effective for the organization of CK-E-LINK to create a distinctive image and position for itself in the market that may attract a wide range of customers. E-Business Strategy of CK-E-LINK In order to enhance its range of customers, the organization of CK-E-LINK might try to create an online presence. However, in order to do so, it need to understand the below mentioned strategies in an effective way. Strategies for E-business Source: E-business Channel Priorities: in this age, the preference of online sites is extremely essential for an organization, operating in any segment. Keeping this fact in mind, the organization of CK-E-LINK might desire to develop its E-commerce website (Luo & Tung, 2007, pp. 432-443). However, prior developing the website, it is extremely essential to identify the target group of customers and its preferable products. Only then, the organization of CK-E-LINK might become able to enhance its profitability and brand value in the market of United Kingdom among other rival players. Not only this, the organization of CK-E-LINK also needs to select the best distribution system in order to present the products to its customers at the requisite time period. Only then, its position and brand image might be retained. Source: (Luo & Tung, 2007). Market and Product development strategies: in order to increase the portfolio of the organization of CK-E-LINK, it needs to enhance its existing products lines. This may be possible by introducing varied types of inventive as well as hygienic dishes for the diet conscious customers of United Kingdom. This might increase the range of customers and net income of the organization. Other than this, it might try to penetrate into new markets of London, France, Belgium or Netherlands so as to improve its position and market share. Apart from these options, it might try to diversify to new segments such as makeup items for both males and females in order to enhance its dominance and reliability in the market of United Kingdom. Source: (Kotler, 1998). Positioning and differentiation strategies: the organization of CK-E-LINK might position its products mainly for the fashion conscious and diet alert youths. It might present its products at a competitive cost so as to distinguish itself from other competitors. Business, Service and revenue models: in order to enhance its image and profitability, the organization of CK-E-LINK might try to offer more concentration over revenue models as compared to business or service models like sale of clothes, sale of Korean dishes or sale of trendy accessories. Market Place restructuring: by restructuring the marketplace, the organization of CK-E-LINK might become able to understand its opportunities as well as up-coming threats. By doing so, the organization might implement its strategies in such a way, so that it might reduce its threats and enhance its strengths (Kotler, 1998, pp. 332-343). SCM capabilities: prior developing an online presence, the organization of CK-E-LINK needs to improve its SCM capabilities so as to supply the products to its customers at accurate time period. Internal Knowledge capabilities: in order to enhance the internal skills and talents of the employees of the organization of CK-E-LINK, varied types of training and developmental programs need to be implemented. Only then, the employees of the organization of CK-E-LINK might become capable to develop varied types of inventive dishes and accessories. This might enhance the profitability and brand image of the organization of CK-E-LINK in the market of United Kingdom. Organizational resources and capabilities: in order to enhance the strengths of the organization of CK-E-LINK, it needs to increase its product lines. Along with this, it needs to maintain competitive pricing so as to increase its popularity and dominance in the market of United Kingdom as compared to many other rival players. Apart from this, CK-E-LINK need to enhance the capabilities and skills of the employees by implementing varied types of workshops and training programs. This might improve the strengths and decline the weaknesses. Therefore, it might be stated that, if the above mentioned strategies might be followed then the desire of the organization CK-E-LINK to develop an online site might surely prove worthy. E-Marketing Plan The organization of CK-E-LINK needs to undergo an extensive market research so as to analyze the policies and strategies of the existing competitors of the market of United Kingdom. After doing so, it might become extremely easy for the organization of CK-E-LINK to devise its target customers and marketing mix strategies. The products of the organization of CK-E-LINK mainly target the customers within age-group (12- 50 years), who are extremely fascinate about fashion and diet (Kotler & Keller, 2012, pp. 223-234). Apart from this, the organization of CK-E-LINK might try to implement competitive pricing and cost leadership strategy so as to improve its market share and equity in the market of United Kingdom. Furthermore, the organization of CK-E-LINK might try to promote its products through social media sites such as face-book, twitter and LinkedIn in order to increase the awareness of the customers. Only then, the profitability and demand of the products of the organization of CK-E-LINK might get increased resulting in amplification of its distinctiveness and reliability in the market of United Kingdom among other rival contenders. Moreover, the range of customers might also be increased to a significant extent thereby amplifying its supremacy and brand value in the market. Potential Risks and Downsides Online sites offer both positive and negative impacts over an organization. For example: wrong update of the information about the products might prove problematic for the organization of CK-E-LINK. This is because; due to wrong update, the relationship with the customers might be reduced that may decline the brand image and profitability of the organization of CK-E-LINK. As a result of which, the range of customers might get reduced that may hinder the growth and reputation of the CK-E-LINK to a considerable extent. Other than this, if the organization of CK-E-LINK fails to offer the products to the residence of the customers at the requisite time period, then it might reduce the level of reliability and trust of the brand within his mind. As a result, the customer might post a bad feedback in the website that may hinder the dominance and popularity in the market among other rival players (ESOMAR, 2008, pp. 123-134). Moreover, due to this depressing feedback, numerous loyal customers might switchover to other brands that may reduce its net income and profitability in the market of United Kingdom. References ESOMAR. 2008. Market Research Handbook. London: Sage. Kotler, P. & Keller, K. 2012. Marketing management. Harlow, NJ: Pearson Education. Kotler, P. 1998. Marketing Management. Harlow, NJ: Pearson Education Luo, Y. & Tung, R. L. 2007. "International expansion of emerging market enterprises: A springboard perspective." Journal of International Business Studies 38(4): 481-498. Li, P. P. 2007. "Toward an integrated theory of multinational evolution: The evidence of Chinese multinational enterprises as latecomers." Journal of International Management Vol.13(3), pp. 296-318. Read More