Business Strategy for e-Commerce: A-to-Z Online Library - Case Study Example

Business Strategy for e-Commerce Name Institution Business Strategy for e-Commerce: A-to-Z Online Library Business Overview/Industry Description A-to-Z Online Library is one of the emerging business entities focus on exploiting information technology in the provision of quality services to consumers. The company focuses on providing e-books, journal articles, e-thesis, and other relevant products with the intention of offering diverse purposes. Students and researchers have the ability and opportunity to buy or borrow the materials of our company in addressing their needs in private. Information technology (IT) will be essential to improve the output of this essence of e-commerce while maximizing competitive advantage in the industry of transaction. There are numerous companies operating in this industry. Some of the major players within the industry include Amazon, e-Bay, and online stationeries or libraries with reference to e-thos, and Book-zz. The report will evaluate the operations of these organisations, how they implement information technology, and assess the similarities and differences in operations with this emerging company. Industrial Analysis and Information Technology Implementation In the course of understanding the industrial activities, it is essential to integrate Porter’s five forces tool, which is ideal in understanding the presence of power within the business situation. The tool is critical in understanding strength of the current position as well as factors affecting the strategy development. On the one hand, business entities in this industry have marked advantages with most of their providers with reference to boos, audio, and technology since they do not charge their products until they sell them, which is an illustration of strategy for big companies. In addition, companies within the industry pay suppliers for the products after about a month after selling of the product such as the case of Amazon.com. However, suppliers are ready and willing to provide their services and products to organisations operating within the industry. On the other hand, there is minimal cost in the movement from one supplier to another, thus reduction in the substantial powers of the suppliers within the industry. The power of buyers in the industry is relatively low. Most buyers focus on obtaining products or books and articles from the online platforms such as e-Bay and Amazon.com because they do not have the required time to visit physical stores for the procurement of such products. Consumers are responsive to low prices and quality in relation to products on offer. In addition, it is hard to reach these prices with the level of competence. Low prices operate as the critical attraction for the companies in the industry. There is also low switching cost from one company to another, thus ensuring that consumers gain substantial power in pursuit of their needs and demands on the internet platforms. The level of competition or rivalry is high in the industry. This is through massive number of service providers or operators within the industry. One of the first companies into the e-commerce field is Amazon.com. This is vital in the provision of substantial level of tranquillity into the market. Nevertheless, organisations within the industry focus on exploitation of information technology to enhance their innovation practices with the intention of satisfying the needs and preferences of the consumers in the market of transactions. This is vital in assuring the position of the companies within the industry and market of operation for future years. Another element of analysis is the issue of substitution. Critical operators in the market have been on the forefront in innovating their products and services for realisation of competitive advantage. Major players focus on the usage of their quality images and reputation into the field of operation. There is low threat of substitution to these products and services in the market, thus the perfect platform for the achievement of the goals and objectives in accordance with the demands and needs of the consumers. Internet has been one of the essential tools for interaction and provision of services in accordance with the demands of the consumers in the markets and industries of transaction. Expansion of internet technology has made it easier for other business entities to enter the market. This is evident in the development of their internet platforms or websites in the shortest time possible with reference to Facebook.com, YouTube.com, and Twitter.com. This is an expression that there is a potential threat of new entries into the market and industry of transaction. In the achievement of competitive advantage, it is critical for the business entities to create an edge over diverse competitors within the industry. In the aggressive business context in the contemporary economy, every advantage is vital in the establishment of the business into one of the top entities in the industry (Robert, 2001). Business entities in this industry have been on the forefront towards exploiting and implementing information technology in the course of achieving competitive advantage in the market and industry of transaction. In the first instance, business entities in the industry focus on the usage of information technology to increase buyer’s power for diverse products and services. In the competitive industry, buyers tend to have numerous choices. In the achievement of competitive advantage, it is essential to integrate information technology tools to enhance attraction of customers’ attention towards the specific services and products (Ross, 2006). This is through usage of internet in promoting rewards as well as coupons to the customers, thus improving engagement between the consumers and business entities in the industry. In addition, business entities in this industry focus on the usage of information technology to reduce supplier power while seeking to enhance their profit and revenues at the end of the fiscal year. High supplier power is detrimental to the growth and development of the business entity. Information technology is essential in enabling business entities to locate more suppliers in their market or niche, which is ideal in the achievement of competitive advantage against major operators in the industry. Business entities within the industry also use information technology in the course of creating entry barriers, thus limitation of the level of competition in the niche of operation. For business entities to achieve their goals and competitive advantage, it is essential to create barriers to diverse niches (Ciborra, 2001). If it is easier for other operators to enter the market, business entities will not survive for long. It is critical to understand that business entities should not settle for survive, hence the need to plan and make sure that organisations rule their niche for substantial period. Some of the successful business entities such as Amazon.com and e-Bay have been on the forefront in exploiting information technology in the course of creating barriers to market entry. Such entities tend to find or locate diverse factors in the course of creating barriers for potential companies seeking to enter the market. A-to-Z Online Library will focus on the usage of information technology in the course of achieving competitive advantage in the industry of transaction. This is through increasing the awareness of the customers on the existing products in the market or niche of interest. In addition, information technology tools will be essential in understanding the demands and perceptions of the consumers with the intention of improving their satisfaction levels. The purpose of the company is to exploit information technology in the course of creating ‘wow effect’ among the actual and potential customers (Jelassi et al, 2014). The approach will enable the company to implement information technology to surpass expectations of our customers in the niche of operation or transaction. It is also ideal for the business entity to address the demands and queries of the customers in relation to provision and consumption of the services and products on the internet platforms. Justification of Recommendations for the use of IT in A-to-Z Online Library In the course of enhancing its competitive advantage, A-to-Z Online Library, I would recommend effective utilisation of information technology with the intention of exploiting different internet platforms as evident in the discussion below. Website Design and Content A-to-Z Online Library should focus on developing and integrating effective and efficient website as well as valuable content with the intention of interacting with the actual and potential customers effectively and efficiently. Website is vital in ensuring that business entities gain ideal information concerning the company, which is crucial in the generation of quality image and reputation (Gottschalk, 2006). The company should integrate interactive website with the intention of enabling customers to navigate through diverse products and services as well as links. The website will be critical in ensuring that customers order and pay for the products with reference to e-books, journal articles, and e-thesis in accordance to their demands and preferences. Development of websites and quality content is far cheaper and much more flexible than print advertising. The website advertisements are accessible for longer period. In addition, the organisation will have the opportunity to change web content with improved flexibility and convenience (Abraham, Gale, & Krell, 2005). It is also critical to note that websites will enable the online library to expand its niche or market of operation through breaking of geographical barriers while focusing on actual and potential customers with internet access. Integration of websites is also vital in increasing convenience, value, and satisfaction of consumers. There is also the opportunity for the organisation to improve its growth, credibility, and standardize its sales performance. From this illustration, it is essential to note that website will enable the company to reach wider niche in comparison to other aspects of advertising. On the other hand, it might take much time for the organisation to build up sufficient or enough traffic to its website to make valuable impact on the marketing campaign (Straub, 2004). Fortunately, it costs next to nothing for an organisation to build enough traffic with the purpose of enhancing visibility of the content, products, and services of the company in this e-commerce industry. SEO and related Issues Search Engine Optimization (SEO) refers to the approach or mechanism by an organisation or business entity in improving and enhancing the visibility of its website or webpage in the search engine’s natural or organic search results (Al-Qirim, 2004). A-to-Z Online Library should focus on adhering to this technological tool with the intention of improving its market position and coverage in the industry of transaction. In the first instance, SEO is vital in ensuring that the online library achieves cost-effectiveness in its interactions with the consumers and other relevant stakeholders. It is essential to note that the organisation will not pay the search engine for the advertisement (Afuah &Tucci, 2003). Well-ranked organisations in the SEO ensure that such companies have the perfect platform in becoming visible across the globe. Moreover, utilisation of SEO is critical in ensuring a continuous flow of free as well as targeted traffic. It is also ideal to note the SEO will be critical in exposing the online library to individuals or customers looking for solutions to their needs and expectation, thus increasing substantial traffic to the website of the company (Mintzberg, Ahlstrand, & Lampel, 2008). On the other hand, the company should focus on managing diverse issues in relation to the use of SEO in enhancing market coverage and expansion. For instance, the position of an organisation in the search engine is unpredictable since all activities depend on the essence of algorithm. From this perspective, the company has no substantial information on the happening of the return of the investment. In addition, SEO eliminates the total control by an organisation over everything even under the presence of a website. SEO is also time consuming since it takes a long time for the organisation to improve its standing a notch. It is ideal to note that participants tend to use black hat tactics with the intention or purpose of gaining competitive advantage in the market and industry of transaction (Khosrow-Pour, 2006). The presence of these unfair practices is essential in hindering the growth and development of the company. The mentioned illustrations indicate that integration of SEO does not guarantee results. Nevertheless, the company should concentrate on utilising these technological advancements to enhance the market position and coverage in relation to A-to-Z Online Library. Use of Social Media (Facebook & Twitter) A-to-Z Online Library should consider utilisation of the current social media platforms such as Facebook and Twitter with the intention of increasing consumer base. This is through reaching actual and potential customers in the course of maximising market opportunities while reducing cost of operation and provision of products as well as services in accordance with the demands and perceptions of the consumers. Social media platforms will ensure that the library increases its market coverage in flexible, convenience, and cost-effective approaches such as Facebook and Twitter platforms (Hammell & Carpenter, 2004). In this context, the organisation should consider incorporation of compelling and relevant content with the purpose of grabbing attention of the current and potential customers thus increase in the brand visibility. Moreover, the company will have the perfect conditions to respond instantly to the industrial developments, hence possessing substantial information in the modern context (Leon et al 2008). Utilisation of the social media platform will boost links to website content through appearance in the universal search results, which is an opportunity to increasing traffic and online sales. Social media platforms are much cheaper in comparison to the traditional promotional and advertising activities. The approach will be ideal on provision and delivery of improved customer service while responding effectively and efficiently to the customer feedback (Saarinen, Tinnilä, & Tseng, 2005). Customers will locate the organisation or online library through new channels, thus an opportunity to generate more leads while increasing loyalty as well as advocacy from customers within the connection. On the other hand, implementation of the social media platform will demand commitment of resources by the organisation to manage the presence of social media while responding to feedback and production of new content. It is also difficult to quantify the return on investment and the actual value of one channel in comparison to another. There might be the essence of ineffective use of the social media platforms with the failure to engage with customers or failing of the company to respond to the negative feedback, which might affect the image and reputation of the online library. The company should focus on improving effectiveness and efficiency in handling social media platforms in the course of marketing and promoting products and services to limit the presence of these obstacles. E-commerce E-commerce is one of the potential technological advancements, which has been critical in transforming and shaping perception of the individuals in the contemporary world. Integration of e-commerce by A-to-Z Online Library will be essential in ensuring that consumers and other stakeholders procure and enjoy products and services on the internet platform. E-commerce will ensure that the library exploits numerous advantages (Epstein, 2004; Rahman, 2008). In the first instance, e-commerce will ensure that consumers do not stand in queues or being placed on hold forever in attempts to satisfy their needs and expectations. It is also easier for the consumers to compare favourable prices in accordance with their financial resources, which is vital for the improvement of services and products in accordance with the demands and perceptions of the consumers in the niche and industry of transaction. E-commerce also provides improved accessibility to remote-located stores, particularly for the individuals not situated in the major urban areas. There is also massive reduction in the overhead costs. This is because of the existence of no need for the physical stores in the course of handling different business activities and process in relation to the needs and expectations of the consumers. The organisation will also engage consumers through the influence of the commonly available coupons as well as deals. Similarly, consumers will have the opportunity to experience increased choices in pursuit of satisfaction of their needs and requirements (Bornheim et al, 2001). On the other hand, the organisation will have the perfect chance of overcoming limitations with reference to store size and absence of shelf in the course of offering and distributing products and services to the actual and potential customers in the industry of transaction. These attributes are key to the success, growth, and development of the business organisation. Alignment of Information Technology Strategy to Business’ Overall Strategy The overall business strategy is to integrate effective and efficient mechanisms with the purpose of achieving cost and differentiation competitive advantages. These approaches are critical in the elimination of competition in the market and industry of transaction hence the need to persuade consumers to procure our quality and valuable products in the course of addressing their needs and potential requirements (Currie, 2004). In the course of achieving the cost and differentiation strategies or desired outcome, it is critical for the business entity (A-to-Z Online Library) to align its information technology with the business’ overall strategy. This will be crucial towards the achievement of success in the modern context while reducing the cost of operations and provision of services as well as products to consumers within the niche of transaction. In the first instance, the alignment of the information technology with the business’ overall strategy will relate to the mission and vision statements of the company. The mission of the company is to offer quality products and services, which will be ideal in placing the organisation in the perfect position to achieve its desired profitability levels at the end of the fiscal period. From this perspective, the organisation should adopt and implement information technology tools, which will enhance the provision and delivery of services to the consumers in the most effective and efficient approach or manner (Corbitt & Al-Qirim, 2004). The employees should understand the mission, vision, and value of the company in the course of exploiting these information technology tools to aid the rapid growth and development of the business entity in the market and industry of transaction. It is also critical for the organisation to modify its structures and organisational culture to accommodate information technology systems and tools in the niche of transaction. This is through exploitation of these tools in the course of improving efficiency in satisfying needs of the consumers in the market and industry of engagement. It is critical for the business organisation to increase its output through the influence of information technology. Alignment of the business technology with the business’ overall technology should consider integration of the policies into the organisation’s policies and programs. This will enhance effectiveness and efficiency in managing elements of costs and differentiation as the critical elements of competitive advantage in this niche of transaction. Information Technology in the development of A-to-Z Online Library Information technology is one of the most effective and efficient tools in the concept of marketing and purchasing products and services on the online platforms. In the first instance, customers have the opportunity to use information technology in the course of making valuable buying decisions, staying in touch with friends and families, and developing personal and professional relationships. On the other hand, organisations tend to use information technology in the course of enhancing niche coverage and visibility in the industry of transaction. A-to-Z Online Library will focus on the usage of information technology to achieve substantive development in the next 15 to 20 years. This is through extensive exploitation of the social media marketing techniques. It is essential to understand the concept of social media and business development of the achievement of success in interacting with consumers in the market and industry of transaction. In addition, there is need to implement an appropriate social media strategy with goals such as attraction of more customers, boosting recognition of the brand, and improvement of customer services. From this perspective, utilisation of social media platforms such as Facebook and Twitter will enable A-to-Z Online Library to increase customers’ base, improve the image and reputation of the brand, and enhance the quality of customer service through focusing initial efforts on the platforms the audiences are most likely to use. For instance, if the target audiences are most likely to use Facebook, it is critical to focus on Facebook, which will be ideal in increasing the niche coverage as well as increased level of revenues at the end of the fiscal period. The company will consider integration of the five key social media platforms for marketing and communication purpose. These platforms include Facebook, Twitter, YouTube, Google+, and LinkedIn. The level of focus will be critical in understanding the demands and needs of our consumers within the market and industry of transaction. Similarly, integration of information technology in the online library will focus on automation of the process of procuring and paying for the services or activities by the institution. This is ideal in understanding the importance information technology in improving the operations of the business entity in the next 15 to 20 years of operation. Information technology will be ideal in the improvement of the image and reputation of the online library. This relates to increased accessibility to information, which would be vital in reducing powers of suppliers in the market through generating numerous alternatives. It is also critical for the consumers to access information on our products and services hence the possibility of maximising the platforms to interact effectively and efficiently with the consumers in the market and industry of transaction. Information technology will also be ideal in the generation of diverse market entry barriers for other organisations. This will be essential in increasing profitability levels within the niche, hence ideal platform for rapid growth and development. References Abraham, D., Gale, J., & Krell, T. (2005). Organizational transformation and e-business implementation. Bradford, England: Emerald Group Pub. Afuah, A., & Tucci, C. L. (2003). 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